Company Quick10K Filing
Illumina
Price300.15 EPS7
Shares149 P/E46
MCap44,722 P/FCF74
Net Debt-684 EBIT1,112
TEV44,038 TEV/EBIT40
TTM 2019-09-29, in MM, except price, ratios
10-Q 2020-03-29 Filed 2020-05-01
10-K 2019-12-29 Filed 2020-02-11
10-Q 2019-09-29 Filed 2019-10-25
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-04-26
10-K 2018-12-30 Filed 2019-02-12
10-Q 2018-09-30 Filed 2018-10-24
10-Q 2018-07-01 Filed 2018-07-31
10-Q 2018-04-01 Filed 2018-04-25
10-K 2017-12-31 Filed 2018-02-13
10-Q 2017-10-01 Filed 2017-10-25
10-Q 2017-07-02 Filed 2017-08-03
10-Q 2017-04-02 Filed 2017-05-05
10-K 2017-01-01 Filed 2017-02-14
10-Q 2016-10-02 Filed 2016-11-08
10-Q 2016-07-03 Filed 2016-08-02
10-Q 2016-04-03 Filed 2016-05-09
10-K 2016-01-03 Filed 2016-03-02
10-Q 2015-09-27 Filed 2015-11-02
10-Q 2015-06-28 Filed 2015-07-31
10-Q 2015-03-29 Filed 2015-05-01
10-K 2014-12-28 Filed 2015-02-18
10-Q 2014-09-28 Filed 2014-10-29
10-Q 2014-06-29 Filed 2014-08-01
10-Q 2014-03-30 Filed 2014-05-07
10-K 2013-12-29 Filed 2014-02-18
10-Q 2013-09-29 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-07-29
10-Q 2013-03-31 Filed 2013-05-01
10-K 2012-12-30 Filed 2013-02-15
10-Q 2012-07-01 Filed 2012-07-30
10-Q 2012-04-01 Filed 2012-05-03
10-K 2012-01-01 Filed 2012-02-24
10-Q 2011-10-02 Filed 2011-11-04
10-Q 2011-07-03 Filed 2011-08-10
10-Q 2011-04-03 Filed 2011-05-04
10-K 2011-01-02 Filed 2011-02-28
10-Q 2010-10-03 Filed 2010-11-05
10-Q 2010-07-04 Filed 2010-08-04
10-Q 2010-04-04 Filed 2010-04-30
10-K 2010-01-03 Filed 2010-02-26
8-K 2020-05-27
8-K 2020-05-06
8-K 2020-04-30
8-K 2020-04-14
8-K 2020-02-04
8-K 2020-01-29
8-K 2020-01-13
8-K 2020-01-02
8-K 2019-12-18
8-K 2019-11-25
8-K 2019-10-24
8-K 2019-09-25
8-K 2019-08-27
8-K 2019-07-29
8-K 2019-07-11
8-K 2019-06-18
8-K 2019-05-29
8-K 2019-04-25
8-K 2019-02-05
8-K 2019-01-29
8-K 2019-01-07
8-K 2018-10-31
8-K 2018-10-23
8-K 2018-09-28
8-K 2018-08-21
8-K 2018-07-30
8-K 2018-05-23
8-K 2018-04-24
8-K 2018-01-30
8-K 2018-01-08

ILMN 10Q Quarterly Report

EX-31.1 fy20q1ex311.htm
EX-31.2 fy20q1ex312.htm
EX-32.1 fy20q1ex321.htm
EX-32.2 fy20q1ex322.htm

Illumina Earnings 2020-03-29

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.00.80.60.30.1-0.12012201420172020
Rev, G Profit, Net Income
1.00.60.2-0.2-0.6-1.02012201420172020
Ops, Inv, Fin

