MASIMO CORP, 10-K filed on 2/27/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Jan. 03, 2026
Jan. 31, 2026
Jun. 28, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --01-03    
Document Period End Date Jan. 03, 2026    
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     $ 3.9
Entity Common Stock, Shares Outstanding   52,192,538  
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 2026 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 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000937556    
v3.25.4
Audit Information
 12 Months Ended
Jan. 03, 2026
Audit Information [Abstract]  
Auditor Name GRANT THORNTON LLP
Auditor Location San Francisco, California
Auditor Firm ID 248
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Current assets    
Cash and cash equivalents $ 152.3 $ 123.6
Accounts receivable net current 275.8 283.2
Assets held-for-sale - (Note 8) 0.0 17.4
Inventories 380.3 294.8
Other current assets 116.6 103.4
Other current assets, held-for-sale - (Note 18) 1.0 403.4
Total current assets 926.0 1,225.8
Lease receivable, non-current 43.1 58.7
Deferred costs and other contract assets 62.6 61.0
Property and equipment, net 355.1 337.0
Intangibles assets, net 52.1 61.6
Goodwill 101.0 96.7
Deferred tax assets 114.2 118.4
Other non-current assets 44.7 51.3
Other non-current assets, held-for-sale - (Note 18) 0.1 615.2
Total assets 1,698.9 2,625.7
Current liabilities    
Accounts payable 103.0 129.0
Accrued compensation 83.7 78.7
Deferred revenue and other contract-related liabilities, current 73.2 76.9
Other current liabilities 109.2 115.4
Other current liabilities, held-for-sale - (Note 18) 2.5 217.7
Total current liabilities 371.6 617.7
Long-term debt 518.0 714.3
Deferred tax liabilities 0.2 0.2
Other non-current liabilities 87.8 70.9
Other non-current liabilities, held-for-sale - (Note 18) 0.1 170.7
Total liabilities 977.7 1,573.8
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; 52.1 and 53.6 shares issued and outstanding at January 3, 2026 and December 28, 2024, respectively 0.1 0.1
Treasury stock, 22.0 and 19.5 shares at January 3, 2026 and December 28, 2024, respectively (1,534.9) (1,169.2)
Additional paid-in capital 929.1 838.3
Accumulated other comprehensive loss (12.5) (108.2)
Retained earnings 1,339.4 1,490.9
Total stockholders’ equity 721.2 1,051.9
Total liabilities and stockholders’ equity 1,698.9 2,625.7
Nonrelated Party    
Current assets    
Accounts receivable net current 260.9 268.9
Related Party    
Current assets    
Accounts receivable net current 14.9 14.3
Intangibles assets, net    
Current assets    
Intangibles assets, net $ 52.1 $ 61.6
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Jan. 03, 2026
Dec. 28, 2024
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 4.5 $ 3.5
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
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) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 100.0 100.0
Common stock, shares, issued (in shares) 52.1 53.6
Common stock, shares, outstanding (in shares) 52.1 53.6
Treasury stock, shares (in shares) 22.0 19.5
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands, shares in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Total revenue $ 1,526,900 $ 1,395,200 $ 1,275,500
Cost of goods sold 581,700 600,900 509,900
Gross profit 945,200 794,300 765,600
Operating expenses:      
Selling, general and administrative 506,000 548,600 451,300
Research and development 126,400 182,200 130,500
Litigation settlements 2,800 500 17,800
Total operating expenses 635,200 731,300 599,600
Operating income 310,000 63,000 166,000
Non-operating loss (37,400) (41,200) (53,000)
Income from continuing operations before provision for income taxes 272,600 21,800 113,000
Provision for income taxes 64,900 5,600 5,300
Net income from continuing operations, net of tax 207,700 16,200 107,700
Net (loss) from discontinued operations, net of tax - (Note 18) (359,200) (321,100) (26,200)
Net (loss) income $ (151,500) $ (304,900) $ 81,500
Net (loss) income per share:      
Basic income per share - continuing operations (in dollars per share) $ 3.88 $ 0.30 $ 2.04
Basic (loss) per share - discontinued operations (in dollars per share) (6.70) (6.02) (0.50)
Basic (loss) income per share (in dollars per share) (2.83) (5.72) 1.54
Diluted income per share - continuing operations (in dollars per share) 3.83 0.30 1.99
Diluted (loss) per share - discontinued operations (in dollars per share) (6.63) (5.90) (0.48)
Diluted (loss) income per share (in dollars per share) $ (2.80) $ (5.60) $ 1.51
Weighted-average shares used in per share calculations:      
Basic (in shares) 53.6 53.3 52.8
Diluted (in shares) 54.2 54.4 54.1
Nonrelated Party      
Total revenue $ 1,408,400 $ 1,281,100 $ 1,181,600
Related Party      
Total revenue $ 118,500 $ 114,100 $ 93,900
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Statement [Abstract]      
Net (loss) income $ (151.5) $ (304.9) $ 81.5
Other comprehensive (loss) gain, net of tax:      
Unrealized gain (loss) from foreign currency translation adjustments 56.5 (61.8) (45.1)
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations 44.5 0.0 0.0
Net change in retirement obligations (0.5) 0.2 (2.9)
Unrealized (loss) on cash flow hedge [1] (4.8) (1.3) (8.8)
Total comprehensive (loss) income $ (55.8) $ (367.8) $ 24.7
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,338.9 $ 0.1 $ (1,169.2) $ 782.2 $ 11.5 $ 1,714.3
Beginning balance (in shares) at Dec. 31, 2022   52.5        
Beginning balance (in shares) at Dec. 31, 2022     19.5      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock options exercised (in shares) 0.2 0.2        
Stock options exercised $ 7.1     7.1    
Restricted/Performance stock units vested (in shares)   0.2        
Shares paid for tax withholding (in shares)   (0.1)        
Shares paid for tax withholding (12.9)     (12.9)    
Stock-based compensation 7.0     7.0    
Net change on pension obligations (2.9)       (2.9)  
Unrealized (loss) on cash flow hedge (8.8) [1]       (8.8)  
Net (loss) income 81.5         81.5
Foreign currency translation adjustment $ (45.1)       (45.1)  
Repurchases of common stock (in shares) 0.0          
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations $ 0.0          
Ending balance (in shares) at Dec. 30, 2023   52.8        
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     19.5      
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) 0.6 0.6        
Stock options exercised $ 25.2     25.2    
Restricted/Performance stock units vested (in shares)   0.3        
Shares paid for tax withholding (in shares)   (0.1)        
Shares paid for tax withholding (11.8)     (11.8)    
Stock-based compensation 41.5     41.5    
Net change on pension obligations 0.2       0.2  
Unrealized (loss) on cash flow hedge (1.3) [1]       (1.3)  
Net (loss) income (304.9)         (304.9)
Foreign currency translation adjustment $ (61.8)       (61.8)  
Repurchases of common stock (in shares) 0.0          
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations $ 0.0          
Ending balance (in shares) at Dec. 28, 2024 53.6 53.6        
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 19.5   19.5      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,051.9 $ 0.1 $ (1,169.2) 838.3 (108.2) 1,490.9
Stock options exercised (in shares) 0.8 0.8        
Stock options exercised $ 71.4     71.4    
Restricted/Performance stock units vested (in shares)   0.3        
Shares paid for tax withholding (in shares)   (0.1)        
Shares paid for tax withholding (18.0)     (18.0)    
Stock-based compensation 37.4     37.4    
Net change on pension obligations (0.5)       (0.5)  
Unrealized (loss) on cash flow hedge (4.8) [1]       (4.8)  
Net (loss) income (151.5)         (151.5)
Foreign currency translation adjustment $ 56.5       56.5  
Repurchases of common stock (in shares) 2.5 (2.5) 2.5      
Repurchases of common stock $ (365.7)   $ (365.7)      
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations $ 44.5       44.5  
Ending balance (in shares) at Jan. 03, 2026 52.1 52.1        
Ending Balance at Jan. 03, 2026 $ 721.2 $ 0.1 $ (1,534.9) 929.1 (12.5) 1,339.4
Ending balance (in shares) at Jan. 03, 2026 22.0   22.0      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 721.2 $ 0.1 $ (1,534.9) $ 929.1 $ (12.5) $ 1,339.4
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Cash flows from operating activities:      
Net (loss) income $ (151.5) $ (304.9) $ 81.5
Loss from discontinued operations, net of tax (359.2) (321.1) (26.2)
Net income from continuing operations, net of tax 207.7 16.2 107.7
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation and amortization 38.8 48.5 38.9
Stock-based compensation 35.8 36.1 6.1
Amortization of debt issuance costs 3.0 1.9 1.9
Loss on disposal of inventory, equipment and other assets 7.0 96.8 0.8
Provision for credit losses 3.0 1.2 1.1
Benefit from deferred income taxes 11.8 (23.3) (19.8)
Changes in operating assets and liabilities:      
(Increase) decrease in trade accounts receivable 2.2 (55.3) 54.4
(Increase) decrease in related party receivable (0.7) (7.0) 4.0
(Increase) decrease in inventories (112.1) (22.5) (106.4)
(Increase) decrease in other current assets 11.5 7.8 31.2
(Increase) decrease in lease receivable, net 15.7 12.7 1.7
(Increase) decrease in deferred costs and other contract assets (2.5) (3.9) (14.6)
(Increase) decrease in other non-current assets 5.5 (2.0) 3.9
Increase (decrease) in accounts payable (27.1) 10.6 (8.4)
Increase (decrease) in accrued compensation 12.2 22.2 (11.8)
Increase (decrease) in deferred revenue and other contract-related liabilities 3.7 17.9 8.8
Increase (decrease) in income taxes payable 3.9 (5.4) 0.2
Increase (decrease) in accrued liabilities (7.3) 15.6 0.3
Increase (decrease) in other non-current liabilities 5.1 (5.6) (0.4)
Net cash provided by (used in) operating activities from continuing operations 217.2 162.5 99.6
Net cash provided by (used in) operating activities from discontinued operations 0.6 33.9 (5.5)
Net cash provided by (used in) operating activities 217.8 196.4 94.1
Cash flows from investing activities:      
Purchases of property and equipment (19.4) (21.1) (38.4)
Proceeds from the disposal of property and equipment 19.6 13.5 0.0
Increase in intangible assets (5.3) (17.2) (23.4)
Other strategic investing activities 1.7 (0.1) (1.0)
Net cash provided by (used in) investing activities from continuing operations (3.4) (24.9) (62.8)
Net cash provided by (used in) investing activities from discontinued operations 278.5 (26.3) (18.4)
Net cash provided by (used in) investing activities 275.1 (51.2) (81.2)
Cash flows from financing activities:      
Borrowings under revolving line of credit and term loan 1,077.4 89.0 173.3
Repayments under revolving line of credit and term loan (1,281.5) (235.8) (238.4)
Proceeds from issuance of common stock 71.4 25.2 7.0
Repurchases of common stock (363.7) 0.0 0.0
Payroll tax withholdings on behalf of employees for stock options (18.0) (11.8) (12.9)
Debt issuance costs (3.7) 0.0 0.0
Net cash provided by (used in) financing activities from continuing operations (518.1) (133.4) (71.0)
Net cash provided by (used in) financing activities from discontinued operations (2.6) 7.8 13.9
Net cash provided by (used in) financing activities (520.7) (125.6) (57.1)
Effect of foreign currency exchange rates on cash (0.3) (6.4) 2.8
Net increase in cash, cash equivalents and restricted cash (28.1) 13.2 (41.4)
Cash, cash equivalents and restricted cash at beginning of period 181.4 168.2 209.6
Cash, cash equivalents and restricted cash at end of period $ 153.3 $ 181.4 $ 168.2
v3.25.4
Description of the Company
 12 Months Ended
Jan. 03, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the Company
1. Description of the Company
Masimo Corporation (the “Company”) is a global medical technology company that develops and produces a wide array of industry-leading patient monitoring technologies, including innovative measurements, sensors, and patient monitors. Powered by the Masimo Hospital Automation and Masimo SafetyNet platforms, Masimo connectivity, automation, telehealth and telemonitoring solutions are improving and automating care both in the hospital and beyond. As of January 3, 2026, the Company operates one reportable segment: healthcare. See Note 25, “Segment and Enterprise Reporting” for additional information about reportable segment.
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 healthcare products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, and long-term care facilities through its direct sales force, distributors and original equipment manufacturer (OEM) partners.
The Company’s former non-healthcare consumer business incorporated audio and home integration technologies, which were primarily sold or licensed direct-to-consumers, or through authorized retailers and wholesalers.
As of December 28, 2024, the non-healthcare consumer business remained part of the Company’s continuing operations, but was being evaluated for divestiture. As of March 29, 2025, as the sales evaluation process progressed, the non-healthcare consumer business was classified as held-for-sale, and reported as discontinued operations. On May 6, 2025, the Company announced that it entered into a definitive agreement to sell Viper Holdings Corporation, a Delaware corporation which previously owned and operated the Company’s non-healthcare business (together with its subsidiaries, “Sound United”) to Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics., Ltd. On September 23, 2025, the Company completed the sale of Sound United. For additional information with respect to the non-healthcare consumer business separation, discontinued operations of this business and sale, see Note 18, “Discontinued Operations”.
The terms “the Company” and “Masimo” refer to Masimo Corporation and, where applicable, its consolidated subsidiaries.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 03, 2026
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 2025 is a 53 week fiscal year ending January 3, 2026. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Reclassifications
Certain amounts for the current and comparative periods in the accompanying consolidated financial statements have been reclassified or recast to conform to the discontinued operations presentation, including certain balance sheets, statements of operations, statements of comprehensive (loss) income, and statements of cash flows in the consolidated financial statements for the year ended December 28, 2024 and December 30, 2023, see Note 18, “Discontinued Operations”.
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, 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.
Assets Held-For-Sale and Discontinued Operations
In the third quarter of 2024, the Company announced that its board of directors (the “Board”) remained committed to the previously announced review of alternatives for the Company’s non-healthcare business, and that the Board had engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor. As of December 28, 2024, the non-healthcare business remained part of the Company’s continuing operations. The sales process progressed in early 2025, and during the first quarter of 2025, the non-healthcare business was classified as held-for-sale and reported in discontinued operations. On May 6, 2025, the Company announced that it entered into a definitive agreement to sell Sound United to Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics., Ltd. On September 23, 2025, the Company completed the sale of Sound United.
The non-healthcare business results for the periods presented are reflected in our consolidated statements of operations and consolidated statement of cash flows as discontinued operations. Additionally, the related assets and liabilities are classified as held-for-sale in our consolidated balance sheets, see Note 18, “Discontinued Operations”.
Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations, which exclude our non-healthcare business, and we have recast prior period amounts to conform to this discontinued operations presentation.
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 January 3, 2026:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$55.5 $55.5 $— $— 
Money market funds96.8 96.8 — — 
Pension assets
Cash and cash equivalents(1)
(0.9)(0.9)— — 
Equity securities9.8 9.8 — — 
Debt securities8.4 8.4 — — 
Real estate funds4.7 4.7 — — 
Alternative investments1.9 — 1.9 — 
Other0.9 — 0.9 — 
Derivative instruments - cash flow hedges(2)
1.0 1.0 — — 
Total assets$178.1 $175.3 $2.8 $— 
Liabilities
Derivative instruments - cash flow hedges$1.4 $1.4 $— $— 
Pension benefit obligation30.3 30.3 — — 
Total liabilities$31.7 $31.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026, 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 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$51.0 $51.0 $— $— 
Money market funds72.6 72.6 — — 
Pension assets
      Cash and cash equivalents(1)
(1.3)(1.3)— — 
      Equity securities 6.9 6.9 — — 
      Debt securities8.5 8.5 — — 
      Real estate funds3.6 — 3.6 — 
      Alternative investments1.4 — 1.4 — 
      Other0.1 — 0.1 — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Equity securities1.3 1.3 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$151.6 $146.5 $5.1 $— 
Liabilities
Derivative instruments - cash flow hedges$0.1 $0.1 $— $— 
Pension benefit obligation24.6 24.6 — — 
Total liabilities$24.7 $24.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 31, 2024, 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 maintains certain derivative investments whose prices are based on quoted market prices in an active market and 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.
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 January 3, 2026 and December 28, 2024.
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, net of allowance for credit losses as of January 3, 2026, December 28, 2024 and December 30, 2023 were $275.8 million, $283.2 million, and $224.2 million, respectively. 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, 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 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, tooling and others
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
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, acquired and developed technologies and contractual licenses, the useful life is determined largely by valuation estimates of remaining economic life.
The Company’s policy is to renew its patents and trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. The Company periodically evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned.
Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. As of January 3, 2026, the Company has one reporting unit, 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.
While the majority of the Company’s revenue contracts and transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation, judgment and analysis 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 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.
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.
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)January 3,
2026		December 28,
2024		December 30,
2023
Product warranty accrual, beginning of period$5.5 $3.0 $2.0 
Accrual for warranties issued1.0 1.9 1.8 
Changes in pre-existing warranties (including changes in estimates)3.5 5.2 1.3 
Settlements made(3.9)(4.6)(2.1)
Product warranty accrual, end of period$6.1 $5.5 $3.0 
Advertising Costs
Advertising costs include certain advertising and marketing fees, which are expensed as incurred. Advertising costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Advertising costs for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, were $9.4 million, $19.1 million and $18.8 million, respectively.
Research and Development
Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities.
Litigation Costs and Contingencies
The Company records a charge equal to at least the minimum estimated liability for a loss contingency or litigation settlement when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. The determination of whether a loss contingency or litigation settlement is probable or reasonably possible involves a significant amount of management judgment, as does the estimation of the range of loss given the nature of contingencies. Liabilities related to litigation settlements with multiple elements are recorded based on the fair value of each element. Legal and other litigation related expenses are recognized as the services are provided. The Company records insurance and other indemnity recoveries for litigation expenses when both of the following conditions are met: (a) the recovery is probable, and (b) collectability is reasonably assured. Insurance recoveries are only recorded to the extent the litigation costs to which they relate have been incurred and recognized in the financial statements.
Foreign Currency Translation
The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has many other foreign subsidiaries, and the largest transactions in foreign currency translations occur in the Saudi Riyal and 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 (loss) and reflected in stockholders’ equity.
Net Income (Loss) Per Share
A computation of basic and diluted net income (loss) per share is as follows:
Year Ended
(in millions, except per share amounts)January 3,
2026		December 28,
2024		December 30,
2023
Net income from continuing operations, net of tax$207.7 $16.2 $107.7 
Net (loss) from discontinued operations, net of tax - (Note 18)(359.2)(321.1)(26.2)
Net (loss) income$(151.5)$(304.9)$81.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Continuing operations per basic share$3.88 $0.30 $2.04 
Discontinued operations per basic share(6.70)(6.02)(0.50)
Basic (loss) income per share$(2.83)$(5.72)$1.54 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Diluted share equivalents: stock options, RSUs and PSUs0.6 1.1 1.3 
Weighted-average shares outstanding - diluted54.2 54.4 54.1 
Continuing operations per diluted share$3.83 $0.30 $1.99 
Discontinued operations per diluted share(6.63)(5.90)(0.48)
Diluted (loss) income per share$(2.80)$(5.60)$1.51 
Basic net income (loss) per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Net income (loss) 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 January 3, 2026, December 28, 2024 and December 30, 2023, weighted options to purchase 0.6 million, 1.1 million and 1.2 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. 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 for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, 2.7 million weighted-average shares related to such RSUs have been excluded from the calculation of potential shares.
On October 24, 2024, following an external legal review, the Board adopted resolutions to terminate the employment of Mr. Joe Kiani, our former Chairman and Chief Executive Officer, effective October 24, 2024. In connection with the Board’s determination, the 2.7 million shares RSU grant to Mr. Kiani was cancelled and the 2.7 million weighted-average shares related to such RSUs have been excluded from the calculation of potential shares for the year ended December 28, 2024. For additional information with respect to these RSUs, 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)January 3,
2026		December 28,
2024		December 30,
2023
Cash paid during the year for:
Interest expense:
Continuing operations$32.8 $36.7 $46.1 
Discontinued operations1.5 2.4 4.9 
Income taxes:
Continuing operations28.5 35.9 20.4 
Discontinued operations8.8 6.0 34.0 
Operating lease liabilities:
Continuing operations10.1 10.9 10.4 
Discontinued operations10.4 13.7 12.0 
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities:
Continuing operations$11.1 $10.2 $5.0 
Discontinued operations0.6 18.4 11.3 
Non-cash investing activities - continuing operations:
Unpaid purchases of property and equipment$1.7 $0.7 $0.2 
Non-cash financing activities - continuing operations:
Unpaid excise taxes on stock repurchases$2.0 $— $— 
Unpaid debt issuance costs0.3 — — 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents:
Continuing operations$152.3 $123.6 $120.8 
Discontinued operations1.0 54.0 42.2 
Restricted cash:
Continuing operations— 2.7 4.1 
Discontinued operations— 1.1 1.1 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$153.3 $181.4 $168.2 
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.
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. The Company prospectively adopted this standard during the fiscal year ended January 3, 2026. See Note 23, “Income Taxes”, for further details on the impact of the adoption of this standard.
Recently Announced Accounting Pronouncements
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 its consolidated financial statements.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606 by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This new standard simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years, though early adoption is permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This new standard expands hedge accounting eligibility, including provisions for choose-your-rate debt instruments. The ASU 2025-09 is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
v3.25.4
Related Party Transactions
 12 Months Ended
Jan. 03, 2026
Related Party Transactions [Abstract]  
Related Party Transactions
3. Related Party Transactions
On October 24, 2024, following an external legal review, the Board adopted resolutions to terminate the employment of Mr. Kiani, our former Chairman and Chief Executive Officer (CEO), 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. Mr. Kiani, the Company’s former Chairman and CEO, is also the Executive Chairman of Willow. Effective October 24, 2024, Willow is no longer considered a related party relationship due to the termination of Mr. Kiani.
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 purports to govern each party’s rights to certain intellectual property currently held by the two companies. The Cross-Licensing Agreement, by its terms, purports to obligate the Company to pay certain annual minimum aggregate royalties for use of the rainbow® licensed technology. Prior to a change in control, which is defined in the Willow Cross-Licensing Agreement to include, among other things, when Mr. Kiani is not the CEO of either company, the Company’s purported annual minimum royalty obligation was $5.0 million. On October 24, 2024, Mr. Kiani’s employment as the Company’s CEO was terminated. Following Mr. Joe Kiani’s termination, the Company paid Willow (i) a $2.5 million license fee for technology for use in blood glucose monitoring; and (ii) minimum aggregate annual royalties for carbon monoxide, methemoglobin fractional arterial oxygen saturation, hemoglobin and/or glucose measurements in the amount of $15.0 million, plus $2.0 million for an additional parameter. See Note 9, “Intangible Assets, net”, for further details. As described in Note 24, “Commitments and Contingencies—Litigation”, the Company is in a dispute with Willow regarding the Cross-Licensing Agreement and payments under the Cross-Licensing Agreement. The change in control does not otherwise impact the scope or duration of the license rights.
