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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended July 3, 2022
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from             to            
Commission File Number 001-35406 
ilmn-20220703_g1.jpg
Illumina, Inc.
(Exact name of registrant as specified in its charter)
Delaware33-0804655
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
5200 Illumina Way, San Diego, CA 92122
(Address of principal executive offices) (Zip code)
(858) 202-4500
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueILMNThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerþAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13a of the Exchange Act.     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No   þ
As of August 5, 2022, there were 157.3 million shares of the registrant’s common stock outstanding.


ILLUMINA, INC.
FORM 10-Q
FOR THE FISCAL QUARTER ENDED JULY 3, 2022
TABLE OF CONTENTS

See “Form 10-Q Cross-Reference Index” within Other Key Information for a cross-reference to the parts and items requirements of the Securities and Exchange Commission Quarterly Report on Form 10-Q.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTSPAGE
MANAGEMENT’S DISCUSSION & ANALYSIS
OTHER KEY INFORMATION
2

Consideration Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “continue,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “potential,” “predict,” “should,” “will,” or similar words or phrases, or the negatives of these words, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward looking. Examples of forward-looking statements include, among others, statements we make regarding:
our expectations as to our future financial performance, results of operations, or other operational results or metrics;
our expectations regarding the launch of new products or services;
the benefits that we expect will result from our business activities and certain transactions we have completed, such as product introductions, increased revenue, decreased expenses, and avoided expenses and expenditures;
our expectations of the effect on our financial condition of claims, litigation, contingent liabilities, and governmental investigations, proceedings, and regulations;
our strategies or expectations for product development, market position, financial results, and reserves;
our expectations regarding the outcome of the legal and regulatory proceedings related to our acquisition of GRAIL, Inc. (GRAIL) and other actions that may be taken or pursued by the European Commission, the Federal Trade Commission and/or other governmental or regulatory authorities in connection with such acquisition;
the interim measures order imposed by the European Commission, its duration and impact on Illumina and GRAIL, and the appointment of a monitoring trustee to monitor our compliance with such order;
our expectations regarding the integration of any acquired technologies with our existing technology; and
other expectations, beliefs, plans, strategies, anticipated developments, and other matters that are not historical facts.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
the impact to our business and operating results caused by the COVID-19 pandemic;
our expectations and beliefs regarding prospects and growth for our business and the markets in which we operate;
the timing and mix of customer orders among our products and services;
challenges inherent in developing, manufacturing, and launching new products and services, including expanding manufacturing operations and reliance on third-party suppliers for critical components;
the impact of recently launched or pre-announced products and services on existing products and services;
3

our ability to develop and commercialize our instruments and consumables, to deploy new products, services, and applications, and to expand the markets for our technology platforms;
our ability to manufacture robust instrumentation and consumables;
our ability to identify and acquire technologies and integrate them into our products or businesses successfully;
risks and uncertainties regarding the legal and regulatory proceedings relating to our acquisition of GRAIL and our ability to achieve the expected benefits of such acquisition and other actions that may be taken or pursued by the European Commission, the Federal Trade Commission and/or other governmental or regulatory authorities in connection with such acquisition;
the interim measures order imposed by the European Commission, and its duration and impact on Illumina and GRAIL, which impact may include material and adverse effects on synergies and other benefits we expect to achieve as a result of the acquisition of GRAIL, additional costs or liabilities, loss of revenue and other adverse effects on our business, financial condition and results of operations;
our compliance with the terms of the interim measures order, which is monitored by an appointed monitoring trustee, and which is burdensome to implement and administer, and the risk that the European Commission could impose or seek to impose fines and other penalties for alleged noncompliance with such terms;
the assumptions underlying our critical accounting policies and estimates;
our assessments and estimates that determine our effective tax rate;
our assessments and beliefs regarding the outcome of pending legal proceedings and any liability that we may incur as a result of those proceedings;
uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth in the United States or worldwide; and
other factors detailed in our filings with the Securities and Exchange Commission (SEC), including the risks, uncertainties, and assumptions described in “Risk Factors” within the Business & Market Information section of our Annual Report on Form 10-K for the fiscal year ended January 2, 2022, the “Other Key Information” section of our Quarterly Report on Form 10-Q for the period ended April 3, 2022, the Risk Factors section below or in information disclosed in public conference calls, the date and time of which are released beforehand.
Any forward-looking statement made by us in this Quarterly Report on Form 10-Q is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation, and do not intend, to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, or to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of any current financial quarter, in each case whether as a result of new information, future developments, or otherwise.
4

