Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 18, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Illumina Inc | |
Entity Central Index Key | 0001110803 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 147 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,270 | $ 1,144 |
Short-term investments | 1,345 | 2,368 |
Accounts receivable, net | 457 | 514 |
Inventory | 412 | 386 |
Prepaid expenses and other current assets | 61 | 78 |
Total current assets | 4,545 | 4,490 |
Property and equipment, net | 852 | 1,075 |
Operating lease right-of-use assets | 574 | |
Goodwill | 831 | 831 |
Intangible assets, net | 175 | 185 |
Deferred tax assets, net | 87 | 70 |
Other assets | 326 | 308 |
Total assets | 7,390 | 6,959 |
Current liabilities: | ||
Accounts payable | 137 | 184 |
Accrued liabilities | 473 | 513 |
Long-term debt, current portion | 631 | 1,107 |
Total current liabilities | 1,241 | 1,804 |
Operating lease liabilities | 718 | |
Long-term debt | 1,112 | 890 |
Other long-term liabilities | 212 | 359 |
Redeemable noncontrolling interests | 37 | 61 |
Stockholders’ equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 3,385 | 3,290 |
Accumulated other comprehensive income (loss) | 2 | (1) |
Retained earnings | 3,298 | 3,083 |
Treasury stock, at cost | (2,702) | (2,616) |
Total Illumina stockholders’ equity | 3,985 | 3,758 |
Noncontrolling interests | 85 | 87 |
Total stockholders’ equity | 4,070 | 3,845 |
Total liabilities and stockholders’ equity | $ 7,390 | $ 6,959 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Revenue: | ||
Total revenue | $ 846 | $ 782 |
Cost of revenue: | ||
Amortization of acquired intangible assets | 9 | 8 |
Total cost of revenue | 262 | 244 |
Gross profit | 584 | 538 |
Operating expense: | ||
Research and development | 169 | 137 |
Selling, general and administrative | 211 | 183 |
Total operating expense | 380 | 320 |
Income from operations | 204 | 218 |
Other income (expense): | ||
Interest income | 23 | 5 |
Interest expense | (15) | (11) |
Other income, net | 21 | 9 |
Total other income, net | 29 | 3 |
Income before income taxes | 233 | 221 |
Provision for income taxes | 9 | 24 |
Consolidated net income | 224 | 197 |
Add: Net loss attributable to noncontrolling interests | 9 | 11 |
Net Income (Loss) Attributable to Parent | $ 233 | $ 208 |
Earnings per share attributable to Illumina stockholders: | ||
Basic (in dollars per share) | $ 1.58 | $ 1.42 |
Diluted (in dollars per share) | $ 1.57 | $ 1.41 |
Shares used in computing earnings per share: | ||
Basic (in shares) | 147 | 147 |
Diluted (in shares) | 149 | 148 |
Product revenue | ||
Revenue: | ||
Total revenue | $ 667 | $ 628 |
Cost of revenue: | ||
Cost of revenue | 182 | 174 |
Service and other revenue | ||
Revenue: | ||
Total revenue | 179 | 154 |
Cost of revenue: | ||
Cost of revenue | $ 71 | $ 62 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income | $ 224 | $ 197 |
Unrealized gain on available-for-sale debt securities, net of deferred tax | 3 | |
Total consolidated comprehensive income | 227 | 197 |
Add: Comprehensive loss attributable to noncontrolling interests | 9 | 11 |
Comprehensive income attributable to Illumina stockholders | $ 236 | $ 208 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2017 | 191 | 44 | |||||
Beginning balance at Dec. 31, 2017 | $ 2,749 | $ 2 | $ 2,833 | $ (1) | $ 2,256 | $ (2,341) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 207 | 208 | (1) | ||||
Issuance of common stock, net of repurchases | 8 | 21 | $ (13) | ||||
Share-based compensation | 48 | 48 | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | (5) | (5) | |||||
Contributions from noncontrolling interest owners | 61 | 61 | |||||
Issuance of subsidiary shares in business combination | 5 | 5 | |||||
Ending balance (in shares) at Apr. 01, 2018 | 191 | 44 | |||||
Ending balance at Apr. 01, 2018 | 3,073 | $ 2 | 2,897 | (1) | 2,464 | $ (2,354) | 65 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 207 | 209 | (2) | ||||
Issuance of common stock, net of repurchases | (1) | 1 | $ (2) | ||||
Share-based compensation | 50 | 50 | |||||
Vesting of redeemable equity awards | (1) | (1) | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | (8) | (8) | |||||
Contributions from noncontrolling interest owners | 31 | 31 | |||||
Ending balance (in shares) at Jul. 01, 2018 | 191 | 44 | |||||
Ending balance at Jul. 01, 2018 | 3,351 | $ 2 | 2,939 | (1) | 2,673 | $ (2,356) | 94 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 196 | 199 | (3) | ||||
Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax | (1) | (1) | |||||
Issuance of common stock, net of repurchases | (83) | 23 | $ (106) | ||||
Share-based compensation | 47 | 47 | |||||
Vesting of redeemable equity awards | (1) | (1) | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | (8) | (8) | |||||
Issuance of convertible senior notes, net of tax impact | 93 | 93 | |||||
Ending balance (in shares) at Sep. 30, 2018 | 191 | 44 | |||||
Ending balance at Sep. 30, 2018 | 3,594 | $ 2 | 3,093 | (2) | 2,872 | $ (2,462) | 91 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 206 | 210 | (4) | ||||
Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax | 1 | 1 | |||||
Issuance of common stock, net repurchases (in shares) | 1 | (1) | |||||
Issuance of common stock, net of repurchases | (153) | 1 | $ (154) | ||||
Share-based compensation | 48 | 48 | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | 148 | 148 | |||||
Cumulative-effect adjustment from adoption of ASU | 1 | 1 | |||||
Ending balance (in shares) at Dec. 30, 2018 | 192 | 45 | |||||
Ending balance at Dec. 30, 2018 | 3,845 | $ 2 | 3,290 | (1) | 3,083 | $ (2,616) | 87 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 231 | 233 | (2) | ||||
Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax | 3 | 3 | |||||
Issuance of common stock, net of repurchases | (59) | 27 | $ (86) | ||||
Share-based compensation | 51 | 51 | |||||
Vesting of redeemable equity awards | (1) | (1) | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | 18 | 18 | |||||
Cumulative-effect adjustment from adoption of ASU | (18) | (18) | |||||
Ending balance (in shares) at Mar. 31, 2019 | 192 | 45 | |||||
Ending balance at Mar. 31, 2019 | $ 4,070 | $ 2 | $ 3,385 | $ 2 | $ 3,298 | $ (2,702) | $ 85 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 224 | $ 197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 37 | 30 |
Amortization of intangible assets | 10 | 9 |
Share-based compensation expense | 51 | 48 |
Accretion of debt discount | 14 | 8 |
Deferred income taxes | (11) | (11) |
Gain on deconsolidation of GRAIL | (15) | |
Other | (5) | (6) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 56 | 11 |
Inventory | (26) | (17) |
Prepaid expenses and other current assets | 6 | (2) |
Operating lease right-of-use assets and liabilities, net | (1) | |
Other assets | (8) | (1) |
Accounts payable | (47) | 2 |
Accrued liabilities | (70) | (18) |
Other long-term liabilities | (17) | 5 |
Net cash provided by operating activities | 198 | 255 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (117) | (598) |
Sales of available-for-sale securities | 118 | 288 |
Maturities of available-for-sale securities | 1,031 | 415 |
Proceeds from deconsolidation of GRAIL | 15 | |
Net purchases of strategic investments | (3) | (3) |
Purchases of property and equipment | (56) | (90) |
Net cash provided by investing activities | 988 | 12 |
Cash flows from financing activities: | ||
Payments on financing obligations | (1) | (2) |
Common stock repurchases | (63) | |
Taxes paid related to net share settlement of equity awards | (23) | (13) |
Proceeds from issuance of common stock | 27 | 21 |
Contributions from noncontrolling interest owners | 61 | |
Net cash (used in) provided by financing activities | (60) | 67 |
Effect of exchange rate changes on cash and cash equivalents | 1 | |
Net increase in cash and cash equivalents | 1,126 | 335 |
Cash and cash equivalents at beginning of period | 1,144 | 1,225 |
Cash and cash equivalents at end of period | 2,270 | $ 1,560 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for operating lease liabilities | $ 21 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the fiscal year ended December 30, 2018 , from which the prior year balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expense, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The unaudited condensed consolidated financial statements include our accounts, our wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented. We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE. See note “10. Subsequent Event.” We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income, net. Redeemable Noncontrolling Interests Noncontrolling interests represent the portion of equity (net assets) in Helix, our consolidated but not wholly-owned entity, that is neither directly nor indirectly attributable to us. Noncontrolling interests with embedded contingent redemption features, such as put rights, that are not solely within our control are considered redeemable noncontrolling interests, and are presented outside of stockholders’ equity on the condensed consolidated balance sheets. Fiscal Year Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The three months ended March 31, 2019 and April 1, 2018 were both 13 weeks. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Significant Accounting Policies During the three months ended March 31, 2019 , there have been no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended December 30, 2018 , except as described below. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets and to disclose key information about leasing arrangements. We adopted Topic 842 on its effective date in the first quarter of 2019 using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of December 31, 2018. We elected the available package of practical expedients upon adoption, which allowed us to carry forward our historical assessment of whether existing agreements contained a lease and the classification of our existing operating leases. We continue to report our financial position as of December 30, 2018 under the former lease accounting standard (Topic 840) in our condensed consolidated balance sheet. The following table summarizes the impact of Topic 842 on our condensed consolidated balance sheet upon adoption on December 31, 2018 (in millions): December 31, 2018 (unaudited) Pre-adoption Adoption Impact Post-adoption ASSETS Prepaid expenses and other current assets $ 78 $ (8 ) $ 70 Property and equipment, net 1,075 (241 ) 834 Operating lease right-of-use assets — 579 579 Deferred tax assets, net 70 6 76 Total assets $ 1,223 $ 336 $ 1,559 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued liabilities $ 513 $ 36 $ 549 Operating lease liabilities — 722 722 Long-term debt 1,107 (269 ) 838 Other long-term liabilities 359 (135 ) 224 Retained earnings 3,083 (18 ) 3,065 Total liabilities and stockholders’ equity $ 5,062 $ 336 $ 5,398 The adoption impact summarized above was primarily due to the recognition of operating lease liabilities with corresponding right-of-use assets based on the present value of our remaining minimum lease payments, and the derecognition of existing fixed assets and financing obligations related to build-to-suit leasing arrangements that, under Topic 840, did not qualify for sale-leaseback accounting. The difference between these amounts, net of deferred tax, was recorded as a cumulative-effective adjustment to retained earnings. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The standard is effective for us beginning in the first quarter of 2020, with early adoption permitted. We are currently evaluating the expected impact of ASU 2016-13 on our consolidated financial statements. Revenue Recognition Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services and instrument service contracts. We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment; and payment is typically due within 60 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from genotyping and sequencing services is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer. Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred as the amortization period for such costs, if capitalized, would have been one year or less. We regularly enter into contracts with multiple performance obligations. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. Most performance obligations are generally satisfied within a short time frame, approximately three to six months after the contract execution date. As of March 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $1,083 million , of which approximately 85% is expected to be converted to revenue in the next twelve months, with the remainder thereafter. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone selling price using average selling prices over a rolling 12 -month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, we rely upon prices set by management, adjusted for applicable discounts. Contract liabilities, which consist of deferred revenue and customer deposits, as of March 31, 2019 and December 30, 2018 were $201 million and $206 million , respectively, of which the short-term portions of $169 million and $175 million , respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded during the three months ended March 31, 2019 included $64 million of previously deferred revenue that was included in contract liabilities as of December 30, 2018 . Contract assets as of March 31, 2019 and December 30, 2018 were not material. In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers. The following table represents revenue by source (in millions): Three Months Ended March 31, April 1, Sequencing Microarray Total Sequencing Microarray Total Consumables $ 481 $ 75 $ 556 $ 422 $ 88 $ 510 Instruments 105 6 111 112 6 118 Total product revenue 586 81 667 534 94 628 Service and other revenue 113 66 179 96 58 154 Total revenue $ 699 $ 147 $ 846 $ 630 $ 152 $ 782 Revenue related to our consolidated VIE, Helix, is included in sequencing service and other revenue. The following table represents revenue by geographic area, based on region of destination (in millions): Three Months Ended March 31, April 1, Americas $ 473 $ 440 Europe, Middle East, and Africa 210 194 Greater China (1) 88 78 Asia-Pacific 75 70 Total revenue $ 846 $ 782 ____________________________________ (1) Region includes revenue from China, Taiwan, and Hong Kong. Earnings per Share Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Per-share earnings of our consolidated VIE, Helix, are included in the consolidated basic and diluted earnings per share computations based on our share of Helix’s securities. Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares. The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in millions): Three Months Ended March 31, April 1, Weighted average shares outstanding 147 147 Effect of potentially dilutive common shares from: Convertible senior notes 1 — Equity awards 1 1 Weighted average shares used in calculating diluted earnings per share 149 148 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 1 — |
Balance Sheet Account Details
Balance Sheet Account Details | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Account Details | Balance Sheet Account Details Investments Debt Securities Available-for-sale debt securities, included in short-term investments, consisted of the following (in millions): March 31, 2019 December 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities in government sponsored entities $ 21 $ — $ — $ 21 $ 21 $ — $ — $ 21 Corporate debt securities 716 2 (1 ) 717 1,060 — (2 ) 1,058 U.S. Treasury securities 566 — — 566 1,250 1 (1 ) 1,250 Total $ 1,303 $ 2 $ (1 ) $ 1,304 $ 2,331 $ 1 $ (3 ) $ 2,329 Realized gains and losses are determined based on the specific identification method and are reported in interest income. Contractual maturities of available-for-sale debt securities, as of March 31, 2019 , were as follows (in millions): Estimated Fair Value Due within one year $ 711 After one but within five years 593 Total $ 1,304 We have the ability, if necessary, to liquidate any of our cash equivalents and short-term investments to meet our liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as short-term on the accompanying condensed consolidated balance sheets. Equity Securities Our equity securities are strategic investments primarily in privately held companies. The carrying values of our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Unrealized gains and losses on non-marketable equity securities are recognized in other income, net. As of March 31, 2019 and December 30, 2018 , the aggregate carrying amounts of our non-marketable equity investments without readily determinable fair values were $230 million and $231 million , respectively, included in other assets. One of our non-marketable equity investments is a VIE for which we have concluded that we are not the primary beneficiary, and therefore, we do not consolidate this VIE in our consolidated financial statements. We have determined our maximum exposure to loss, as a result of our involvement with the VIE, to be the carrying value of our investment, which was $189 million as of March 31, 2019 and December 30, 2018 . Our marketable equity security is measured at fair value. Unrealized gains and losses are recognized in other income, net. As of March 31, 2019 and December 30, 2018 , the fair value of our marketable equity investment was $41 million and $39 million , respectively, included in short-term investments. Revenue recognized from transactions with our strategic equity investees was $15 million and $36 million for the three months ended March 31, 2019 and April 1, 2018 , respectively. Venture Fund We invest in a venture capital investment fund (the Fund) with a capital commitment of $100 million that is callable through April 2026 , of which $66 million remained callable as of March 31, 2019 . Our investment in the Fund is accounted for as an equity-method investment. The carrying amounts of the Fund, included in other assets, were $38 million and $29 million as of March 31, 2019 and December 30, 2018 , respectively. Inventory Inventory consisted of the following (in millions): March 31, December 30, Raw materials $ 115 $ 117 Work in process 234 218 Finished goods 63 51 Total inventory $ 412 $ 386 Property and Equipment Property and equipment, net consisted of the following (in millions): March 31, December 30, Leasehold improvements $ 622 $ 567 Machinery and equipment 390 382 Computer hardware and software 256 217 Furniture and fixtures 48 45 Buildings 44 285 Construction in progress 46 100 Total property and equipment, gross 1,406 1,596 Accumulated depreciation (554 ) (521 ) Total property and equipment, net $ 852 $ 1,075 Property and equipment, net included non-cash expenditures of $17 million and $33 million for the three months ended March 31, 2019 and April 1, 2018 , respectively, which were excluded from the condensed consolidated statements of cash flows. Such non-cash expenditures included $6 million recorded under build-to-suit lease accounting for the three months ended April 1, 2018 . As of December 30, 2018, property and equipment, net included $241 million of project construction costs paid or reimbursed by our landlord related to our build-to-suit leases that did not qualify for sale-leaseback accounting under Topic 840. Upon adoption of Topic 842 on December 31, 2018, we derecognized the Buildings related to our build-to-suit leasing arrangements and began to account for these leases as operating leases. See note “1. Basis of Presentation and Summary of Significant Accounting Policies” for further details on the adoption impact of Topic 842. Leases We lease approximately 2.7 million square feet of office, lab, and manufacturing facilities under various non-cancellable operating lease agreements (real estate leases). Our real estate leases have remaining lease terms of 1 to 20 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms, ranging from 6 months to 20 years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common-area-maintenance and administrative services. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Operating lease right-of-use assets and liabilities on our condensed consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components; therefore, fixed payments for common-area-maintenance and administrative services are included in our operating lease right-of-use assets and liabilities. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. As of March 31, 2019 , the maturities of our operating lease liabilities were as follows (in millions): Remaining Lease Payments 2019 $ 64 2020 85 2021 82 2022 85 2023 86 Thereafter 621 Total remaining lease payments 1,023 Less: imputed interest (253 ) Total operating lease liabilities 770 Less: current portion (52 ) Long-term operating lease liabilities $ 718 Weighted-average remaining lease term 12 years Weighted-average discount rate 4.6 % The components of our lease costs included in our condensed consolidated statements of income were as follows (in millions): Three months ended March 31, 2019 Operating lease costs $ 22 Sublease income (3 ) Total lease costs $ 19 Operating lease costs consist of the fixed lease payments included in our operating lease liabilities and are recorded on a straight-line basis over the lease terms. We sublease certain real estate to third parties and this sublease income is also recorded on a straight-line basis. Derivatives We are exposed to foreign exchange rate risks in the normal course of business. We enter into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other current assets or accrued liabilities and are not designated as hedging instruments. Changes in the value of the derivatives are recognized in other income, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities. As of March 31, 2019 , we had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, Australian dollar, Canadian dollar, Singapore dollar, and British pound. As of March 31, 2019 and December 30, 2018 , the total notional amounts of outstanding forward contracts in place for foreign currency purchases were $272 million and $122 million , respectively. Accrued Liabilities Accrued liabilities consisted of the following (in millions): March 31, December 30, Contract liabilities, current portion $ 169 $ 175 Accrued compensation expenses 105 193 Accrued taxes payable 83 82 Operating lease liabilities, current portion 52 — Other, including warranties 64 63 Total accrued liabilities $ 473 $ 513 Warranties We generally provide a one -year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. Changes in the reserve for product warranties during the three months ended March 31, 2019 and April 1, 2018 were as follows (in millions): Three Months Ended March 31, April 1, Balance at beginning of period $ 19 $ 17 Additions charged to cost of product revenue 3 6 Repairs and replacements (6 ) (7 ) Balance at end of period $ 16 $ 16 Investment in Helix In July 2015, we obtained a 50% voting equity ownership interest in Helix Holdings I, LLC (Helix), a limited liability company formed with unrelated third-party investors to pursue the development and commercialization of a marketplace for consumer genomics. We determined that Helix is a VIE as the holders of the at-risk equity investments as a group lack the power to direct the activities of Helix that most significantly impact Helix’s economic performance. Additionally, we determined that we have (a) unilateral power over one of the activities that most significantly impacts the economic performance of Helix through its contractual arrangements and no one individual party has unilateral power over the remaining significant activities of Helix and (b) the obligation to absorb losses of and the right to receive benefits from Helix that are potentially significant to Helix. As a result, we are deemed to be the primary beneficiary of Helix and are required to consolidate Helix. As contractually committed, in July 2015, we contributed certain perpetual licenses, instruments, intangibles, initial laboratory setup, and discounted supply terms in exchange for voting equity interests in Helix. Such contributions were recorded at their historical basis as they remained within our control. Helix is financed through cash contributions made by us and third-party investors in exchange for voting equity interests in Helix. During the year ended December 30, 2018 , we made additional investments of $100 million in exchange for voting equity interests in Helix. During the three months ended March 31, 2019 , we did not provide any other financial or other support to Helix that we were not previously contractually required to provide. As of March 31, 2019 , the noncontrolling shareholders and Illumina each held 50% of Helix’s outstanding voting equity interests. Certain noncontrolling Helix investors may require us to redeem certain noncontrolling interests in cash at the then approximate redemption fair market value. Such redemption right is exercisable at the option of certain noncontrolling interest holders after January 1, 2021, provided that a bona fide pursuit of the sale of Helix has occurred and an initial public offering of Helix has not been completed. As the contingent redemption is outside of our control, the redeemable noncontrolling interests in Helix are classified outside of stockholders’ equity on the accompanying condensed consolidated balance sheets. The balance of the redeemable noncontrolling interests is reported at the greater of its carrying value after receiving its allocation of Helix’s profits and losses or its estimated redemption fair value at each reporting date. The fair value of the redeemable noncontrolling interests is considered a Level 3 instrument. As of March 31, 2019 , the accompanying condensed consolidated balance sheet included $106 million of cash, cash equivalents, and short-term investments attributable to Helix that will be used to settle its respective obligations and will not be available to settle obligations of Illumina. The remaining assets and liabilities of Helix were not significant to our financial position as of March 31, 2019 . Helix had an immaterial impact on our condensed consolidated statements of income and cash flows for the three months ended March 31, 2019 . Refer to note “10. Subsequent Event.” Redeemable Noncontrolling Interests The activity of the redeemable noncontrolling interests during the three months ended March 31, 2019 was as follows (in millions): Redeemable Noncontrolling Interests Balance as of December 30, 2018 $ 61 Vesting of redeemable equity awards 1 Net loss attributable to noncontrolling interests (7 ) Adjustment down to the redemption value (18 ) Balance as of March 31, 2019 $ 37 |
Pending Acquisition
Pending Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Pending Acquisition | Pending Acquisition On November 1, 2018, we entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire Pacific Biosciences of California, Inc. (PacBio) for an all-cash price of approximately $1.2 billion (or $8.00 per share). The transaction, which is expected to close mid-2019, is subject to certain customary closing conditions, including the receipt of certain required antitrust approvals. The Merger Agreement contains certain termination rights and provides that, upon termination of the Merger Agreement under specified circumstances, including but not limited to, a termination of the Merger Agreement in connection with PacBio accepting a superior offer or due to the withdrawal by PacBio’s board of directors of its recommendation of the merger, PacBio will pay us a cash termination fee of $43 million . In certain other circumstances related to antitrust approvals, we may be required to pay PacBio a termination fee of $98 million assuming the other closing conditions not related to antitrust or competition laws have been satisfied. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 30, 2018 (in millions): March 31, 2019 December 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 1,805 $ — $ — $ 1,805 $ 832 $ — $ — $ 832 Debt securities in government-sponsored entities — 21 — 21 — 21 — 21 Corporate debt securities — 717 — 717 — 1,058 — 1,058 U.S. Treasury securities 566 — — 566 1,250 — — 1,250 Marketable equity security 41 — — 41 39 — — 39 Deferred compensation plan assets — 43 — 43 — 34 — 34 Total assets measured at fair value $ 2,412 $ 781 $ — $ 3,193 $ 2,121 $ 1,113 $ — $ 3,234 Liabilities: Deferred compensation plan liability $ — $ 41 $ — $ 41 $ — $ 33 $ — $ 33 We hold available-for-sale securities that consist of highly-liquid, investment-grade debt securities. We consider information provided by our investment accounting and reporting service provider in the measurement of fair value of our debt securities. The investment service provider provides valuation information from an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. Our deferred compensation plan assets consist primarily of investments in life insurance contracts carried at cash surrender value, which reflects the net asset value of the underlying publicly traded mutual funds. We perform control procedures to corroborate the fair value of our holdings, including comparing valuations obtained from our investment service provider to valuations reported by our asset custodians, validating pricing sources and models, and reviewing key model inputs, if necessary. |
Debt and Other Commitments