Aggregate recorded royalty expenses to Willow by the Company under the Cross-Licensing Agreement were $22.6 million, $20.4 million and $19.2 million for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
During the first quarter 2025, pursuant to the terms of the Cross-Licensing Agreement, Willow elected to invoice the Company for the remaining year’s minimum royalty of approximately $12.8 million, which has been paid to Willow in the second quarter 2025 and fully amortized as of January 3, 2026. During the fourth quarter 2025, Willow elected to invoice the Company approximately $27.0 million, consisting of Willow’s calculation of the 2026 minimum royalty and other amounts Willow claims are due. Following a legal review, the amount due was determined to be approximately $17.0 million, which the Company believes represents the actual amount due under the terms of Cross-Licensing Agreement. This amount was recorded as a liability and remained unpaid as of January 3, 2026, and was subsequently paid on January 30, 2026.
•Administrative Services Agreement - The Company was a party to an administrative services agreement with Willow (G&A Services Agreement), which governed certain general and administrative services that the Company provided to Willow. Amounts charged by the Company pursuant to the G&A Services Agreement were $0.1 million, $0.5 million and $0.5 million for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively. On March 31, 2025, Willow provided the Company with a notice to terminate the Services Agreement under Section 7.2, effective April 30, 2025.
•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 no lease income for the year ended January 3, 2026. The Company recognized approximately $1.2 million of lease income for each year ended December 28, 2024 and December 30, 2023, respectively.
Net amounts accrued and unpaid to Willow were approximately $6.4 million and $4.9 million as of January 3, 2026 and December 28, 2024, respectively. See Note 24, “Commitments and Contingencies”, under the heading of “Willow Cross-Licensing Agreement Provisions” for further details.
The 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 served as the Treasurer of the Masimo Foundation and the Company’s former 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 January 3, 2026, the Company made zero cash contributions to the Masimo Foundation. For the fiscal year ended December 28, 2024 and December 30, 2023, the Company made cash contributions of approximately $2.5 million and $1.0 million to the Masimo Foundation, respectively. The Company halted all payments to the Masimo Foundation as of the end of the third quarter of 2024 and does not intend to make any future contributions to the Masimo Foundation.
Mr. Kiani is also a co-founder, a member of the board of directors and Chief Executive Officer 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. During the second quarter of 2020, Company entered into a marketing service agreement with LMMV for audiovisual production services promoting brand awareness, including television commercials and digital advertising. 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. For the fiscal year ended January 3, 2026 and December 28, 2024, the Company incurred no marketing expenses to LMMV under the marketing service agreement. During the fiscal year ended December 30, 2023, the Company incurred $1.5 million in marketing expenses to LMMV under the marketing service agreement.
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. The time share agreement with Mr. Kiani was terminated upon the termination of his employment with 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. The Vice Chairman of the Company’s board of directors, Quentin Koffey, also serves as Chief Investment Officer of Politan. For each of the fiscal years ended January 3, 2026, December 28, 2024 and December 30, 2023, the Company paid $0.1 million, $27.6 million, and $18.0 million to Politan, respectively. For the fiscal year ended January 3, 2026, the Company received a $2.0 million payment from Politan related to legal expenses.
On September 24, 2024, Michelle Brennan, a member of the Board, was appointed to the role of interim CEO of the Company. On February 12, 2025, Ms. Brennan’s role as interim CEO ceased, and she was appointed as the Chairman of the Board. Ms. Brennan also sits on the board of directors of Cardinal Health, Inc. (Cardinal). For the fiscal years ended January 3, 2026, December 28, 2024 and December 30, 2023, sales to Cardinal were approximately $118.5 million, $114.1 million and $93.9 million, respectively. As of January 3, 2026 and December 28, 2024, amounts owed from Cardinal were approximately $14.9 million and $14.3 million, respectively.
v3.25.4
Inventories
 12 Months Ended
Jan. 03, 2026
Inventory Disclosure [Abstract]  
Inventories
4. Inventories
Inventories consist of the following:
(in millions)January 3,
2026		December 28,
2024
Raw materials$152.8 $151.0 
Work-in-process21.8 19.2 
Finished goods205.7 124.6 
Total inventories$380.3 $294.8 
v3.25.4
Other Current Assets
 12 Months Ended
Jan. 03, 2026
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)January 3,
2026		December 28,
2024
Prepaid expenses$24.1 $19.7 
Lease receivable, current22.8 26.6 
Prepaid rebates and royalties, current(1)
21.8 4.6 
Indirect taxes receivable20.9 18.5 
Prepaid income taxes16.1 17.6 
Contract assets, current8.0 11.4 
Other current assets2.9 2.3 
Restricted cash(2)
— 2.7 
Total other current assets
$116.6 $103.4 
______________
(1)     Prepaid rebates and royalties, current includes $17.0 million of royalty related to Willow. See Note 3, “Related Party Transactions” for further details.
(2)     Restricted cash includes funds received from the Bill and Melinda Gates Foundation (BMGF). 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. As of January 3, 2026, the Company ceased research and development related to this project, and returned any unused funds to the BMGF.
v3.25.4
Lease Receivable
 12 Months Ended
Jan. 03, 2026
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 are recorded as part of revenue in the accompanying consolidated statements of operations. For the years ended January 3, 2026 and December 28, 2024, lease revenue was approximately $45.0 million and $44.0 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 statements of operations.
Lease receivable from sales-type leases consists of the following:
(in millions)January 3,
2026		December 28,
2024
Lease receivable$66.1 $85.5 
Allowance for credit losses(0.2)(0.2)
     Lease receivable, net65.9 85.3 
Less: current portion of lease receivable(22.8)(26.6)
     Lease receivable, non-current$43.1 $58.7 
As of January 3, 2026, 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
2026 (balance of year)$22.8 $21.7 
202717.3 20.0 
202811.7 16.2 
20297.8 12.7 
20303.9 7.2 
Thereafter2.4 10.6 
     Total$65.9 $88.4 
Less: imputed interest(1)
— 
     Present value of total lease payments$65.9 
______________
(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.
v3.25.4
Deferred Costs and Other Contract Assets
 12 Months Ended
Jan. 03, 2026
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)January 3,
2026		December 28,
2024
Deferred commissions$26.2 $25.0 
Unbilled contract receivables21.3 20.2 
Prepaid contract allowances14.3 14.5 
Deferred equipment agreements, net0.8 1.3 
     Deferred costs and other contract assets$62.6 $61.0 
For the year ended December 30, 2023, total deferred costs and other contracts were $57.3 million.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, deferred commission amortization expense was $8.5 million, $7.6 million and $5.8 million, respectively.
v3.25.4
Property and Equipment, net
 12 Months Ended
Jan. 03, 2026
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net
8. Property and Equipment, net
Property and equipment, net, consists of the following:
(in millions)January 3,
2026		December 28,
2024
Operating lease assets$204.1 $148.6 
Building and building improvements151.8 143.5 
Machinery, equipment, tooling and others150.6 147.1 
Land47.7 47.7 
Computer equipment and software41.3 38.7 
Leasehold improvements34.3 31.2 
Construction-in-progress (CIP)24.5 29.0 
Furniture and office equipment16.5 15.8 
Demonstration units0.5 0.5 
Total property and equipment(1)
671.3 602.1 
Accumulated depreciation(316.2)(265.1)
Property and equipment, net
$355.1 $337.0 
______________
(1)    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 January 3, 2026, December 28, 2024 and December 30, 2023, depreciation expense of property and equipment was $25.5 million, $30.1 million and $28.6 million, respectively.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, depreciation expense of operating lease assets was $28.1 million, $24.0 million and $19.6 million, respectively.
For the years ended January 3, 2026 and December 28, 2024, and December 30, 2023, equipment leased to customers was amortized to cost of goods sold was $27.9 million, $23.0 million and $18.5 million, respectively.
As of January 3, 2026 and December 28, 2024, accumulated amortization of equipment leased to customers was $74.1 million and $46.2 million, respectively.
The balance in CIP at January 3, 2026 and December 28, 2024, related primarily to the capitalized implementation costs related to a new enterprise resource planning software system costs, machinery, equipment, and the underlying assets for which have not been completed or placed into service.
v3.25.4
Intangible Assets, net
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net
9. Intangible Assets, net
Intangible assets, net, consist of the following:
January 3,
2026		December 28,
2024
(in millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Intangible assets subject to amortization:
Patents$46.6 $(19.8)$26.8 $44.0 $(17.5)$26.5 
Acquired technologies28.6 (20.7)7.9 27.9 (15.8)12.1 
Customer relationships24.6 (14.7)9.9 24.6 (13.3)11.3 
Trademarks14.0 (9.2)4.8 13.7 (7.2)6.5 
Licenses-related party7.5 (7.4)0.1 7.5 (7.1)0.4 
Licenses2.3 (1.6)0.7 2.3 (1.2)1.1 
Other6.6 (4.7)1.9 8.1 (4.4)3.7 
Total intangible assets subject to amortization, net$130.2 $(78.1)$52.1 $128.1 $(66.5)$61.6 
Finite lived intangible assets have a weighted-average amortization period ranging from eleven years to fourteen years. Total amortization expense for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, was $13.3 million, $18.4 million and $9.5 million, respectively.
The total costs of patents not yet amortizing for the years ended January 3, 2026 and December 28, 2024, was $12.2 million $13.0 million and $12.1 million, respectively.
The total costs of trademarks not yet amortizing for the years ended January 3, 2026 and December 28, 2024, was $0.5 million, $0.8 million and $1.0 million, respectively.
Total renewal costs capitalized for patents and trademarks for the years ended January 3, 2026 and December 28, 2024 were $1.2 million and $1.2 million, respectively. As of January 3, 2026, 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)
2026$6.9 
20275.9 
20285.2 
20294.7 
20304.3 
Thereafter25.1 
Total$52.1 
Indefinite-lived intangible assets are subject to annual impairment testing, unless circumstances dictate more frequent testing, if impairment indicators exist. For goodwill, the Company performs a qualitative assessment during the fourth quarter of each year, for its annual impairment analysis. In the fourth quarter of 2025, the Company performed its annual impairment analysis, and concluded that it was more likely than not that the fair value was greater than its carrying value. Accordingly, no further testing was required.
v3.25.4
Goodwill
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
10. Goodwill
Changes in goodwill were as follows:
(in millions)January 3,
2026		December 28,
2024
Goodwill, beginning of period$96.7 $98.6 
Foreign currency translation adjustment4.3 (1.9)
Goodwill, end of period$101.0 $96.7 
v3.25.4
Lessee ROU Assets and Lease Liabilities
 12 Months Ended
Jan. 03, 2026
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 January 2029. 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 January 3, 2026 and December 28, 2024, the weighted-average discount rate used by the Company for all operating leases was approximately 3.4% and 4.0%, 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 Classification
January 3,
2026		December 28,
2024
Lessee ROU assetsOther non-current assets$32.6 $29.2 
Lessee current lease liabilitiesOther current liabilities8.1 9.7 
Lessee non-current lease liabilitiesOther non-current liabilities26.9 23.3 
     Total operating lease liabilities$35.0 $33.0 
For the years ended January 3, 2026 and December 28, 2024, accumulated amortization for lessee ROU assets was $27.8 million and $32.4 million, respectively.
The decrease in accumulated amortization at January 3, 2026 was primarily attributable to the expiration of an operating lease, which was not renewed.
For the years ended January 3, 2026 and December 28, 2024, the weighted-average remaining lease term for the Company’s operating leases was 5.6 years and 4.4 years, respectively.
As of January 3, 2026, estimated future operating lease payments for each of the following fiscal years were as follows:
Fiscal yearAmount
(in millions)
2026$9.3 
20277.9 
20286.7 
20294.8 
20302.7 
Thereafter(1)
7.1 
Total38.5 
Imputed interest(3.5)
Present value$35.0 
______________
(1)    Includes optional renewal period for certain leases.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the Company’s operating lease costs were approximately $8.5 million, $12.0 million and $14.9 million, respectively.
v3.25.4
Other Non-Current Assets
 12 Months Ended
Jan. 03, 2026
Other Assets, Noncurrent [Abstract]  
Other Non-Current Assets
12. Other Non-Current Assets
Other non-current assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Lessee ROU assets, net$32.6 $29.2 
Strategic investments5.9 6.6 
Prepaid deposits and others5.2 6.8 
Derivative assets - non-current(1)
1.0 6.2 
Equity investments - fair value— 2.0 
Other non-current assets— 0.5 
Total non-current assets$44.7 $51.3 
______________
(1)    Excludes accrued interest.
v3.25.4
Deferred Revenue and Other Contract Liabilities, Current
 12 Months Ended
Jan. 03, 2026
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, current consist of the following:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue$61.5 $61.9 
Accrued rebates and allowances26.0 23.0 
Accrued customer reimbursements8.7 10.1 
     Total deferred revenue and other contract liabilities96.2 95.0 
Less: Non-current portion of deferred revenue(23.0)(18.1)
     Deferred revenue and other contract liabilities, current$73.2 $76.9 
For the year ended December 30, 2023, total deferred revenue and other current contract liabilities were $77.3 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, the Company records deferred revenue when revenue is to be recognized subsequent to invoicing.
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 January 3, 2026, the Company had approximately $1,793.7 million of Unrecognized Contract Revenue related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately $495.5 million of this amount as revenue within the next twelve months and the remaining balance thereafter.
Changes in deferred revenue for the years ended January 3, 2026 and December 28, 2024 were as follows:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue, beginning of the period$61.9 $48.5 
  Revenue deferred during the period52.2 42.5 
  Recognition of revenue deferred in prior periods(52.6)(29.1)
     Deferred revenue, end of the period$61.5 $61.9 
v3.25.4
Other Current Liabilities
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Other Current Liabilities
14. Other Current Liabilities
Other current liabilities consist of the following:
(in millions)January 3,
2026		December 28,
2024
Related party payables(1)
$23.5 $5.3 
Accrued indirect taxes payable22.7 17.9 
Income tax payable16.7 12.4 
Accrued legal fees14.5 14.6 
Accrued expenses9.1 24.2 
Lessee lease liabilities, current8.1 9.7 
Long-term debt, current6.3 15.0 
Accrued warranty6.1 5.5 
Other current liabilities2.2 10.8 
Total other current liabilities
$109.2 $115.4 
______________
(1)    Related party payables includes $23.5 million of royalty related to Willow. See Note 3, “Related Party Transactions” for further details.
v3.25.4
Debt
 12 Months Ended
Jan. 03, 2026
Debt Disclosure [Abstract]  
Debt
15. Debt
(in millions)January 3,
2026		December 28,
2024
Term loan - current portion$6.3 $15.0 
Short-term debt6.3 15.0 
Revolver - long-term280.0 456.0 
Term loan - long-term238.0 258.3 
Long-term debt518.0 714.3 
Total debt$524.3 $729.3 
2022 Credit Facility
On April 11, 2022, the Company entered into an unsecured credit agreement (the 2022 Credit Facility) with financial institutions as 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 2022 Credit Facility provided a $300.0 million term loan (the 2022 Term Loan) and $500.0 million of in revolving commitments, with an accordion feature allowing for up to $400.0 million in additional commitments, (plus unlimited amounts if certain incurrence tests were met), subject to certain conditions. The Company recorded debt issuance costs of $8.4 million as a reduction to the carrying amount of the 2022 Credit Facility, and amortized them to interest expense using the straight-line amortization method.
On September 23, 2025, the Company repaid the $270.0 million outstanding balance on the 2022 Term Loan balance and recorded a charge of $0.9 million for the associated unamortized debt issuance costs.
2025 Credit Facility
On December 1, 2025, the Company entered into a five-year unsecured credit agreement (the 2025 Credit Facility) with financial institutions as initial lenders, Bank of America, N.A. as Administrative Agent. BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Capital Markets LLC as joint lead arrangers and joint bookrunners. BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Bank National Association as co-syndication agents. BMO Bank N.A., DNB Bank ASA, New York Branch, and KeyBank National Association as co-documentation agents.
The 2025 Credit Facility consists of a $250.0 million term loan (the Term Loan) and a $750.0 million revolving credit facility (the Revolver), with an accordion feature allowing for up to $400.0 million in additional commitments (plus unlimited amounts if certain incurrence tests are met), subject to certain conditions. The 2025 Credit Facility includes a $50.0 million letter of credit sublimit, and matures on December 1, 2030.
The Company recorded a charge of $0.4 million for debt issuance costs related to lenders that did not continue from the 2022 Credit Facility, and recorded debt issuance costs of $4.6 million as a reduction to the carrying amount of the 2022 Credit Facility and amortized them to interest expense using the straight-line amortization method.
The Company used initial proceeds from the Term Loan and Revolver to pay off the remaining obligations under the 2022 Credit Facility and related fees. Subsequent Revolver borrowings will be used for general corporate purposes.
Borrowings under the 2025 Credit Facility will bear interest, at the Company’s election, at either: (a) an Alternate Base Rate (ABR) Loan, plus a spread of 0.000% to 0.750%, or (b) a Term SOFR Loan plus a spread of 1.000% to 1.750%, based on the Company’s net leverage ratios as set forth in the 2025 Credit Facility. ABR equals, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 1/2 of 1%, (b) Bank of America’s prime rate, (c) Term SOFR plus 1.00%, or (d) a floor of 0.00%. Term SOFR equals the Term SOFR Screen Rate (as defined in the 2025 Credit Facility) for the applicable interest period, with a 0% floor. As of January 3, 2026, the effective interest rate on the 2025 Credit Facility was 4.7%.
The Company pays an unused fee ranging from 0.150% to 0.275% per annum on the unutilized Revolver balance, based on the Company’s net leverage ratios under the 2025 Credit Facility.
The 2025 Credit Facility contains financial covenants related to a net leverage ratio and an interest coverage ratio, and customary negative covenants, affirmative covenants, representations and warranties, and events of default. Upon any event of default, the Administrative Agent may, and at the request of required lenders shall take either or both of the following actions: (a) immediately terminate the commitments, or (b) declare the outstanding loans immediately due and payable in full.
The Company was in compliance with all covenants related to the 2025 Credit Facility as of January 3, 2026.
As of January 3, 2026, the Company had approximately $467.6 million of available borrowing capacity (net of approximately $2.4 million in outstanding letters of credit) under the Credit Facility.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the Company incurred total interest expense of $33.2 million, $41.2 million and $47.1 million, respectively, under the Credit Facilities.
As of January 3, 2026, the aggregate maturities of principal on the Credit Facility for each of the next five years and thereafter are as follows:
Fiscal year
Amount
(in millions)
2026$6.3 
20276.3
20286.3
20296.3 
2030499.1
Thereafter0.0
Total$524.3 
v3.25.4
Other Non-Current Liabilities
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Other Non-Current Liabilities
16. Other Non-Current Liabilities
Other non-current liabilities consist of the following:
(in millions)January 3,
2026		December 28,
2024
Lessee non-current lease liabilities$26.9 $23.3 
Unrecognized tax benefits26.2 23.7 
Deferred revenue, non-current23.0 18.1 
Projected benefit obligation5.5 5.4 
Income tax payable, non-current4.7 — 
Other1.5 0.4 
Total other non-current liabilities
$87.8 $70.9 
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.
v3.25.4
Derivative Instruments and Hedging Activities
 12 Months Ended
Jan. 03, 2026
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. The Company entered into various interest rate swaps that are designated as cash flow hedges on the Company’s outstanding debt. The interest rate swaps reduce the variability of cash flow payments for the Company by converting a portion of its variable interest rate to an average fixed interest rate of 3.16% as of January 3, 2026. 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 January 3, 2026 and December 28, 2024.
Consolidated
Balance Sheets
(in millions)
Balance sheet classification
January 3,
2026		December 28,
2024
Interest rate contracts, inclusive of accrued interestOther non-current assets$1.0 $6.8 
Interest rate contracts, inclusive of accrued interest
Other non-current liabilities
(1.4)(0.1)
Total$(0.4)$6.7 
The following table summarizes the gains reclassified from accumulated other comprehensive (loss) income to the consolidated statements of operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023.
Cash flow hedgesConsolidated
Statement of Operations
(in millions)
Location of gains
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Interest rate contracts
Non-operating gains
$5.2 $14.7 $14.9 
Total$5.2 $14.7 $14.9 
The following tables summarize the changes in accumulated other comprehensive (loss) income related to the hedging instruments:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Beginning balance$6.0 $7.8 $19.3 
Amount recognized in other comprehensive (loss) income(1.1)12.9 3.4 
Amount reclassified into earnings(5.2)(14.7)(14.9)
Ending balance$(0.3)$6.0 $7.8 
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the unrealized (loss), net of tax was $(4.8) million, $(1.3) million and $(8.8) million, respectively.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the tax (benefit) related to the cash flow hedges was $(1.5) million, $(0.5) million and $(2.7) million, respectively.
The Company expects to reclassify a net amount of gains of $0.1 million from accumulated other comprehensive (loss) income gain to non-operating (loss) income within the next 12 months.
v3.25.4
Discontinued Operations
 12 Months Ended
Jan. 03, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
18. Discontinued Operations
In the third quarter of 2024, the Company announced that the Board remained committed to the previously announced review of alternatives for the non-healthcare business, and that the Board had engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor. As of December 28, 2024, the Company’s non-healthcare business segment remained part of the Company’s continuing operations. The sale process progressed in 2025, and during the first quarter of 2025, the non-healthcare business was classified as held-for-sale and reported in discontinued operations.
The accounting criteria for reporting the non-healthcare business as a discontinued operation were met when the Board resolved to sell the non-healthcare business during the first quarter of 2025. Furthermore, there was a strategic shift that was expected to have a major effect on the Company’s overall operations and financial results. Accordingly, the accompanying consolidated financial statements for all periods presented reflect the non-healthcare business as a discontinued operation. Applicable amounts in the prior periods have been recast to conform to this discontinued operations presentation.
During the first quarter of 2025, the non-healthcare business was classified as held-for-sale and was accordingly measured at the lower of its carrying amount or fair value less cost to sell in accordance with ASC 360: Impairment Testing: Long-lived Assets Classified as Held and Used (ASC 360); furthermore, the carrying amount of any assets not covered by ASC 360 included in this disposal group is adjusted in accordance with other applicable GAAP before measuring the fair value less cost to sell of the disposal group. All initial or subsequent adjustments to the carrying amount of a component as a result of such measurement is classified in discontinued operations. During the first quarter 2025, the Company recorded intangible asset write-downs of approximately $44.0 million within cost of sales, and approximately $251.0 million within operating expenses.
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 judgments using Level 3 inputs, such as discounted projected cash flows, which are not observable from the market, directly or indirectly.
On May 6, 2025, the Company entered into a definitive agreement with Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics Co., Ltd., to sell Sound United for an aggregate purchase price of $350 million in cash, subject to certain adjustments. On September 23, 2025, the Company completed the sale and received net cash of approximately $328 million, pending final customary adjustments.