Document
false--01-03Q120200001110803P6MP1Y0.00393180.00218452200000000.370.300.02560.01464100064.63P1YP6M190000000 0001110803 2019-12-30 2020-03-29 0001110803 2020-04-24 0001110803 2020-03-29 0001110803 2019-12-29 0001110803 2018-12-31 2019-03-31 0001110803 us-gaap:ServiceOtherMember 2018-12-31 2019-03-31 0001110803 us-gaap:ProductMember 2019-12-30 2020-03-29 0001110803 us-gaap:ProductMember 2018-12-31 2019-03-31 0001110803 us-gaap:ServiceOtherMember 2019-12-30 2020-03-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001110803 us-gaap:AdditionalPaidInCapitalMember 2020-03-29 0001110803 us-gaap:TreasuryStockMember 2019-12-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 2019-03-31 0001110803 us-gaap:NoncontrollingInterestMember 2019-06-30 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 2019-12-29 0001110803 us-gaap:TreasuryStockMember 2019-06-30 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-29 0001110803 us-gaap:NoncontrollingInterestMember 2019-03-31 0001110803 us-gaap:CommonStockMember 2019-09-30 2019-12-29 0001110803 us-gaap:TreasuryStockMember 2019-09-29 0001110803 2019-04-01 2019-06-30 0001110803 us-gaap:TreasuryStockMember 2018-12-30 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-09-29 0001110803 us-gaap:CommonStockMember 2020-03-29 0001110803 us-gaap:CommonStockMember 2019-12-29 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-30 0001110803 us-gaap:TreasuryStockMember 2019-03-31 0001110803 2019-09-30 2019-12-29 0001110803 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001110803 us-gaap:TreasuryStockMember 2018-12-31 2019-03-31 0001110803 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001110803 us-gaap:NoncontrollingInterestMember 2019-09-29 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-30 2020-03-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-12-29 0001110803 us-gaap:RetainedEarningsMember 2018-12-31 2019-03-31 0001110803 2018-12-30 0001110803 us-gaap:TreasuryStockMember 2019-09-30 2019-12-29 0001110803 2019-03-31 0001110803 2019-07-01 2019-09-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-29 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001110803 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001110803 us-gaap:RetainedEarningsMember 2019-03-31 0001110803 2019-06-30 0001110803 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-29 0001110803 us-gaap:NoncontrollingInterestMember 2018-12-30 0001110803 2019-09-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-12-30 2020-03-29 0001110803 us-gaap:RetainedEarningsMember 2019-09-30 2019-12-29 0001110803 us-gaap:RetainedEarningsMember 2019-12-30 2020-03-29 0001110803 us-gaap:CommonStockMember 2019-06-30 0001110803 us-gaap:CommonStockMember 2019-03-31 0001110803 us-gaap:RetainedEarningsMember 2019-09-29 0001110803 us-gaap:CommonStockMember 2018-12-30 0001110803 us-gaap:CommonStockMember 2019-09-29 0001110803 us-gaap:RetainedEarningsMember 2019-06-30 0001110803 us-gaap:TreasuryStockMember 2019-12-30 2020-03-29 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-29 0001110803 us-gaap:NoncontrollingInterestMember 2019-12-29 0001110803 us-gaap:TreasuryStockMember 2020-03-29 0001110803 us-gaap:NoncontrollingInterestMember 2020-03-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001110803 us-gaap:TreasuryStockMember 2019-07-01 2019-09-29 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001110803 us-gaap:RetainedEarningsMember 2019-12-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2018-12-30 0001110803 us-gaap:RetainedEarningsMember 2020-03-29 0001110803 us-gaap:RetainedEarningsMember 2018-12-30 0001110803 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-29 0001110803 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001110803 us-gaap:NoncontrollingInterestMember 2018-12-31 2019-03-31 0001110803 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 2019-03-31 0001110803 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-03-29 0001110803 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-29 0001110803 ilmn:ConsumablesMember srt:MaximumMember 2019-12-30 2020-03-29 0001110803 ilmn:ConsumablesMember srt:MinimumMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember 2019-12-30 2020-03-29 0001110803 2021-03-30 2020-03-29 0001110803 2020-03-30 2020-03-29 0001110803 us-gaap:EMEAMember 2018-12-31 2019-03-31 0001110803 country:CN 2019-12-30 2020-03-29 0001110803 country:CN 2018-12-31 2019-03-31 0001110803 srt:AmericasMember 2019-12-30 2020-03-29 0001110803 us-gaap:EMEAMember 2019-12-30 2020-03-29 0001110803 srt:AsiaPacificMember 2018-12-31 2019-03-31 0001110803 srt:AmericasMember 2018-12-31 2019-03-31 0001110803 srt:AsiaPacificMember 2019-12-30 2020-03-29 0001110803 ilmn:ServicesandOtherMember ilmn:SequencingMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember ilmn:SequencingMember 2019-12-30 2020-03-29 0001110803 us-gaap:ProductMember ilmn:MicroarrayMember 2018-12-31 2019-03-31 0001110803 ilmn:MicroarrayMember 2018-12-31 2019-03-31 0001110803 ilmn:ServicesandOtherMember ilmn:MicroarrayMember 2019-12-30 2020-03-29 0001110803 ilmn:SequencingMember 2018-12-31 2019-03-31 0001110803 ilmn:SequencingMember 2019-12-30 2020-03-29 0001110803 ilmn:ConsumablesMember ilmn:MicroarrayMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember ilmn:MicroarrayMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember ilmn:MicroarrayMember 2018-12-31 2019-03-31 0001110803 ilmn:ConsumablesMember ilmn:SequencingMember 2018-12-31 2019-03-31 0001110803 ilmn:ConsumablesMember ilmn:MicroarrayMember 2018-12-31 2019-03-31 0001110803 us-gaap:ProductMember ilmn:SequencingMember 2019-12-30 2020-03-29 0001110803 ilmn:ServicesandOtherMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember ilmn:SequencingMember 2018-12-31 2019-03-31 0001110803 ilmn:ServicesandOtherMember ilmn:SequencingMember 2018-12-31 2019-03-31 0001110803 ilmn:ConsumablesMember 2019-12-30 2020-03-29 0001110803 ilmn:ConsumablesMember ilmn:SequencingMember 2019-12-30 2020-03-29 0001110803 ilmn:InstrumentsMember 2018-12-31 2019-03-31 0001110803 ilmn:ServicesandOtherMember 2018-12-31 2019-03-31 0001110803 ilmn:ConsumablesMember 2018-12-31 2019-03-31 0001110803 ilmn:MicroarrayMember 2019-12-30 2020-03-29 0001110803 ilmn:ServicesandOtherMember ilmn:MicroarrayMember 2018-12-31 2019-03-31 0001110803 us-gaap:ProductMember ilmn:SequencingMember 2018-12-31 2019-03-31 0001110803 us-gaap:ProductMember ilmn:MicroarrayMember 2019-12-30 2020-03-29 0001110803 ilmn:HelixHoldingsILLCMember 2019-04-25 2019-04-25 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2020-01-02 2020-03-02 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember us-gaap:OtherOperatingIncomeExpenseMember 2019-12-30 2020-03-29 0001110803 ilmn:SecondVentureCapitalInvestmentFundMember 2020-03-29 0001110803 us-gaap:InvesteeMember 2018-12-31 2019-03-31 0001110803 ilmn:VentureCapitalInvestmentFundtheFundMember 2020-03-29 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-12-30 2020-03-29 0001110803 ilmn:HelixHoldingsILLCMember 2019-12-30 2020-03-29 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2020-03-29 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2018-11-01 0001110803 us-gaap:SubsequentEventMember 2020-04-17 2020-04-17 0001110803 ilmn:HelixHoldingsILLCMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-12-30 2020-03-29 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2018-11-01 2018-11-01 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2020-01-02 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2019-09-30 2019-12-29 0001110803 ilmn:HelixHoldingsILLCMember 2019-04-25 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2019-12-30 2020-03-29 0001110803 ilmn:HelixHoldingsILLCMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2015-07-31 0001110803 ilmn:PacificBiosciencesofCaliforniaIncPacBioMember 2020-01-02 2020-01-02 0001110803 us-gaap:InvesteeMember 2019-12-30 2020-03-29 0001110803 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:USTreasurySecuritiesMember 2019-12-29 0001110803 us-gaap:USTreasurySecuritiesMember 2020-03-29 0001110803 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:CorporateDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:CorporateDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2020-03-29 0001110803 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2020-03-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-12-29 