Debt and Other Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Other Commitments | Debt and Other Commitments Summary of debt obligations Debt obligations consisted of the following (dollars in millions): March 31, December 30, Principal amount of 2023 Notes outstanding $ 750 $ 750 Principal amount of 2021 Notes outstanding 517 517 Principal amount of 2019 Notes outstanding 632 633 Unamortized discount of liability component of convertible senior notes (160 ) (175 ) Net carrying amount of liability component of convertible senior notes 1,739 1,725 Obligations under financing leases — 269 Other 4 3 Less: current portion (631 ) (1,107 ) Long-term debt $ 1,112 $ 890 Carrying value of equity component of convertible senior notes, net of debt issuance costs $ 287 $ 287 Fair value of convertible senior notes outstanding (Level 2) $ 2,298 $ 2,222 Weighted-average remaining amortization period of discount on the liability component of convertible senior notes 3.8 years 3.9 years Convertible Senior Notes 0% Convertible Senior Notes due 2023 (2023 Notes) On August 21, 2018, we issued $750 million aggregate principal amount of convertible senior notes due 2023 (2023 Notes). The 2023 Notes mature on August 15, 2023, and the implied estimated effective rate of the liability component of the Notes was 3.7% , assuming no conversion option. The 2023 Notes will be convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on an initial conversion rate, subject to adjustment, of 2.1845 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $457.77 per share of common stock), only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price in effect on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2023 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events described in the indenture. Regardless of the foregoing circumstances, the holders may convert their notes on or after May 15, 2023 until August 11, 2023. We may redeem for cash all or any portion of the 2023 Notes, at our option, on or after August 20, 2021 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect (currently $595.10 ) for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. The 2023 Notes were not convertible as of March 31, 2019 and had no dilutive impact during the three months ended March 31, 2019 . If the 2023 Notes were converted as of March 31, 2019 , the if-converted value would not exceed the principal amount. 0% Convertible Senior Notes due 2019 (2019 Notes) and 0.5% Convertible Senior Notes due 2021 (2021 Notes) In June 2014, we issued $633 million aggregate principal amount of 2019 Notes and $517 million aggregate principal amount of 2021 Notes. The 2019 and 2021 Notes mature on June 15, 2019 and June 15, 2021 , respectively, and the implied estimated effective rates of the liability components of the Notes were 2.9% and 3.5% , respectively, assuming no conversion option. Both the 2019 and 2021 Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment, of 3.9318 shares per $1,000 principal amount of the notes (which represents an initial conversion price of approximately $254.34 per share), only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending September 30, 2014 (and only during such calendar quarter), if the last reported sale price of our common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2019 and 2021 Notes for each day of such measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified events described in the indenture for the 2019 and 2021 Notes. Regardless of the foregoing circumstances, the holders may convert their notes on or after March 15, 2019 until June 13, 2019 for the 2019 Notes and March 15, 2021 until June 11, 2021 for the 2021 Notes. The potential dilutive impact of the 2019 and 2021 notes has been included in our calculation of diluted earnings per share for the three months ended March 31, 2019 . If the 2019 and 2021 Notes were converted as of March 31, 2019 , their if-converted values would exceed their principal amounts by $128 million and $105 million , respectively. The carrying values of the 2019 Notes were classified as current liabilities as they were convertible as of March 31, 2019 and mature within twelve months of the balance sheet date. Obligations under financing leases As of December 30, 2018, obligations under financing leases of $269 million represented project construction costs paid or reimbursed by our landlord related to our build-to-suit leases that did not qualify for sale-leaseback accounting under Topic 840. Upon adoption of Topic 842 on December 31, 2018, we derecognized the remaining financing obligations for our build-to-suit leasing arrangements and began to account for these leases as operating leases. See note “1. Basis of Presentation and Summary of Significant Accounting Policies” for further details on the adoption of Topic 842. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity As of March 31, 2019 , approximately 4.8 million shares remained available for future grants under the 2015 Stock Plan. Restricted Stock Restricted stock activity for the three months ended March 31, 2019 was as follows (units in thousands): Restricted Stock Units (RSU) Performance Stock Units (PSU)(1) Weighted-Average Grant-Date Fair Value per Share RSU PSU Outstanding at December 30, 2018 1,840 660 $ 227.00 $ 196.99 Awarded 24 — $ 291.79 $ — Vested (28 ) — $ 176.83 — Cancelled (43 ) (39 ) $ 204.64 $ 163.53 Outstanding at March 31, 2019 1,793 621 $ 229.18 $ 199.48 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. Stock Options Stock option activity during the three months ended March 31, 2019 was as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at December 30, 2018 192 $ 54.52 Exercised (34 ) $ 47.86 Outstanding and exercisable at March 31, 2019 158 $ 55.95 ESPP The price at which common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower. During the three months ended March 31, 2019 , approximately 0.1 million shares were issued under the ESPP. As of March 31, 2019 , there were approximately 13.6 million shares available for issuance under the ESPP. Share Repurchases On February 6, 2019, our Board of Directors authorized a new share repurchase program, which supersedes all prior and available repurchase authorizations, to repurchase $550 million of outstanding common stock. The repurchases may be completed under a 10b5-1 plan or at management’s discretion. During the three months ended March 31, 2019 , we repurchased 0.2 million shares for approximately $63 million . Authorizations to repurchase approximately $488 million of our common stock remained available as of March 31, 2019 . Share-based Compensation Share-based compensation expense reported in our condensed consolidated statements of income was as follows (in millions): Three Months Ended March 31, April 1, Cost of product revenue $ 5 $ 4 Cost of service and other revenue 1 1 Research and development 18 15 Selling, general and administrative 27 28 Share-based compensation expense before taxes 51 48 Related income tax benefits (10 ) (10 ) Share-based compensation expense, net of taxes $ 41 $ 38 The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2019 were as follows: Employee Stock Purchase Rights Risk-free interest rate 1.89% - 2.56% Expected volatility 30% - 38% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 71.48 As of March 31, 2019 , approximately $433 million of total unrecognized compensation cost related to restricted stock and ESPP shares issued to date was expected to be recognized over a weighted-average period of approximately 2.3 years . |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings We are involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, we assess, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the consolidated financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures in consideration of many factors, which include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. We may change our estimates if our assessment of the various factors changes and the amount of ultimate loss may differ from our estimates, resulting in a material effect on our business, financial condition, results of operations, and/or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in tax jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses and other permanent differences between income before income taxes and taxable income. The effective tax rate for the three months ended March 31, 2019 was 3.9% . For the three months ended March 31, 2019 , the decrease from the U.S. federal statutory tax rate of 21% was primarily attributable to a discrete tax benefit related to uncertain tax positions, the mix of earnings in jurisdictions with lower statutory tax rates than the U.S. federal statutory tax rate, such as in Singapore and the United Kingdom, and excess tax benefits related to share-based compensation. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We report segment information based on the management approach. This approach designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. Based on the information used by the CODM, we have determined our reportable segments as follows: Core Illumina : Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. Core Illumina includes all of our operations, excluding the results of our consolidated VIE, Helix. Helix: Helix, our consolidated VIE, was established to enable individuals to explore their genetic information by providing affordable sequencing and database services for consumers through third-party partners, driving the creation of an ecosystem of consumer applications. Management evaluates the performance of our reportable segments based upon income (loss) from operations. We do not allocate expenses between segments. Core Illumina sells products and provides services to Helix in accordance with contractual agreements between the entities. The following table presents the operating performance of each reportable segment (in millions): Three Months Ended March 31, April 1, Revenue: Core Illumina $ 846 $ 783 Helix 1 3 Elimination of intersegment revenue (1 ) (4 ) Consolidated revenue $ 846 $ 782 Income (loss) from operations: Core Illumina $ 221 $ 238 Helix (18 ) (21 ) Elimination of intersegment earnings 1 1 Consolidated income from operations $ 204 $ 218 The following table presents the total assets of each reportable segment (in millions): March 31, December 30, Core Illumina $ 7,362 $ 6,912 Helix 134 154 Elimination of intersegment assets (106 ) (107 ) Consolidated total assets $ 7,390 $ 6,959 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 25, 2019, we entered into an agreement to sell our interest in, and relinquish control over, our consolidated VIE, Helix. In connection with the transaction, the redeemable noncontrolling interest of $37 million as of March 31, 2019 was eliminated, and we will no longer consolidate Helix effective April 25, 2019. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Consolidation | The unaudited condensed consolidated financial statements include our accounts, our wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented. |