Interest expense from specifically identifiable debt associated with the non-healthcare business has been included in discontinued operations. No interest expense from the healthcare business was allocated to discontinued operations. As a result of the separation of the non-healthcare business, the Company incurred $1.5 million and $2.4 million in direct costs during each of the years ended January 3, 2026 and December 28, 2024, respectively, which are reflected in earnings from discontinued operations, net of income taxes in the accompanying consolidated statements of operations. These costs primarily relate to professional fees incurred in connection with the separation.
The key components of income from the non-healthcare business discontinued operations were as follows:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Revenues$414.9 $699.1 $772.6 
Cost of sales309.3489.1534.7
Gross profit105.6210.0237.9
Selling, general and administrative expenses108.4195.1212.7
Research and development expenses27.5 40.6 44.7 
Intangible assets impairment charges251.5 304.0 10.0 
Operating loss(281.8)(329.7)(29.5)
Loss on disposition(101.1)— — 
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations(44.5)— — 
Other non-operating (loss) income(4.7)2.6 4.6 
Loss from discontinued operations, before income taxes(432.1)(327.1)(24.9)
(Benefit) provision for income taxes(72.9)(6.0)1.3 
Loss from discontinued operations, net of income taxes$(359.2)$(321.1)$(26.2)
Assets and liabilities of the discontinued operations of the non-healthcare business classified as held-for-sale remaining in the consolidated balance sheets as of January 3, 2026 and December 28, 2024 consist of the following:
(in millions)January 3,
2026		December 28
2024
Cash and cash equivalents$1.0 $54.0 
Trade receivable, net of credit allowances— 143.3 
Inventories, net— 164.4 
Other current assets— 41.7 
Total current assets, held-for-sale1.0 403.4 
Property and equipment, net— 44.6 
Intangible assets, net— 496.6 
Deferred tax assets— 25.2 
Other non-current assets0.1 48.8 
Total non-current assets, held-for-sale0.1 615.2 
Total assets held-for-sale - discontinued operations$1.1 $1,018.6 
Accounts payable$0.5 $123.8 
Accrued compensation0.9 4.9 
Deferred revenue and other contract liabilities, current— 18.6 
Other current liabilities1.1 70.4 
Total current liabilities, held-for-sale2.5 217.7 
Long-term debt— 13.6 
Deferred tax liabilities— 99.9 
Other non-current liabilities0.1 57.2 
Total non-current liabilities, held-for-sale0.1 170.7 
Total liabilities held-for-sale - discontinued operations$2.6 $388.4 
v3.25.4
Equity
 12 Months Ended
Jan. 03, 2026
Equity [Abstract]  
Equity
19. Equity
Stock Repurchase Program
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 (the 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 Chief Financial Officer (CFO) through open market purchases, one or more Rule 10b5-1 trading plans, block trades and privately negotiated transactions. Approximately 2.5 million shares were repurchased pursuant to the 2022 Repurchase Program during the year ended January 3, 2026. As of January 3, 2026, approximately 2.5 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 January 3, 2026, December 28, 2024 and December 30, 2023:
Years Ended
(in millions, except per share amounts)January 3,
2026		December 28,
2024		December 30,
2023
Share repurchased(1)
2.5 (1)— — 
Average cost per share$146.91 $— $— 
Value of shares repurchased(2)
$363.7 $— $— 
______________
(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.
(2)     Excludes excise taxes on share repurchases.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Jan. 03, 2026
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 2017 Equity Plan, the Company’s 2007 Stock Incentive Plan (the 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 Plan
On June 1, 2017, the Company’s stockholders ratified and approved the 2017 Equity Plan. The 2017 Equity Plan permits the grant of stock options, restricted stock, RSUs, stock appreciation rights, PSUs, performance shares, performance bonus awards and other stock or cash awards to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. 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 during the years ended January 3, 2026, December 28, 2024, and December 30, 2023 was $35.8 million, $36.1 million and $6.1 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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(in millions, except for weighted-average exercise prices)SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price
Options outstanding, beginning of period(1)
1.6 $110.43 2.7 $87.58 2.8 $83.87 
Granted(2)
0.1 163.33 0.1 126.49 0.1 182.43 
Canceled(3)
(0.2)183.18 (0.6)82.38 — 163.96 
Exercised(0.8)87.34 (0.6)39.47 (0.2)43.22 
Options outstanding, end of period0.7 $117.87 1.6 $110.43 2.7 $87.58 
Options exercisable, end of period0.6 $113.14 1.5 $105.05 2.4 $73.80 
(1)    The Company recorded $0.1 million, $0.2 million and $0.1 million of stock option expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No stock options were granted for discontinued operations for the year ended January 3, 2026.
(3)    On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested stock options held by employees of the sold business were canceled.
Total stock option expense for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 was $1.3 million, $4.4 million and $8.7 million, respectively. As of January 3, 2026, the Company had $3.3 million of unrecognized compensation cost related to non-vested stock options that are expected to vest over a weighted-average period of approximately 3.2 years.

The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges were as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024
(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
0.1 0.20.1 0.3 0.80.3 
$50.01 to $80.00
— 0.7— — 1.7— 
$80.01 to $120.00
0.3 1.80.3 0.7 1.50.7 
$120.01 to $160.00
0.2 4.60.1 0.4 2.20.3 
$160.01 to $200.00
0.1 5.60.1 0.2 2.50.2 
$200.01 to $230.00
— 4.2— — 4.5— 
$230.01 to $280.00
— 4.9— — 2.4— 
Total
0.7 3.00.6 1.6 1.71.5 
As of January 3, 2026 and December 28, 2024, the weighted-average remaining contractual term of options outstanding was 3.0 years and 1.7 years, respectively. As of January 3, 2026 and December 28, 2024, 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 1.9 years and 2.2 years respectively.
RSUs
The number of RSUs issued and outstanding under all of the Company’s equity plans are as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(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 period(1)
0.7 $135.21 3.4 $104.81 3.0 $105.02 
Granted(2)
0.3 163.02 0.2 130.85 0.5 121.79 
Canceled(3)
(0.2)142.75 (2.7)96.40 — 179.81 
Vested(0.2)141.48 (0.2)146.27 (0.1)177.93 
RSUs outstanding, end of period0.6 $145.71 0.7 $135.21 3.4 $104.81 
___________________________
(1)    The Company recorded $2.5 million, $4.4 million and $2.3 million of RSU related expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No RSUs were granted for discontinued operations for the year ended January 3, 2026.
(3)     On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested RSUs held by employees of the sold business were canceled.
Total RSU expense for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 was $32.0 million, $29.8 million and $17.8 million, respectively. As of January 3, 2026, the Company had $68.5 million of unrecognized compensation cost related to non-vested RSU awards expected to be recognized and vest over a weighted-average period of approximately 3.1 years.
As previously mentioned in Note 2, “Summary of Significant Accounting Policies” under the heading “Net Income Per Share”, 2.7 million shares related to certain RSUs were considered contingently issuable shares as their vesting is contingent upon the occurrence of certain events. As of January 3, 2026, such events were deemed to have not occurred. See Note 24, “Commitments and Contingencies” for additional details.
PSUs
The number of PSUs outstanding under all of the Company’s equity plans are as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(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 period(1)
0.2 $172.50 0.3 $195.42 0.3 $186.83 
Granted(2)
0.1 
(3)
179.89 0.1 
(4)
164.19 0.1 
(5)
204.67 
Canceled(6)
(0.2)171.39 (0.2)187.52 — 193.50 
Vested— — — 250.73 (0.1)179.42 
PSUs outstanding, end of period0.1 $180.65 0.2 $172.50 0.3 $195.42 
(1)     The Company recorded $(1.0) million, $0.8 million and $(1.5) million of PSU (benefit) expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No PSUs were granted for discontinued operations for the year ended January 3, 2026.
(3)    On February 25, 2025, the Audit Committee approved the weighted payout percentage of 0% for the 2022 PSU awards (three-year performance period), which were based upon the actual fiscal 2024 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.
(4)    On February 26, 2024, the Audit Committee approved the weighted payout percentage of 28% 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.
(5)    On February 27, 2023, the Audit Committee approved the weighted payout percentage of 100% 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.
(6)    On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested PSUs held by employees of the sold business were canceled.
During the year ended December 30, 2023, the Company awarded 95,170 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 142,254 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.
During the year ended January 3, 2026, the Company awarded 90,397 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) modifier, in the year following the evaluation and confirmation of the performance achievement criteria. The Company’s TSR modifier estimate is based on the Masimo’s TSR performance over a 3-year period as a percentile ranking relative to the constituents of the S&P Healthcare Equipment Select Index for the performance period beginning on March 11, 2025 and ending on January 1, 2028. 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 January 3, 2026, December 28, 2024 and December 30, 2023 was $2.5 million, $1.9 million and $(20.4) million, respectively. The PSU expense (benefit) amounts for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 relate to adjustments for the expected life-to-date performance of the PSU. As of January 3, 2026, the Company had $12.5 million of unrecognized compensation cost related to non-vested PSU awards expected to be recognized and vest over a weighted-average period of approximately 1.8 years.
Valuation of Stock-Based Award Activity
The fair value of each RSU and PSU is determined based on the closing price of the Company’s common stock on the grant date.
The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s stock-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Risk-free interest rate
3.9% to 4.1%
3.3% to 4.2%
3.6% to 4.2%
Expected term (in years)
5.8 years
4.6 years to 5.9 years
5.1 years to 5.9 years
Estimated volatility
40.5% to 43.1%
33.3% to 42.6%
31.6% to 36.7%
Expected dividends0%0%0%
Weighted-average fair value of options granted
$68.57 per share to $78.81 per share
$59.60 per share$75.08 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 January 3, 2026, December 28, 2024, and December 30, 2023 are based on historical and implied volatilities of the Company’s share price over the expected term of the option.
Expected dividends. The Board may from time to time declare, and the Company may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law. Any determination to declare and pay dividends will be made by the Board and will depend upon the Company’s results of operations, earnings, capital requirements, financial condition, business prospects, contractual restrictions and other factors deemed relevant by the Board. In the event a dividend is declared, there is no assurance with respect to the amount, timing or frequency of any such dividends. The dividend declared in 2012 was deemed to be a special dividend and there is no assurance that special dividends will be declared again during the expected term. Based on this uncertainty and unknown frequency, for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, 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 January 3, 2026, December 28, 2024 and December 30, 2023 was $2.7 million, $8.2 million and $9.5 million, respectively.
The aggregate intrinsic value of options is calculated as the positive difference, if any, between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock as of January 3, 2026 was $18.6 million. The aggregate intrinsic value of options exercisable with an exercise price less than the closing price of the Company’s common stock, as of January 3, 2026 was $18.6 million. The aggregate intrinsic value of options exercised during the years ended January 3, 2026, December 28, 2024 and December 30, 2023 was $63.1 million, $58.2 million and $19.0 million, respectively.
The total income tax benefit recognized in the consolidated statements of operations for stock-based compensation expense was $5.8 million, $5.7 million and $2.9 million for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, 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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Cost of goods sold$0.7 $1.0 $1.1 
Selling, general and administrative21.9 20.3 (2.0)
Research and development13.2 14.8 7.0 
Total
$35.8 $36.1 $6.1 
v3.25.4
Employee Benefits
 12 Months Ended
Jan. 03, 2026
Postemployment Benefits [Abstract]  
Employee Benefits
21. Employee Benefits
Defined Contribution Plan
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.
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 $3.7 million, $3.9 million and $4.1 million to the MRSP for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, 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 $2.3 million, $2.4 million and $2.1 million for the years ended January 3, 2026, December 28, 2024, and December 30, 2023, respectively.
Defined Benefit Plans
The Company sponsors several international noncontributory defined benefit plans. 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 other income (expense), net 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)January 3,
2026		December 28,
2024
Plan Assets
Fair value of plan assets at beginning of year$19.2 $16.7 
Employer contributions2.4 1.8 
Participant contributions0.9 0.7 
Realized net gains (losses) on plan assets0.3 0.1 
Benefits paid(0.6)(1.2)
Foreign currency revaluation and translation gains and (losses)
2.6 1.1 
Fair value of plan assets at end of year$24.8 $19.2 
Projected Benefit Obligation
Projected benefit obligation at beginning of year$24.6 $20.9 
Service cost1.7 1.5 
Participant contributions0.9 0.7 
Interest cost0.3 0.3 
Actuarial gains (losses)(0.4)0.5 
Benefits paid(0.6)
(1)
(1.2)
Foreign currency revaluation and translation gains and (losses)3.8 1.9 
Projected benefit obligation at end of year$30.3 $24.6 
Funded status$(5.5)$(5.4)
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026, resulting in a negative allocation as of year end.
The net increase in the fair value of the Company’s plan assets for the year ended January 3, 2026 was principally driven by higher foreign currency revaluation of $1.5 million and higher employer contributions of $0.6 million on the plan assets.
The net increase in the Company’s projected benefit obligation for the year ended January 3, 2026 was primarily driven by higher foreign currency revaluation of $1.9 million on the projected benefit obligation, partially offset by lower benefits paid of $0.6 million on the projected benefit obligation.
The underfunded balance of $5.5 million and $5.4 million was included in the long-term other liabilities on the consolidated balance sheets as of January 3, 2026 and December 28, 2024, respectively.
The Company’s consolidated statement of operations reflect the following components of net periodic defined benefit costs:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Service cost$1.7 $1.5 $1.2 
Interest cost0.3 0.3 0.5 
Amortization of net losses0.2 0.1 — 
Amortization of prior service costs (credits)— (0.1)— 
Expected (gains) on plan assets(0.8)(0.7)(0.7)
Net periodic defined benefit plan cost$1.4 $1.1$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)January 3,
2026		December 28,
2024
Non-current liability$5.5 $5.4 
International defined benefit plans with accumulated benefit obligations in excess of fair value of plan assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Projected benefit obligation$30.3 $24.6 
Accumulated benefit obligation28.1 22.8 
Fair value of plan assets24.8 19.2 
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
January 3,
2026		Year Ended
December 28,
2024
Assumptions - benefit obligations:
Discount rate1.0 %1.5 %
Rate of compensation increase1.5 1.5 
Assumptions - net periodic benefit costs:
Discount rate 1.0 %1.5 %
Rate of compensation increase1.5 1.5 
Expected long-term return on plan assets(1)
3.5 3.7 
Interest credit rate1.3 1.5 
______________
(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 categoryJanuary 3,
2026		December 28,
2024
Cash and cash equivalents(1)
(3.7)%(6.8)%
Equity securities39.6 36.0 
Debt securities33.7 44.1 
Other30.4 26.7 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026 and December 28, 2024, 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 $2.4 million and $1.8 million contributions to its defined benefit plans for the years ended January 3, 2026 and December 28, 2024, respectively. The Company expects to contribute $1.5 million for the fiscal year 2026.
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
January 3,
2026
2026$1.2 
20271.2 
20281.2 
20292.1 
20301.2 
Thereafter7.8 
Total $14.7 
v3.25.4
Non-operating Loss
 12 Months Ended
Jan. 03, 2026
Nonoperating Income (Expense) [Abstract]  
Non-operating Loss
22. Non-operating Loss
Non-operating loss consists of the following:
(in millions)
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Interest income$3.4 $4.4 $2.9 
Realized and unrealized foreign currency (losses)(7.6)(4.4)(8.8)
Interest expense(33.2)(41.2)(47.1)
Total non-operating loss$(37.4)$(41.2)$(53.0)
v3.25.4
Income Taxes
 12 Months Ended
Jan. 03, 2026
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
United States$133.9 $(17.8)$56.3 
Foreign138.7 39.6 56.7 
Total
$272.6 $21.8 $113.0 
The following table presents the current and deferred (benefit) provision for income taxes:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Current:
Federal$23.5 $17.3 $12.6 
State4.1 3.0 3.4 
Foreign25.5 8.6 9.1 
Subtotal$53.1 $28.9 $25.1 
Deferred:
Federal$6.1 $(19.0)$(5.4)
State6.4 (5.6)(6.3)
Foreign(0.7)1.3 (8.1)
Subtotal11.8 (23.3)(19.8)
Total
$64.9 $5.6 $5.3 
Included in the fiscal year 2025, 2024 and 2023 tax (benefit) provisions are increases of $2.8 million, $3.2 million and $5.7 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 after the adoption of ASU 2023-09 is as follows:
Year Ended
January 3,
2026
(in millions)Percent
Statutory regular federal income tax rate
$57.1 21.0 %
State and local income taxes, net of federal income tax effect (a)
8.3 3.1 
Foreign tax effects:
Switzerland
Statutory tax rate differential
(17.6)(6.5)
Cantonal taxes
5.0 1.8 
Impairment
(4.3)(1.6)
Cross-border tax laws
4.7 1.7 
Other
2.3 0.8 
Other foreign jurisdictions
5.7 2.1 
Effects of cross-board tax laws
Foreign GILTI, net with FTC
2.4 0.9 
Other
0.8 0.3 
Tax credits
R&D credits
(4.8)(1.8)
Nontaxable and nondeductible items
Excess stock-based compensation
(5.0)(1.8)
Other
7.5 2.8 
Changes in unrecognized tax benefit
2.8 1.0 
Effective tax rate
$64.9 23.8 %
____________
(a)    The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Massachusetts, New York, and Texas.
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Statutory regular federal income tax rate21.0 %21.0 %
State provision, net of federal benefit(12.1)(2.0)
U.S. tax on foreign income, net42.5 5.3 
Foreign income taxed at different rates8.0 (2.4)
Research and development tax credits(16.7)(3.4)
Tax credit— (7.3)
Excess stock-based compensation(26.3)(2.3)
Nondeductible executive compensation16.9 (1.7)
Derecognition of uncertain tax position(15.5)(1.6)
Other7.9 (0.9)
Total
25.7 %4.7 %
As of January 3, 2026, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $613.7 million. Because such earnings have previously been subject to U.S. tax or 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 $2.3 million. The Company intends, however, to indefinitely reinvest the remaining $527.2 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 $25.0 million.
The components of the deferred tax assets are as follows:
(in millions)January 3,
2026		December 28,
2024
Deferred tax assets:
Capital loss$134.2 $— 
Accrued liabilities35.7 28.6 
Capitalized R&D29.5 41.2 
Tax credits30.6 31.5 
Deferred revenue24.8 27.5 
Net operating losses16.8 10.9 
Operating lease liabilities7.4 5.6 
Stock-based compensation5.6 8.4 
Intangible assets1.6 6.4 
Other6.2 5.8 
Total292.4 165.9 
Valuation allowance(145.1)(15.2)
Total deferred tax assets$147.3 $150.7 
Deferred tax liabilities:
Property and equipment$(8.4)$(12.2)
Withholding taxes on undistributed foreign earnings(3.5)(3.1)
ROU assets(7.3)(5.2)
State taxes and other(14.1)(12.0)
Total deferred tax liabilities(33.3)(32.5)
Net deferred tax assets$114.0 $118.2 
As of January 3, 2026, the Company has $0.8 million and $2.7 million of net operating losses from federal and various state jurisdictions, which will begin to expire in 2037 and 2038, respectively. Additionally, the Company has $68.7 million of net operating losses from foreign jurisdictions that will begin to expire in 2032. The Company also has state research and development tax credits of $38.7 million that will carryforward indefinitely, $0.2 million of foreign tax credits on research and development expenditures that will begin to expire in 2044 and $3.6 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 30, 2023, the Company established a valuation allowance to reduce the deferred tax assets relating to certain acquired operating losses in certain foreign jurisdictions that the Company believes are not likely to be realized. During the year ended January 3, 2026, there was an increase in the valuation allowance of $129.9 million, primarily due to capital losses and 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
January 3,
2026		Year Ended
December 28,
2024
Unrecognized tax benefits (gross), beginning of period$33.4 $30.2 
Increase from tax positions in prior period0.5 1.8 
Increase from tax positions in current period7.3 4.9 
Lapse of statute of limitations(5.3)(3.5)
Unrecognized tax benefits (gross), end of period$35.9 $33.4 
The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $33.3 million and $30.8 million as of January 3, 2026 and December 28, 2024, respectively.
For the year ended January 3, 2026 the Company recorded an expense of $0.4 million for interest and penalties related to unrecognized tax benefits as part of income tax expense. For the year ended December 28, 2024, the Company recorded a benefit 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.
Total accrued interest and penalties related to unrecognized tax benefits as of January 3, 2026 and December 28, 2024 were $3.1 million and $2.7 million, respectively.
The Company conducts business in multiple jurisdictions and, as a result, one or more of the Company’s subsidiaries files income tax returns in U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters through fiscal year 2021. 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.
The amounts of cash income tax paid by the Company were as follows:
(in millions)Year Ended
January 3,
2026
Federal
$13.4 
Foreign
Switzerland
6.9 
Mexico
2.0 
All other foreign
4.2 
State and local
2.0 
Income taxes, net of amounts refunded
$28.5 
The amount of cash income taxes paid by the Company during the years ended December 28, 2024 and December 30, 2023 was $35.9 million and $20.4 million, respectively.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA did not have a material impact on the consolidated financial statements for the year ended January 3, 2026, and the Company will continue to monitor its impacts on future years.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Jan. 03, 2026
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 share 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 the Company’s CEO and Chairman (the Chairman Provision), and (iii) a “Change-in-Control” (as defined in the Amended Employment Agreement).
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 or pursuant to Mr. Kiani’s death or disability.
On February 8, 2023, Mr. Kiani agreed that the valid election to the 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, 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, 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” (see the heading “Litigation” under Note 24, “Commitments and Contingencies” for further details).
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 (see the heading “Litigation” under Note 24, “Commitments and Contingencies” for further details).
On November 13, 2024, the Company entered into an employment agreement with Michelle Brennan (Brennan Agreement), who the Board appointed Interim CEO on September 24, 2024. The Brennan Agreement, effective as of the September 24, 2024 appointment, had a term of six months unless earlier terminated by its terms (Brennan Term).
The Brennan Agreement provided for an annual base salary of $1,042,000. Additionally, Ms. Brennan was eligible for a discretionary bonus of a target amount equal to $621,250 at the end of the Brennan Term. At the conclusion of Ms. Brennan’s service as interim CEO, in the early 2025, the Board determined her discretionary bonus amount would be $1,087,190.
Under the Brennan Agreement, Ms. Brennan was granted an equity award of 8,916 RSUs, which vested upon the appointment of the CEO of the Company, effective February 12, 2025. The RSUs were granted under Company’s 2017 Equity Plan. Ms. Brennan was 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. On February 12, 2025, Ms. Brennan’s term as Interim CEO ended and the Board appointed her to the role of Chairman of the Board.
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 CEO of Masimo, effective as of February 12, 2025 (“ the Effective Date”). Under the Offer Letter, Ms. Szyman 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.
As of September 27, 2025, the Company had three severance plan participation agreements with executive officers. The participation 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 or she is terminated by the Company without cause or if he or she terminates his or her employment for good reason under certain circumstances. Each executive officer is also required to give the Company six months’ advance notice of his or her resignation under certain circumstances.
