MASIMO CORPMASI
MASIMO CORP Segments Disclosure
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 | |||||||||||
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(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 | % | |||||||||||||||
| International | 48.2 | 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 Africa | 391.4 | 25.6 | 349.7 | 25.1 | 312.3 | 24.5 | |||||||||||||||||||||||||||||
| Asia and Australia | 119.6 | 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 | % | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.