0001110803 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2020-03-29 0001110803 ilmn:ConvertibleSeniorNotesDue2023Member us-gaap:ConvertibleDebtMember 2018-08-21 0001110803 ilmn:ConvertibleSeniorNotesDue2019Member us-gaap:ConvertibleDebtMember 2014-06-29 0001110803 ilmn:ConvertibleSeniorNotesDue2021Member us-gaap:ConvertibleDebtMember 2014-06-29 0001110803 ilmn:ConvertibleSeniorNotesDue2021Member us-gaap:ConvertibleDebtMember 2014-06-01 2014-06-29 0001110803 ilmn:ConvertibleSeniorNotesDue2023Member us-gaap:ConvertibleDebtMember 2018-08-21 2018-08-21 0001110803 ilmn:ConvertibleSeniorNotesDue2019Member us-gaap:ConvertibleDebtMember 2019-06-15 2019-06-15 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:ConvertibleDebtMember 2020-03-29 0001110803 us-gaap:FairValueInputsLevel2Member us-gaap:ConvertibleDebtMember 2019-12-29 0001110803 ilmn:ConvertibleSeniorNotesDue2023Member us-gaap:ConvertibleDebtMember 2020-03-29 0001110803 us-gaap:ConvertibleDebtMember 2020-03-29 0001110803 ilmn:ConvertibleSeniorNotesDue2021Member us-gaap:ConvertibleDebtMember 2019-12-29 0001110803 us-gaap:ConvertibleDebtMember 2019-12-30 2020-03-29 0001110803 us-gaap:ConvertibleDebtMember 2019-12-29 0001110803 ilmn:ConvertibleSeniorNotesDue2023Member us-gaap:ConvertibleDebtMember 2019-12-29 0001110803 ilmn:ConvertibleSeniorNotesDue2021Member us-gaap:ConvertibleDebtMember 2020-03-29 0001110803 us-gaap:ConvertibleDebtMember 2018-12-31 2019-12-29 0001110803 us-gaap:EmployeeStockMember ilmn:A2000EmployeeStockPurchasePlanMember 2019-12-30 2020-03-29 0001110803 ilmn:A2015StockAndIncentiveCompensationPlanAnd2005SolexaEquityPlanMember 2020-03-29 0001110803 us-gaap:EmployeeStockMember ilmn:A2000EmployeeStockPurchasePlanMember 2020-03-29 0001110803 us-gaap:CommonStockMember 2019-12-30 2020-03-29 0001110803 us-gaap:CommonStockMember 2020-02-05 0001110803 us-gaap:CommonStockMember 2020-03-29 0001110803 ilmn:CostOfServicesMember 2019-12-30 2020-03-29 0001110803 us-gaap:ResearchAndDevelopmentExpenseMember 2018-12-31 2019-03-31 0001110803 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-12-31 2019-03-31 0001110803 ilmn:CostOfGoodsSoldMember 2019-12-30 2020-03-29 0001110803 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-12-30 2020-03-29 0001110803 ilmn:CostOfServicesMember 2018-12-31 2019-03-31 0001110803 ilmn:CostOfGoodsSoldMember 2018-12-31 2019-03-31 0001110803 us-gaap:ResearchAndDevelopmentExpenseMember 2019-12-30 2020-03-29 0001110803 us-gaap:EmployeeStockMember 2019-12-30 2020-03-29 0001110803 us-gaap:PerformanceSharesMember 2020-03-29 0001110803 us-gaap:PerformanceSharesMember 2019-12-30 2020-03-29 0001110803 us-gaap:RestrictedStockUnitsRSUMember 2020-03-29 0001110803 us-gaap:PerformanceSharesMember 2019-12-29 0001110803 us-gaap:RestrictedStockUnitsRSUMember 2019-12-30 2020-03-29 0001110803 us-gaap:RestrictedStockUnitsRSUMember 2019-12-29 0001110803 srt:MinimumMember us-gaap:EmployeeStockMember 2019-12-30 2020-03-29 0001110803 srt:MaximumMember us-gaap:EmployeeStockMember 2019-12-30 2020-03-29 0001110803 us-gaap:OperatingSegmentsMember ilmn:ConsolidatedVariableInterestEntitiesMember 2018-12-31 2019-03-31 0001110803 us-gaap:OperatingSegmentsMember ilmn:CoreIlluminaMember 2019-12-30 2020-03-29 0001110803 us-gaap:OperatingSegmentsMember ilmn:CoreIlluminaMember 2018-12-31 2019-03-31 0001110803 us-gaap:IntersegmentEliminationMember 2019-12-30 2020-03-29 0001110803 us-gaap:IntersegmentEliminationMember 2018-12-31 2019-03-31 0001110803 us-gaap:OperatingSegmentsMember ilmn:ConsolidatedVariableInterestEntitiesMember 2019-12-30 2020-03-29 ilmn:segment xbrli:pure ilmn:fund ilmn:day iso4217:USD xbrli:shares xbrli:shares iso4217:USD
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 March 29, 2020
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 
ilmnlogoa191.jpg
Illumina, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
33-0804655
(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 class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
ILMN
The NASDAQ Global Select Market
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 filer
þ
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
 