Willow Cross-Licensing Agreement Provisions
The Company’s Cross-Licensing Agreement with Willow purports to require the Company to pay annual minimum aggregate royalties for the use of the rainbow® licensed technology, which is a perpetual global license. On October 24, 2024, Mr. Kiani’s employment as the Company’s CEO was terminated. Following Mr. Kiani’s termination, the Company paid Willow (i) a $2.5 million license fee for technology for use in blood glucose monitoring; and (ii) minimum aggregate annual royalties for carbon monoxide, methemoglobin, fractional arterial oxygen saturation, hemoglobin and/or glucose measurements in the amount of $15.0 million, plus $2.0 million for an additional parameter. As described in Note 24, “Commitments and Contingencies — Litigation”, the Company is in a dispute with Willow regarding the Cross-Licensing Agreement and Payments under the Cross-Licensing Agreement. No additional accruals or payments were made in connection with the termination of Mr. Kiani’s employment under the Willow Cross-Licensing Agreement.
Purchase Commitments
Pursuant to contractual obligations with vendors, the Company had $258.4 million of purchase commitments as of January 3, 2026 that are expected to be purchased within one year, and certain circumstances beyond one year for critical inventory and raw materials. In general, these purchase commitments have been made for inventory related items in order to secure sufficient levels of those items, other critical inventory and manufacturing supplies, and to achieve better longer term pricing.
Other Contractual Commitments
In the normal course of business, the Company may provide bank guarantees to support government hospital tenders in certain foreign jurisdictions. As of January 3, 2026, the Company had approximately $4.1 million in outstanding unsecured bank guarantees.
In certain circumstances, the Company also provides limited indemnification within its various customer contracts whereby the Company indemnifies the parties to whom it sells its products with respect to potential infringement of intellectual property, and against bodily injury caused by a defective Company product. It is not possible to predict the maximum potential amount of future payments under these or similar agreements, due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved. As of January 3, 2026, the Company had not incurred any significant costs related to contractual indemnification of its customers.
Fee Agreement
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 imposed 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 regarding the Apple matters) regarding the Apple matters). The Fee Agreement provided that if the vendor was 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 would be paid a success fee equal to three times the amount of the excess fees and costs incurred over the annual limit. On June 12, 2025, the Company and the vendor agreed to terminate the Fee Agreement. The Company paid the vendor approximately $2.8 million related to this termination. As of January 3, 2026, no amounts were outstanding in connection with this Fee Agreement.
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 January 3, 2026, the Company had $152.3 million of bank balances, of which $4.2 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries’ deposit insurance organizations.
The Company’s ability to sell its products to U.S. hospitals depends in part on its relationships with GPOs. Many existing and potential 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 January 3, 2026, December 28, 2024 and December 30, 2023, revenue from the sale of the Company’s healthcare products to customers that are members of U.S. GPOs approximated 57.2%, 56.9% and 53.2% of healthcare revenue, respectively.
For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, the Company had sales through one just-in-time healthcare distributor that represented 18.8%, 18.5%, and 18.1% of healthcare revenue, respectively.
As of January 3, 2026, two healthcare customers represented 26.5% and 10.1%, respectively, of the Company’s healthcare accounts receivable balance. The receivable balance related to one of these two healthcare customers is fully secured by a letter of credit. As of December 28, 2024, two healthcare customers represented 12.2% and 11.9%, respectively, of the Company’s healthcare accounts receivable balance.
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 February 3, 2025. The District Court held a jury trial on the patent infringement claims in November of 2025 and the jury returned a verdict of $634 million. The parties are currently briefing post-trial motions regarding the jury verdict.
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 the 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, and oral arguments were held on July 7, 2025. 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 one patent 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 of the IPRs for the two patents were initiated, but are not being pursued in view of reexamination proceedings at the Patent Office. On January 12, 2024, the U.S. Customs and Border Protection Exclusion Order Enforcement Branch (Enforcement Branch) issued a ruling letter allowing importation of certain Apple Watches with the blood oxygen feature disabled. On January 7, 2025, the Enforcement Branch issued a second ruling letter declining entry of a second redesigned Apple Watch. On August 1, 2025, following an ex parte proceeding initiated by Apple, the Enforcement Branch issued a ruling letter allowing importation of the second redesigned Apple Watch. On August 20, 2025, the Company initiated an action against Customs and Border Protection and certain government officials (in their official capacity) in the U.S. District Court for the District of Columbia asserting, among other things, a violation of the Administrative Procedures Act in connection with Apple’s ex parte proceeding. On the same day, the Company filed a motion for temporary restraining order and preliminary injunction to prohibit Customs and Border Protection from permitting the importation of the Apple Watches subject to the August 1, 2025 letter ruling. That motion remains pending. On September 8, 2025, the Company filed a request before the ITC seeking clarification or, in the alternative, modification of the LEO to confirm that the LEO covers second redesigned Apple Watches being imported pursuant to the August 1, 2025 ruling letter. On November 14, 2025, the ITC instituted a combined enforcement and modification proceeding to evaluate Apple’s second redesigned watch that was the subject of Customs and Border Protection’s August 1, 2025 ruling letter. The U.S Administrative Law Judge who conducted the evidentiary hearing in the underlying ITC investigation conducted an evidentiary hearing in the enforcement proceeding on January 28, 2026. The Initial Enforcement Determination by the Administrative Law Judge is expected by March 18, 2026, and the Final Enforcement Determination from the ITC is expected by May 18, 2026.
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 judgment dismissing on 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 the 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 (Securities Class Action). 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 parties engaged in a mediation on May 28, 2025. On July 11, 2025, the parties informed the Court that they have reached a settlement in principle. On August 14, 2025, plaintiffs filed a motion for preliminary approval of class action settlement, which the Court granted on February 2, 2026. A Settlement Hearing is scheduled for May 5, 2026.
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 the Company’s current and former executives and directors, and the Company as nominal defendant. The complaint alleges, among other things, that the defendants breached their fiduciary duties owed to the Company by allowing or permitting false or misleading statements to be disseminated regarding the performance of the Company’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 (the Exchange Act) (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. On March 14, 2025, the Court lifted the stay. On May 16, 2025, Plaintiffs filed an Amended Complaint. Defendants’ deadline to respond to the Amended Complaint is March 17, 2026.
In addition to the Derivative Actions, the Company has received two shareholder requests under Delaware law demanding, among other things, that the Company take certain actions in response to alleged breaches of fiduciary duty relating to the same matters at issue in the Securities Class Action and the Derivative Actions. One of the shareholder demands was subsequently withdrawn. The Company’s Board has formed a review committee, currently consisting of Dr. Solomon and Ms. Lane, to consider and assess the remaining demand.
In August 2023, the Company decided to conduct a voluntary recall of select Rad-G® products in connection with an issue that could 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 from a former employee within the Company’s accounting department of potential accounting irregularities, internal control deficiencies, and improper whistleblower restrictions.
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 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 stating 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 was the 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 declaration 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. On December 12, 2024, the Company filed its answer to the amended complaint, as well as a motion to stay the proceedings. On July 21, 2025, the Court denied the Company’s motion to stay. On September 23, 2025, Mr. Kiani filed a second amended complaint, which does not bring new claims but, among other things, adds allegations that Mr. Kiani was improperly denied the ability to exercise certain stock options. The case is now in discovery.
On May 22, 2025, Mr. Kiani filed a second lawsuit in the Superior Court of Orange County, California against individual Board Members (Mr. Koffey, Ms. Brennan, Dr. Solomon, Mr. Jellison, Ms. Lane, and Mr. Scannell) asserting claims for violations of Cal. Labor Code §§ 203, 558.1 and Cal. Bus. & Prof. Code § 17200 (Unfair Competition Law) arising from the Company’s alleged failure to timely pay him severance and certain wages purportedly owed under his Employment Agreement. The Orange County Superior Court deemed this case “related” to Mr. Kiani’s action against the Company and assigned the two cases to the same judge. On July 2, 2025, Defendants filed their Answer to the Complaint. On July 12, 2025, Defendants filed a motion to stay all proceedings citing, among other things, the ongoing litigation in Delaware and Mr. Kiani’s action against the Company in Orange County Superior Court. On December 23, 2025, Defendants filed a Motion for Judgment on the Pleadings. On January 19, 2026, Defendants’ motion to stay was denied.
The Company is evaluating the claims, and believes it has good and substantial defenses to them, but there is no guarantee that the Company will be successful in these efforts.
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 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 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. On March 3, 2025, the Company filed an Amended Complaint, which 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. On March 17, 2025, Mr. Kiani filed a motion to dismiss the Amended Complaint.
On October 25, 2024, the Company commenced litigation in the United States District Court for the Southern District of New York against Mr. Roderick Wong, Naveen Yalamanchi, RTW Investments, 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 (together, the RTW Defendants) and Mr. Kiani, seeking disgorgement of short-swing profits pursuant to Section 16(b) of the Exchange Act (the RTW Litigation). The Company filed an amended complaint in the RTW Litigation on December 30, 2024. The defendants filed motions to dismiss the RTW Litigation on January 23, 2025. On April 3, 2025, the Court issued an order granting the defendant’s motion to transfer the RTW Litigation to the United States District Court for the Central District of California. On August 5, 2025, the Company voluntarily dismissed its sole claim against Mr. Kiani without prejudice and, on August 6, 2025, the Court granted the Parties’ joint stipulation to voluntarily dismiss Plaintiff’s Section 13(d) claim against the RTW Defendants, leaving only the Section 16(b) claim. On August 18, 2025, the Court denied in full the RTW Defendants’ motion to dismiss. The RTW Defendants filed their Answer to the amended complaint on September 3, 2025. In the RTW 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. The case has now proceeded to discovery.
On May 26, 2025, Willow filed a demand for arbitration (the Demand) against the Company with the American Arbitration Association. Willow asserts in the Demand, and Statements of Additional Claims filed on November 28, 2025 and January 16, 2026, that it is entitled to declaratory judgment on the parties’ respective rights under the Cross-Licensing Agreement, described in Note 3, “Related Party Transactions”, including that Willow does not owe the Company repayment for any past royalty overpayments. Willow also claims the Company breached the Cross-Licensing Agreement, including by failing to pay adequate royalties, provide Willow with pricing for certain products, place certain technology in escrow, and provide Willow with engineering support. Willow seeks, among other things, (i) monetary damages of at least $6.1 million and (ii) specific performance compelling the Company to provide price lists for certain products, permit Willow’s chosen auditor to conduct an audit of the Company’s books and records, place certain technology in escrow, and provide Willow with engineering support.
The Company has asserted counterclaims against Willow and the Company’s former CEO Joe Kiani, seeking, among other things, (i) repayment of historical royalty overpayments, (ii) for Willow to re-assign to the Company intellectual property rights that are owned by the Company, (iii) declaratory judgment that provisions under the Cross-Licensing Agreement are not enforceable, and (iv) to the extent the agreement is enforceable, declaratory judgment on the parties’ respective rights under the Cross-Licensing Agreement, including the scope of the Company’s royalty obligations, if any.
We believe the Company has strong defenses to Willow’s claims, and that the Company’s counterclaims are meritorious. However, there is no guarantee that the Company will prevail in its dispute with Willow.
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.
v3.25.4
Segment and Enterprise Reporting
 12 Months Ended
Jan. 03, 2026
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 CEO, makes operating decisions, assesses financial performance, and allocates resources. As of January 3, 2026, the Company operates under one reportable segment, the healthcare business. Earlier this year, the non-healthcare consumer audio business was classified as held-for-sale, and as a result was excluded from the segment and enterprise reporting herein for all periods presented. On September 23, 2025, the Company completed the sale of its non-healthcare business.
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.
Selected information for the healthcare segment is presented below for each of the years ended January 3, 2026, December 28, 2024 and December 30, 2023:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Revenues:
Healthcare$1,524.1 $1,395.2 $1,275.5 
Other(1)
2.8 — — 
Total revenues$1,526.9 $1,395.2 $1,275.5 
Cost of goods:
Healthcare$573.8 $581.7 $498.3 
Other(1)
7.9 19.2 11.6 
Total costs of good sold$581.7 $600.9 $509.9 
Gross profit:
Segment gross profit$950.3 $813.6 $777.1 
Acquired asset amortization(1)(2)
(6.6)(1.8)(1.9)
Business transition and related costs(1)(3)
1.5 (14.8)(4.9)
Acquisitions, integrations, divestitures, and related costs(1)(4)
— (0.1)— 
Other(1)
— (2.6)(4.7)
Total gross profit$945.2 $794.3 $765.6 
__________________
(1)    Management excludes certain revenues and 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.
(4)    Acquisitions, integrations, divestitures, and related costs are a non-GAAP financial measure. These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments, divestitures, assets impairments, and in-process research and development.
For each of the years ended January 3, 2026, December 28, 2024 and December 30, 2023, total depreciation and amortization expense for the healthcare segment was $38.8 million, $48.5 million and $38.1 million, respectively.
The Company’s total assets by segment are as follows:
(in millions)January 3,
2026		December 28,
2024
Total assets by segment:
Healthcare$1,697.8 $1,589.7 
Asset held-for-sale
1.1 1,036.0 
Total assets by segment$1,698.9 $2,625.7 
The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are as follows:
(in millions, except percentages)
Year Ended
January 3,
2026		Year Ended
December 28,
2024
Total long-lived assets by geographic area:
United States$307.7 86.5 %$312.5 87.9 %
International48.2 13.5 43.2 12.1 
Total long-lived assets by geographic area$355.9 100.0 %$355.7 100.0 %
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Total revenue by geographic area:
United States (U.S.)$956.6 62.7 %$889.3 63.7 %$796.9 62.5 %
Europe, Middle East and Africa391.4 25.6 349.7 25.1 312.3 24.5 
Asia and Australia119.6 7.8 105.2 7.5 117.6 9.2 
North and South America (excluding U.S.)59.3 3.9 51.0 3.7 48.7 3.8 
     Total revenue by geographic area$1,526.9 100.0 %$1,395.2 100.0 %$1,275.5 100.0 %
v3.25.4
Subsequent Event
 12 Months Ended
Jan. 03, 2026
Subsequent Events [Abstract]  
Subsequent Event
26. Subsequent Event
Merger Agreement
On February 16, 2026, the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with Danaher Corporation, a Delaware corporation (Parent), and Mobius Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (Merger Sub), pursuant to which, among other things, Merger Sub will merge with and into the Company (the Merger), with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent.
As set forth in the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.001 per share, of the Company (other than any shares owned by Parent, Merger Sub or the Company, or any of their wholly owned subsidiaries or shares in respect of which appraisal has been duly demanded, and not effectively withdrawn or otherwise waived or lost, pursuant to Section 262 of the General Corporation Law of the State of Delaware) issued and outstanding immediately prior to the effective time of the Merger will be automatically converted into the right to receive $180.00 in cash, without interest.
The completion of the Merger is subject to various conditions, including, among others, customary conditions relating to: (i) the adoption of the Merger Agreement by the Company’s stockholders; (ii) expiration or termination of any applicable waiting periods (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of certain non-U.S. antitrust and foreign direct investment approvals; (iii) the absence of any law or order making unlawful or restraining, enjoining or otherwise prohibiting consummation of the Merger; (iv) the absence of any material adverse effect with respect to the Company; and (v) other customary conditions relating to the accuracy of representations and warranties and performance of covenants.
The Merger Agreement also contains customary representations, warranties and covenants of the Company, Parent and Merger Sub, including, among others, covenants regarding the operation of the business of the Company and its subsidiaries prior to the effective time of the Merger.
If the Merger is completed, the shares will be delisted from the Nasdaq Stock Market and deregistered under the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable following the effective time of the Merger.
Contingent or Discretionary Fees
The Company entered into certain contingent or discretionary fee agreements with various service providers, advisors and consultants in connection with the sale transaction. A $5.0 million fee was due upon the announcement of a sale transaction, and another $10.0 million fee will be due upon the consummation of the sale transaction.
The Company is unable to reasonably estimate any other contingent fees due under these agreements at this time. Amounts due will be recognized when probable and reasonably estimable.
v3.25.4
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Jan. 03, 2026
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
VALUATION AND QUALIFYING ACCOUNTS
Years ended January 3, 2026, December 28, 2024 and December 30, 2023
(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 January 3, 2026
Allowance for credit losses$3.7 $3.0 $(2.0)$4.7 
Allowance for sales returns2.43.0 (1.5)3.9 
Year ended December 28, 2024
Allowance for credit losses2.7 1.1 (0.1)3.7 
Allowance for sales returns
1.4 2.1 (1.1)2.4 
Year ended December 30, 2023
Allowance for credit losses2.4 0.4 (0.1)2.7 
Allowance for sales returns
1.8 — (0.4)1.4 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Jan. 03, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Jan. 03, 2026
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Jan. 03, 2026
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”. On April 27, 2025, we identified unauthorized activity on our on-premise network. As a result of this incident, certain of our manufacturing facilities temporarily operated at less than normal levels, and our ability to process, fulfill, and ship customer orders timely was temporarily impacted. We have completed restoration of our affected systems and continue to monitor our environment. We have implemented additional security measures and continue to evaluate and enhance our cybersecurity policies, procedures, and controls. We continue to evaluate and refine our cybersecurity practices to help mitigate the risk of similar incidents in the future.
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, Cybersecurity & Infrastructure, 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, Cybersecurity & Infrastructure, 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, Cybersecurity & Infrastructure, 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, Cybersecurity & Infrastructure, 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
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 03, 2026
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 2025 is a 53 week fiscal year ending January 3, 2026. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Reclassifications
Reclassifications
Certain amounts for the current and comparative periods in the accompanying consolidated financial statements have been reclassified or recast to conform to the discontinued operations presentation, including certain balance sheets, statements of operations, statements of comprehensive (loss) income, and statements of cash flows in the consolidated financial statements for the year ended December 28, 2024 and December 30, 2023, see Note 18, “Discontinued Operations”.
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, 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.
Assets Held-For-Sale and Discontinued Operations
Assets Held-For-Sale and Discontinued Operations
In the third quarter of 2024, the Company announced that its board of directors (the “Board”) remained committed to the previously announced review of alternatives for the Company’s non-healthcare business, and that the Board had engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor. As of December 28, 2024, the non-healthcare business remained part of the Company’s continuing operations. The sales process progressed in early 2025, and during the first quarter of 2025, the non-healthcare business was classified as held-for-sale and reported in discontinued operations. On May 6, 2025, the Company announced that it entered into a definitive agreement to sell Sound United to Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics., Ltd. On September 23, 2025, the Company completed the sale of Sound United.
The non-healthcare business results for the periods presented are reflected in our consolidated statements of operations and consolidated statement of cash flows as discontinued operations. Additionally, the related assets and liabilities are classified as held-for-sale in our consolidated balance sheets, see Note 18, “Discontinued Operations”.
Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations, which exclude our non-healthcare business, and we have recast prior period amounts to conform to this discontinued operations presentation.
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 January 3, 2026:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$55.5 $55.5 $— $— 
Money market funds96.8 96.8 — — 
Pension assets
Cash and cash equivalents(1)
(0.9)(0.9)— — 
Equity securities9.8 9.8 — — 
Debt securities8.4 8.4 — — 
Real estate funds4.7 4.7 — — 
Alternative investments1.9 — 1.9 — 
Other0.9 — 0.9 — 
Derivative instruments - cash flow hedges(2)
1.0 1.0 — — 
Total assets$178.1 $175.3 $2.8 $— 
Liabilities
Derivative instruments - cash flow hedges$1.4 $1.4 $— $— 
Pension benefit obligation30.3 30.3 — — 
Total liabilities$31.7 $31.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026, 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 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$51.0 $51.0 $— $— 
Money market funds72.6 72.6 — — 
Pension assets
      Cash and cash equivalents(1)
(1.3)(1.3)— — 
      Equity securities 6.9 6.9 — — 
      Debt securities8.5 8.5 — — 
      Real estate funds3.6 — 3.6 — 
      Alternative investments1.4 — 1.4 — 
      Other0.1 — 0.1 — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Equity securities1.3 1.3 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$151.6 $146.5 $5.1 $— 
Liabilities
Derivative instruments - cash flow hedges$0.1 $0.1 $— $— 
Pension benefit obligation24.6 24.6 — — 
Total liabilities$24.7 $24.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 31, 2024, 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 maintains certain derivative investments whose prices are based on quoted market prices in an active market and 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.
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 January 3, 2026 and December 28, 2024.
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, net of allowance for credit losses as of January 3, 2026, December 28, 2024 and December 30, 2023 were $275.8 million, $283.2 million, and $224.2 million, respectively. 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, 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 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, tooling and others
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
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, acquired and developed technologies and contractual licenses, the useful life is determined largely by valuation estimates of remaining economic life.
The Company’s policy is to renew its patents and trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. The Company periodically evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned.
Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets
Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. As of January 3, 2026, the Company has one reporting unit, 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.
While the majority of the Company’s revenue contracts and transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation, judgment and analysis 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 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.
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.
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)January 3,
2026		December 28,
2024		December 30,
2023
Product warranty accrual, beginning of period$5.5 $3.0 $2.0 
Accrual for warranties issued1.0 1.9 1.8 
Changes in pre-existing warranties (including changes in estimates)3.5 5.2 1.3 
Settlements made(3.9)(4.6)(2.1)
Product warranty accrual, end of period$6.1 $5.5 $3.0 
Advertising Costs
Advertising Costs
Advertising costs include certain advertising and marketing fees, which are expensed as incurred. Advertising costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations.
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 Saudi Riyal and 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 (loss) and reflected in stockholders’ equity.
Net Income (Loss) Per Share
Net Income (Loss) Per Share
A computation of basic and diluted net income (loss) per share is as follows:
Year Ended
(in millions, except per share amounts)January 3,
2026		December 28,
2024		December 30,
2023
Net income from continuing operations, net of tax$207.7 $16.2 $107.7 
Net (loss) from discontinued operations, net of tax - (Note 18)(359.2)(321.1)(26.2)
Net (loss) income$(151.5)$(304.9)$81.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Continuing operations per basic share$3.88 $0.30 $2.04 
Discontinued operations per basic share(6.70)(6.02)(0.50)
Basic (loss) income per share$(2.83)$(5.72)$1.54 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Diluted share equivalents: stock options, RSUs and PSUs0.6 1.1 1.3 
Weighted-average shares outstanding - diluted54.2 54.4 54.1 
Continuing operations per diluted share$3.83 $0.30 $1.99 
Discontinued operations per diluted share(6.63)(5.90)(0.48)
Diluted (loss) income per share$(2.80)$(5.60)$1.51 
Basic net income (loss) per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Net income (loss) 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 January 3, 2026, December 28, 2024 and December 30, 2023, weighted options to purchase 0.6 million, 1.1 million and 1.2 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. 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 for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, 2.7 million weighted-average shares related to such RSUs have been excluded from the calculation of potential shares.