Variable Interest Entities | We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE. |
Equity Method Investments | We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income, net. |
Redeemable Noncontrolling Interests | Noncontrolling interests represent the portion of equity (net assets) in Helix, our consolidated but not wholly-owned entity, that is neither directly nor indirectly attributable to us. Noncontrolling interests with embedded contingent redemption features, such as put rights, that are not solely within our control are considered redeemable noncontrolling interests, and are presented outside of stockholders’ equity on the condensed consolidated balance sheets. |
Fiscal Year | Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets and to disclose key information about leasing arrangements. We adopted Topic 842 on its effective date in the first quarter of 2019 using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of December 31, 2018. We elected the available package of practical expedients upon adoption, which allowed us to carry forward our historical assessment of whether existing agreements contained a lease and the classification of our existing operating leases. We continue to report our financial position as of December 30, 2018 under the former lease accounting standard (Topic 840) in our condensed consolidated balance sheet. The following table summarizes the impact of Topic 842 on our condensed consolidated balance sheet upon adoption on December 31, 2018 (in millions): December 31, 2018 (unaudited) Pre-adoption Adoption Impact Post-adoption ASSETS Prepaid expenses and other current assets $ 78 $ (8 ) $ 70 Property and equipment, net 1,075 (241 ) 834 Operating lease right-of-use assets — 579 579 Deferred tax assets, net 70 6 76 Total assets $ 1,223 $ 336 $ 1,559 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued liabilities $ 513 $ 36 $ 549 Operating lease liabilities — 722 722 Long-term debt 1,107 (269 ) 838 Other long-term liabilities 359 (135 ) 224 Retained earnings 3,083 (18 ) 3,065 Total liabilities and stockholders’ equity $ 5,062 $ 336 $ 5,398 The adoption impact summarized above was primarily due to the recognition of operating lease liabilities with corresponding right-of-use assets based on the present value of our remaining minimum lease payments, and the derecognition of existing fixed assets and financing obligations related to build-to-suit leasing arrangements that, under Topic 840, did not qualify for sale-leaseback accounting. The difference between these amounts, net of deferred tax, was recorded as a cumulative-effective adjustment to retained earnings. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The standard is effective for us beginning in the first quarter of 2020, with early adoption permitted. We are currently evaluating the expected impact of ASU 2016-13 on our consolidated financial statements. |
Revenue Recognition | Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services and instrument service contracts. We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment; and payment is typically due within 60 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from genotyping and sequencing services is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer. Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred as the amortization period for such costs, if capitalized, would have been one year or less. We regularly enter into contracts with multiple performance obligations. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. Most performance obligations are generally satisfied within a short time frame, approximately three to six months after the contract execution date. As of March 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $1,083 million , of which approximately 85% is expected to be converted to revenue in the next twelve months, with the remainder thereafter. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone selling price using average selling prices over a rolling 12 -month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, we rely upon prices set by management, adjusted for applicable discounts. Contract liabilities, which consist of deferred revenue and customer deposits, as of March 31, 2019 and December 30, 2018 were $201 million and $206 million , respectively, of which the short-term portions of $169 million and $175 million , respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded during the three months ended March 31, 2019 included $64 million of previously deferred revenue that was included in contract liabilities as of December 30, 2018 . Contract assets as of March 31, 2019 and December 30, 2018 were not material. In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers. |
Earnings per Share | Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Per-share earnings of our consolidated VIE, Helix, are included in the consolidated basic and diluted earnings per share computations based on our share of Helix’s securities. Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares. |
Equity Securities | Our equity securities are strategic investments primarily in privately held companies. The carrying values of our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Unrealized gains and losses on non-marketable equity securities are recognized in other income, net. As of March 31, 2019 and December 30, 2018 , the aggregate carrying amounts of our non-marketable equity investments without readily determinable fair values were $230 million and $231 million , respectively, included in other assets. One of our non-marketable equity investments is a VIE for which we have concluded that we are not the primary beneficiary, and therefore, we do not consolidate this VIE in our consolidated financial statements. We have determined our maximum exposure to loss, as a result of our involvement with the VIE, to be the carrying value of our investment, which was $189 million as of March 31, 2019 and December 30, 2018 . Our marketable equity security is measured at fair value. Unrealized gains and losses are recognized in other income, net. As of March 31, 2019 and December 30, 2018 , the fair value of our marketable equity investment was $41 million and $39 million , respectively, included in short-term investments. |
Derivatives | We are exposed to foreign exchange rate risks in the normal course of business. We enter into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other current assets or accrued liabilities and are not designated as hedging instruments. Changes in the value of the derivatives are recognized in other income, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities. |
Warranties | We generally provide a one -year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Impact of Topic 842 | The following table summarizes the impact of Topic 842 on our condensed consolidated balance sheet upon adoption on December 31, 2018 (in millions): December 31, 2018 (unaudited) Pre-adoption Adoption Impact Post-adoption ASSETS Prepaid expenses and other current assets $ 78 $ (8 ) $ 70 Property and equipment, net 1,075 (241 ) 834 Operating lease right-of-use assets — 579 579 Deferred tax assets, net 70 6 76 Total assets $ 1,223 $ 336 $ 1,559 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued liabilities $ 513 $ 36 $ 549 Operating lease liabilities — 722 722 Long-term debt 1,107 (269 ) 838 Other long-term liabilities 359 (135 ) 224 Retained earnings 3,083 (18 ) 3,065 Total liabilities and stockholders’ equity $ 5,062 $ 336 $ 5,398 |
Disaggregation of Revenue from External Customers | The following table represents revenue by source (in millions): Three Months Ended March 31, April 1, Sequencing Microarray Total Sequencing Microarray Total Consumables $ 481 $ 75 $ 556 $ 422 $ 88 $ 510 Instruments 105 6 111 112 6 118 Total product revenue 586 81 667 534 94 628 Service and other revenue 113 66 179 96 58 154 Total revenue $ 699 $ 147 $ 846 $ 630 $ 152 $ 782 Revenue related to our consolidated VIE, Helix, is included in sequencing service and other revenue. The following table represents revenue by geographic area, based on region of destination (in millions): Three Months Ended March 31, April 1, Americas $ 473 $ 440 Europe, Middle East, and Africa 210 194 Greater China (1) 88 78 Asia-Pacific 75 70 Total revenue $ 846 $ 782 ____________________________________ (1) Region includes revenue from China, Taiwan, and Hong Kong. |
Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Earnings Per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in millions): Three Months Ended March 31, April 1, Weighted average shares outstanding 147 147 Effect of potentially dilutive common shares from: Convertible senior notes 1 — Equity awards 1 1 Weighted average shares used in calculating diluted earnings per share 149 148 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 1 — |
Balance Sheet Account Details (
Balance Sheet Account Details (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Short-term Investments | Available-for-sale debt securities, included in short-term investments, consisted of the following (in millions): March 31, 2019 December 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities in government sponsored entities $ 21 $ — $ — $ 21 $ 21 $ — $ — $ 21 Corporate debt securities 716 2 (1 ) 717 1,060 — (2 ) 1,058 U.S. Treasury securities 566 — — 566 1,250 1 (1 ) 1,250 Total $ 1,303 $ 2 $ (1 ) $ 1,304 $ 2,331 $ 1 $ (3 ) $ 2,329 |
Summary of Contractual Maturities of Available-for-sale Debt Securities | Contractual maturities of available-for-sale debt securities, as of March 31, 2019 , were as follows (in millions): Estimated Fair Value Due within one year $ 711 After one but within five years 593 Total $ 1,304 |
Summary of Inventory | Inventory consisted of the following (in millions): March 31, December 30, Raw materials $ 115 $ 117 Work in process 234 218 Finished goods 63 51 Total inventory $ 412 $ 386 |
Summary of Property and Equipment | Property and equipment, net consisted of the following (in millions): March 31, December 30, Leasehold improvements $ 622 $ 567 Machinery and equipment 390 382 Computer hardware and software 256 217 Furniture and fixtures 48 45 Buildings 44 285 Construction in progress 46 100 Total property and equipment, gross 1,406 1,596 Accumulated depreciation (554 ) (521 ) Total property and equipment, net $ 852 $ 1,075 |
Summary of Leases | As of March 31, 2019 , the maturities of our operating lease liabilities were as follows (in millions): Remaining Lease Payments 2019 $ 64 2020 85 2021 82 2022 85 2023 86 Thereafter 621 Total remaining lease payments 1,023 Less: imputed interest (253 ) Total operating lease liabilities 770 Less: current portion (52 ) Long-term operating lease liabilities $ 718 Weighted-average remaining lease term 12 years Weighted-average discount rate 4.6 % |
Components of Lease Costs | The components of our lease costs included in our condensed consolidated statements of income were as follows (in millions): Three months ended March 31, 2019 Operating lease costs $ 22 Sublease income (3 ) Total lease costs $ 19 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): March 31, December 30, Contract liabilities, current portion $ 169 $ 175 Accrued compensation expenses 105 193 Accrued taxes payable 83 82 Operating lease liabilities, current portion 52 — Other, including warranties 64 63 Total accrued liabilities $ 473 $ 513 |
Summary of Changes in Reserve for Product Warranties | Changes in the reserve for product warranties during the three months ended March 31, 2019 and April 1, 2018 were as follows (in millions): Three Months Ended March 31, April 1, Balance at beginning of period $ 19 $ 17 Additions charged to cost of product revenue 3 6 Repairs and replacements (6 ) (7 ) Balance at end of period $ 16 $ 16 |
Summary of Activity of Redeemable Noncontrolling Interests | The activity of the redeemable noncontrolling interests during the three months ended March 31, 2019 was as follows (in millions): Redeemable Noncontrolling Interests Balance as of December 30, 2018 $ 61 Vesting of redeemable equity awards 1 Net loss attributable to noncontrolling interests (7 ) Adjustment down to the redemption value (18 ) Balance as of March 31, 2019 $ 37 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 30, 2018 (in millions): March 31, 2019 December 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 1,805 $ — $ — $ 1,805 $ 832 $ — $ — $ 832 Debt securities in government-sponsored entities — 21 — 21 — 21 — 21 Corporate debt securities — 717 — 717 — 1,058 — 1,058 U.S. Treasury securities 566 — — 566 1,250 — — 1,250 Marketable equity security 41 — — 41 39 — — 39 Deferred compensation plan assets — 43 — 43 — 34 — 34 Total assets measured at fair value $ 2,412 $ 781 $ — $ 3,193 $ 2,121 $ 1,113 $ — $ 3,234 Liabilities: Deferred compensation plan liability $ — $ 41 $ — $ 41 $ — $ 33 $ — $ 33 |
Debt and Other Commitments (Tab
Debt and Other Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt Obligations | Debt obligations consisted of the following (dollars in millions): March 31, December 30, Principal amount of 2023 Notes outstanding $ 750 $ 750 Principal amount of 2021 Notes outstanding 517 517 Principal amount of 2019 Notes outstanding 632 633 Unamortized discount of liability component of convertible senior notes (160 ) (175 ) Net carrying amount of liability component of convertible senior notes 1,739 1,725 Obligations under financing leases — 269 Other 4 3 Less: current portion (631 ) (1,107 ) Long-term debt $ 1,112 $ 890 Carrying value of equity component of convertible senior notes, net of debt issuance costs $ 287 $ 287 Fair value of convertible senior notes outstanding (Level 2) $ 2,298 $ 2,222 Weighted-average remaining amortization period of discount on the liability component of convertible senior notes 3.8 years 3.9 years |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Restricted Stock Activity and Related Information, Restricted Stock | Restricted stock activity for the three months ended March 31, 2019 was as follows (units in thousands): Restricted Stock Units (RSU) Performance Stock Units (PSU)(1) Weighted-Average Grant-Date Fair Value per Share RSU PSU Outstanding at December 30, 2018 1,840 660 $ 227.00 $ 196.99 Awarded 24 — $ 291.79 $ — Vested (28 ) — $ 176.83 — Cancelled (43 ) (39 ) $ 204.64 $ 163.53 Outstanding at March 31, 2019 1,793 621 $ 229.18 $ 199.48 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. |
Summary of Restricted Stock Activity and Related Information, Performance Units | Restricted stock activity for the three months ended March 31, 2019 was as follows (units in thousands): Restricted Stock Units (RSU) Performance Stock Units (PSU)(1) Weighted-Average Grant-Date Fair Value per Share RSU PSU Outstanding at December 30, 2018 1,840 660 $ 227.00 $ 196.99 Awarded 24 — $ 291.79 $ — Vested (28 ) — $ 176.83 — Cancelled (43 ) (39 ) $ 204.64 $ 163.53 Outstanding at March 31, 2019 1,793 621 $ 229.18 $ 199.48 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. |
Summary of Stock Option Activity Under all Stock Option Plans | Stock option activity during the three months ended March 31, 2019 was as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at December 30, 2018 192 $ 54.52 Exercised (34 ) $ 47.86 Outstanding and exercisable at March 31, 2019 158 $ 55.95 |
Summary of Share-based Compensation Expense for all Stock Awards | Share-based compensation expense reported in our condensed consolidated statements of income was as follows (in millions): Three Months Ended March 31, April 1, Cost of product revenue $ 5 $ 4 Cost of service and other revenue 1 1 Research and development 18 15 Selling, general and administrative 27 28 Share-based compensation expense before taxes 51 48 Related income tax benefits (10 ) (10 ) Share-based compensation expense, net of taxes $ 41 $ 38 |
Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan | The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2019 were as follows: Employee Stock Purchase Rights Risk-free interest rate 1.89% - 2.56% Expected volatility 30% - 38% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 71.48 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operating Performance and Assets by Segment | The following table presents the operating performance of each reportable segment (in millions): Three Months Ended March 31, April 1, Revenue: Core Illumina $ 846 $ 783 Helix 1 3 Elimination of intersegment revenue (1 ) (4 ) Consolidated revenue $ 846 $ 782 Income (loss) from operations: Core Illumina $ 221 $ 238 Helix (18 ) (21 ) Elimination of intersegment earnings 1 1 Consolidated income from operations $ 204 $ 218 The following table presents the total assets of each reportable segment (in millions): March 31, December 30, Core Illumina $ 7,362 $ 6,912 Helix 134 154 Elimination of intersegment assets (106 ) (107 ) Consolidated total assets $ 7,390 $ 6,959 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Impact of Topic 842 (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other current assets | $ 61 | $ 70 | $ 78 |
Property and equipment, net | 852 | 834 | 1,075 |
Operating lease right-of-use assets | 574 | 579 | |
Deferred tax assets, net | 87 | 76 | 70 |
Total assets | 1,559 | ||
Accrued liabilities | 473 | 549 | 513 |
Total operating lease liabilities | 770 | 722 | |
Long-term debt | 838 | ||
Other long-term liabilities | 212 | 224 | 359 |
Retained earnings | $ 3,298 | 3,065 | $ 3,083 |
Total liabilities and stockholders’ equity | 5,398 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other current assets | (8) | ||
Property and equipment, net | (241) | ||
Operating lease right-of-use assets | 579 | ||
Deferred tax assets, net | 6 | ||
Total assets | 336 | ||
Accrued liabilities | 36 | ||
Total operating lease liabilities | 722 | ||
Long-term debt | (269) | ||
Other long-term liabilities | (135) | ||
Retained earnings | (18) | ||
Total liabilities and stockholders’ equity | 336 | ||
Pre Adoption of ASU [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other current assets | 78 | ||
Property and equipment, net | 1,075 | ||
Deferred tax assets, net | 70 | ||
Total assets | 1,223 | ||
Accrued liabilities | 513 | ||
Long-term debt | 1,107 | ||
Other long-term liabilities | 359 | ||
Retained earnings | 3,083 | ||
Total liabilities and stockholders’ equity | $ 5,062 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 30, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Period of time average selling prices are observed | 12 months | |
Contract liability | $ 201 | $ 206 |
Contract liabilities, current portion | 169 | $ 175 |
Revenue recognized, previously deferred | $ 64 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Product or service delivery period | 3 months | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Product or service delivery period | 6 months |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Narrative - Revenue, Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Remaining performance obligation | $ 1,083 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent of remaining performance obligation | 85.00% |
Expected timing of remaining performance obligation | 12 months |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Principles (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 846 | $ 782 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 473 | 440 |
Europe, Middle East, and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 210 | 194 |
Greater China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 88 | 78 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 75 | 70 |
Sequencing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 699 | 630 |