 
 
 
(Do not check if a smaller reporting 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 April 24, 2020, there were 147 million shares of the registrant’s common stock outstanding.




ILLUMINA, INC.
FORM 10-Q
FOR THE FISCAL QUARTER ENDED MARCH 29, 2020
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 STATEMENTS
PAGE
 
 
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 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 integrate acquired technologies, products, or businesses successfully;
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

3




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 December 29, 2019, 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)
 
 
March 29,
2020
 
December 29,
2019
 
(Unaudited)
 
 
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
1,991

 
$
2,042

Short-term investments
1,341

 
1,372

Accounts receivable, net
472

 
573

Inventory
384

 
359

Prepaid expenses and other current assets
136

 
105

Total current assets
4,324

 
4,451

Property and equipment, net
890

 
889

Operating lease right-of-use assets
559

 
555

Goodwill
824

 
824

Intangible assets, net
138

 
145

Deferred tax assets, net
91

 
64

Other assets
435

 
388

Total assets
$
7,261

 
$
7,316

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
Accounts payable
$
130

 
$
149

Accrued liabilities
425

 
516

Long-term debt, current portion
499

 

Total current liabilities
1,054

 
665

Operating lease liabilities
696

 
695

Long-term debt
652

 
1,141

Other long-term liabilities
224

 
202

Stockholders’ equity:
 
 
 
Common stock
2

 
2

Additional paid-in capital
3,631

 
3,560

Accumulated other comprehensive income
6

 
5

Retained earnings
4,240

 
4,067

Treasury stock, at cost
(3,244
)
 
(3,021
)
Total stockholders’ equity
4,635

 
4,613

Total liabilities and stockholders’ equity
$
7,261

 
$
7,316

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 Ended
 
March 29,
2020
 
March 31,
2019
Revenue:
 
 
 
Product revenue
$
701

 
$
667

Service and other revenue
158

 
179

Total revenue
859

 
846

Cost of revenue:
 
 
 
Cost of product revenue
174

 
182

Cost of service and other revenue
59

 
71

Amortization of acquired intangible assets
7

 
9

Total cost of revenue
240

 
262

Gross profit
619

 
584

Operating expense:
 
 
 
Research and development
156

 
169

Selling, general and administrative
274

 
211

Total operating expense
430

 
380

Income from operations
189

 
204

Other income (expense):
 
 
 
Interest income
14

 
23

Interest expense
(11
)
 
(15
)
Other (expense) income, net
(14
)
 
21

Total other (expense) income, net
(11
)
 
29

Income before income taxes
178

 
233

Provision for income taxes
5

 
9

Consolidated net income
173

 
224

Add: Net loss attributable to noncontrolling interests

 
9

Net income attributable to Illumina stockholders
$
173

 
$
233

Earnings per share attributable to Illumina stockholders:
 
 
 
Basic
$
1.18

 
$
1.58

Diluted
$
1.17

 
$
1.57

Shares used in computing earnings per share:
 
 
 
Basic
147

 
147

Diluted
148

 
149

See accompanying notes to condensed consolidated financial statements.


6



ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
 
 
Three Months Ended
 
March 29,
2020
 
March 31,
2019
Consolidated net income
$
173

 
$
224

Unrealized gain on available-for-sale debt securities, net of deferred tax
1

 
3

Total consolidated comprehensive income
174

 
227

Add: Comprehensive loss attributable to noncontrolling interests

 
9

Comprehensive income attributable to Illumina stockholders
$
174

 
$
236

See accompanying notes to condensed consolidated financial statements.


7



ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions)
 
Illumina Stockholders
 
 
 
 
 
 
 
 
 
Additional
 
Accumulated Other
 
 
 
 
 
 
 
 
 
Total
 
Common Stock
 
Paid-In
 
Comprehensive
 
Retained
 
Treasury Stock
 
Noncontrolling
 
Stockholders’
 
Shares
 
Amount
 
Capital
 
(Loss) Income
 
Earnings
 
Shares
 
Amount
 
Interests
 
Equity
Balance as of December 30, 2018
192

 
$
2

 
$
3,290

 
$
(1
)
 
$
3,083

 
(45
)
 
$
(2,616
)
 
$
87

 
$
3,845

Net income (loss)

 

 

 

 
233

 

 

 
(2
)
 
231

Unrealized gain on available-for-sale debt securities, net of deferred tax

 

 

 
3

 

 

 

 

 
3

Issuance of common stock, net of repurchases

 

 
27

 

 

 

 
(86
)
 

 
(59
)
Share-based compensation

 

 
51

 

 

 

 

 

 
51

Cumulative-effect adjustment from adoption of ASU 2016-02, net of deferred tax

 

 

 

 
(18
)
 

 

 

 
(18
)
Vesting of redeemable equity awards

 

 
(1
)
 

 

 

 

 

 
(1
)
Adjustment to the carrying value of redeemable noncontrolling interests

 

 
18

 

 

 

 

 

 
18

Balance as of March 31, 2019
192

 
2

 
3,385

 
2

 
3,298

 
(45
)
 
(2,702
)
 
85

 
4,070

Net income (loss)

 

 

 

 
296

 

 

 
(1
)
 
295

Unrealized gain on available-for-sale debt securities, net of deferred tax

 

 

 
3

 

 

 

 

 
3

Issuance of common stock, net of repurchases
1

 

 
3

 

 

 

 
(3
)
 

 

Share-based compensation

 

 
48

 

 

 

 

 

 
48

Adjustment to the carrying value of redeemable noncontrolling interests

 

 
(2
)
 

 

 

 

 

 
(2
)
Deconsolidation of Helix

 

 
2

 

 

 

 

 
(84
)
 