On October 24, 2024, following an external legal review, the Board adopted resolutions to terminate the employment of Mr. Joe Kiani, our former Chairman and Chief Executive Officer, effective October 24, 2024. In connection with the Board’s determination, the 2.7 million shares RSU grant to Mr. Kiani was cancelled and the 2.7 million weighted-average shares related to such RSUs have been 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.
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. The Company prospectively adopted this standard during the fiscal year ended January 3, 2026. See Note 23, “Income Taxes”, for further details on the impact of the adoption of this standard.
Recently Announced Accounting Pronouncements
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 its consolidated financial statements.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606 by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This new standard simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years, though early adoption is permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This new standard expands hedge accounting eligibility, including provisions for choose-your-rate debt instruments. The ASU 2025-09 is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of this amended standard on its consolidated financial statements.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 03, 2026
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 January 3, 2026:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$55.5 $55.5 $— $— 
Money market funds96.8 96.8 — — 
Pension assets
Cash and cash equivalents(1)
(0.9)(0.9)— — 
Equity securities9.8 9.8 — — 
Debt securities8.4 8.4 — — 
Real estate funds4.7 4.7 — — 
Alternative investments1.9 — 1.9 — 
Other0.9 — 0.9 — 
Derivative instruments - cash flow hedges(2)
1.0 1.0 — — 
Total assets$178.1 $175.3 $2.8 $— 
Liabilities
Derivative instruments - cash flow hedges$1.4 $1.4 $— $— 
Pension benefit obligation30.3 30.3 — — 
Total liabilities$31.7 $31.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026, 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 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$51.0 $51.0 $— $— 
Money market funds72.6 72.6 — — 
Pension assets
      Cash and cash equivalents(1)
(1.3)(1.3)— — 
      Equity securities 6.9 6.9 — — 
      Debt securities8.5 8.5 — — 
      Real estate funds3.6 — 3.6 — 
      Alternative investments1.4 — 1.4 — 
      Other0.1 — 0.1 — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Equity securities1.3 1.3 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$151.6 $146.5 $5.1 $— 
Liabilities
Derivative instruments - cash flow hedges$0.1 $0.1 $— $— 
Pension benefit obligation24.6 24.6 — — 
Total liabilities$24.7 $24.7 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 31, 2024, 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, tooling and others
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Property and equipment, net, consists of the following:
(in millions)January 3,
2026		December 28,
2024
Operating lease assets$204.1 $148.6 
Building and building improvements151.8 143.5 
Machinery, equipment, tooling and others150.6 147.1 
Land47.7 47.7 
Computer equipment and software41.3 38.7 
Leasehold improvements34.3 31.2 
Construction-in-progress (CIP)24.5 29.0 
Furniture and office equipment16.5 15.8 
Demonstration units0.5 0.5 
Total property and equipment(1)
671.3 602.1 
Accumulated depreciation(316.2)(265.1)
Property and equipment, net
$355.1 $337.0 
______________
(1)    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)January 3,
2026		December 28,
2024		December 30,
2023
Product warranty accrual, beginning of period$5.5 $3.0 $2.0 
Accrual for warranties issued1.0 1.9 1.8 
Changes in pre-existing warranties (including changes in estimates)3.5 5.2 1.3 
Settlements made(3.9)(4.6)(2.1)
Product warranty accrual, end of period$6.1 $5.5 $3.0 
Schedule of Reconciliation of Basic and Diluted Net Income Per Share
A computation of basic and diluted net income (loss) per share is as follows:
Year Ended
(in millions, except per share amounts)January 3,
2026		December 28,
2024		December 30,
2023
Net income from continuing operations, net of tax$207.7 $16.2 $107.7 
Net (loss) from discontinued operations, net of tax - (Note 18)(359.2)(321.1)(26.2)
Net (loss) income$(151.5)$(304.9)$81.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Continuing operations per basic share$3.88 $0.30 $2.04 
Discontinued operations per basic share(6.70)(6.02)(0.50)
Basic (loss) income per share$(2.83)$(5.72)$1.54 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.6 53.3 52.8 
Diluted share equivalents: stock options, RSUs and PSUs0.6 1.1 1.3 
Weighted-average shares outstanding - diluted54.2 54.4 54.1 
Continuing operations per diluted share$3.83 $0.30 $1.99 
Discontinued operations per diluted share(6.63)(5.90)(0.48)
Diluted (loss) income per share$(2.80)$(5.60)$1.51 
Schedule of Supplemental Cash Flow Information
Supplemental cash flow information includes the following:
Year Ended
(in millions)January 3,
2026		December 28,
2024		December 30,
2023
Cash paid during the year for:
Interest expense:
Continuing operations$32.8 $36.7 $46.1 
Discontinued operations1.5 2.4 4.9 
Income taxes:
Continuing operations28.5 35.9 20.4 
Discontinued operations8.8 6.0 34.0 
Operating lease liabilities:
Continuing operations10.1 10.9 10.4 
Discontinued operations10.4 13.7 12.0 
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities:
Continuing operations$11.1 $10.2 $5.0 
Discontinued operations0.6 18.4 11.3 
Non-cash investing activities - continuing operations:
Unpaid purchases of property and equipment$1.7 $0.7 $0.2 
Non-cash financing activities - continuing operations:
Unpaid excise taxes on stock repurchases$2.0 $— $— 
Unpaid debt issuance costs0.3 — — 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents:
Continuing operations$152.3 $123.6 $120.8 
Discontinued operations1.0 54.0 42.2 
Restricted cash:
Continuing operations— 2.7 4.1 
Discontinued operations— 1.1 1.1 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$153.3 $181.4 $168.2 
The amounts of cash income tax paid by the Company were as follows:
(in millions)Year Ended
January 3,
2026
Federal
$13.4 
Foreign
Switzerland
6.9 
Mexico
2.0 
All other foreign
4.2 
State and local
2.0 
Income taxes, net of amounts refunded
$28.5 
v3.25.4
Inventories (Tables)
 12 Months Ended
Jan. 03, 2026
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventories consist of the following:
(in millions)January 3,
2026		December 28,
2024
Raw materials$152.8 $151.0 
Work-in-process21.8 19.2 
Finished goods205.7 124.6 
Total inventories$380.3 $294.8 
v3.25.4
Other Current Assets (Tables)
 12 Months Ended
Jan. 03, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Non-Current Assets
Other current assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Prepaid expenses$24.1 $19.7 
Lease receivable, current22.8 26.6 
Prepaid rebates and royalties, current(1)
21.8 4.6 
Indirect taxes receivable20.9 18.5 
Prepaid income taxes16.1 17.6 
Contract assets, current8.0 11.4 
Other current assets2.9 2.3 
Restricted cash(2)
— 2.7 
Total other current assets
$116.6 $103.4 
______________
(1)     Prepaid rebates and royalties, current includes $17.0 million of royalty related to Willow. See Note 3, “Related Party Transactions” for further details.
(2)     Restricted cash includes funds received from the Bill and Melinda Gates Foundation (BMGF). 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. As of January 3, 2026, the Company ceased research and development related to this project, and returned any unused funds to the BMGF.
Other non-current assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Lessee ROU assets, net$32.6 $29.2 
Strategic investments5.9 6.6 
Prepaid deposits and others5.2 6.8 
Derivative assets - non-current(1)
1.0 6.2 
Equity investments - fair value— 2.0 
Other non-current assets— 0.5 
Total non-current assets$44.7 $51.3 
______________
(1)    Excludes accrued interest.
v3.25.4
Lease Receivable (Tables)
 12 Months Ended
Jan. 03, 2026
Leases [Abstract]  
Schedule of Sale-Type Lease Receivable
Lease receivable from sales-type leases consists of the following:
(in millions)January 3,
2026		December 28,
2024
Lease receivable$66.1 $85.5 
Allowance for credit losses(0.2)(0.2)
     Lease receivable, net65.9 85.3 
Less: current portion of lease receivable(22.8)(26.6)
     Lease receivable, non-current$43.1 $58.7 
Schedule of Sales-type Lease, Lease Receivable, Maturity
As of January 3, 2026, 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
2026 (balance of year)$22.8 $21.7 
202717.3 20.0 
202811.7 16.2 
20297.8 12.7 
20303.9 7.2 
Thereafter2.4 10.6 
     Total$65.9 $88.4 
Less: imputed interest(1)
— 
     Present value of total lease payments$65.9 
______________
(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.
v3.25.4
Deferred Costs and Other Contract Assets (Tables)
 12 Months Ended
Jan. 03, 2026
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)January 3,
2026		December 28,
2024
Deferred commissions$26.2 $25.0 
Unbilled contract receivables21.3 20.2 
Prepaid contract allowances14.3 14.5 
Deferred equipment agreements, net0.8 1.3 
     Deferred costs and other contract assets$62.6 $61.0 
v3.25.4
Property and Equipment, net (Tables)
 12 Months Ended
Jan. 03, 2026
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
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, tooling and others
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Property and equipment, net, consists of the following:
(in millions)January 3,
2026		December 28,
2024
Operating lease assets$204.1 $148.6 
Building and building improvements151.8 143.5 
Machinery, equipment, tooling and others150.6 147.1 
Land47.7 47.7 
Computer equipment and software41.3 38.7 
Leasehold improvements34.3 31.2 
Construction-in-progress (CIP)24.5 29.0 
Furniture and office equipment16.5 15.8 
Demonstration units0.5 0.5 
Total property and equipment(1)
671.3 602.1 
Accumulated depreciation(316.2)(265.1)
Property and equipment, net
$355.1 $337.0 
______________
(1)    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.
v3.25.4
Intangible Assets, net (Tables)
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, Net
Intangible assets, net, consist of the following:
January 3,
2026		December 28,
2024
(in millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Intangible assets subject to amortization:
Patents$46.6 $(19.8)$26.8 $44.0 $(17.5)$26.5 
Acquired technologies28.6 (20.7)7.9 27.9 (15.8)12.1 
Customer relationships24.6 (14.7)9.9 24.6 (13.3)11.3 
Trademarks14.0 (9.2)4.8 13.7 (7.2)6.5 
Licenses-related party7.5 (7.4)0.1 7.5 (7.1)0.4 
Licenses2.3 (1.6)0.7 2.3 (1.2)1.1 
Other6.6 (4.7)1.9 8.1 (4.4)3.7 
Total intangible assets subject to amortization, net$130.2 $(78.1)$52.1 $128.1 $(66.5)$61.6 
Schedule of Estimated Amortization Expense
Estimated amortization expense for each of the next fiscal years is as follows:
Fiscal year
Amount
(in millions)
2026$6.9 
20275.9 
20285.2 
20294.7 
20304.3 
Thereafter25.1 
Total$52.1 
v3.25.4
Goodwill (Tables)
 12 Months Ended
Jan. 03, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill
Changes in goodwill were as follows:
(in millions)January 3,
2026		December 28,
2024
Goodwill, beginning of period$96.7 $98.6 
Foreign currency translation adjustment4.3 (1.9)
Goodwill, end of period$101.0 $96.7 
v3.25.4
Lessee ROU Assets and Lease Liabilities (Tables)
 12 Months Ended
Jan. 03, 2026
Leases [Abstract]  
Schedule of Balance Sheet Classifications for Amounts Related to the Operating Leases
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 Classification
January 3,
2026		December 28,
2024
Lessee ROU assetsOther non-current assets$32.6 $29.2 
Lessee current lease liabilitiesOther current liabilities8.1 9.7 
Lessee non-current lease liabilitiesOther non-current liabilities26.9 23.3 
     Total operating lease liabilities$35.0 $33.0 
Schedule of Estimated Future Operating Lease Payments
As of January 3, 2026, estimated future operating lease payments for each of the following fiscal years were as follows:
Fiscal yearAmount
(in millions)
2026$9.3 
20277.9 
20286.7 
20294.8 
20302.7 
Thereafter(1)
7.1 
Total38.5 
Imputed interest(3.5)
Present value$35.0 
______________
(1)    Includes optional renewal period for certain leases.
v3.25.4
Other Non-Current Assets (Tables)
 12 Months Ended
Jan. 03, 2026
Other Assets, Noncurrent [Abstract]  
Schedule of Other Non-Current Assets
Other current assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Prepaid expenses$24.1 $19.7 
Lease receivable, current22.8 26.6 
Prepaid rebates and royalties, current(1)
21.8 4.6 
Indirect taxes receivable20.9 18.5 
Prepaid income taxes16.1 17.6 
Contract assets, current8.0 11.4 
Other current assets2.9 2.3 
Restricted cash(2)
— 2.7 
Total other current assets
$116.6 $103.4 
______________
(1)     Prepaid rebates and royalties, current includes $17.0 million of royalty related to Willow. See Note 3, “Related Party Transactions” for further details.
(2)     Restricted cash includes funds received from the Bill and Melinda Gates Foundation (BMGF). 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. As of January 3, 2026, the Company ceased research and development related to this project, and returned any unused funds to the BMGF.
Other non-current assets consist of the following:
(in millions)January 3,
2026		December 28,
2024
Lessee ROU assets, net$32.6 $29.2 
Strategic investments5.9 6.6 
Prepaid deposits and others5.2 6.8 
Derivative assets - non-current(1)
1.0 6.2 
Equity investments - fair value— 2.0 
Other non-current assets— 0.5 
Total non-current assets$44.7 $51.3 
______________
(1)    Excludes accrued interest.
v3.25.4
Deferred Revenue and Other Contract Liabilities, Current (Tables)
 12 Months Ended
Jan. 03, 2026
Revenue Recognition and Deferred Revenue [Abstract]  
Schedule of Contract with Customer, Asset and Liability
Deferred revenue and other contract liabilities, current consist of the following:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue$61.5 $61.9 
Accrued rebates and allowances26.0 23.0 
Accrued customer reimbursements8.7 10.1 
     Total deferred revenue and other contract liabilities96.2 95.0 
Less: Non-current portion of deferred revenue(23.0)(18.1)
     Deferred revenue and other contract liabilities, current$73.2 $76.9 
Schedule of Deferred Revenue
Changes in deferred revenue for the years ended January 3, 2026 and December 28, 2024 were as follows:
(in millions)January 3,
2026		December 28,
2024
Deferred revenue, beginning of the period$61.9 $48.5 
  Revenue deferred during the period52.2 42.5 
  Recognition of revenue deferred in prior periods(52.6)(29.1)
     Deferred revenue, end of the period$61.5 $61.9 
v3.25.4
Other Current Liabilities (Tables)
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities
Other current liabilities consist of the following:
(in millions)January 3,
2026		December 28,
2024
Related party payables(1)
$23.5 $5.3 
Accrued indirect taxes payable22.7 17.9 
Income tax payable16.7 12.4 
Accrued legal fees14.5 14.6 
Accrued expenses9.1 24.2 
Lessee lease liabilities, current8.1 9.7 
Long-term debt, current6.3 15.0 
Accrued warranty6.1 5.5 
Other current liabilities2.2 10.8 
Total other current liabilities
$109.2 $115.4 
______________
(1)    Related party payables includes $23.5 million of royalty related to Willow. See Note 3, “Related Party Transactions” for further details.
v3.25.4
Debt (Tables)
 12 Months Ended
Jan. 03, 2026
Debt Disclosure [Abstract]  
Schedule of Debt
(in millions)January 3,
2026		December 28,
2024
Term loan - current portion$6.3 $15.0 
Short-term debt6.3 15.0 
Revolver - long-term280.0 456.0 
Term loan - long-term238.0 258.3 
Long-term debt518.0 714.3 
Total debt$524.3 $729.3 
Schedule of Maturities of Long-term Debt
As of January 3, 2026, the aggregate maturities of principal on the Credit Facility for each of the next five years and thereafter are as follows:
Fiscal year
Amount
(in millions)
2026$6.3 
20276.3
20286.3
20296.3 
2030499.1
Thereafter0.0
Total$524.3 
v3.25.4
Other Non-Current Liabilities (Tables)
 12 Months Ended
Jan. 03, 2026
Other Liabilities Disclosure [Abstract]  
Schedule of Other Non-Current Liabilities
Other non-current liabilities consist of the following:
(in millions)January 3,
2026		December 28,
2024
Lessee non-current lease liabilities$26.9 $23.3 
Unrecognized tax benefits26.2 23.7 
Deferred revenue, non-current23.0 18.1 
Projected benefit obligation5.5 5.4 
Income tax payable, non-current4.7 — 
Other1.5 0.4 
Total other non-current liabilities
$87.8 $70.9 
v3.25.4
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Jan. 03, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of the Hedging Instruments The following table summarizes the fair value of the hedging instruments, presented on a gross basis, as of January 3, 2026 and December 28, 2024.
Consolidated
Balance Sheets
(in millions)
Balance sheet classification
January 3,
2026		December 28,
2024
Interest rate contracts, inclusive of accrued interestOther non-current assets$1.0 $6.8 
Interest rate contracts, inclusive of accrued interest
Other non-current liabilities
(1.4)(0.1)
Total$(0.4)$6.7 
Schedule of Gains Reclassified From Accumulated Other Comprehensive (Loss) Income
The following table summarizes the gains reclassified from accumulated other comprehensive (loss) income to the consolidated statements of operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023.
Cash flow hedgesConsolidated
Statement of Operations
(in millions)
Location of gains
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Interest rate contracts
Non-operating gains
$5.2 $14.7 $14.9 
Total$5.2 $14.7 $14.9 
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income
The following tables summarize the changes in accumulated other comprehensive (loss) income related to the hedging instruments:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Beginning balance$6.0 $7.8 $19.3 
Amount recognized in other comprehensive (loss) income(1.1)12.9 3.4 
Amount reclassified into earnings(5.2)(14.7)(14.9)
Ending balance$(0.3)$6.0 $7.8 
v3.25.4
Discontinued Operations (Tables)
 12 Months Ended
Jan. 03, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
The key components of income from the non-healthcare business discontinued operations were as follows:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Revenues$414.9 $699.1 $772.6 
Cost of sales309.3489.1534.7
Gross profit105.6210.0237.9
Selling, general and administrative expenses108.4195.1212.7
Research and development expenses27.5 40.6 44.7 
Intangible assets impairment charges251.5 304.0 10.0 
Operating loss(281.8)(329.7)(29.5)
Loss on disposition(101.1)— — 
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations(44.5)— — 
Other non-operating (loss) income(4.7)2.6 4.6 
Loss from discontinued operations, before income taxes(432.1)(327.1)(24.9)
(Benefit) provision for income taxes(72.9)(6.0)1.3 
Loss from discontinued operations, net of income taxes$(359.2)$(321.1)$(26.2)
Assets and liabilities of the discontinued operations of the non-healthcare business classified as held-for-sale remaining in the consolidated balance sheets as of January 3, 2026 and December 28, 2024 consist of the following:
(in millions)January 3,
2026		December 28
2024
Cash and cash equivalents$1.0 $54.0 
Trade receivable, net of credit allowances— 143.3 
Inventories, net— 164.4 
Other current assets— 41.7 
Total current assets, held-for-sale1.0 403.4 
Property and equipment, net— 44.6 
Intangible assets, net— 496.6 
Deferred tax assets— 25.2 
Other non-current assets0.1 48.8 
Total non-current assets, held-for-sale0.1 615.2 
Total assets held-for-sale - discontinued operations$1.1 $1,018.6 
Accounts payable$0.5 $123.8 
Accrued compensation0.9 4.9 
Deferred revenue and other contract liabilities, current— 18.6 
Other current liabilities1.1 70.4 
Total current liabilities, held-for-sale2.5 217.7 
Long-term debt— 13.6 
Deferred tax liabilities— 99.9 
Other non-current liabilities0.1 57.2 
Total non-current liabilities, held-for-sale0.1 170.7 
Total liabilities held-for-sale - discontinued operations$2.6 $388.4 
v3.25.4
Equity (Tables)
 12 Months Ended
Jan. 03, 2026
Equity [Abstract]  
Schedule of Stock Repurchase Activities
The following table provides a summary of the Company’s stock repurchase activities during the years ended January 3, 2026, December 28, 2024 and December 30, 2023:
Years Ended
(in millions, except per share amounts)January 3,
2026		December 28,
2024		December 30,
2023
Share repurchased(1)
2.5 (1)— — 
Average cost per share$146.91 $— $— 
Value of shares repurchased(2)
$363.7 $— $— 
______________
(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.
(2)     Excludes excise taxes on share repurchases.
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Jan. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of 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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(in millions, except for weighted-average exercise prices)SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price
Options outstanding, beginning of period(1)
1.6 $110.43 2.7 $87.58 2.8 $83.87 
Granted(2)
0.1 163.33 0.1 126.49 0.1 182.43 
Canceled(3)
(0.2)183.18 (0.6)82.38 — 163.96 
Exercised(0.8)87.34 (0.6)39.47 (0.2)43.22 
Options outstanding, end of period0.7 $117.87 1.6 $110.43 2.7 $87.58 
Options exercisable, end of period0.6 $113.14 1.5 $105.05 2.4 $73.80 
(1)    The Company recorded $0.1 million, $0.2 million and $0.1 million of stock option expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No stock options were granted for discontinued operations for the year ended January 3, 2026.
(3)    On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested stock options held by employees of the sold business were canceled.
Schedule of 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
January 3,
2026		Year Ended
December 28,
2024
(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
0.1 0.20.1 0.3 0.80.3 
$50.01 to $80.00
— 0.7— — 1.7— 
$80.01 to $120.00
0.3 1.80.3 0.7 1.50.7 
$120.01 to $160.00
0.2 4.60.1 0.4 2.20.3 
$160.01 to $200.00
0.1 5.60.1 0.2 2.50.2 
$200.01 to $230.00
— 4.2— — 4.5— 
$230.01 to $280.00
— 4.9— — 2.4— 
Total
0.7 3.00.6 1.6 1.71.5 
Schedule of Restricted Stock Units
The number of RSUs issued and outstanding under all of the Company’s equity plans are as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(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 period(1)
0.7 $135.21 3.4 $104.81 3.0 $105.02 
Granted(2)
0.3 163.02 0.2 130.85 0.5 121.79 
Canceled(3)
(0.2)142.75 (2.7)96.40 — 179.81 
Vested(0.2)141.48 (0.2)146.27 (0.1)177.93 
RSUs outstanding, end of period0.6 $145.71 0.7 $135.21 3.4 $104.81 
___________________________
(1)    The Company recorded $2.5 million, $4.4 million and $2.3 million of RSU related expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No RSUs were granted for discontinued operations for the year ended January 3, 2026.
(3)     On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested RSUs held by employees of the sold business were canceled.
Schedule of Performance Stock Units
The number of PSUs outstanding under all of the Company’s equity plans are as follows:
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
(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 period(1)
0.2 $172.50 0.3 $195.42 0.3 $186.83 
Granted(2)
0.1 
(3)
179.89 0.1 
(4)
164.19 0.1 
(5)
204.67 
Canceled(6)
(0.2)171.39 (0.2)187.52 — 193.50 
Vested— — — 250.73 (0.1)179.42 
PSUs outstanding, end of period0.1 $180.65 0.2 $172.50 0.3 $195.42 
(1)     The Company recorded $(1.0) million, $0.8 million and $(1.5) million of PSU (benefit) expense for discontinued operations for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively.