Microarray | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 147 | 152 |
Total product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 667 | 628 |
Total product revenue | Sequencing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 586 | 534 |
Total product revenue | Microarray | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 81 | 94 |
Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 556 | 510 |
Consumables | Sequencing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 481 | 422 |
Consumables | Microarray | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 75 | 88 |
Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 111 | 118 |
Instruments | Sequencing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 105 | 112 |
Instruments | Microarray | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6 | 6 |
Service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 179 | 154 |
Service and other revenue | Sequencing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113 | 96 |
Service and other revenue | Microarray | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 66 | $ 58 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Weighted average shares used to calculate basic and diluted earnings per share | ||
Weighted average shares outstanding | 147 | 147 |
Effect of potentially dilutive common shares from: | ||
Convertible senior notes | 1 | |
Equity awards | 1 | 1 |
Weighted average shares used in calculating diluted earnings per share | 149 | 148 |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 1 |
Balance Sheet Account Details -
Balance Sheet Account Details - Summary of Short-term Investments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Available-for-sale debt securities: | ||
Amortized Cost | $ 1,303 | $ 2,331 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | (1) | (3) |
Estimated Fair Value | 1,304 | 2,329 |
Debt securities in government sponsored entities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 21 | 21 |
Gross Unrealized Losses | ||
Estimated Fair Value | 21 | 21 |
Corporate debt securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 716 | 1,060 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (1) | (2) |
Estimated Fair Value | 717 | 1,058 |
U.S. Treasury securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 566 | 1,250 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | $ 566 | $ 1,250 |
Balance Sheet Account Details_2
Balance Sheet Account Details - Summary of Contractual Maturities of Available-for-sale Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Estimated Fair Value | ||
Due within one year | $ 711 | |
After one but within five years | 593 | |
Total | $ 1,304 | $ 2,329 |
Balance Sheet Account Details_3
Balance Sheet Account Details - Narrative - Strategic Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 30, 2018 | |
Schedule of Investments [Line Items] | |||
Carrying Value | $ 189 | $ 189 | |
Marketable equity security | 41 | 39 | |
Commitment in new venture capital investment fund | 100 | ||
Remaining capital commitment | 66 | ||
Other Assets | |||
Schedule of Investments [Line Items] | |||
Strategic equity investments, without readily determinable fair values | 230 | 231 | |
Equity method investments | 38 | $ 29 | |
Investee | |||
Schedule of Investments [Line Items] | |||
Revenue from transactions with Company's strategic equity investees | $ 15 | $ 36 |
Balance Sheet Account Details_4
Balance Sheet Account Details - Summary of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 115 | $ 117 |
Work in process | 234 | 218 |
Finished goods | 63 | 51 |
Total inventory | $ 412 | $ 386 |
Balance Sheet Account Details_5
Balance Sheet Account Details - Summary of Property and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 1,406 | $ 1,596 | |
Accumulated depreciation | (554) | (521) | |
Total property and equipment, net | 852 | $ 834 | 1,075 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 622 | 567 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 390 | 382 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 256 | 217 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 48 | 45 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 44 | 285 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 46 | $ 100 |
Balance Sheet Account Details_6
Balance Sheet Account Details - Narrative - Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | Dec. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Non-cash expenditures included in capital expenditures | $ 17 | $ 33 | ||
Property and equipment, net | $ 852 | $ 834 | $ 1,075 | |
Construction In Progress And Build to Suit Lease Liability | ||||
Property, Plant and Equipment [Line Items] | ||||
Non-cash expenditures included in capital expenditures | $ 6 | |||
ASU 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | $ (241) |
Balance Sheet Account Details_7
Balance Sheet Account Details - Narrative - Leases (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2019ft² | |
Lessee, Lease, Description [Line Items] | |
Leased office space (in square feet) | 2.7 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Terms of extension options | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 20 years |
Terms of extension options | 20 years |
Balance Sheet Account Details_8
Balance Sheet Account Details - Summary of Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2019 | $ 64 | |
2020 | 85 | |
2021 | 82 | |
2022 | 85 | |
2023 | 86 | |
Thereafter | 621 | |
Total remaining lease payments | 1,023 | |
Less: imputed interest | (253) | |
Total operating lease liabilities | 770 | $ 722 |
Less: current portion | (52) | |
Long-term operating lease liabilities | $ 718 | |
Weighted-average remaining lease term | 12 years | |
Weighted-average discount rate | 4.60% |
Balance Sheet Account Details_9
Balance Sheet Account Details - Summary of Lease Costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating lease costs | $ 22 |
Sublease income | (3) |
Total lease costs | $ 19 |
Balance Sheet Account Detail_10
Balance Sheet Account Details - Narrative - Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 272 | $ 122 |
Balance Sheet Account Detail_11
Balance Sheet Account Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Contract liabilities, current portion | $ 169 | $ 175 | |
Accrued compensation expenses | 105 | 193 | |
Accrued taxes payable | 83 | 82 | |
Operating lease liabilities, current portion | 52 | ||
Other, including warranties | 64 | 63 | |
Total accrued liabilities | $ 473 | $ 549 | $ 513 |
Balance Sheet Account Detail_12
Balance Sheet Account Details - Narrative - Warranties (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Instruments | |
Product Warranty Liability [Line Items] | |
Warranty period | 1 year |
Consumables | Minimum | |
Product Warranty Liability [Line Items] | |
Warranty period | 6 months |
Consumables | Maximum | |
Product Warranty Liability [Line Items] | |
Warranty period | 12 months |
Balance Sheet Account Detail_13
Balance Sheet Account Details - Summary of Changes in Reserve for Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Reserve for product warranties [Roll Forward] | ||
Balance at beginning of period | $ 19 | $ 17 |
Additions charged to cost of product revenue | 3 | 6 |
Repairs and replacements | 6 | 7 |
Balance at end of period | $ 16 | $ 16 |
Balance Sheet Account Detail_14
Balance Sheet Account Details - Narrative - Investment in Helix (Details) - Helix Holdings I, LLC - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Mar. 31, 2019 | Jul. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Equity ownership interest percentage | 50.00% | 50.00% | |
Additional investment in exchange for voting equity interests | $ 100 | ||
Cash and cash equivalents | $ 106 |
Balance Sheet Account Detail_15
Balance Sheet Account Details - Summary of Activity of Redeemable Noncontrolling Interests (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |
Balance as of December 30, 2018 | $ 61 |
Vesting of redeemable equity awards | 1 |
Net loss attributable to noncontrolling interests | (7) |
Adjustment down to the redemption value | (18) |
Balance as of March 31, 2019 | $ 37 |
Pending Acquisition (Details)
Pending Acquisition (Details) - Pacific Biosciences of California, Inc (PacBio) $ / shares in Units, $ in Millions | Nov. 01, 2018USD ($)$ / shares |
Business Acquisition [Line Items] | |
Expected business acquisition total consideration | $ 1,200 |
Expected share price (in dollars per share) | $ / shares | $ 8 |
Potential fee paid to Illumina if contract terminates | $ 43 |
Potential fee paid by Illumina if contract terminates | $ 98 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Assets: | ||
Available-for-sale securities | $ 1,304 | $ 2,329 |
Marketable equity security | 41 | 39 |
Debt securities in government sponsored entities | ||
Assets: | ||
Available-for-sale securities | 21 | 21 |
Corporate debt securities | ||
Assets: | ||
Available-for-sale securities | 717 | 1,058 |
U.S. Treasury securities | ||
Assets: | ||
Available-for-sale securities | 566 | 1,250 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Marketable equity security | 41 | 39 |
Deferred compensation plan assets | 43 | 34 |
Total assets measured at fair value | 3,193 | 3,234 |
Liabilities: | ||
Deferred compensation plan liability | 41 | 33 |
Fair Value, Measurements, Recurring | Debt securities in government sponsored entities | ||
Assets: | ||
Available-for-sale securities | 21 | 21 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets: | ||
Available-for-sale securities | 717 | 1,058 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Assets: | ||
Available-for-sale securities | 566 | 1,250 |
Fair Value, Measurements, Recurring | Money market funds (cash equivalents) | ||
Assets: | ||
Money market funds (cash equivalents) | 1,805 | 832 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Marketable equity security | 41 | 39 |
Total assets measured at fair value | 2,412 | 2,121 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities | ||