(82
)
Balance as of June 30, 2019
193

 
2

 
3,436

 
5

 
3,594

 
(45
)
 
(2,705
)
 

 
4,332

Net income

 

 

 

 
234

 

 

 

 
234

Issuance of common stock, net of repurchases

 

 
29

 

 

 
(1
)
 
(201
)
 

 
(172
)
Share-based compensation

 

 
45

 

 

 

 

 

 
45

Balance as of September 29, 2019
193

 
2

 
3,510

 
5

 
3,828

 
(46
)
 
(2,906
)
 

 
4,439

Net income

 

 

 

 
239

 

 

 

 
239

Issuance of common stock, net of repurchases
1

 

 

 

 

 
(1
)
 
(115
)
 

 
(115
)
Share-based compensation

 

 
50

 

 

 

 

 

 
50

Balance as of December 29, 2019
194

 
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, 2020
194

 
$
2

 
$
3,631

 
$
6

 
$
4,240

 
(47
)
 
$
(3,244
)
 
$

 
$
4,635


See accompanying notes to condensed consolidated financial statements.

8



ILLUMINA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
 
Three Months Ended
 
March 29,
2020
 
March 31,
2019
Cash flows from operating activities:
 
 
 
Consolidated net income
$
173

 
$
224

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation expense
37

 
37

Amortization of intangible assets
7

 
10

Share-based compensation expense
39

 
51

Accretion of debt discount
10

 
14

Deferred income taxes
(29
)
 
(11
)
Unrealized gains on marketable equity securities
(3
)
 
(2
)
Gain on deconsolidation of GRAIL

 
(15
)
Loss on derivative assets related to terminated acquisition
95

 

Other
(2
)
 
(3
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable
99

 
56

Inventory
(24
)
 
(26
)
Prepaid expenses and other current assets
(14
)
 
6

Operating lease right-of-use assets and liabilities, net
(1
)
 
(1
)
Other assets
(11
)
 
(8
)
Accounts payable
(16
)
 
(47
)
Accrued liabilities
(103
)
 
(70
)
Other long-term liabilities
24

 
(17
)
Net cash provided by operating activities
281

 
198

Cash flows from investing activities:
 
 
 
Maturities of available-for-sale securities
107

 
1,031

Purchases of available-for-sale securities
(256
)
 
(117
)
Sales of available-for-sale securities
186

 
118

Proceeds from the deconsolidation of GRAIL

 
15

Cash paid for derivative assets related to terminated acquisition
(132
)
 

Purchases of property and equipment
(40
)
 
(56
)
Net purchases of strategic investments

 
(3
)
Net cash (used in) provided by investing activities
(135
)
 
988

Cash flows from financing activities:
 
 
 
Payments on financing obligations

 
(1
)
Common stock repurchases
(188
)
 
(63
)
Taxes paid related to net share settlement of equity awards
(35
)
 
(23
)
Proceeds from issuance of common stock
32

 
27

Net cash used in financing activities
(191
)
 
(60
)
Effect of exchange rate changes on cash and cash equivalents
(6
)
 

Net (decrease) increase in cash and cash equivalents
(51
)
 
1,126

Cash and cash equivalents at beginning of period
2,042

 
1,144

Cash and cash equivalents at end of period
$
1,991

 
$
2,270

See accompanying notes to condensed consolidated financial statements.

9



ILLUMINA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Unless the context requires otherwise, references in this report toIllumina,” “we,” “us,” the “Company,” and “our” refer to Illumina, Inc. and its consolidated subsidiaries.

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


Business Overview

We are a provider of sequencing- and array-based solutions, serving customers in the research, clinical and applied markets.  Our products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. Our customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies.

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 29, 2019, 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. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. 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. Certain prior period amounts have been reclassified to conform to the current period presentation. 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.

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. References to Q1 2020 and Q1 2019 refer to the three months ended March 29, 2020 and March 31, 2019, respectively, which were both 13 weeks.

Significant Accounting Policies

During Q1 2020, there were no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended December 29, 2019, except as described in Recently Adopted Accounting Pronouncements below.

Recently Adopted 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

10



trade receivables and available-for-sale debt securities. We adopted the standard on its effective date in the first quarter of 2020 using a modified retrospective approach. The cumulative effect of applying the new credit loss standard was not material and, therefore, did not result in an adjustment to retained earnings. There was no material difference to the condensed consolidated financial statements in Q1 2020 due to the adoption of ASU 2016-13.

In accordance with ASU 2016-13, we no longer evaluate whether our available-for-sale debt securities in an unrealized loss position are other than temporarily impaired. Instead, we assess whether such unrealized loss positions are credit-related. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Unrealized gains and losses that are not credit-related are included in accumulated other comprehensive income (loss). We estimate our allowance for credit losses on our trade receivables as described in our Accounts Receivable policy, below.