(2)    No PSUs were granted for discontinued operations for the year ended January 3, 2026.
(3)    On February 25, 2025, the Audit Committee approved the weighted payout percentage of 0% for the 2022 PSU awards (three-year performance period), which were based upon the actual fiscal 2024 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.
(4)    On February 26, 2024, the Audit Committee approved the weighted payout percentage of 28% 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.
(5)    On February 27, 2023, the Audit Committee approved the weighted payout percentage of 100% 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.
(6)    On September 23, 2025, in connection with the completion of the sale of Sound United, all outstanding unvested PSUs held by employees of the sold business were canceled.
Schedule of Valuation of Stock-Based Award Activity 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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Risk-free interest rate
3.9% to 4.1%
3.3% to 4.2%
3.6% to 4.2%
Expected term (in years)
5.8 years
4.6 years to 5.9 years
5.1 years to 5.9 years
Estimated volatility
40.5% to 43.1%
33.3% to 42.6%
31.6% to 36.7%
Expected dividends0%0%0%
Weighted-average fair value of options granted
$68.57 per share to $78.81 per share
$59.60 per share$75.08 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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Cost of goods sold$0.7 $1.0 $1.1 
Selling, general and administrative21.9 20.3 (2.0)
Research and development13.2 14.8 7.0 
Total
$35.8 $36.1 $6.1 
v3.25.4
Employee Benefits (Tables)
 12 Months Ended
Jan. 03, 2026
Postemployment Benefits [Abstract]  
Schedule of 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)January 3,
2026		December 28,
2024
Plan Assets
Fair value of plan assets at beginning of year$19.2 $16.7 
Employer contributions2.4 1.8 
Participant contributions0.9 0.7 
Realized net gains (losses) on plan assets0.3 0.1 
Benefits paid(0.6)(1.2)
Foreign currency revaluation and translation gains and (losses)
2.6 1.1 
Fair value of plan assets at end of year$24.8 $19.2 
Projected Benefit Obligation
Projected benefit obligation at beginning of year$24.6 $20.9 
Service cost1.7 1.5 
Participant contributions0.9 0.7 
Interest cost0.3 0.3 
Actuarial gains (losses)(0.4)0.5 
Benefits paid(0.6)
(1)
(1.2)
Foreign currency revaluation and translation gains and (losses)3.8 1.9 
Projected benefit obligation at end of year$30.3 $24.6 
Funded status$(5.5)$(5.4)
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026, 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)January 3,
2026		December 28,
2024
Projected benefit obligation$30.3 $24.6 
Accumulated benefit obligation28.1 22.8 
Fair value of plan assets24.8 19.2 
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Service cost$1.7 $1.5 $1.2 
Interest cost0.3 0.3 0.5 
Amortization of net losses0.2 0.1 — 
Amortization of prior service costs (credits)— (0.1)— 
Expected (gains) on plan assets(0.8)(0.7)(0.7)
Net periodic defined benefit plan cost$1.4 $1.1$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
January 3,
2026		Year Ended
December 28,
2024
Assumptions - benefit obligations:
Discount rate1.0 %1.5 %
Rate of compensation increase1.5 1.5 
Assumptions - net periodic benefit costs:
Discount rate 1.0 %1.5 %
Rate of compensation increase1.5 1.5 
Expected long-term return on plan assets(1)
3.5 3.7 
Interest credit rate1.3 1.5 
______________
(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)January 3,
2026		December 28,
2024
Non-current liability$5.5 $5.4 
Schedule of Allocation of Plan Assets
The weighted-average asset allocations at year end by asset category were as follows:
Actual Allocation
Asset categoryJanuary 3,
2026		December 28,
2024
Cash and cash equivalents(1)
(3.7)%(6.8)%
Equity securities39.6 36.0 
Debt securities33.7 44.1 
Other30.4 26.7 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of January 3, 2026 and December 28, 2024, 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
January 3,
2026
2026$1.2 
20271.2 
20281.2 
20292.1 
20301.2 
Thereafter7.8 
Total $14.7 
v3.25.4
Non-operating Loss (Tables)
 12 Months Ended
Jan. 03, 2026
Nonoperating Income (Expense) [Abstract]  
Schedule of Non-operating Income (Expense)
Non-operating loss consists of the following:
(in millions)
Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Interest income$3.4 $4.4 $2.9 
Realized and unrealized foreign currency (losses)(7.6)(4.4)(8.8)
Interest expense(33.2)(41.2)(47.1)
Total non-operating loss$(37.4)$(41.2)$(53.0)
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Jan. 03, 2026
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
United States$133.9 $(17.8)$56.3 
Foreign138.7 39.6 56.7 
Total
$272.6 $21.8 $113.0 
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Current:
Federal$23.5 $17.3 $12.6 
State4.1 3.0 3.4 
Foreign25.5 8.6 9.1 
Subtotal$53.1 $28.9 $25.1 
Deferred:
Federal$6.1 $(19.0)$(5.4)
State6.4 (5.6)(6.3)
Foreign(0.7)1.3 (8.1)
Subtotal11.8 (23.3)(19.8)
Total
$64.9 $5.6 $5.3 
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 after the adoption of ASU 2023-09 is as follows:
Year Ended
January 3,
2026
(in millions)Percent
Statutory regular federal income tax rate
$57.1 21.0 %
State and local income taxes, net of federal income tax effect (a)
8.3 3.1 
Foreign tax effects:
Switzerland
Statutory tax rate differential
(17.6)(6.5)
Cantonal taxes
5.0 1.8 
Impairment
(4.3)(1.6)
Cross-border tax laws
4.7 1.7 
Other
2.3 0.8 
Other foreign jurisdictions
5.7 2.1 
Effects of cross-board tax laws
Foreign GILTI, net with FTC
2.4 0.9 
Other
0.8 0.3 
Tax credits
R&D credits
(4.8)(1.8)
Nontaxable and nondeductible items
Excess stock-based compensation
(5.0)(1.8)
Other
7.5 2.8 
Changes in unrecognized tax benefit
2.8 1.0 
Effective tax rate
$64.9 23.8 %
____________
(a)    The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Massachusetts, New York, and Texas.
A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Statutory regular federal income tax rate21.0 %21.0 %
State provision, net of federal benefit(12.1)(2.0)
U.S. tax on foreign income, net42.5 5.3 
Foreign income taxed at different rates8.0 (2.4)
Research and development tax credits(16.7)(3.4)
Tax credit— (7.3)
Excess stock-based compensation(26.3)(2.3)
Nondeductible executive compensation16.9 (1.7)
Derecognition of uncertain tax position(15.5)(1.6)
Other7.9 (0.9)
Total
25.7 %4.7 %
Schedule of Components of Deferred Tax Assets
The components of the deferred tax assets are as follows:
(in millions)January 3,
2026		December 28,
2024
Deferred tax assets:
Capital loss$134.2 $— 
Accrued liabilities35.7 28.6 
Capitalized R&D29.5 41.2 
Tax credits30.6 31.5 
Deferred revenue24.8 27.5 
Net operating losses16.8 10.9 
Operating lease liabilities7.4 5.6 
Stock-based compensation5.6 8.4 
Intangible assets1.6 6.4 
Other6.2 5.8 
Total292.4 165.9 
Valuation allowance(145.1)(15.2)
Total deferred tax assets$147.3 $150.7 
Deferred tax liabilities:
Property and equipment$(8.4)$(12.2)
Withholding taxes on undistributed foreign earnings(3.5)(3.1)
ROU assets(7.3)(5.2)
State taxes and other(14.1)(12.0)
Total deferred tax liabilities(33.3)(32.5)
Net deferred tax assets$114.0 $118.2 
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
January 3,
2026		Year Ended
December 28,
2024
Unrecognized tax benefits (gross), beginning of period$33.4 $30.2 
Increase from tax positions in prior period0.5 1.8 
Increase from tax positions in current period7.3 4.9 
Lapse of statute of limitations(5.3)(3.5)
Unrecognized tax benefits (gross), end of period$35.9 $33.4 
Schedule of Supplemental Cash Flow Information
Supplemental cash flow information includes the following:
Year Ended
(in millions)January 3,
2026		December 28,
2024		December 30,
2023
Cash paid during the year for:
Interest expense:
Continuing operations$32.8 $36.7 $46.1 
Discontinued operations1.5 2.4 4.9 
Income taxes:
Continuing operations28.5 35.9 20.4 
Discontinued operations8.8 6.0 34.0 
Operating lease liabilities:
Continuing operations10.1 10.9 10.4 
Discontinued operations10.4 13.7 12.0 
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities:
Continuing operations$11.1 $10.2 $5.0 
Discontinued operations0.6 18.4 11.3 
Non-cash investing activities - continuing operations:
Unpaid purchases of property and equipment$1.7 $0.7 $0.2 
Non-cash financing activities - continuing operations:
Unpaid excise taxes on stock repurchases$2.0 $— $— 
Unpaid debt issuance costs0.3 — — 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents:
Continuing operations$152.3 $123.6 $120.8 
Discontinued operations1.0 54.0 42.2 
Restricted cash:
Continuing operations— 2.7 4.1 
Discontinued operations— 1.1 1.1 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$153.3 $181.4 $168.2 
The amounts of cash income tax paid by the Company were as follows:
(in millions)Year Ended
January 3,
2026
Federal
$13.4 
Foreign
Switzerland
6.9 
Mexico
2.0 
All other foreign
4.2 
State and local
2.0 
Income taxes, net of amounts refunded
$28.5 
v3.25.4
Segment and Enterprise Reporting (Tables)
 12 Months Ended
Jan. 03, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Selected information for the healthcare segment is presented below for each of the years ended January 3, 2026, December 28, 2024 and December 30, 2023:
(in millions)Year Ended
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Revenues:
Healthcare$1,524.1 $1,395.2 $1,275.5 
Other(1)
2.8 — — 
Total revenues$1,526.9 $1,395.2 $1,275.5 
Cost of goods:
Healthcare$573.8 $581.7 $498.3 
Other(1)
7.9 19.2 11.6 
Total costs of good sold$581.7 $600.9 $509.9 
Gross profit:
Segment gross profit$950.3 $813.6 $777.1 
Acquired asset amortization(1)(2)
(6.6)(1.8)(1.9)
Business transition and related costs(1)(3)
1.5 (14.8)(4.9)
Acquisitions, integrations, divestitures, and related costs(1)(4)
— (0.1)— 
Other(1)
— (2.6)(4.7)
Total gross profit$945.2 $794.3 $765.6 
__________________
(1)    Management excludes certain revenues and 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.
(4)    Acquisitions, integrations, divestitures, and related costs are a non-GAAP financial measure. These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments, divestitures, assets impairments, and in-process research and development.
For each of the years ended January 3, 2026, December 28, 2024 and December 30, 2023, total depreciation and amortization expense for the healthcare segment was $38.8 million, $48.5 million and $38.1 million, respectively.
The Company’s total assets by segment are as follows:
(in millions)January 3,
2026		December 28,
2024
Total assets by segment:
Healthcare$1,697.8 $1,589.7 
Asset held-for-sale
1.1 1,036.0 
Total assets by segment$1,698.9 $2,625.7 
The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are as follows:
(in millions, except percentages)
Year Ended
January 3,
2026		Year Ended
December 28,
2024
Total long-lived assets by geographic area:
United States$307.7 86.5 %$312.5 87.9 %
International48.2 13.5 43.2 12.1 
Total long-lived assets by geographic area$355.9 100.0 %$355.7 100.0 %
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
January 3,
2026		Year Ended
December 28,
2024		Year Ended
December 30,
2023
Total revenue by geographic area:
United States (U.S.)$956.6 62.7 %$889.3 63.7 %$796.9 62.5 %
Europe, Middle East and Africa391.4 25.6 349.7 25.1 312.3 24.5 
Asia and Australia119.6 7.8 105.2 7.5 117.6 9.2 
North and South America (excluding U.S.)59.3 3.9 51.0 3.7 48.7 3.8 
     Total revenue by geographic area$1,526.9 100.0 %$1,395.2 100.0 %$1,275.5 100.0 %
v3.25.4
Description of the Company (Details)
 12 Months Ended
Jan. 03, 2026
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.4
Summary of Significant Accounting Policies - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Assets    
Cash and cash equivalents $ 55.5 $ 51.0
Money market funds 96.8 72.6
Pension assets:    
Cash and cash equivalents (0.9) (1.3)
Equity securities 9.8 6.9
Debt securities 8.4 8.5
Real estate funds 4.7 3.6
Alternative investments 1.9 1.4
Other 0.9 0.1
Derivative instruments 1.0  
Equity securities   1.3
Total assets 178.1 151.6
Liabilities    
Pension benefit obligation 30.3 24.6
Total liabilities 31.7 24.7
Cash Flow Hedging    
Pension assets:    
Derivative instruments   6.8
Liabilities    
Derivative instruments - cash flow hedges 1.4 0.1
Warrant    
Pension assets:    
Derivative instruments   0.7
Level 1    
Assets    
Cash and cash equivalents 55.5 51.0
Money market funds 96.8 72.6
Pension assets:    
Cash and cash equivalents (0.9) (1.3)
Equity securities 9.8 6.9
Debt securities 8.4 8.5
Real estate funds 4.7 0.0
Alternative investments 0.0 0.0
Other 0.0 0.0
Derivative instruments 1.0  
Equity securities   1.3
Total assets 175.3 146.5
Liabilities    
Pension benefit obligation 30.3 24.6
Total liabilities 31.7 24.7
Level 1 | Cash Flow Hedging    
Pension assets:    
Derivative instruments   6.8
Liabilities    
Derivative instruments - cash flow hedges 1.4 0.1
Level 1 | Warrant    
Pension assets:    
Derivative instruments   0.7
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 0.0
Real estate funds 0.0 3.6
Alternative investments 1.9 1.4
Other 0.9 0.1
Derivative instruments 0.0  
Equity securities   0.0
Total assets 2.8 5.1
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
Liabilities    
Derivative instruments - cash flow hedges 0.0 0.0
Level 2 | Warrant    
Pension assets:    
Derivative instruments   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
Derivative instruments 0.0  
Equity securities   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
Liabilities    
Derivative instruments - cash flow hedges $ 0.0 0.0
Level 3 | Warrant    
Pension assets:    
Derivative instruments   $ 0.0
v3.25.4
Summary of Significant Accounting Policies - Useful Life (Details)
Jan. 03, 2026
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, tooling and others | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
Machinery, equipment, tooling and others | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 20 years
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details)
shares in Millions, $ in Millions
 12 Months Ended
Oct. 24, 2024
shares
Jan. 03, 2026
USD ($)
segment
reportingUnit
shares
Dec. 28, 2024
USD ($)
shares
Dec. 30, 2023
USD ($)
shares
Summary Of Significant Accounting Policies [Line Items]        
Accounts receivable net current | $   $ 275.8 $ 283.2 $ 224.2
Number of reporting units | reportingUnit   1    
Number of sources of product revenue | segment   4    
Advertising costs | $   $ 9.4 $ 19.1 $ 18.8
Options to purchase of shares of common stock (in shares)   0.6 1.1 1.2
Restricted Stock Units (RSUs)        
Summary Of Significant Accounting Policies [Line Items]        
RSUs cancelled (in shares)   0.2 2.7 0.0
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 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    
v3.25.4
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]      
Product warranty accrual, beginning of period $ 5.5 $ 3.0 $ 2.0
Accrual for warranties issued 1.0 1.9 1.8
Changes in pre-existing warranties (including changes in estimates) 3.5 5.2 1.3
Settlements made (3.9) (4.6) (2.1)
Product warranty accrual, end of period $ 6.1 $ 5.5 $ 3.0
v3.25.4
Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Accounting Policies [Abstract]      
Net income from continuing operations, net of tax $ 207.7 $ 16.2 $ 107.7
Net (loss) from discontinued operations, net of tax - (Note 18) (359.2) (321.1) (26.2)
Net (loss) income $ (151.5) $ (304.9) $ 81.5
Basic net (loss) income per share:      
Weighted-average shares outstanding - basic (in shares) 53.6 53.3 52.8
Continuing operations per basic share (in dollars per share) $ 3.88 $ 0.30 $ 2.04
Discontinued operations per basic share (in dollars per share) (6.70) (6.02) (0.50)
Basic (loss) income per share (in dollars per share) $ (2.83) $ (5.72) $ 1.54
Diluted net (loss) income per share:      
Weighted-average shares outstanding - basic (in shares) 53.6 53.3 52.8
Diluted share equivalents: stock options and RSUs and PSUs (in shares) 0.6 1.1 1.3
Weighted-average shares outstanding - diluted (in shares) 54.2 54.4 54.1
Continuing operations per diluted share (in dollars per share) $ 3.83 $ 0.30 $ 1.99
Discontinued operations per diluted share (in dollars per share) (6.63) (5.90) (0.48)
Diluted (loss) income per share $ (2.80) $ (5.60) $ 1.51
v3.25.4
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Non-cash investing activities - continuing operations:        
Unpaid purchases of property and equipment $ 1.7 $ 0.7 $ 0.2  
Non-cash financing activities - continuing operations:        
Unpaid excise taxes on stock repurchases 2.0 0.0 0.0  
Unpaid debt issuance costs 0.3 0.0 0.0  
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents: 152.3 123.6    
Total cash, cash equivalents and restricted cash shown in the statement of cash flows 153.3 181.4 168.2 $ 209.6
Continuing operations        
Cash paid during the year for:        
Interest expense: 32.8 36.7 46.1  
Income taxes: 28.5 35.9 20.4  
Operating lease liabilities: 10.1 10.9 10.4  
Non-cash operating activities:        
ROU assets obtained in exchange for lease liabilities: 11.1 10.2 5.0  
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents: 152.3 123.6 120.8  
Restricted cash: 0.0 2.7 4.1  
Discontinued operations        
Cash paid during the year for:        
Interest expense: 1.5 2.4 4.9  
Income taxes: 8.8 6.0 34.0  
Operating lease liabilities: 10.4 13.7 12.0  
Non-cash operating activities:        
ROU assets obtained in exchange for lease liabilities: 0.6 18.4 11.3  
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents: 1.0 54.0 42.2  
Restricted cash: $ 0.0 $ 1.1 $ 1.1  
v3.25.4
Related Party Transactions (Details)
 3 Months Ended 12 Months Ended
Sep. 24, 2024
Jan. 03, 2026
USD ($)
Mar. 29, 2025
USD ($)
Jan. 03, 2026
USD ($)
ft²
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Oct. 24, 2024
USD ($)
Sep. 19, 2024
director
Jun. 26, 2023
director
Related Party Transaction [Line Items]                  
License fee             $ 2,500,000    
Change in control   $ 15,000,000.0   $ 15,000,000.0     15,000,000.0    
Additional change in control             $ 2,000,000.0    
Total revenue       1,526,900,000 $ 1,395,200,000 $ 1,275,500,000      
Accounts receivable net current   275,800,000   275,800,000 283,200,000 224,200,000      
Related Party                  
Related Party Transaction [Line Items]                  
Other current liabilities   23,500,000   23,500,000 5,300,000        
Total revenue       118,500,000 114,100,000 93,900,000      
Accounts receivable net current   14,900,000   14,900,000 14,300,000        
Related Party | Willow Laboratories, Inc.                  
Related Party Transaction [Line Items]                  
Minimum aggregate royalty payments       22,600,000 20,400,000 19,200,000      
Royalty prepayment   17,000,000.0   17,000,000.0          
Payment for administrative fees       100,000 500,000 500,000      
Sublease Income         1,200,000 1,200,000      
Other current liabilities   6,400,000   $ 6,400,000 4,900,000        
Related Party | Leased Property                  
Related Party Transaction [Line Items]                  
Square feet of office | ft²       34,000          
Related Party | Not for Profit Organization                  
Related Party Transaction [Line Items]                  
Cash contributions       $ 0 2,500,000 1,000,000.0      
Related Party | Like Minded Entertainment                  
Related Party Transaction [Line Items]                  
Cash contributions       0   1,500,000      
Related Party | Politan                  
Related Party Transaction [Line Items]                  
Cash contributions       100,000 27,600,000 18,000,000.0      
Number of directors | director               2 2
Related party transaction, percentage of outstanding shares 8.80%                
Legal fees       2,000,000.0          
Related Party | Cardinal Health                  
Related Party Transaction [Line Items]                  
Total revenue       118,500,000 114,100,000 $ 93,900,000      
Accounts receivable net current   14,900,000   14,900,000 14,300,000        
Chief Executive Officer | Reimbursement Fee                  
Related Party Transaction [Line Items]                  
Cash contributions       100,000 $ 100,000        
Minimum | Related Party                  
Related Party Transaction [Line Items]                  
Minimum aggregate royalty payments       $ 5,000,000.0          
Minimum | Related Party | Willow Laboratories, Inc.                  
Related Party Transaction [Line Items]                  
Minimum aggregate royalty payments   $ 27,000,000.0 $ 12,800,000            
v3.25.4
Inventories (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 152.8 $ 151.0
Work-in-process 21.8 19.2
Finished goods 205.7 124.6
Total inventories $ 380.3 $ 294.8
v3.25.4
Other Current Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Related Party Transaction [Line Items]    
Prepaid expenses $ 24.1 $ 19.7
Lease receivable, current 22.8 26.6
Indirect taxes receivable 20.9 18.5
Prepaid income taxes 16.1 17.6
Contract assets, current 8.0 11.4
Prepaid rebates and royalties, current 21.8 4.6
Other current assets 2.9 2.3
Restricted cash 0.0 2.7
Total other current assets 116.6 $ 103.4
Related Party | Willow Laboratories, Inc.    