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ILLUMINA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)    
July 3,
2022
January 2,
2022
 (Unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$1,289 $1,232 
Short-term investments38 107 
Accounts receivable, net642 648 
Inventory, net518 431 
Prepaid expenses and other current assets404 295 
Total current assets2,891 2,713 
Property and equipment, net1,055 1,024 
Operating lease right-of-use assets693 672 
Goodwill7,158 7,113 
Intangible assets, net3,202 3,250 
Other assets449 445 
Total assets$15,448 $15,217 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$282 $332 
Accrued liabilities1,354 761 
Term notes, current portion499  
Convertible senior notes, current portion746  
Total current liabilities2,881 1,093 
Operating lease liabilities775 774 
Term notes495 993 
Convertible senior notes 702 
Other long-term liabilities853 915 
Stockholders’ equity:
Common stock2 2 
Additional paid-in capital9,033 8,938 
Accumulated other comprehensive income30 17 
Retained earnings5,097 5,485 
Treasury stock, at cost(3,718)(3,702)
Total stockholders’ equity10,444 10,740 
Total liabilities and stockholders’ equity$15,448 $15,217 
See accompanying notes to condensed consolidated financial statements.

5

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)
 
 Three Months EndedSix Months Ended
 July 3,
2022
July 4,
2021
July 3,
2022
July 4,
2021
Revenue:
Product revenue$1,006 $972 $2,076 $1,925 
Service and other revenue156 154 310 294 
Total revenue1,162 1,126 2,386 2,219 
Cost of revenue:
Cost of product revenue286 254 586 519 
Cost of service and other revenue69 63 138 121 
Amortization of acquired intangible assets40 7 79 13 
Total cost of revenue395 324 803 653 
Gross profit767 802 1,583 1,566 
Operating expense:
Research and development327 202 650 398 
Selling, general and administrative410 413 719 787 
Legal contingencies609  609  
Total operating expense1,346 615 1,978 1,185 
(Loss) income from operations(579)187 (395)381 
Other income (expense):
Interest income1  1  
Interest expense(6)(16)(12)(34)
Other (expense) income, net(53)36 (91)31 
Total other (expense) income, net(58)20 (102)(3)
(Loss) income before income taxes(637)207 (497)378 
(Benefit) provision for income taxes(102)22 (48)45 
Net (loss) income$(535)$185 $(449)$333 
(Loss) earnings per share:
Basic$(3.40)$1.27 $(2.85)$2.28 
Diluted$(3.40)$1.26 $(2.85)$2.26 
Shares used in computing (loss) earnings per share:
Basic 157 146 157 146 
Diluted157 147 157 147 
See accompanying notes to condensed consolidated financial statements.

6

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In millions)
 
 Three Months EndedSix Months Ended
 July 3,
2022
July 4,
2021
July 3,
2022
July 4,
2021
Net (loss) income$(535)$185 $(449)$333 
Unrealized loss on available-for-sale debt securities, net of deferred tax   (1)
Unrealized gain on cash flow hedges, net of deferred tax12  13 7 
Total comprehensive (loss) income $(523)$185 $(436)$339 
See accompanying notes to condensed consolidated financial statements.

7

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions)
AdditionalAccumulated OtherTotal
 Common StockPaid-InComprehensiveRetainedTreasury StockStockholders’
 SharesAmountCapitalIncomeEarningsSharesAmountEquity
Balance as of January 3, 2021195 $2 $3,815 $2 $4,723 (49)$(3,848)$4,694 
Net income— — — — 147 — — 147 
Unrealized loss on available-for-sale debt securities, net of deferred tax— — — (1)— — — (1)
Unrealized gain on cash flow hedges, net of deferred tax— — — 7 — — — 7 
Issuance of common stock, net of repurchases— — 31 — — — (24)7 
Share-based compensation— — 68 — — — — 68 
Balance as of April 4, 2021195 2 3,914 8 4,870 (49)(3,872)4,922 
Net income— — — — 185 — — 185 
Issuance of common stock, net of repurchases1 — — — — — (6)(6)
Share-based compensation— — 79 — — — — 79 
Balance as of July 4, 2021196 2 3,993 8 5,055 (49)(3,878)5,180 
Net income— — — — 317 — — 317 
Unrealized gain on cash flow hedges, net of deferred tax— — — 5 — — — 5 
Issuance of common stock, net of repurchases— — 28 — — — (2)26 
GRAIL acquisition— — 4,749 — — 10 237 4,986 
Share-based compensation— — 79 — — — — 79 
Balance as of October 3, 2021196 2 8,849 13 5,372 (39)(3,643)10,593 
Net income— — — — 113 — — 113 
Unrealized gain on cash flow hedges, net of deferred tax— — — 4 — — — 4 
Issuance of common stock, net of repurchases1 — 1 — — (1)(59)(58)
Exchange of GRAIL contingent value rights— — 2 — — — — 2 
Share-based compensation— — 86 — — — — 86 
Balance as of January 2, 2022197 $2 $8,938 $17 $5,485 (40)$(3,702)$10,740 
See accompanying notes to condensed consolidated financial statements.









8

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions)
AdditionalAccumulated OtherTotal
 Common StockPaid-InComprehensiveRetainedTreasury StockStockholders’
 SharesAmountCapitalIncomeEarningsSharesAmountEquity