Assets: | ||
Available-for-sale securities | 566 | 1,250 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds (cash equivalents) | ||
Assets: | ||
Money market funds (cash equivalents) | 1,805 | 832 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Deferred compensation plan assets | 43 | 34 |
Total assets measured at fair value | 781 | 1,113 |
Liabilities: | ||
Deferred compensation plan liability | 41 | 33 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities in government sponsored entities | ||
Assets: | ||
Available-for-sale securities | 21 | 21 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Available-for-sale securities | $ 717 | $ 1,058 |
Debt and Other Commitments - Su
Debt and Other Commitments - Summary of Debt Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 30, 2018 | Aug. 21, 2018 | Jun. 29, 2014 | |
Debt Instrument [Line Items] | ||||
Obligations under financing leases | $ 269 | |||
Other | $ 4 | 3 | ||
Less: current portion | (631) | (1,107) | ||
Long-term debt | 1,112 | 890 | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount of liability component of convertible senior notes | (160) | (175) | ||
Net carrying amount of liability component of convertible senior notes | 1,739 | 1,725 | ||
Carrying value of equity component, net of debt issuance cost | $ 287 | $ 287 | ||
Weighted-average remaining amortization period of discount on the liability component of convertible senior notes | 3 years 9 months | 3 years 11 months | ||
Level 2 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Fair value of convertible senior notes outstanding (Level 2) | $ 2,298 | $ 2,222 | ||
2023 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes outstanding | 750 | 750 | $ 750 | |
2021 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes outstanding | 517 | 517 | $ 517 | |
2019 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes outstanding | $ 632 | $ 633 | $ 633 |
Debt and Other Commitments - Na
Debt and Other Commitments - Narrative (Details) - Convertible Senior Notes $ / shares in Units, $ in Millions | Aug. 21, 2018USD ($)day$ / shares | Jun. 29, 2014USD ($)day$ / shares | Mar. 31, 2019USD ($) | Dec. 30, 2018USD ($) |
2023 | ||||
Debt Instrument [Line Items] | ||||
Stated rate | 0.00% | |||
Principal amount of notes outstanding | $ | $ 750 | $ 750 | $ 750 | |
Effective interest rate used to measure fair value of convertible senior note | 3.70% | |||
Conversion rate | 0.0021845 | |||
Conversion price (in dollars per share) | $ / shares | $ 457.77 | |||
Threshold common stock trading days | 20 | |||
Threshold consecutive common stock trading days | 30 | |||
Threshold percentage of common stock price trigger | 130.00% | |||
Threshold note trading days | 5 | |||
Threshold consecutive note trading days | 10 | |||
Threshold percentage of note price trigger | 98.00% | |||
Convertible stock price trigger | $ / shares | $ 595.10 | |||
2019 | ||||
Debt Instrument [Line Items] | ||||
Stated rate | 0.00% | |||
Principal amount of notes outstanding | $ | $ 633 | $ 632 | 633 | |
Effective interest rate used to measure fair value of convertible senior note | 2.90% | |||
If-converted value in excess of principal | $ | $ 128 | |||
2021 | ||||
Debt Instrument [Line Items] | ||||
Stated rate | 0.50% | |||
Principal amount of notes outstanding | $ | $ 517 | $ 517 | $ 517 | |
Effective interest rate used to measure fair value of convertible senior note | 3.50% | |||
If-converted value in excess of principal | $ | $ 105 | |||
2019 and 2021 | ||||
Debt Instrument [Line Items] | ||||
Conversion rate | 0.0039318 | |||
Conversion price (in dollars per share) | $ / shares | $ 254.34 | |||
Threshold common stock trading days | 20 | |||
Threshold consecutive common stock trading days | 30 | |||
Threshold percentage of common stock price trigger | 130.00% | |||
Threshold note trading days | 5 | |||
Threshold consecutive note trading days | 10 | |||
Threshold percentage of note price trigger | 98.00% |
Debt and Other Commitments - _2
Debt and Other Commitments - Narrative - Obligations Under Financing Leases (Details) $ in Millions | Dec. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Obligations under financing leases | $ 269 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) shares in Millions | Mar. 31, 2019shares |
2015 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance (in shares) | 4.8 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Activity and Related Information (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Units (RSU) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at period start (in shares) | shares | 1,840 |
Awarded (in shares) | shares | 24 |
Vested (in shares) | shares | (28) |
Cancelled (in shares) | shares | (43) |
Outstanding at period end (in shares) | shares | 1,793 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share) | $ / shares | $ 227 |
Weighted-Average Fair Value Per Share, Awarded (in dollars per share) | $ / shares | 291.79 |
Weighted-Average Grant Date Fair Value per Share, Vested (in dollars per share) | $ / shares | 176.83 |
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share) | $ / shares | 204.64 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share) | $ / shares | $ 229.18 |
Performance Stock Units (PSU) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at period start (in shares) | shares | 660 |
Cancelled (in shares) | shares | (39) |
Outstanding at period end (in shares) | shares | 621 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share) | $ / shares | $ 196.99 |
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share) | $ / shares | 163.53 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share) | $ / shares | $ 199.48 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity Under all Stock Option Plans (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding at period start (in shares) | shares | 192 |
Options, Exercised (in shares) | shares | (34) |
Options, Outstanding at period end (in shares) | shares | 158 |
Options, Exercisable (in shares) | shares | 158 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-Average Exercise Price, Options, Outstanding at period start (in dollars per share) | $ / shares | $ 54.52 |
Weighted-Average Exercise Price, Options, Exercised (in dollars per share) | $ / shares | 47.86 |
Weighted-Average Exercise Price, Options, Outstanding at period end (in dollars per share) | $ / shares | 55.95 |
Weighted-Average Exercise Price, Options, Exercisable (in dollars per share) | $ / shares | $ 55.95 |
Stockholders' Equity - Narrat_2
Stockholders' Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock shares in Millions | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Specified percentage of the fair market value of the common stock on the first or last day of the offering period whichever is lower at which stock is purchased | 85.00% |
Total shares issued under the ESPP (in shares) | 0.1 |
Shares available for issuance (in shares) | 13.6 |
Stockholders' Equity - Narrat_3
Stockholders' Equity - Narrative - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Feb. 06, 2019 | |
Class of Stock [Line Items] | ||
Common stock repurchases | $ 63 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Repurchased common stock (in shares) | 0.2 | |
Common stock repurchases | $ 63 | |
Dollar amount remaining in authorized stock repurchase program | $ 488 | |
Common Stock | February 2019 Share Repurchase Plan | ||
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 550 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Share-based Compensation Expense for all Stock Awards (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense before taxes | $ 51 | $ 48 |
Related income tax benefits | (10) | (10) |
Share-based compensation expense, net of taxes | 41 | 38 |
Cost of product revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense before taxes | 5 | 4 |
Cost of service and other revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense before taxes | 1 | 1 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense before taxes | 18 | 15 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense before taxes | $ 27 | $ 28 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Assumptions Used to Estimate the Weighted Average Fair Value Per Share (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date | $ | $ 433 |
Weighted-average period of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date | 2 years 3 months |
Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 30.00% |
Expected volatility, maximum | 38.00% |
Expected dividends | 0.00% |
Weighted-average fair value per share (in dollars per share) | $ / shares | $ 71.48 |
Minimum | Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.89% |
Expected term | 6 months |
Maximum | Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.56% |
Expected term | 1 year |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 3.90% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Consolidated revenue | $ 846 | $ 782 | |
Consolidated income from operations | 204 | 218 | |
Consolidated total assets | 7,390 | $ 6,959 | |
Operating Segments | Core Illumina | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 846 | 783 | |
Consolidated income from operations | 221 | 238 | |
Consolidated total assets | 7,362 | 6,912 | |
Operating Segments | Helix | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | 1 | 3 | |
Consolidated income from operations | (18) | (21) | |
Consolidated total assets | 134 | 154 | |
Elimination of intersegment | |||
Segment Reporting Information [Line Items] | |||
Consolidated revenue | (1) | (4) | |
Consolidated income from operations | 1 | $ 1 | |
Consolidated total assets | $ (106) | $ (107) |
Subsequent Event Narrative (Det
Subsequent Event Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Subsequent Event [Line Items] | ||
Redeemable noncontrolling interest in VIE | $ 37 | $ 61 |
Helix Holdings I, LLC | ||
Subsequent Event [Line Items] | ||
Redeemable noncontrolling interest in VIE | $ 37 |