Related Party Transaction [Line Items]    
Prepaid rebates and royalties, current $ 17.0  
v3.25.4
Lease Receivable - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Leases [Abstract]    
Variable lease income $ 45.0 $ 44.0
v3.25.4
Lease Receivable - Schedule of Lease Receivable From Sales-Type Leases (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Leases [Abstract]    
Lease receivable $ 66.1 $ 85.5
Allowance for credit losses (0.2) (0.2)
Lease receivable, net 65.9 85.3
Less: current portion of lease receivable (22.8) (26.6)
Lease receivable, non-current $ 43.1 $ 58.7
v3.25.4
Lease Receivable - Schedule of Estimated Future Maturities of Customer Sales-Type Lease Receivables and Operating Lease Payments (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Sales-Type Leases    
2026 (balance of year) $ 22.8  
2027 17.3  
2028 11.7  
2029 7.8  
2030 3.9  
Thereafter 2.4  
Lease receivable, net 65.9 $ 85.3
Less: imputed interest 0.0  
Present value of total lease payments 65.9  
Operating Leases    
2026 (balance of year) 21.7  
2027 20.0  
2028 16.2  
2029 12.7  
2030 7.2  
Thereafter 10.6  
Total $ 88.4  
Discount rate used to measure the net investment in lease 0.00%  
v3.25.4
Deferred Costs and Other Contract Assets - Deferred Costs and Other Contract Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deferred commissions $ 26.2 $ 25.0  
Unbilled contract receivables 21.3 20.2  
Prepaid contract allowances 14.3 14.5  
Deferred equipment agreements, net 0.8 1.3  
Deferred costs and other contract assets $ 62.6 $ 61.0 $ 57.3
v3.25.4
Deferred Costs and Other Contract Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deferred costs and other contracts $ 62.6 $ 61.0 $ 57.3
Deferred commission amortization $ 8.5 $ 7.6 $ 5.8
v3.25.4
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2025
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Property, Plant and Equipment [Line Items]        
Total property and equipment   $ 671.3 $ 602.1  
Accumulated depreciation   (316.2) (265.1)  
Property and equipment, net   355.1 337.0  
Proceeds from the disposal of property and equipment   19.6 13.5 $ 0.0
Operating lease assets        
Property, Plant and Equipment [Line Items]        
Total property and equipment   204.1 148.6  
Building and building improvements        
Property, Plant and Equipment [Line Items]        
Total property and equipment   151.8 143.5  
Machinery, equipment, tooling and others        
Property, Plant and Equipment [Line Items]        
Total property and equipment   150.6 147.1  
Land        
Property, Plant and Equipment [Line Items]        
Total property and equipment   47.7 47.7  
Computer equipment and software        
Property, Plant and Equipment [Line Items]        
Total property and equipment   41.3 38.7  
Leasehold improvements        
Property, Plant and Equipment [Line Items]        
Total property and equipment   34.3 31.2  
Construction-in-progress (CIP)        
Property, Plant and Equipment [Line Items]        
Total property and equipment   24.5 29.0  
Furniture and office equipment        
Property, Plant and Equipment [Line Items]        
Total property and equipment   16.5 15.8  
Demonstration units        
Property, Plant and Equipment [Line Items]        
Total property and equipment   $ 0.5 $ 0.5  
Corporate Aircraft        
Property, Plant and Equipment [Line Items]        
Proceeds from the disposal of property and equipment $ 19.5      
v3.25.4
Property and Equipment, net - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 29, 2025
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Property, Plant and Equipment [Line Items]        
Proceeds from the disposal of property and equipment   $ 19.6 $ 13.5 $ 0.0
Amortization of deferred cost of goods sold   27.9 23.0 18.5
Accumulated amortization of deferred cost of goods sold   74.1 46.2  
Operating lease assets        
Property, Plant and Equipment [Line Items]        
Depreciation   28.1 24.0 19.6
Corporate Aircraft        
Property, Plant and Equipment [Line Items]        
Proceeds from the disposal of property and equipment $ 19.5      
Property, Plant and Equipment        
Property, Plant and Equipment [Line Items]        
Depreciation   $ 25.5 $ 30.1 $ 28.6
v3.25.4
Intangible Assets, net - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Intangible assets subject to amortization:    
Gross Carrying Amount $ 130.2 $ 128.1
Accumulated Amortization (78.1) (66.5)
Net Carrying Amount 52.1 61.6
Patents    
Intangible assets subject to amortization:    
Gross Carrying Amount 46.6 44.0
Accumulated Amortization (19.8) (17.5)
Net Carrying Amount 26.8 26.5
Acquired technologies    
Intangible assets subject to amortization:    
Gross Carrying Amount 28.6 27.9
Accumulated Amortization (20.7) (15.8)
Net Carrying Amount 7.9 12.1
Customer relationships    
Intangible assets subject to amortization:    
Gross Carrying Amount 24.6 24.6
Accumulated Amortization (14.7) (13.3)
Net Carrying Amount 9.9 11.3
Trademarks    
Intangible assets subject to amortization:    
Gross Carrying Amount 14.0 13.7
Accumulated Amortization (9.2) (7.2)
Net Carrying Amount 4.8 6.5
Licenses | Related Party    
Intangible assets subject to amortization:    
Gross Carrying Amount 7.5 7.5
Accumulated Amortization (7.4) (7.1)
Net Carrying Amount 0.1 0.4
Licenses | Nonrelated Party    
Intangible assets subject to amortization:    
Gross Carrying Amount 2.3 2.3
Accumulated Amortization (1.6) (1.2)
Net Carrying Amount 0.7 1.1
Other    
Intangible assets subject to amortization:    
Gross Carrying Amount 6.6 8.1
Accumulated Amortization (4.7) (4.4)
Net Carrying Amount $ 1.9 $ 3.7
v3.25.4
Intangible Assets, net - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 78.1 $ 66.5  
Cost of patents, gross 12.2 13.0 $ 12.1
Cost of trademarks, gross 0.5 0.8 1.0
Patents And Trademarks      
Finite-Lived Intangible Assets [Line Items]      
Amortization expense 13.3 18.4 $ 9.5
Total renewal costs capitalized 1.2 1.2  
Patents      
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 19.8 17.5  
Weighted average number of years until the next renewal 2 years    
Trademarks      
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 9.2 $ 7.2  
Weighted average number of years until the next renewal 6 years    
Minimum      
Finite-Lived Intangible Assets [Line Items]      
Acquired finite-lived intangible assets, weighted average useful life 11 years    
Maximum      
Finite-Lived Intangible Assets [Line Items]      
Acquired finite-lived intangible assets, weighted average useful life 14 years    
v3.25.4
Intangible Assets, net - Schedule of Estimated Amortization Expense (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 6.9  
2027 5.9  
2028 5.2  
2029 4.7  
2030 4.3  
Thereafter 25.1  
Net Carrying Amount $ 52.1 $ 61.6
v3.25.4
Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Goodwill [Roll Forward]    
Goodwill, beginning of period $ 96.7 $ 98.6
Foreign currency translation adjustment 4.3 (1.9)
Goodwill, end of period $ 101.0 $ 96.7
v3.25.4
Lessee ROU Assets and Lease Liabilities - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]      
Lessee, operating lease, renewal term 5 years    
Operating lease, weighted average discount rate 3.40% 4.00%  
Accumulated amortization for lessee ROU assets $ 27.8 $ 32.4  
Weighted average remaining lease term 5 years 7 months 6 days 4 years 4 months 24 days  
Operating lease costs $ 8.5 $ 12.0 $ 14.9
v3.25.4
Lessee ROU Assets and Lease Liabilities - Schedule of Balance Sheet Classifications for Amounts Related to the Operating Leases (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Leases [Abstract]    
Lessee ROU assets $ 32.6 $ 29.2
Lessee current lease liabilities 8.1 9.7
Lessee non-current lease liabilities 26.9 23.3
Total operating lease liabilities $ 35.0 $ 33.0
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
v3.25.4
Lessee ROU Assets and Lease Liabilities - Schedule of Estimated Future Operating Lease Payments (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Leases [Abstract]    
2026 $ 9.3  
2027 7.9  
2028 6.7  
2029 4.8  
2030 2.7  
Thereafter 7.1  
Total 38.5  
Imputed interest (3.5)  
Present value $ 35.0 $ 33.0
v3.25.4
Other Non-Current Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
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 $ 32.6 $ 29.2
Strategic investments 5.9 6.6
Prepaid deposits and others 5.2 6.8
Equity investments - fair value 0.0 2.0
Other non-current assets 0.0 0.5
Total non-current assets 44.7 51.3
Cash Flow Hedging    
Product Information [Line Items]    
Derivative assets - non-current $ 1.0 $ 6.2
v3.25.4
Deferred Revenue and Other Contract Liabilities, Current - Schedule of Deferred Revenue and Other Contract Liabilities, Current (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Revenue Recognition and Deferred Revenue [Abstract]      
Deferred revenue $ 61.5 $ 61.9 $ 48.5
Accrued rebates and allowances 26.0 23.0  
Accrued customer reimbursements 8.7 10.1  
Total deferred revenue and other contract liabilities 96.2 95.0 $ 77.3
Less: Non-current portion of deferred revenue (23.0) (18.1)  
Deferred revenue and other contract liabilities, current $ 73.2 $ 76.9  
v3.25.4
Deferred Revenue and Other Contract Liabilities, Current - Narrative (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Deferred revenue and other current contract liabilities $ 96.2 $ 95.0 $ 77.3
Unrecognized contract revenue 1,793.7    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Unrecognized contract revenue $ 495.5    
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-04 | Twelve Months and Thereafter      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months    
v3.25.4
Deferred Revenue and Other Contract Liabilities, Current - Schedule of Changes in Deferred Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Movement in Deferred Revenue [Roll Forward]    
Deferred revenue, beginning of the period $ 61.9 $ 48.5
Revenue deferred during the period 52.2 42.5
Recognition of revenue deferred in prior periods (52.6) (29.1)
Deferred revenue, end of the period $ 61.5 $ 61.9
v3.25.4
Other Current Liabilities (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Other Current Liabilities [Line Items]    
Accrued indirect taxes payable $ 22.7 $ 17.9
Income tax payable 16.7 12.4
Accrued legal fees 14.5 14.6
Accrued expenses 9.1 24.2
Lessee lease liabilities, current 8.1 9.7
Long-term debt, current 6.3 15.0
Accrued warranty 6.1 5.5
Total other current liabilities 109.2 115.4
Related Party    
Other Current Liabilities [Line Items]    
Related party payables/Other current liabilities 23.5 5.3
Nonrelated Party    
Other Current Liabilities [Line Items]    
Related party payables/Other current liabilities $ 2.2 $ 10.8
v3.25.4
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Debt Instrument [Line Items]    
Short-term debt $ 6.3 $ 15.0
Long-term debt 518.0 714.3
Total debt 524.3 729.3
Term Loan    
Debt Instrument [Line Items]    
Short-term debt 6.3 15.0
Long-term debt 238.0 258.3
Revolver    
Debt Instrument [Line Items]    
Long-term debt $ 280.0 $ 456.0
v3.25.4
Debt - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 01, 2025
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Sep. 23, 2025
Apr. 11, 2022
Debt Instrument [Line Items]            
Outstanding balance of term loan   $ 524.3        
Interest expense   $ 33.2 $ 41.2 $ 47.1    
Refinanced Credit Facility            
Debt Instrument [Line Items]            
Accordion feature, increase limit $ 400.0          
Basis spread on floor rate 0.00%          
Effective interest rate   4.70%        
Refinanced Credit Facility | Adjusted Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 1.00%          
Basis spread on floor rate 0.00%          
Refinanced Credit Facility | Federal Funds Effective Swap Rate            
Debt Instrument [Line Items]            
Basis spread on variable rate 0.50%          
Refinanced Credit Facility | Minimum            
Debt Instrument [Line Items]            
Commitment fee percentage 0.15%          
Refinanced Credit Facility | Minimum | Alternate Base Rate            
Debt Instrument [Line Items]            
Basis spread on variable rate 0.00%          
Refinanced Credit Facility | Minimum | Adjusted Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 1.00%          
Refinanced Credit Facility | Maximum            
Debt Instrument [Line Items]            
Commitment fee percentage 0.275%          
Refinanced Credit Facility | Maximum | Alternate Base Rate            
Debt Instrument [Line Items]            
Basis spread on variable rate 0.75%          
Refinanced Credit Facility | Maximum | Adjusted Secured Overnight Financing Rate (SOFR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 1.75%          
New Credit Facility Agreement            
Debt Instrument [Line Items]            
Accordion feature, increase limit           $ 400.0
Term Loan            
Debt Instrument [Line Items]            
Debt issuance costs         $ 0.9  
Outstanding balance of term loan         $ 270.0  
Line of Credit | Refinanced Credit Facility            
Debt Instrument [Line Items]            
Debt issuance costs $ 4.6          
Line of Credit | Initial Lenders | Refinanced Credit Facility            
Debt Instrument [Line Items]            
Debt issuance costs 0.4          
Unsecured Debt | Refinanced Credit Facility            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity 250.0          
Unsecured Debt | New Credit Facility Agreement            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity           300.0
Revolving Credit Facility | Refinanced Credit Facility            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity 750.0          
Revolving Credit Facility | New Credit Facility Agreement            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity           500.0
Revolving Credit Facility | Line of Credit            
Debt Instrument [Line Items]            
Available borrowing capacity   $ 467.6        
Outstanding available letters of credit   $ 2.4        
Revolving Credit Facility | Line of Credit | Initial Lenders            
Debt Instrument [Line Items]            
Debt issuance costs           $ 8.4
Letter of Credit | Refinanced Credit Facility            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity $ 50.0          
v3.25.4
Debt - Schedule of Aggregate Maturities of Principal (Details)
$ in Millions
Jan. 03, 2026
USD ($)
Debt Disclosure [Abstract]  
2026 $ 6.3
2027 6.3
2028 6.3
2029 6.3
2030 499.1
Thereafter 0.0
Total $ 524.3
v3.25.4
Other Non-Current Liabilities (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Other Liabilities Disclosure [Abstract]    
Lessee non-current lease liabilities $ 26.9 $ 23.3
Unrecognized tax benefits 26.2 23.7
Deferred revenue, non-current 23.0 18.1
Projected benefit obligation 5.5 5.4
Income tax payable, non-current 4.7 0.0
Other 1.5 0.4
Other non-current liabilities $ 87.8 $ 70.9
v3.25.4
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2027
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized (loss) on cash flow hedge [1]   $ (4.8) $ (1.3) $ (8.8)
Tax (benefit)   $ (1.5) $ (0.5) $ (2.7)
Forecast | Interest Expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized gain on cash flow hedge $ 0.1      
Interest rate contracts, inclusive of accrued interest | Designated as Hedging Instrument        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Average fixed interest rate related to derivative contracts   3.16%    
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
v3.25.4
Derivative Instruments and Hedging Activities - Schedule of Fair Value of Hedging Instruments (Details) - Designated as Hedging Instrument - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments $ (0.4) $ 6.7
Other non-current assets | Interest rate contracts, inclusive of accrued interest    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments 1.0 6.8
Other non-current liabilities | Interest rate contracts, inclusive of accrued interest    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments $ (1.4) $ (0.1)
v3.25.4
Derivative Instruments and Hedging Activities - Schedule of Gain (Losses) Reclassified from AOCI (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses) reclassified from accumulated other comprehensive income $ 5.2 $ 14.7 $ 14.9
Designated as Hedging Instrument | Interest rate contracts | Non-operating gains      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses) reclassified from accumulated other comprehensive income $ 5.2 $ 14.7 $ 14.9
v3.25.4
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
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 6.0 $ 7.8 $ 19.3
Amount recognized in other comprehensive (loss) income (1.1) 12.9 3.4
Amount reclassified into earnings (5.2) (14.7) (14.9)
Ending balance $ (0.3) $ 6.0 $ 7.8
v3.25.4
Discontinued Operations - Narrative (Details) - Discontinued Operations, Held-for-Sale - Sound United - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 23, 2025
Mar. 29, 2025
Jan. 03, 2026
Dec. 28, 2024
May 06, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal group, Including discontinued operation, consideration         $ 350.0
Proceeds from divestiture of businesses $ 328.0        
Separation-related costs incurred     $ 1.5 $ 2.4  
Cost of Sales          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Intangible asset write-downs   $ 44.0      
Operating Expense          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Intangible asset write-downs   $ 251.0      
v3.25.4
Discontinued Operations - Schedule of Components of Income From Discontinued Operations (Details) - Discontinued Operations, Held-for-Sale - Sound United - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Revenues $ 414.9 $ 699.1 $ 772.6
Cost of sales 309.3 489.1 534.7
Gross profit 105.6 210.0 237.9
Selling, general and administrative expenses 108.4 195.1 212.7
Research and development expenses 27.5 40.6 44.7
Intangible assets impairment charges 251.5 304.0 10.0
Operating loss (281.8) (329.7) (29.5)
Loss on disposition (101.1) 0.0 0.0
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations (44.5) 0.0 0.0
Other non-operating (loss) income (4.7) 2.6 4.6
Loss from discontinued operations, before income taxes (432.1) (327.1) (24.9)
(Benefit) provision for income taxes (72.9) (6.0) 1.3
Loss from discontinued operations, net of income taxes $ (359.2) $ (321.1) $ (26.2)
v3.25.4
Discontinued Operations - Schedule of Assets and Liabilities of the Discontinued Operations (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Current Assets    
Other current assets $ 1.0 $ 403.4
Noncurrent Assets    
Other non-current assets 0.1 615.2
Total assets held-for-sale - discontinued operations 1.1 1,036.0
Current Liabilities    
Other current liabilities 2.5 217.7
Noncurrent Liabilities    
Other non-current liabilities 0.1 170.7
Discontinued Operations, Held-for-Sale | Sound United    
Current Assets    
Cash and cash equivalents 1.0 54.0
Trade receivable, net of credit allowances 0.0 143.3
Inventories, net 0.0 164.4
Other current assets 0.0 41.7
Total current assets, held-for-sale 1.0 403.4
Noncurrent Assets    
Property and equipment, net 0.0 44.6
Intangible assets, net 0.0 496.6
Deferred tax assets 0.0 25.2
Other non-current assets 0.1 48.8
Total non-current assets, held-for-sale 0.1 615.2
Total assets held-for-sale - discontinued operations 1.1 1,018.6
Current Liabilities    
Accounts payable 0.5 123.8
Accrued compensation 0.9 4.9
Deferred revenue and other contract liabilities, current 0.0 18.6
Other current liabilities 1.1 70.4
Total current liabilities, held-for-sale 2.5 217.7
Noncurrent Liabilities    
Long-term debt 0.0 13.6
Deferred tax liabilities 0.0 99.9
Other non-current liabilities 0.1 57.2
Total non-current liabilities, held-for-sale 0.1 170.7
Total liabilities held-for-sale - discontinued operations $ 2.6 $ 388.4
v3.25.4
Equity - Narrative (Details) - shares
 3 Months Ended 12 Months Ended
Jan. 03, 2026
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Jun. 30, 2022
Class of Stock [Line Items]          
Repurchases of common stock (in shares) 2,500,000 2,500,000 0 0  
2022 Repurchase Program | Common Stock          
Class of Stock [Line Items]          
Number of common shares authorized to be repurchased under new stock repurchase program (in shares)         5,000,000.0
Stock repurchase program, remaining number of shares available for repurchase (in shares) 2,500,000 2,500,000      
v3.25.4
Equity - Schedule of Stock Repurchase Activities (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Jan. 03, 2026
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Equity [Abstract]        
Shares repurchased (in shares) 2,500,000 2,500,000 0 0
Average cost per share (in dollars per share)   $ 146.91 $ 0 $ 0
Value of shares repurchased $ 363.7   $ 0.0 $ 0.0
v3.25.4
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 25, 2025
Oct. 24, 2024
Feb. 26, 2024
Feb. 27, 2023
May 31, 2020
Jan. 03, 2026
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Jun. 01, 2017
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Award vesting period             3 years 3 years 3 years  
Stock compensation expense (benefit)           $ 35.8   $ 36.1 $ 6.1  
Share-based compensation arrangement, weighted average remaining contractual term (in years)             3 years 1 year 8 months 12 days    
Weighted average remaining contractual term of options exercisable, years             1 year 10 months 24 days 2 years 2 months 12 days    
Options to purchase of shares of common stock (in shares)             600,000 1,100,000 1,200,000  
Total fair market value of all vesting options             $ 2.7 $ 8.2 $ 9.5  
Aggregated intrinsic value of options outstanding           18.6 18.6      
Aggregated intrinsic value of options exercisable           18.6 18.6      
Aggregated intrinsic value of options exercised             63.1 58.2 19.0  
Total income tax benefit recognized for share-based compensation expense             5.8 5.7 2.9  
Employee Stock Option                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Stock compensation expense (benefit)             1.3 4.4 8.7  
Unrecognized compensation cost           3.3 $ 3.3      
Unrecognized share-based compensation related to unvested options granted, term             3 years 2 months 12 days      
Restricted Stock Units (RSUs)                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Stock compensation expense (benefit)             $ 32.0 $ 29.8 $ 17.8  
Unrecognized share-based compensation related to unvested options granted           68.5 $ 68.5      
Weighted average period             3 years 1 month 6 days      
Weighted average shares contingently issuable (in shares)             300,000 200,000 500,000  
Restricted Stock Units (RSUs) | Chief Executive Officer                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Options to purchase of shares of common stock (in shares)   2,700,000         2,700,000 2,700,000 2,700,000  
Performance Shares                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Award vesting period 3 years   3 years 3 years            
Stock compensation expense (benefit)             $ 2.5 $ 1.9 $ (20.4)  
Unrecognized share-based compensation related to unvested options granted           $ 12.5 $ 12.5      
Weighted average period             1 year 9 months 18 days      
Weighted average shares contingently issuable (in shares)             100,000 100,000 100,000  
Performance Shares | 2021 PSU Grant                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Weighted average shares contingently issuable (in shares)             90,397 142,254 95,170  
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% 0.00%  
Maximum | 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           200.00% 200.00% 200.00% 200.00%  
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          
2017 Equity Incentive Plan | Minimum                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Number of shares available for grant (in shares)                   5,000,000.0
2017 Equity Incentive Plan | Maximum                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Number of shares available for grant (in shares)         7,500,000          
2007 Stock Incentive Plan                    
Schedule Of Share Based Compensation Arrangements [Line Items]                    
Number of shares available for grant (in shares)                   5,000,000.0
v3.25.4
Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Jan. 03, 2026
Sep. 27, 2025
Sep. 27, 2025
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Shares            
Options outstanding, beginning of period (in shares)     1,600,000 1,600,000 2,700,000 2,800,000
Granted (in shares)       100,000 100,000 100,000
Canceled/Forfeited (in shares)       (200,000) (600,000) 0
Exercised (in shares)       (800,000) (600,000) (200,000)
Options outstanding, end of period (in shares) 700,000     700,000 1,600,000 2,700,000
Options exercisable, end of period (in shares) 600,000     600,000 1,500,000 2,400,000
Weighted-Average Exercise Price            
Options outstanding, beginning of period, average exercise price (in dollars per share)     $ 110.43 $ 110.43 $ 87.58 $ 83.87
Granted (in dollars per share)       163.33 126.49 182.43
Canceled/Forfeited (in dollars per share)       183.18 82.38 163.96
Exercised (in dollars per share)       87.34 39.47 43.22
Options outstanding, end of period, average exercise price (in dollars per share) $ 117.87     117.87 110.43 87.58
Options exercisable, end of period (in dollars per share) $ 113.14     $ 113.14 $ 105.05 $ 73.80
Stock compensation expense (benefit) $ 35.8       $ 36.1 $ 6.1
Discontinued operations            
Shares            
Granted (in shares)   0 0      
Employee Stock Option            
Weighted-Average Exercise Price            
Stock compensation expense (benefit)       $ 1.3 4.4 8.7
Employee Stock Option | Discontinued operations            
Weighted-Average Exercise Price            
Stock compensation expense (benefit)       $ 0.1 $ 0.2 $ 0.1
v3.25.4
Stock-Based Compensation - Schedule of Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Details) - $ / shares
shares in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Number of options, options outstanding (in shares) 0.7 1.6 2.7 2.8
Average Remaining Contractual Life 3 years 1 year 8 months 12 days    
Number of options, options exercisable (in shares) 0.6 1.5 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) 0.1 0.3    
Average Remaining Contractual Life 2 months 12 days 9 months 18 days    
Number of options, options exercisable (in shares) 0.1 0.3    
$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 8 months 12 days 1 year 8 months 12 days    
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) 0.3 0.7    
Average Remaining Contractual Life 1 year 9 months 18 days 1 year 6 months    
Number of options, options exercisable (in shares) 0.3 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) 0.2 0.4    
Average Remaining Contractual Life 4 years 7 months 6 days 2 years 2 months 12 days    
Number of options, options exercisable (in shares) 0.1 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) 0.1 0.2    
Average Remaining Contractual Life 5 years 7 months 6 days 2 years 6 months    
Number of options, options exercisable (in shares) 0.1 0.2    
$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 4 years 2 months 12 days 4 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) 0.0 0.0    
Average Remaining Contractual Life 4 years 10 months 24 days 2 years 4 months 24 days    
Number of options, options exercisable (in shares) 0.0 0.0    
v3.25.4
Stock-Based Compensation - Schedule of Restricted Stock Units and Performance Stock Units (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Feb. 25, 2025
Feb. 26, 2024
Feb. 27, 2023
Jan. 03, 2026
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Weighted-Average Grant Date Fair Value              
Stock compensation expense (benefit)       $ 35.8   $ 36.1 $ 6.1
Award vesting period         3 years 3 years 3 years
Restricted Stock Units (RSUs)              
Units              
Beginning of period (in shares)         700,000 3,400,000 3,000,000.0
Granted (in shares)         300,000 200,000 500,000
Canceled (in shares)         (200,000) (2,700,000) 0
Vested (in shares)         (200,000) (200,000) (100,000)
End of period (in shares)       600,000 600,000 700,000 3,400,000
Weighted-Average Grant Date Fair Value              
Beginning of period (in dollars per share)         $ 135.21 $ 104.81 $ 105.02
Granted (in dollars per share)         163.02 130.85 121.79
Canceled (in dollars per share)         142.75 96.40 179.81
Vested (in dollars per share)         141.48 146.27 177.93
End of period, fair value (in dollars per share)       $ 145.71 $ 145.71 $ 135.21 $ 104.81
Stock compensation expense (benefit)         $ 32.0 $ 29.8 $ 17.8
Restricted Stock Units (RSUs) | Discontinued operations              
Units              
Granted (in shares)         0    
Weighted-Average Grant Date Fair Value              
Stock compensation expense (benefit)         $ 2.5 $ 4.4 $ 2.3
Performance Shares              
Units              
Beginning of period (in shares)         200,000 300,000 300,000
Granted (in shares)         100,000 100,000 100,000
Canceled (in shares)         (200,000) (200,000) 0
Vested (in shares)         0 0 (100,000)
End of period (in shares)       100,000 100,000 200,000 300,000
Weighted-Average Grant Date Fair Value              
Beginning of period (in dollars per share)         $ 172.50 $ 195.42 $ 186.83
Granted (in dollars per share)         179.89 164.19 204.67
Canceled (in dollars per share)         171.39 187.52 193.50
Vested (in dollars per share)         0 250.73 179.42
End of period, fair value (in dollars per share)       $ 180.65 $ 180.65 $ 172.50 $ 195.42
Stock compensation expense (benefit)         $ 2.5 $ 1.9 $ (20.4)
Weighted payout percentage 0.00% 28.00% 100.00%        
Award vesting period 3 years 3 years 3 years        
Performance Shares | Discontinued operations              
Weighted-Average Grant Date Fair Value              
Stock compensation expense (benefit)         $ (1.0) $ 0.8 $ (1.5)
v3.25.4
Stock-Based Compensation - Schedule of Valuation of Stock-Based Award Activity (Details) - $ / shares
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant      
Risk-free interest rate, minimum 3.90% 3.30% 3.60%
Risk-free interest rate, maximum 4.10% 4.20% 4.20%
Estimated volatility, minimum 40.50% 33.30% 31.60%
Estimated volatility, maximum 43.10% 42.60% 36.70%
Expected dividends 0.00% 0.00% 0.00%
Weighted-average fair value of options granted (in dollars per share)   $ 59.60 $ 75.08
Minimum      
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant      
Expected term, years 5 years 9 months 18 days 4 years 7 months 6 days 5 years 1 month 6 days
Weighted-average fair value of options granted (in dollars per share) $ 68.57    
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
Weighted-average fair value of options granted (in dollars per share) $ 78.81    
v3.25.4
Stock-Based Compensation - Schedule of Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation $ 35.8 $ 36.1 $ 6.1
Cost of goods sold      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation 0.7 1.0 1.1
Selling, general and administrative      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation 21.9 20.3 (2.0)
Research and development      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation $ 13.2 $ 14.8 $ 7.0
v3.25.4
Employee Benefits - Narrative (Details)
$ in Millions
 12 Months Ended
Jan. 03, 2026
USD ($)
plan
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Defined Contribution Plan Disclosure [Line Items]      
Defined contribution plan, number of plans | plan 1    
Higher benefits paid $ (1.5)    
Higher employer contributions 0.6    
Foreign currency revaluation period decrease 1.9    
Lower actuarial gains 0.6    
Actuarial gain 0.4 $ (0.5)  
Unfunded balance (5.5) (5.4)  
Employer contributions 2.4 1.8  
Expected contributions for next fiscal year $ 1.5    
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 $ 3.7 3.9 $ 4.1
Masimo Retirement Savings Plan | Foreign Plan      
Defined Contribution Plan Disclosure [Line Items]      
Company's contribution to employee retirement savings plan $ 2.3 $ 2.4 $ 2.1
v3.25.4
Employee Benefits - Schedule of Defined Benefit Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Plan Assets      
Fair value of plan assets at beginning of year $ 19.2 $ 16.7  
Employer contributions 2.4 1.8  
Participant contributions 0.9 0.7  
Realized net gains (losses) on plan assets 0.3 0.1  
Benefits paid (0.6) (1.2)  
Foreign currency revaluation and translation gains and (losses) 2.6 1.1  
Fair value of plan assets at end of year 24.8 19.2 $ 16.7
Projected Benefit Obligation      
Projected benefit obligation at beginning of year 24.6 20.9  
Service cost 1.7 1.5 1.2
Participant contributions 0.9 0.7  
Interest cost 0.3 0.3 0.5
Actuarial gains (losses) (0.4) 0.5  
Benefits paid (0.6) (1.2)  
Foreign currency revaluation and translation gains and (losses) 3.8 1.9  
Projected benefit obligation at end of year   24.6 $ 20.9
Funded status (5.5) (5.4)  
Foreign Plan      
Plan Assets      
Fair value of plan assets at beginning of year 19.2    
Fair value of plan assets at end of year   19.2  
Projected Benefit Obligation      
Projected benefit obligation at beginning of year 24.6    
Projected benefit obligation at end of year $ 30.3 $ 24.6  
v3.25.4
Employee Benefits - Schedule of Net Periodic Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Postemployment Benefits [Abstract]      
Service cost $ 1.7 $ 1.5 $ 1.2
Interest cost 0.3 0.3 0.5
Amortization of net losses 0.2 0.1 0.0
Amortization of prior service costs (credits) 0.0 (0.1) 0.0
Expected (gains) on plan assets (0.8) (0.7) (0.7)
Net periodic defined benefit plan cost $ 1.4 $ 1.1 $ 1.0
v3.25.4
Employee Benefits - Schedule of Classification of Amounts Recognized in the Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Defined Contribution Plan Disclosure [Line Items]    
Unfunded balance $ 5.5 $ 5.4
Non-current liability    
Defined Contribution Plan Disclosure [Line Items]    
Unfunded balance $ 5.5 $ 5.4
v3.25.4
Employee Benefits - Schedule of International Define Benefit Plans (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Defined Contribution Plan Disclosure [Line Items]      
Projected benefit obligation   $ 24.6 $ 20.9
Fair value of plan assets $ 24.8 19.2 $ 16.7
Foreign Plan      
Defined Contribution Plan Disclosure [Line Items]      
Projected benefit obligation 30.3 24.6  
Accumulated benefit obligation $ 28.1 22.8  
Fair value of plan assets   $ 19.2  
v3.25.4
Employee Benefits - Schedule of Plan Assumptions (Details)
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Assumptions - benefit obligations:    
Discount rate 1.00% 1.50%
Rate of compensation increase 1.50% 1.50%
Assumptions - net periodic benefit costs:    
Discount rate 1.00% 1.50%
Rate of compensation increase 1.50% 1.50%
Expected long-term return on plan assets 3.50% 3.70%
Interest credit rate 1.30% 1.50%
v3.25.4
Employee Benefits - Schedule of Plan Assets (Details)
Jan. 03, 2026
Dec. 28, 2024
Cash and cash equivalents    
Defined Contribution Plan Disclosure [Line Items]    
Defined Benefit plan, plan assets, actual allocation, including adjustments, percentage (3.70%) (6.80%)
Equity securities    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 39.60% 36.00%
Debt securities    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 33.70% 44.10%
Other    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 30.40% 26.70%
v3.25.4
Employee Benefits - Schedule of Estimated Future Benefit Payments (Details)
$ in Millions
Jan. 03, 2026
USD ($)
Postemployment Benefits [Abstract]  
2026 $ 1.2
2027 1.2
2028 1.2
2029 2.1
2030 1.2
Thereafter 7.8
Total $ 14.7
v3.25.4
Non-operating Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Nonoperating Income (Expense) [Abstract]      
Interest income $ 3.4 $ 4.4 $ 2.9
Realized and unrealized foreign currency (losses) (7.6) (4.4) (8.8)
Interest expense (33.2) (41.2) (47.1)
Non-operating loss $ (37.4) $ (41.2) $ (53.0)
v3.25.4
Income Taxes - Schedule of Components of Income Before Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Tax Disclosure [Abstract]      
United States $ 133.9 $ (17.8) $ 56.3
Foreign 138.7 39.6 56.7
Income from continuing operations before provision for income taxes $ 272.6 $ 21.8 $ 113.0
v3.25.4
Income Taxes - Schedule of Current and Deferred Provision (Benefit) for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Current:      
Federal $ 23,500 $ 17,300 $ 12,600
State 4,100 3,000 3,400
Foreign 25,500 8,600 9,100
Subtotal 53,100 28,900 25,100
Deferred:      
Federal 6,100 (19,000) (5,400)
State 6,400 (5,600) (6,300)
Foreign (700) 1,300 (8,100)
Subtotal 11,800 (23,300) (19,800)
Total $ 64,900 $ 5,600 $ 5,300
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Taxes [Line Items]      
Increase (decrease) to tax and accrued interest related to uncertain tax positions $ 2.8 $ 3.2 $ 5.7
Undistributed earnings of foreign subsidiaries 613.7    
Accumulated undistributed earnings 86.5    
Foreign tax credits 2.3    
Reinvested earnings 527.2    
Additional income tax expense 25.0    
Increase in valuation allowance 129.9    
Amount of unrecognized benefits affecting future tax rate 33.3 30.8  
Income tax expense (benefit) related to unrecognized tax benefits 0.4 (0.6) (1.0)
Penalties and interest related to unrecognized tax benefits 3.1 2.7  
Income taxes paid 28.5 $ 35.9 $ 20.4
General Business Tax Credit Carryforward      
Income Taxes [Line Items]      
Tax credit 3.6    
Domestic Tax Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross 0.8    
State and Local Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross 2.7    
State and Local Jurisdiction | Research Tax Credit Carryforward      
Income Taxes [Line Items]      
Tax credit 38.7    
Foreign Tax Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross 68.7    
Foreign Tax Jurisdiction | Research Tax Credit Carryforward      
Income Taxes [Line Items]      
Tax credit $ 0.2    
v3.25.4
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Current Year) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Amount      
Statutory regular federal income tax rate $ 57,100    
State and local income taxes, net of federal income tax effect 8,300    
Foreign GILTI, net with FTC 2,400    
Other 800    
R&D credits (4,800)    
Excess stock-based compensation (5,000)    
Other 7,500    
Changes in unrecognized tax benefit 2,800    
Total $ 64,900 $ 5,600 $ 5,300
Percent      
Statutory regular federal income tax rate 21.00%    
State and local income taxes, net of federal income tax effect 3.10% (12.10%) (2.00%)
Switzerland   8.00% (2.40%)
Other   (26.30%) (2.30%)
Foreign GILTI, net with FTC 0.90%    
Other 0.30%    
Research and development tax credits (1.80%) (16.70%) (3.40%)
Excess stock-based compensation (1.80%)    
Other 2.80%    
Changes in unrecognized tax benefit 1.00%    
Total 23.80% 25.70% 4.70%
Switzerland      
Amount      
State and local income taxes, net of federal income tax effect $ 5,000    
Switzerland (17,600)    
Impairment (4,300)    
Cross-border tax laws 4,700    
Other $ 2,300    
Percent      
State and local income taxes, net of federal income tax effect 1.80%    
Switzerland (6.50%)    
Impairment (1.60%)    
Cross-border tax laws 1.70%    
Other 0.80%    
Other foreign jurisdictions      
Amount      
Switzerland $ 5,700    
Percent      
Switzerland 2.10%    
v3.25.4
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Details)
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Tax Disclosure [Abstract]      
Statutory regular federal income tax rate   21.00% 21.00%
State provision, net of federal benefit 3.10% (12.10%) (2.00%)
U.S. tax on foreign income, net   42.50% 5.30%
Foreign income taxed at different rates   8.00% (2.40%)
Research and development tax credits (1.80%) (16.70%) (3.40%)
Tax credit 0.00% (7.30%)  
Excess stock-based compensation   (26.30%) (2.30%)
Nondeductible executive compensation   16.90% (1.70%)
Derecognition of uncertain tax position   (15.50%) (1.60%)
Other   7.90% (0.90%)
Total 23.80% 25.70% 4.70%
v3.25.4
Income Taxes - Schedule of Components of Deferred Tax Assets (Details) - USD ($)
$ in Millions
Jan. 03, 2026
Dec. 28, 2024
Deferred tax assets:    
Capital loss $ 134.2 $ 0.0
Accrued liabilities 35.7 28.6
Capitalized R&D 29.5 41.2
Tax credits 30.6 31.5
Deferred revenue 24.8 27.5
Net operating losses 16.8 10.9
Operating lease liabilities 7.4 5.6
Stock-based compensation 5.6 8.4
Intangible assets 1.6 6.4
Other 6.2 5.8
Total 292.4 165.9
Valuation allowance (145.1) (15.2)
Total deferred tax assets 147.3 150.7
Deferred tax liabilities:    
Property and equipment (8.4) (12.2)
Withholding taxes on undistributed foreign earnings (3.5) (3.1)
ROU assets (7.3) (5.2)
State taxes and other (14.1) (12.0)
Total deferred tax liabilities (33.3) (32.5)
Net deferred tax assets $ 114.0 $ 118.2
v3.25.4
Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Unrecognized Tax Benefits [Roll Forward]    
Unrecognized tax benefits (gross), beginning of period $ 33.4 $ 30.2
Increase from tax positions in prior period 0.5 1.8
Increase from tax positions in current period 7.3 4.9
Lapse of statute of limitations (5.3) (3.5)
Unrecognized tax benefits (gross), end of period $ 35.9 $ 33.4
v3.25.4
Income Taxes - Schedule of Amounts of Cash Income Tax Paid (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal $ 13.4    
Foreign      
State and local 2.0    
Income taxes, net of amounts refunded 28.5 $ 35.9 $ 20.4
Switzerland      
Foreign      
All other foreign 6.9    
Mexico      
Foreign      
All other foreign 2.0    
Other foreign jurisdictions      
Foreign      
All other foreign $ 4.2    
v3.25.4
Commitments and Contingencies (Details)
 1 Months Ended 12 Months Ended
Jun. 12, 2025
USD ($)
May 26, 2025
USD ($)
Jan. 17, 2025
USD ($)
Nov. 13, 2024
USD ($)
shares
Jun. 05, 2023
USD ($)
Jan. 30, 2023
patent
Oct. 13, 2020
patent
Nov. 04, 2015
USD ($)
Nov. 30, 2025
USD ($)
Oct. 31, 2024
USD ($)
Jan. 03, 2026
USD ($)
distributor
executiveOfficer
customer
shares
Dec. 28, 2024
USD ($)
distributor
customer
shares
Dec. 30, 2023
distributor
shares
Oct. 24, 2024
USD ($)
Oct. 20, 2022
complaint
Contingencies And Commitments [Line Items]                              
Severance plan participation agreements | executiveOfficer                     3        
Period for notice of resignation                     6 months        
License fee paid                           $ 2,500,000  
Royalty guarantees, commitments, change in control                     $ 15,000,000.0     15,000,000.0  
Royalty guarantees, commitments, additional, change in control                           $ 2,000,000.0  
Remaining amount committed                     258,400,000        
Other commitment                     4,100,000        
Loss contingency, success fee, payments $ 2,800,000                            
Success fees outstanding                     0        
Cash and cash equivalents                     152,300,000 $ 123,600,000      
Bank balance covered by federal deposit insurance corporation limit                     $ 4,200,000        
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 | Ms Catherine Szyman                              
Contingencies And Commitments [Line Items]                              
Base salary percentage     100.00%                        
Maximum | Ms Catherine Szyman                              
Contingencies And Commitments [Line Items]                              
Base salary percentage     200.00%                        
Brennan Agreement                              
Contingencies And Commitments [Line Items]                              
Annual base salary       $ 1,042,000                      
Discretionary bonus of target amount       621,250                      
Discretionary bonus amount       $ 1,087,190                      
Masimo Vs. Apple Inc                              
Contingencies And Commitments [Line Items]                              
Number of patents found infringed | patent           1                  
Masimo Vs. Apple Inc | Pending Litigation                              
Contingencies And Commitments [Line Items]                              
Patents found infringed upon | patent             3                
Patents found not infringed upon | patent             9                
Loss contingency, damages awarded, value                 $ 634,000,000            
Apple, Inc. Patent Infringement | Pending Litigation                              
Contingencies And Commitments [Line Items]                              
Loss contingency, damages awarded, value                   $ 250          
Number of complaints | complaint                             2
Masimo v.s. Willow Laboratories | Pending Litigation                              
Contingencies And Commitments [Line Items]                              
Loss contingency, damages sought, value   $ 6,100,000                          
Sales                              
Contingencies And Commitments [Line Items]                              
Number of just-in-time distributors | distributor                     1 1 1    
GPO Members | Revenue Benchmark | Customer Concentration Risk                              
Contingencies And Commitments [Line Items]                              
Concentration risk, percentage                     57.20% 56.90% 53.20%    
Just in time distributor one | Revenue Benchmark | Customer Concentration Risk                              
Contingencies And Commitments [Line Items]                              
Concentration risk, percentage                     18.80% 18.50% 18.10%    
Customer Two | Accounts Receivable                              
Contingencies And Commitments [Line Items]                              
Concentration risk accounts receivable customer | customer                     2 2      
Customer Two | Accounts Receivable | Customer Concentration Risk                              
Contingencies And Commitments [Line Items]                              
Percentage of accounts receivable balance                     10.10% 11.90%      
Customer One | Accounts Receivable | Customer Concentration Risk                              
Contingencies And Commitments [Line Items]                              
Percentage of accounts receivable balance                     26.50% 12.20%      
Restricted Stock Units (RSUs)                              
Contingencies And Commitments [Line Items]                              
Granted (in shares) | shares                     300,000 200,000 500,000    
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                    
v3.25.4
Segment and Enterprise Reporting - Narrative (Details)
$ in Millions
 12 Months Ended
Jan. 03, 2026
USD ($)
segment
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of operating segments 1    
Number of reportable segments 1    
Healthcare      
Segment Reporting Information [Line Items]      
Depreciation and amortization expense | $ $ 38.8 $ 48.5 $ 38.1
v3.25.4
Segment and Enterprise Reporting - Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Segment Reporting Information [Line Items]      
Revenues $ 1,526.9 $ 1,395.2 $ 1,275.5
Cost of goods sold 581.7 600.9 509.9
Gross profit by segment 945.2 794.3 765.6
Total assets 1,698.9 2,625.7  
Disposal Group, Including Discontinued Operation, Assets 1.1 1,036.0  
Operating Segments | Healthcare      
Segment Reporting Information [Line Items]      
Revenues 1,524.1 1,395.2 1,275.5
Cost of goods sold 573.8 581.7 498.3
Gross profit by segment 950.3 813.6 777.1
Acquired asset amortization (6.6) (1.8) (1.9)
Business transition and related costs 1.5 (14.8) (4.9)
Acquisitions, integrations, divestitures, and related costs 0.0 (0.1) 0.0
Total assets 1,697.8 1,589.7  
Other      
Segment Reporting Information [Line Items]      
Revenues 2.8 0.0 0.0
Cost of goods sold 7.9 19.2 11.6
Gross profit by segment $ 0.0 $ (2.6) $ (4.7)
v3.25.4
Segment and Enterprise Reporting - Revenue and Long-Lived Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 355.9 $ 355.7  
Total long-lived assets, percentage 100.00% 100.00%  
Total revenue $ 1,526.9 $ 1,395.2 $ 1,275.5
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 $ 307.7 $ 312.5  
Total long-lived assets, percentage 86.50% 87.90%  
Total revenue $ 956.6 $ 889.3 $ 796.9
Total revenue, percentage 62.70% 63.70% 62.50%
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 48.2 $ 43.2  
Total long-lived assets, percentage 13.50% 12.10%  
Europe, Middle East and Africa      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 391.4 $ 349.7 $ 312.3
Total revenue, percentage 25.60% 25.10% 24.50%
Asia and Australia      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 119.6 $ 105.2 $ 117.6
Total revenue, percentage 7.80% 7.50% 9.20%
North and South America (excluding U.S.)      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 59.3 $ 51.0 $ 48.7
Total revenue, percentage 3.90% 3.70% 3.80%
v3.25.4
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Millions
Feb. 16, 2026
Jan. 03, 2026
Dec. 28, 2024
Business Combination [Line Items]      
Common stock, par value (in dollars per share)   $ 0.001 $ 0.001
Danaher Corporation | Subsequent Event      
Business Combination [Line Items]      
Common stock, par value (in dollars per share) $ 0.001    
Cash consideration $ 180.00    
Discretionary fees $ 5.0    
Transaction costs $ 10.0    
v3.25.4
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 03, 2026
Dec. 28, 2024
Dec. 31, 2022
Allowance for credit losses      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 3.7 $ 2.7  
Additions Charged to Expense and Other Accounts 3.0 1.1 $ 0.4
Amounts Charged Against Reserve (2.0) (0.1) (0.1)
Balance at End of Period 4.7 3.7 2.4
Allowance for sales returns      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2.4 1.4  
Additions Charged to Expense and Other Accounts 3.0 2.1 0.0
Amounts Charged Against Reserve (1.5) (1.1) (0.4)
Balance at End of Period $ 3.9 $ 2.4 $ 1.8