Accounts Receivable

Trade accounts receivable are considered past due based on the contractual payment terms. We reserve specific receivables when collectibility is no longer probable. We also reserve a percentage of our trade receivable balance based on collection history and current economic trends that we expect will impact the level of credit losses over the life of our receivables. These reserves are re-evaluated on a regular basis and adjusted, as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve.

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. Up to April 25, 2019, the date of Helix’s deconsolidation, per-share losses of Helix were 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
Q1 2020
 
Q1 2019
Weighted average shares outstanding
147

 
147

Effect of potentially dilutive common shares from:
 
 
 
Equity awards
1

 
1

Convertible senior notes

 
1

Weighted average shares used in calculating diluted earnings per share
148

 
149

Potentially dilutive shares excluded from calculation due to anti-dilutive effect
1

 
1



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 (expense) income, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities.

11




As of March 29, 2020, we had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, Australian dollar, Canadian dollar, Singapore dollar, Chinese Yuan Renminbi, and British pound. As of March 29, 2020 and December 29, 2019, the total notional amounts of outstanding forward contracts in place for foreign currency purchases were $294 million and $252 million, respectively.

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.

2. REVENUE

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, instrument service contracts, and development and licensing agreements.

Revenue by Source
 
Q1 2020
 
Q1 2019
In millions
Sequencing
 
Microarray
 
Total
 
Sequencing
 
Microarray
 
Total
Consumables
$
553

 
$
67

 
$
620

 
$
481

 
$
75

 
$
556

Instruments
79

 
2

 
81

 
105

 
6

 
111

Total product revenue
632

 
69

 
701

 
586

 
81

 
667

Service and other revenue
128

 
30

 
158

 
113

 
66

 
179

Total revenue
$
760

 
$
99

 
$
859

 
$
699

 
$
147

 
$
846


Revenue by Geographic Area

Based on region of destination (in millions)
Q1 2020
 
Q1 2019
Americas
$
477

 
$
473

Europe, Middle East, and Africa
221

 
210

Greater China (1)
84

 
88

Asia-Pacific
77

 
75

Total revenue
$
859

 
$
846

____________________________________
(1) Region includes revenue from China, Taiwan, and Hong Kong.

Performance Obligations

We regularly enter into contracts with multiple performance obligations. Most performance obligations are generally satisfied within a short time frame, approximately three to six months, after the contract execution date. As of March 29, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,151 million, of which approximately 73% is expected to be converted to revenue in the next twelve months, approximately 12% in the following twelve months, and the remainder thereafter.

Contract Liabilities


12



Contract liabilities, which consist of deferred revenue and customer deposits, as of March 29, 2020 and December 29, 2019 were $203 million and $209 million, respectively, of which the short-term portions of $158 million and $167 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q1 2020 included $67 million of previously deferred revenue that was included in contract liabilities as of December 29, 2019.

3. INVESTMENTS AND FAIR VALUE MEASUREMENTS

Debt Securities

Our short-term investments are primarily available-for-sale debt securities that consisted of the following:
 
March 29, 2020
 
December 29, 2019
In millions
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Debt securities in government-sponsored entities
$
21

 
$

 
$

 
$
21

 
$
18

 
$

 
$
18

Corporate debt securities
613

 
2

 
(5
)
 
610

 
627

 
3

 
630

U.S. Treasury securities
591

 
10

 

 
601

 
616

 
2

 
618

Total
$
1,225

 
$
12

 
$
(5
)
 
$
1,232

 
$
1,261

 
$
5

 
$
1,266



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 29, 2020, were as follows:
 In millions
Estimated
Fair Value
Due within one year
$
450

After one but within five years
782

Total
$
1,232



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.

Strategic Investments

Marketable Equity Securities

As of March 29, 2020 and December 29, 2019, the fair value of our marketable equity securities, included in short-term investments, totaled $109 million and $106 million, respectively. Total unrealized gains on our marketable equity securities, included in other (expense) income, net, were $3 million in Q1 2020.

Non-Marketable Equity Securities

As of March 29, 2020 and December 29, 2019, the aggregate carrying amounts of our non-marketable equity securities without readily determinable fair values, included in other assets, were $220 million.

One of our 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 $190 million as of March 29, 2020 and December 29, 2019, recorded in other assets. On April 17, 2020, we made an additional $60 million investment in this VIE.


13



Revenue recognized from transactions with our strategic investees was $13 million and $15 million in Q1 2020 and Q1 2019, respectively.

