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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 October 3, 2021
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-20211003_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 October 29, 2021, there were 156.3 million shares of the registrant’s common stock outstanding.


ILLUMINA, INC.
FORM 10-Q
FOR THE FISCAL QUARTER ENDED OCTOBER 3, 2021
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 recently completed 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 hold separate arrangements we voluntarily offered to enter into or that the European Commission may seek to impose, and the duration and impacts on Illumina and GRAIL of such arrangements;
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;
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;
3

risks and uncertainties regarding the legal and regulatory proceedings relating to our recently completed 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 hold separate arrangements we voluntarily offered to enter into or that the European Commission may seek to impose, and the duration and impacts on Illumina and GRAIL of such arrangements, which impacts 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 hold separate arrangements, which may be 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 SEC, including the risks, uncertainties, and assumptions described in “Risk Factors” within the Business and Market Information section of our Annual Report on Form 10-K for the fiscal year ended January 3, 2021, or in information disclosed in public conference calls, the date and time of which are released beforehand.

The foregoing factors should be considered together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand.  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)    
October 3,
2021
January 3,
2021
 (Unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$1,080 $1,810 
Short-term investments185 1,662 
Accounts receivable, net604 487 
Inventory401 372 
Prepaid expenses and other current assets181 152 
Total current assets2,451 4,483 
Property and equipment, net1,009 922 
Operating lease right-of-use assets676 532 
Goodwill7,098 897 
Intangible assets, net3,351 142 
Other assets478 609 
Total assets$15,063 $7,585 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$248 $192 
Accrued liabilities666 541 
Convertible senior notes, current portion 511 
Total current liabilities914 1,244 
Operating lease liabilities784 671 
Term notes993  
Convertible senior notes694 673 
Other long-term liabilities1,085 303 
Stockholders’ equity:
Common stock2 2 
Additional paid-in capital8,849 3,815 
Accumulated other comprehensive income13 2 
Retained earnings5,372 4,723 
Treasury stock, at cost(3,643)(3,848)
Total stockholders’ equity10,593 4,694 
Total liabilities and stockholders’ equity$15,063 $7,585 
See accompanying notes to condensed consolidated financial statements.

5

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except per share amounts)
 
 Three Months EndedNine Months Ended
 October 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Revenue:
Product revenue$978 $676 $2,903 $1,904 
Service and other revenue130 118 424 382 
Total revenue1,108 794 3,327 2,286 
Cost of revenue:
Cost of product revenue264 209 782 535 
Cost of service and other revenue56 52 177 157 
Amortization of acquired intangible assets18 7 31 21 
Total cost of revenue338 268 990 713 
Gross profit770 526 2,337 1,573 
Operating expense:
Research and development436 172 835 483 
Selling, general and administrative879 192 1,666 643 
Total operating expense1,315 364 2,501 1,126 
(Loss) income from operations(545)162 (164)447 
Other income (expense):
Interest income 5  26 
Interest expense(14)(11)(48)(33)
Other income, net979 59 1,010 117 
Total other income, net965 53 962 110 
Income before income taxes420 215 798 557 
Provision for income taxes103 36 148 158 
Net income$317 $179 $650 $399 
Earnings per share:
Basic$2.09 $1.22 $4.39 $2.72 
Diluted$2.08 $1.21 $4.36 $2.70 
Shares used in computing earnings per share:
Basic 152 146 148 147 
Diluted153 148 149 148 
See accompanying notes to condensed consolidated financial statements.

6

ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
 
 Three Months EndedNine Months Ended
 October 3,
2021
September 27,
2020
October 3,
2021
September 27,
2020
Net income$317 $179 $650 $399 
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax (2)(1)7 
Unrealized gain on cash flow hedges, net of deferred tax5  12  
Total comprehensive income $322 $177 $661 $406 
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 December 29, 2019194 $2 $3,560 $5 $4,067 (47)$(3,021)$4,613 
Net income— — — — 173 — — 173 
Unrealized gain on available-for-sale debt securities, net of deferred tax— — — 1 — — — 1 
Issuance of common stock, net of repurchases— — 32 — — — (223)(191)
Share-based compensation— — 39 — — — — 39 
Balance as of March 29, 2020194 2 3,631 6 4,240 (47)(3,244)4,635 
Net income— — — — 47 — — 47 
Unrealized gain on available-for-sale debt securities, net of deferred tax— — — 8 — — — 8 
Issuance of common stock, net of repurchases— — 2 — — (1)(145)(143)
Share-based compensation— — 16 — — — — 16 
Balance as of June 28, 2020194 2 3,649 14 4,287 (48)(3,389)4,563 
Net income— — — — 179 — — 179 
Unrealized loss on available-for-sale debt securities, net of deferred tax— — — (2)— — — (2)
Issuance of common stock, net of repurchases— — 27 — — — (128)(101)
Share-based compensation— — 61 — — — — 61 
Balance as of September 27, 2020194 2 3,737 12 4,466 (48)(3,517)4,700 
Net income— — — — 257 — — 257 
Unrealized loss on available-for-sale debt securities, net of deferred tax— — — (10)— — — (10)
Issuance of common stock, net of repurchases1  — — — (1)(331)(331)
Share-based compensation— — 78 — — — — 78 
Balance as of January 3, 2021195 $2 $3,815 $2 $4,723 (49)$(3,848)$4,694 
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
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