Venture Funds

We invest in two venture capital investment funds (the Funds) with capital commitments of $100 million, callable through April 2026, and up to $160 million, callable through July 2029, respectively, of which $51 million and up to $160 million, respectively, remained callable as of March 29, 2020. Our investments in the Funds are accounted for as equity-method investments. The aggregate carrying amounts of the Funds, included in other assets, were $55 million and $53 million as of March 29, 2020 and December 29, 2019, respectively.

Previously Consolidated Variable Interest Entity

Helix Holdings I, LLC

In July 2015, we obtained a 50% voting equity ownership interest in Helix. At that time, we determined that we had unilateral power over one of the activities that most significantly impacts the economic performance of Helix through its contractual arrangements and, as a result, we were deemed to be the primary beneficiary of Helix and were required to consolidate Helix. The operations of Helix are included in the accompanying condensed consolidated statements of income for Q1 2019 and up to the date of the deconsolidation, described below. During this period, we absorbed 50% of Helix’s losses.

On April 25, 2019, we entered into an agreement to sell our interest in, and relinquish control over, Helix. As part of the agreement, (i) Helix repurchased all of our outstanding equity interests in exchange for a contingent value right with a 7-year term that entitles us to consideration dependent upon the outcome of Helix’s future financing and/or liquidity events, (ii) we ceased having a controlling financial interest in Helix, including unilateral power over one of the activities that most significantly impacts the economic performance of Helix, (iii) we were relieved of any potential obligation to redeem certain noncontrolling interests, and (iv) we no longer have representation on Helix’s board of directors. As a result, we deconsolidated Helix’s financial statements effective April 25, 2019 and recorded a gain on deconsolidation of $39 million in other (expense) income, net. The gain on deconsolidation included (i) the contingent value right received from Helix recorded at a fair value of approximately $30 million, (ii) the derecognition of the carrying amounts of Helix’s assets and liabilities, and (iii) the derecognition of the noncontrolling interests related to Helix.

During Q1 2020, changes in the fair value of the contingent value right resulted in a $3 million unrealized loss, included in other (expense) income, net.

Derivative Assets Related to Terminated 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). On January 2, 2020, we entered into an agreement to terminate the Merger Agreement (the Termination Agreement). Pursuant to the Termination Agreement, we made a cash payment to PacBio of $98 million on January 2, 2020, which represented the Reverse Termination Fee (as defined in the Merger Agreement). The Reverse Termination Fee is repayable, without interest, to us if PacBio enters into a definitive agreement providing for, or consummates, a Change of Control Transaction by September 30, 2020 (as defined in the Termination Agreement), and such transaction is consummated by the two-year anniversary of the execution of the definitive agreement for such Change of Control Transaction. In addition, we made cash payments to PacBio of $18 million in Q4 2019, pursuant to Amendment No. 1 to the Merger Agreement, and $34 million in Q1 2020, pursuant to the Termination Agreement, collectively referred to as the Continuation Advances. Up to the $52 million of Continuation Advances is repayable without interest to us if, within two years of March 31, 2020, PacBio enters into a Change of Control Transaction or raises at least $100 million in equity or debt financing in a single transaction (with the amount repayable dependent on the amount raised by PacBio).

The potential repayments of the Continuation Advances and Reverse Termination Fee meet the definition of derivative assets and are recorded at fair value. The $92 million difference between the $132 million in cash paid during Q1 2020 for the Continuation Advances and Reverse Termination Fee and the $40 million fair value of these derivative assets on the payment dates was recorded as selling, general and administrative expenses. Changes in

14



the fair value of the derivative assets are included in other (expense) income, net, and totaled a $4 million unrealized loss in Q1 2020.

Fair Value Measurements

The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
 
March 29, 2020
 
December 29, 2019
In millions
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds (cash equivalents)
$
1,733

 
$

 
$

 
$
1,733

 
$
1,732

 
$

 
$

 
$
1,732

Debt securities in government-sponsored entities

 
21

 

 
21

 

 
18

 

 
18

Corporate debt securities

 
610

 

 
610

 

 
630

 

 
630

U.S. Treasury securities
601

 

 

 
601

 
618

 

 

 
618

Marketable equity securities
109

 

 

 
109

 
106

 

 

 
106

Contingent value right

 

 
26

 
26

 

 

 
29

 
29

Derivative assets related to terminated acquisition

 

 
47

 
47

 

 

 
10

 
10

Deferred compensation plan assets

 
40

 

 
40

 

 
48

 

 
48

Total assets measured at fair value
$
2,443

 
$
671

 
$
73

 
$
3,187

 
$
2,456

 
$
696

 
$
39

 
$
3,191

Liabilities: