þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
For the transition period from to . |
Delaware | 33-0804655 | |||
(State or other | ||||
incorporation or | ||||
( Identification No.) | ||||
5200 Illumina Way San Diego, California | 92122 | |||
(Address of | (Zip Code) |
Title of | Name of | |
which registered | ||
Common Stock, $0.01 par value (including associated Preferred Stock Purchase Rights) | The NASDAQ Global Select Market |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
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statements concerning 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; and statements of our expectations, beliefs, future plans and strategies, anticipated developments (including new products and services), and other matters that are not historical facts. |
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ITEM 1.Business |
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the ability of the research community to extract medically valuable information from genomics and to apply that knowledge to multiple areas of disease-related research and treatment; | ||
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ITEM 1A. | Risk Factors |
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Unresolved Staff Comments. |
Properties. |
Approximate | Lease | |||||||||
Location | Square Feet | Operation | Expiration Dates | |||||||
San Diego, CA | 272,000 | R&D, Manufacturing, Storage, | 2012 – 2023 | |||||||
Distribution and Administrative | ||||||||||
Hayward, CA | 105,000 | R&D, Manufacturing and Administrative | 2010 – 2014 | |||||||
Little Chesterford, United Kingdom | 49,000 | R&D, Manufacturing and Administrative | 2010 – 2024 | |||||||
Singapore | 36,000 | Manufacturing and Administrative | 2010 – 2013 | |||||||
Eindhoven, the Netherlands | 11,500 | Distribution and Administrative | 2011 | |||||||
Tokyo, Japan | 6,500 | Sales and Administrative | 2014 | |||||||
Melbourne, Australia | 4,000 | Sales and Administrative | 2013 | |||||||
China | 3,000 | Sales and Administrative | 2010 – 2012 |
Approximate | Lease | ||||||
Location | Square Feet | Operation | Expiration Dates | ||||
San Diego, CA | 502,000 | R&D, Manufacturing, Warehouse, | 2015 – 2031 | ||||
Distribution, and Administrative | |||||||
Hayward, CA | 109,000 | R&D, Manufacturing, and Administrative | 2013 – 2014 | ||||
Singapore | 87,000 | Manufacturing and Administrative | 2013 – 2015 | ||||
Eindhoven, the Netherlands | 42,000 | Distribution and Administrative | 2015 | ||||
Cambridge, United Kingdom | 66,000 | R&D, Manufacturing, and Administrative | 2021 - 2024 | ||||
Madison, WI | 27,000 | R&D, Manufacturing, and Administrative | 2018 | ||||
Other | 19,000 | R&D, Manufacturing, Sales, and Administrative | 2013 - 2015 |
Legal Proceedings. |
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
2009 | 2008 | |||||||||||||||
High | Low | High | Low | |||||||||||||
First Quarter | $ | 38.87 | $ | 23.43 | $ | 38.30 | $ | 27.89 | ||||||||
Second Quarter | 39.53 | 34.27 | 43.50 | 34.90 | ||||||||||||
Third Quarter | 41.23 | 31.10 | 47.88 | 36.97 | ||||||||||||
Fourth Quarter | 43.74 | 26.50 | 42.32 | 18.82 |
2012 | 2011 | ||||||||||||||
High | Low | High | Low | ||||||||||||
First Quarter | $ | 55.39 | $ | 28.72 | $ | 74.12 | $ | 61.87 | |||||||
Second Quarter | 53.00 | 37.77 | 76.81 | 65.41 | |||||||||||
Third Quarter | 49.27 | 38.92 | 79.40 | 39.82 | |||||||||||
Fourth Quarter | 57.00 | 44.78 | 40.53 | 25.57 |
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Total Number of | Approximate Dollar | |||||||||||||||
Shares Purchased as | Value of Shares | |||||||||||||||
Total Number of | Part of Publicly | that May Yet Be | ||||||||||||||
Shares | Average Price | Announced | Purchased Under | |||||||||||||
Period | Purchased(1) | Paid per Share(1) | Programs(1) | the Programs(1) | ||||||||||||
September 28 – October 25, 2009 | — | $ | — | — | $ | 75,000,000 | ||||||||||
October 26 – November 22, 2009 | 1,289,331 | 30.87 | 1,289,331 | 35,197,269 | ||||||||||||
November 23, 2009 – January 3, 2010 | 4,766,696 | 28.36 | 4,766,696 | — | ||||||||||||
Total | 6,056,027 | $ | 28.90 | 6,056,027 | $ | — | ||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | |||||||||
October 1, 2012 - October 28, 2012 | 97,289 | $ | 51.39 | 97,289 | $ | 187,518,994 | |||||||
October 29, 2012 - November 25, 2012 | 207,558 | 48.18 | 207,558 | 177,519,092 | |||||||||
November 26, 2012 - December 30, 2012 | 190,921 | 52.38 | 190,921 | 167,519,168 | |||||||||
Total | 495,768 | $ | 50.43 | 495,768 | $ | 167,519,168 |
(1) | All shares purchased during the fiscal quarter ended |
Selected Financial Data. |
Year Ended_ | ||||||||||||||||||||
January 3, | December 28, | December 30, | December 31 | January 1, | ||||||||||||||||
2010 | 2008 | 2007 | 2006 | 2006 | ||||||||||||||||
(53 weeks) | (52 weeks)(1) | (52 weeks)(1) | (52 weeks) | (52 weeks) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Total revenue | $ | 666,324 | $ | 573,225 | $ | 366,799 | $ | 184,586 | $ | 73,501 | ||||||||||
Income (loss) from operations(2),(3),(4) | 125,597 | 80,457 | (301,201 | ) | 37,812 | (21,447 | ) | |||||||||||||
Net income (loss) | 72,281 | 39,416 | (287,305 | ) | 39,968 | (20,874 | ) | |||||||||||||
Net income (loss) per share: | ||||||||||||||||||||
Basic | 0.59 | 0.34 | (2.65 | ) | 0.45 | (0.26 | ) | |||||||||||||
Diluted | 0.53 | 0.30 | (2.65 | ) | 0.41 | (0.26 | ) | |||||||||||||
Shares used in calculating net income (loss) per share: | ||||||||||||||||||||
Basic | 123,154 | 116,855 | 108,308 | 89,002 | 80,294 | |||||||||||||||
Diluted | 137,096 | 133,607 | 108,308 | 97,508 | 80,294 |
Years Ended | |||||||||||||||||||
December 30, 2012 (52 weeks) | January 1, 2012 (52 weeks) | January 2, 2011 (52 weeks) | January 3, 2010 (53 weeks) | December 28, 2008 (52 weeks) | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Total revenue | $ | 1,148,516 | $ | 1,055,535 | $ | 902,741 | $ | 666,324 | $ | 573,225 | |||||||||
Income from operations | 200,752 | 199,461 | 211,654 | 125,597 | 80,457 | ||||||||||||||
Net income | 151,254 | 86,628 | 124,891 | 72,281 | 39,416 | ||||||||||||||
Net income per share: | |||||||||||||||||||
Basic | $ | 1.23 | $ | 0.70 | $ | 1.01 | $ | 0.59 | $ | 0.34 | |||||||||
Diluted | $ | 1.13 | $ | 0.62 | $ | 0.87 | $ | 0.53 | $ | 0.30 | |||||||||
Shares used in calculating net income per share: | |||||||||||||||||||
Basic | 122,999 | 123,399 | 123,581 | 123,154 | 116,855 | ||||||||||||||
Diluted | 133,693 | 138,937 | 143,433 | 137,096 | 133,607 |
January 3, | December 28, | December 30, | December 31, | January 1, | ||||||||||||||||
2010 | 2008(1) | 2007(1) | 2006 | 2006 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash, cash equivalents and short-term investments(4),(5),(6),(7) | $ | 693,527 | $ | 640,075 | $ | 386,082 | $ | 130,804 | $ | 50,822 | ||||||||||
Working capital | 540,354 | 483,113 | 397,040 | 159,950 | 57,992 | |||||||||||||||
Total assets | 1,429,937 | 1,327,171 | 929,981 | 300,584 | 100,610 | |||||||||||||||
Long-term debt, current portion(7) | 290,202 | 276,889 | 16 | — | — | |||||||||||||||
Long-term debt, less current portion(7) | — | — | 258,007 | — | 54 | |||||||||||||||
Total stockholders’ equity(2),(3),(4),(5),(6) | 864,248 | 798,667 | 353,927 | 247,342 | 72,497 |
December 30, 2012 | January 1, 2012 | January 2, 2011 | January 3, 2010 | December 28, 2008 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Cash, cash equivalents and short-term investments(1),(2),(3) | $ | 1,350,204 | $ | 1,189,568 | $ | 894,289 | $ | 693,527 | $ | 640,075 | |||||||||
Working capital | 1,482,477 | 1,317,698 | 723,881 | 540,354 | 483,113 | ||||||||||||||
Total assets | 2,566,085 | 2,195,840 | 1,839,113 | 1,429,937 | 1,327,171 | ||||||||||||||
Long-term debt, current portion(1) | 36,967 | — | 311,609 | 290,202 | 276,889 | ||||||||||||||
Long-term debt, less current portion(1) | 805,406 | 807,369 | — | — | — | ||||||||||||||
Total stockholders’ equity(2),(3) | 1,318,581 | 1,075,215 | 1,197,675 | 864,248 | 798,667 |
(1) | During 2011, we issued $920.0 million principal amount of |
(2) | For the fiscal years ended December 30, 2012, January 1, 2012, January 2, 2011, January 3, 2010, and December 28, 2008 |
(3) | ||
In August 2008, a total of 8,050,000 shares were sold to the public at a public offering price of $43.75 per share, raising net proceeds to us of $342.7 million. | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Revenue: | ||||||||||||
Product revenue | 94 | % | 93 | % | 89 | % | ||||||
Service and other revenue | 6 | 7 | 11 | |||||||||
Total revenue | 100 | 100 | 100 | |||||||||
Costs and expenses: | ||||||||||||
Cost of product revenue (excluding impairment of manufacturing equipment and amortization of intangible assets) | 29 | 34 | 33 | |||||||||
Cost of service and other revenue | 2 | 2 | 3 | |||||||||
Research and development | 21 | 17 | 20 | |||||||||
Selling, general and administrative | 26 | 26 | 27 | |||||||||
Impairment of manufacturing equipment | — | 1 | — | |||||||||
Amortization of intangible assets | 1 | 2 | 1 | |||||||||
Acquired in-process research and development | 2 | 4 | 83 | |||||||||
Litigation settlements | — | — | 15 | |||||||||
Total costs and expenses | 81 | 86 | 182 | |||||||||
Income (loss) from operations | 19 | 14 | (82 | ) | ||||||||
Other income (expense): | ||||||||||||
Interest income | 2 | 2 | 4 | |||||||||
Interest expense | (4 | ) | (4 | ) | (5 | ) | ||||||
Other income (expense), net | — | 1 | — | |||||||||
Total other expense, net | (2 | ) | (1 | ) | (1 | ) | ||||||
Income (loss) before income taxes | 17 | 13 | (83 | ) | ||||||||
Provision (benefit) for income taxes | 6 | 6 | (4 | ) | ||||||||
Net income (loss) | 11 | % | 7 | % | (79 | )% | ||||||
2012 | 2011 | 2010 | ||||||
Revenue: | ||||||||
Product revenue | 91.9 | % | 93.5 | % | 93.3 | % | ||
Service and other revenue | 8.1 | 6.5 | 6.7 | |||||
Total revenue | 100.0 | 100.0 | 100.0 | |||||
Cost of revenue: | ||||||||
Cost of product revenue | 27.6 | 29.2 | 30.1 | |||||
Cost of service and other revenue | 3.8 | 2.5 | 2.4 | |||||
Amortization of acquired intangible assets | 1.2 | 1.1 | 0.9 | |||||
Total cost of revenue | 32.6 | 32.8 | 33.4 | |||||
Gross profit | 67.4 | 67.2 | 66.6 | |||||
Operating expense: | ||||||||
Research and development | 20.1 | 18.7 | 19.7 | |||||
Selling, general and administrative | 24.9 | 24.8 | 24.4 | |||||
Headquarter relocation expense | 2.3 | 4.0 | — | |||||
Unsolicited tender offer related expense | 2.0 | — | — | |||||
Restructuring charges | 0.4 | 0.8 | — | |||||
Acquisition related expense (gain), net | 0.2 | 0.1 | (0.9 | ) | ||||
Total operating expense | 49.9 | 48.4 | 43.2 | |||||
Income from operations | 17.5 | 18.8 | 23.4 | |||||
Other income (expense): | ||||||||
Cost-method investment related gain (loss), net | 4.0 | — | (1.1 | ) | ||||
Interest income | 1.4 | 0.7 | 0.9 | |||||
Interest expense | (3.3 | ) | (3.3 | ) | (2.7 | ) | ||
Other (expense) income, net | (0.2 | ) | (3.7 | ) | — | |||
Total other income (expense), net | 1.9 | (6.3 | ) | (2.9 | ) | |||
Income before income taxes | 19.4 | 12.5 | 20.5 | |||||
Provision for income taxes | 6.2 | 4.4 | 6.7 | |||||
Net income | 13.2 | % | 8.1 | % | 13.8 | % |
Year Ended | |||||||||||||||||||||||||||||||||||||||||
January 3, | December 28, | Percentage | 2012 - 2011 | 2011 - 2010 | |||||||||||||||||||||||||||||||||||||
2010 | 2008 | Change | Change | ||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | Change | % Change | 2010 | Change | % Change | ||||||||||||||||||||||||||||||||||
Product revenue | $ | 627,240 | $ | 532,390 | $ | 94,850 | 18 | % | $ | 1,055,826 | $ | 987,280 | $ | 68,546 | 7 | % | $ | 842,510 | $ | 144,770 | 17 | % | |||||||||||||||||||
Service and other revenue | 39,084 | 40,835 | (1,751 | ) | (4 | ) | 92,690 | 68,255 | 24,435 | 36 | 60,231 | 8,024 | 13 | ||||||||||||||||||||||||||||
Total revenue | $ | 666,324 | $ | 573,225 | $ | 93,099 | 16 | % | $ | 1,148,516 | $ | 1,055,535 | $ | 92,981 | 9 | % | $ | 902,741 | $ | 152,794 | 17 | % | |||||||||||||||||||
2012 - 2011 | 2011 - 2010 | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | Change | % Change | 2010 | Change | % Change | ||||||||||||||||||
Total gross profit | $ | 773,528 | $ | 709,098 | $ | 64,430 | 9 | % | $ | 601,540 | $ | 107,558 | 18 | % | |||||||||||
Total gross margin | 67.4 | % | 67.2 | % | 66.6 | % |
2012 - 2011 | 2011 - 2010 | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | Change | % Change | 2010 | Change | % Change | ||||||||||||||||||
Research and development | $ | 231,025 | $ | 196,913 | $ | 34,112 | 17 | % | $ | 177,947 | $ | 18,966 | 11 | % | |||||||||||
Selling, general and administrative | 285,991 | 261,843 | 24,148 | 9 | 220,454 | 41,389 | 19 | ||||||||||||||||||
Headquarter relocation expense | 26,328 | 41,826 | (15,498 | ) | (37 | ) | — | 41,826 | 100 | ||||||||||||||||
Unsolicited tender offer related expense | 23,136 | — | 23,136 | 100 | — | — | — | ||||||||||||||||||
Restructuring charges | 3,522 | 8,136 | (4,614 | ) | (57 | ) | — | 8,136 | 100 | ||||||||||||||||
Acquisition related expense (gain), net | 2,774 | 919 | 1,855 | 202 | (8,515 | ) | 9,434 | (111 | ) | ||||||||||||||||
Total operating expense | $ | 572,776 | $ | 509,637 | $ | 63,139 | 12 | % | $ | 389,886 | $ | 119,751 | 31 | % |
Year Ended | ||||||||||||||||
January 3, | December 28, | Percentage | ||||||||||||||
2010 | 2008 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product revenue | $ | 190,714 | $ | 192,868 | $ | (2,154 | ) | (1 | )% | |||||||
Cost of service and other revenue | 15,055 | 12,756 | 2,299 | 18 | ||||||||||||
Total cost of revenue | $ | 205,769 | $ | 205,624 | $ | 145 | — | % | ||||||||
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Year Ended | ||||||||||||||||
January 3, | December 28, | Percentage | ||||||||||||||
2010 | 2008 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Research and development | $ | 140,616 | $ | 99,963 | $ | 40,653 | 41 | % | ||||||||
Selling, general and administrative | 176,337 | 148,014 | 28,323 | 19 | ||||||||||||
Total operating expenses | $ | 316,953 | $ | 247,977 | $ | 68,976 | 28 | % | ||||||||
Year Ended | ||||||||||||||||
January 3, | December 28, | Percentage | ||||||||||||||
2010 | 2008 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Acquired in-process research and development | $ | 11,325 | $ | 24,660 | $ | (13,335 | ) | (54 | )% |
Year Ended | ||||||||||||||||
January 3, | December 28, | Percentage | ||||||||||||||
2010 | 2008 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 11,029 | $ | 12,519 | $ | (1,490 | ) | (12 | )% | |||||||
Interest expense | (23,718 | ) | (22,210 | ) | (1,508 | ) | 7 | |||||||||
Other income, net | 1,217 | 1,921 | (704 | ) | (37 | ) | ||||||||||
Total other expense, net | $ | (11,472 | ) | $ | (7,770 | ) | $ | (3,702 | ) | 48 | % | |||||
2012 - 2011 | 2011 - 2010 | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | Change | % Change | 2010 | Change | % Change | ||||||||||||||||||
Cost-method investment related gain (loss), net | $ | 45,911 | $ | — | $ | 45,911 | 100 | % | $ | (10,309 | ) | $ | 10,309 | (100 | )% | ||||||||||
Interest income | 16,208 | 7,052 | 9,156 | 130 | 8,378 | (1,326 | ) | (16 | ) | ||||||||||||||||
Interest expense | (37,779 | ) | (34,790 | ) | (2,989 | ) | 9 | (24,598 | ) | (10,192 | ) | 41 | |||||||||||||
Other (expense) income, net | (2,484 | ) | (38,678 | ) | 36,194 | (94 | ) | 254 | (38,932 | ) | (15,328 | ) | |||||||||||||
Total other income (expense), net | $ | 21,856 | $ | (66,416 | ) | $ | 88,272 | (133 | )% | $ | (26,275 | ) | $ | (40,141 | ) | 153 | % |
Year Ended | ||||||||||||||||
January 3, | December 28, | Percentage | ||||||||||||||
2010 | 2008 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Provision for income taxes | $ | 41,844 | $ | 33,271 | $ | 8,573 | 26 | % |
2012 - 2011 | 2011 - 2010 | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | Change | % Change | 2010 | Change | % Change | ||||||||||||||||||
Income before income taxes | $ | 222,608 | $ | 133,045 | $ | 89,563 | 67 | % | $ | 185,379 | $ | (52,334 | ) | (28 | )% | ||||||||||
Provision for income taxes | 71,354 | 46,417 | 24,937 | 54 | 60,488 | (14,071 | ) | (23 | ) | ||||||||||||||||
Net income | $ | 151,254 | $ | 86,628 | $ | 64,626 | 75 | % | $ | 124,891 | $ | (38,263 | ) | (31 | )% | ||||||||||
Effective tax rate | 32.1 | % | 34.9 | % | 32.6 | % |
Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Product revenue | $ | 532,390 | $ | 326,699 | $ | 205,691 | 63 | % | ||||||||
Service and other revenue | 40,835 | 40,100 | 735 | 2 | ||||||||||||
Total revenue | $ | 573,225 | $ | 366,799 | $ | 206,426 | 56 | % | ||||||||
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Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of product revenue | $ | 192,868 | $ | 119,991 | $ | 72,877 | 61 | % | ||||||||
Cost of service and other revenue | 12,756 | 12,445 | 311 | 2 | ||||||||||||
Total cost of product and service and other revenue | $ | 205,624 | $ | 132,436 | $ | 73,188 | 55 | % | ||||||||
Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Research and development | $ | 99,963 | $ | 73,943 | $ | 26,020 | 35 | % | ||||||||
Selling, general and administrative | 148,014 | 101,256 | 46,758 | 46 | ||||||||||||
Total operating expenses | $ | 247,977 | $ | 175,199 | $ | 72,778 | 42 | % | ||||||||
Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Acquired in-process research and development | $ | 24,660 | $ | 303,400 | $ | (278,740 | ) | (92 | )% |
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Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Litigation settlements | $ | — | $ | 54,536 | $ | (54,536 | ) | (100 | )% |
Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Interest income | $ | 12,519 | $ | 16,025 | $ | (3,506 | ) | (22 | )% | |||||||
Interest expense | (22,210 | ) | (18,297 | ) | (3,913 | ) | 21 | |||||||||
Other income (expense), net | 1,921 | (47 | ) | 1,968 | (4,187 | ) | ||||||||||
Total other expense, net | $ | (7,770 | ) | $ | (2,319 | ) | $ | (5,451 | ) | (235 | )% | |||||
Year Ended | ||||||||||||||||
December 28, | December 30, | Percentage | ||||||||||||||
2008 | 2007 | Change | Change | |||||||||||||
(In thousands) | ||||||||||||||||
Provision (benefit) for income taxes | $ | 33,271 | $ | (16,215 | ) | $ | 49,486 | (305 | )% |
Year Ended | Year Ended | Year Ended | ||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by operating activities | $ | 174,496 | $ | 87,882 | $ | 56,294 | ||||||
Net cash used in investing activities | (255,718 | ) | (277,249 | ) | (67,686 | ) | ||||||
Net cash (used in) provided by financing activities | (98,862 | ) | 337,672 | 148,292 | ||||||||
Effect of foreign currency translation | (2,307 | ) | 3,778 | (345 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | $ | (182,391 | ) | $ | 152,083 | $ | 136,555 | |||||
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our ability to successfully commercialize and further develop our technologies and create innovative products in our markets; | ||
(In thousands) | 2012 | 2011 | 2010 | ||||||||
Net cash provided by operating activities | $ | 291,873 | $ | 358,140 | $ | 272,573 | |||||
Net cash used in investing activities | (150,012 | ) | (400,999 | ) | (285,053 | ) | |||||
Net cash (used in) provided by financing activities | (10,755 | ) | 97,016 | 116,474 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (103 | ) | (126 | ) | 320 | ||||||
Net increase in cash and cash equivalents | $ | 131,003 | $ | 54,031 | $ | 104,314 |
Payments Due by Period(1) | ||||||||||||||||||||
Less Than | More Than | |||||||||||||||||||
Contractual Obligation | Total | 1 Year | 1 – 3 Years | 3 – 5 Years | 5 Years | |||||||||||||||
Debt obligations(2) | $ | 400,968 | $ | 2,437 | $ | 4,875 | $ | 393,656 | $ | — | ||||||||||
Operating leases | 148,415 | 11,668 | 24,870 | 22,310 | 89,567 | |||||||||||||||
Contingent consideration(3) | 10,000 | 10,000 | — | — | — | |||||||||||||||
Amounts due under executive deferred compensation plan | 4,007 | 4,007 | — | — | — | |||||||||||||||
Total | $ | 563,390 | $ | 28,112 | $ | 29,745 | $ | 415,966 | $ | 89,567 | ||||||||||
Payments Due by Period(1) | ||||||||||||||||||||
Less Than | More Than | |||||||||||||||||||
Contractual Obligation | Total | 1 Year | 1 – 3 Years | 3 – 5 Years | 5 Years | |||||||||||||||
Debt obligations(2) | $ | 968,551 | $ | 2,551 | $ | 44,850 | $ | 921,150 | $ | — | ||||||||||
Operating leases | 515,207 | 27,676 | 47,167 | 47,276 | 393,088 | |||||||||||||||
Purchase obligations | 12,276 | 8,908 | 3,368 | — | — | |||||||||||||||
Amounts due under executive deferred compensation plan | 12,071 | 12,071 | — | — | — | |||||||||||||||
Total | $ | 1,508,105 | $ | 51,206 | $ | 95,385 | $ | 968,426 | $ | 393,088 |
(1) | The table excludes $37.6 million of uncertain tax benefits. We have not included this amount in the table because we cannot make a reasonably reliable estimate regarding the timing of settlements with taxing authorities, if any. See |
(2) | Debt obligations include the principal amount of our convertible senior notes due 2016 and 2014, as well as interest payments |
40
42
43
45
Quantitative and Qualitative Disclosures about Market Risk. |
46
Financial Statements and Supplementary Data. |
Page | |
December 30, 2012 | January 1, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 433,981 | $ | 302,978 | |||
Short-term investments | 916,223 | 886,590 | |||||
Accounts receivable, net | 214,975 | 173,886 | |||||
Inventory | 158,718 | 128,781 | |||||
Deferred tax assets, current portion | 30,451 | 23,188 | |||||
Prepaid expenses and other current assets | 32,700 | 29,196 | |||||
Total current assets | 1,787,048 | 1,544,619 | |||||
Property and equipment, net | 166,167 | 143,483 | |||||
Goodwill | 369,327 | 321,853 | |||||
Intangible assets, net | 130,196 | 106,475 | |||||
Deferred tax assets, long-term portion | 40,183 | 19,675 | |||||
Other assets | 73,164 | 59,735 | |||||
Total assets | $ | 2,566,085 | $ | 2,195,840 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 65,727 | $ | 49,806 | |||
Accrued liabilities | 201,877 | 177,115 | |||||
Long-term debt, current portion | 36,967 | — | |||||
Total current liabilities | 304,571 | 226,921 | |||||
Long-term debt | 805,406 | 807,369 | |||||
Other long-term liabilities | 134,369 | 80,613 | |||||
Commitments and contingencies | |||||||
Conversion option subject to cash settlement | 3,158 | 5,722 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding at December 30, 2012 and January 1, 2012 | — | — | |||||
Common stock, $0.01 par value: 320,000 shares authorized; 170,171 shares issued and 123,943 outstanding at December 30, 2012; 166,707 shares issued and 122,041 outstanding at January 1, 2012 | 1,703 | 1,668 | |||||
Additional paid-in capital | 2,419,831 | 2,249,900 | |||||
Accumulated other comprehensive income | 2,123 | 2,117 | |||||
Retained earnings (accumulated deficit) | 82,547 | (68,707 | ) | ||||
Treasury stock, 46,228 shares and 44,665 shares at cost at December 30, 2012 and January 1, 2012, respectively | (1,187,623 | ) | (1,109,763 | ) | |||
Total stockholders’ equity | 1,318,581 | 1,075,215 | |||||
Total liabilities and stockholders’ equity | $ | 2,566,085 | $ | 2,195,840 |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Revenue: | |||||||||||
Product revenue | $ | 1,055,826 | $ | 987,280 | $ | 842,510 | |||||
Service and other revenue | 92,690 | 68,255 | 60,231 | ||||||||
Total revenue | 1,148,516 | 1,055,535 | 902,741 | ||||||||
Cost of revenue: | |||||||||||
Cost of product revenue | 317,283 | 308,228 | 271,997 | ||||||||
Cost of service and other revenue | 43,552 | 26,118 | 21,399 | ||||||||
Amortization of acquired intangible assets | 14,153 | 12,091 | 7,805 | ||||||||
Total cost of revenue | 374,988 | 346,437 | 301,201 | ||||||||
Gross profit | 773,528 | 709,098 | 601,540 | ||||||||
Operating expense: | |||||||||||
Research and development | 231,025 | 196,913 | 177,947 | ||||||||
Selling, general and administrative | 285,991 | 261,843 | 220,454 | ||||||||
Headquarter relocation expense | 26,328 | 41,826 | — | ||||||||
Unsolicited tender offer related expense | 23,136 | — | — | ||||||||
Restructuring charges | 3,522 | 8,136 | — | ||||||||
Acquisition related expense (gain), net | 2,774 | 919 | (8,515 | ) | |||||||
Total operating expense | 572,776 | 509,637 | 389,886 | ||||||||
Income from operations | 200,752 | 199,461 | 211,654 | ||||||||
Other income (expense): | |||||||||||
Cost-method investment related gain (loss), net | 45,911 | — | (10,309 | ) | |||||||
Interest income | 16,208 | 7,052 | 8,378 | ||||||||
Interest expense | (37,779 | ) | (34,790 | ) | (24,598 | ) | |||||
Other (expense) income, net | (2,484 | ) | (38,678 | ) | 254 | ||||||
Total other income (expense), net | 21,856 | (66,416 | ) | (26,275 | ) | ||||||
Income before income taxes | 222,608 | 133,045 | 185,379 | ||||||||
Provision for income taxes | 71,354 | 46,417 | 60,488 | ||||||||
Net income | $ | 151,254 | $ | 86,628 | $ | 124,891 | |||||
Net income per basic share | $ | 1.23 | $ | 0.70 | $ | 1.01 | |||||
Net income per diluted share | $ | 1.13 | $ | 0.62 | $ | 0.87 | |||||
Shares used in calculating basic net income per share | 122,999 | 123,399 | 123,581 | ||||||||
Shares used in calculating diluted net income per share | 133,693 | 138,937 | 143,433 |
Years Ended | ||||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | ||||||||||
Net income | $ | 151,254 | $ | 86,628 | $ | 124,891 | ||||||
Unrealized gain (loss) on available-for-sale securities, net of deferred tax | 6 | 352 | (1,065 | ) | ||||||||
Total comprehensive income | $ | 151,260 | $ | 86,980 | $ | 123,826 |
Additional | Accumulated Other | Retained Earnings | Total | ||||||||||||||||||||||||||
Common Stock | Paid-In | Comprehensive | (Accumulated | Treasury Stock | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Capital | Income | Deficit) | Shares | Amount | Equity | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of January 3, 2010 | 143,544 | 1,436 | 1,637,751 | 2,830 | (280,226 | ) | (24,068 | ) | (497,543 | ) | 864,248 | ||||||||||||||||||
Net income | — | — | — | — | 124,891 | — | — | 124,891 | |||||||||||||||||||||
Unrealized loss on available-for-sale securities, net of deferred tax | — | — | — | (1,065 | ) | — | — | — | (1,065 | ) | |||||||||||||||||||
Issuance of common stock, net of repurchases | 7,969 | 80 | 117,965 | — | — | (836 | ) | (44,016 | ) | 74,029 | |||||||||||||||||||
Share-based compensation | — | — | 71,725 | — | — | — | — | 71,725 | |||||||||||||||||||||
Incremental tax benefit related to share-based compensation | — | — | 42,445 | — | — | — | — | 42,445 | |||||||||||||||||||||
Reclassification of conversion option subject to cash settlement | — | — | 21,402 | — | — | — | — | 21,402 | |||||||||||||||||||||
Balance as of January 2, 2011 | 151,513 | 1,516 | 1,891,288 | 1,765 | (155,335 | ) | (24,904 | ) | (541,559 | ) | 1,197,675 | ||||||||||||||||||
Net income | — | — | — | — | 86,628 | — | — | 86,628 | |||||||||||||||||||||
Unrealized gain on available-for-sale securities, net of deferred tax | — | — | — | 352 | — | — | — | 352 | |||||||||||||||||||||
Issuance of common stock, net of repurchases | 15,194 | 152 | 104,268 | — | — | (19,990 | ) | (572,207 | ) | (467,787 | ) | ||||||||||||||||||
Convertible note, equity portion, net of tax and issuance costs | — | — | 155,366 | — | — | — | — | 155,366 | |||||||||||||||||||||
Tax impact from the issuance of convertible debt | — | — | (59,427 | ) | — | — | — | — | (59,427 | ) | |||||||||||||||||||
Tax benefit related to conversions of convertible debt | — | — | 11,409 | — | — | — | — | 11,409 | |||||||||||||||||||||
Reclassification of conversion option subject to cash settlement | — | — | 7,667 | — | — | — | — | 7,667 | |||||||||||||||||||||
Share-based compensation | — | — | 92,153 | — | — | — | — | 92,153 | |||||||||||||||||||||
Net incremental tax benefit related to share-based compensation | — | — | 43,122 | — | — | — | — | 43,122 | |||||||||||||||||||||
Equity based contingent compensation | — | — | 3,457 | — | — | — | — | 3,457 | |||||||||||||||||||||
Issuance of treasury stock | — | — | 597 | — | — | 229 | 4,003 | 4,600 | |||||||||||||||||||||
Balance as of January 1, 2012 | 166,707 | $ | 1,668 | $ | 2,249,900 | $ | 2,117 | $ | (68,707 | ) | (44,665 | ) | $ | (1,109,763 | ) | $ | 1,075,215 | ||||||||||||
Net income | — | — | — | — | 151,254 | — | — | 151,254 | |||||||||||||||||||||
Unrealized gain on available-for-sale securities, net of deferred tax | — | — | — | 6 | — | — | — | 6 | |||||||||||||||||||||
Issuance of common stock, net of repurchases | 3,464 | 35 | 55,106 | — | — | (1,875 | ) | (83,306 | ) | (28,165 | ) | ||||||||||||||||||
Reclassification of conversion option subject to cash settlement | — | — | 2,565 | — | — | — | — | 2,565 | |||||||||||||||||||||
Share-based compensation | — | — | 94,385 | — | — | — | — | 94,385 | |||||||||||||||||||||
Net incremental tax benefit related to share-based compensation | — | — | 17,015 | — | — | — | — | 17,015 | |||||||||||||||||||||
Equity based contingent compensation | — | — | 6,306 | — | — | — | — | 6,306 | |||||||||||||||||||||
Issuance of treasury stock | — | — | (5,446 | ) | — | — | 312 | 5,446 | — | ||||||||||||||||||||
Balance as of December 30, 2012 | 170,171 | $ | 1,703 | $ | 2,419,831 | $ | 2,123 | $ | 82,547 | (46,228 | ) | $ | (1,187,623 | ) | $ | 1,318,581 |
ILLUMINA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | |||||||||||
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 151,254 | $ | 86,628 | $ | 124,891 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation expense | 48,249 | 55,575 | 34,204 | ||||||||
Amortization of acquired intangible assets | 15,541 | 12,689 | 7,805 | ||||||||
Share-based compensation expense | 94,324 | 92,092 | 71,645 | ||||||||
Accretion of debt discount | 35,004 | 32,173 | 21,407 | ||||||||
Cease-use loss | 22,367 | 23,638 | — | ||||||||
Contingent compensation expense | 6,306 | 3,457 | — | ||||||||
Incremental tax benefit related to share-based compensation | (20,783 | ) | (46,354 | ) | (42,445 | ) | |||||
Deferred income taxes | (21,698 | ) | 19,227 | 48,696 | |||||||
Change in fair value of contingent consideration | 1,975 | (4,500 | ) | (10,376 | ) | ||||||
Cost-method investment related (gain) loss, net | (45,911 | ) | — | 10,309 | |||||||
Recovery of previously impaired note receivable | (6,000 | ) | — | — | |||||||
Impairment of in-process research and development | 21,438 | — | — | ||||||||
Loss on extinguishment of debt | — | 37,611 | — | ||||||||
Other | 7,780 | 10,877 | 8,811 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (34,441 | ) | (7,011 | ) | (7,844 | ) | |||||
Inventory | (23,707 | ) | 22,152 | (48,583 | ) | ||||||
Prepaid expenses and other current assets | (3,062 | ) | (2,016 | ) | 2,554 | ||||||
Other assets | (2,903 | ) | (4,004 | ) | (3,566 | ) | |||||
Accounts payable | 15,112 | (21,097 | ) | 23,150 | |||||||
Accrued liabilities | 24,388 | 38,945 | 32,028 | ||||||||
Other long-term liabilities | 6,640 | 8,058 | (113 | ) | |||||||
Net cash provided by operating activities | 291,873 | 358,140 | 272,573 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of available-for-sale securities | (925,478 | ) | (1,310,269 | ) | (846,208 | ) | |||||
Sales of available-for-sale securities | 733,326 | 900,884 | 539,161 | ||||||||
Maturities of available-for-sale securities | 165,424 | 160,007 | 149,450 | ||||||||
Sales and maturities of trading securities | — | — | 54,900 | ||||||||
Net cash paid for acquisitions | (83,156 | ) | (58,302 | ) | (98,211 | ) | |||||
Purchases of strategic investments | (15,938 | ) | (13,769 | ) | (27,677 | ) | |||||
Purchases of property and equipment | (68,781 | ) | (77,800 | ) | (49,818 | ) | |||||
Cash paid for intangible assets | (12,228 | ) | (1,750 | ) | (6,650 | ) | |||||
Proceeds from sale of strategic investment | 50,819 | — | — | ||||||||
Recovery of previously impaired note receivable | 6,000 | — | — | ||||||||
Net cash used in investing activities | (150,012 | ) | (400,999 | ) | (285,053 | ) | |||||
Cash flows from financing activities: | |||||||||||
Payments on current portion of long-term debt | — | (349,874 | ) | — | |||||||
Payments on acquisition related contingent consideration liability | (3,374 | ) | — | — | |||||||
Proceeds from issuance of convertible notes | — | 903,492 | — | ||||||||
Incremental tax benefit related to share-based compensation | 20,783 | 46,354 | 42,445 | ||||||||
Common stock repurchases | (82,522 | ) | (570,406 | ) | (44,016 | ) | |||||
Proceeds from the exercise of warrants | — | 5,512 | 16,029 | ||||||||
Proceeds from issuance of common stock | 54,358 | 61,938 | 102,016 | ||||||||
Net cash (used in) provided by financing activities | (10,755 | ) | 97,016 | 116,474 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (103 | ) | (126 | ) | 320 | ||||||
Net increase in cash and cash equivalents | 131,003 | 54,031 | 104,314 | ||||||||
Cash and cash equivalents at beginning of year | 302,978 | 248,947 | 144,633 | ||||||||
Cash and cash equivalents at end of year | $ | 433,981 | $ | 302,978 | $ | 248,947 | |||||
ILLUMINA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued) (In thousands) | |||||||||||
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 2,551 | $ | 2,481 | $ | 2,437 | |||||
Cash paid for income taxes | $ | 74,037 | $ | 9,806 | $ | 31,566 | |||||
Unsettled short-term investments purchase | $ | 9,154 | $ | — | $ | — |
Years Ended | ||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | ||||||
Weighted average shares outstanding | 122,999 | 123,399 | 123,581 | |||||
Effect of dilutive potential common shares from: | ||||||||
Convertible senior notes | 967 | 3,783 | 9,058 | |||||
Equity awards | 3,906 | 4,703 | 4,674 | |||||
Warrants sold in connection with convertible senior notes | 5,821 | 7,052 | 5,317 | |||||
Warrants assumed in a prior acquisition | — | — | 803 | |||||
Weighted average shares used in calculating diluted net income per share | 133,693 | 138,937 | 143,433 | |||||
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 2,556 | 2,418 | 1,934 |
December 30, 2012 | January 1, 2012 | ||||||
Foreign currency translation adjustments | $ | 1,289 | $ | 1,289 | |||
Unrealized gain on available-for-sale securities, net of deferred tax | 834 | 828 | |||||
Total accumulated other comprehensive income | $ | 2,123 | $ | 2,117 |
Balance Sheet Account Details |
December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||
Debt securities in government-sponsored entities | $ | 314,638 | $ | 251 | $ | (16 | ) | $ | 314,873 | $ | 393,759 | $ | 428 | $ | (148 | ) | $ | 394,039 | |||||||||||||
Corporate debt securities | 471,989 | 1,059 | (187 | ) | 472,861 | 432,550 | 1,293 | (461 | ) | 433,382 | |||||||||||||||||||||
U.S. treasury securities | 128,256 | 233 | — | 128,489 | 58,955 | 214 | — | 59,169 | |||||||||||||||||||||||
Total available-for-sale securities | $ | 914,883 | $ | 1,543 | $ | (203 | ) | $ | 916,223 | $ | 885,264 | $ | 1,935 | $ | (609 | ) | $ | 886,590 |
December 30, 2012 | January 1, 2012 | ||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||
Debt securities in government-sponsored entities | $ | 28,176 | $ | (16 | ) | $ | 133,904 | $ | (148 | ) | |||||
Corporate debt securities | 130,224 | (187 | ) | 138,326 | (461 | ) | |||||||||
Total | $ | 158,400 | $ | (203 | ) | $ | 272,230 | $ | (609 | ) |
Estimated Fair Value | |||
Due within one year | $ | 328,991 | |
After one but within five years | 587,232 | ||
Total | $ | 916,223 |
December 30, 2012 | January 1, 2012 | ||||||
Accounts receivable from product and service sales | $ | 217,369 | $ | 175,226 | |||
Other receivables | 1,886 | 2,657 | |||||
Total accounts receivable, gross | 219,255 | 177,883 | |||||
Allowance for doubtful accounts | (4,280 | ) | (3,997 | ) | |||
Total accounts receivable, net | $ | 214,975 | $ | 173,886 |
December��30, 2012 | January 1, 2012 | ||||||
Raw materials | $ | 61,665 | $ | 58,340 | |||
Work in process | 75,675 | 53,412 | |||||
Finished goods | 21,378 | 17,029 | |||||
Total inventory | $ | 158,718 | $ | 128,781 |
December 30, 2012 | January 1, 2012 | ||||||
Leasehold improvements | $ | 87,734 | $ | 63,406 | |||
Machinery and equipment | 158,112 | 143,816 | |||||
Computer hardware and software | 58,313 | 54,826 | |||||
Furniture and fixtures | 8,022 | 8,095 | |||||
Construction in progress | 7,390 | 10,022 | |||||
Total property and equipment, gross | 319,571 | 280,165 | |||||
Accumulated depreciation | (153,404 | ) | (136,682 | ) | |||
Total property and equipment, net | $ | 166,167 | $ | 143,483 |
December 30, 2012 | January 1, 2012 | ||||||
Accrued compensation expenses | $ | 59,864 | $ | 52,035 | |||
Deferred revenue, current portion | 55,817 | 52,573 | |||||
Accrued taxes payable | 23,021 | 19,339 | |||||
Customer deposits | 13,765 | 17,958 | |||||
Reserve for product warranties | 10,136 | 11,966 | |||||
Acquisition related contingent consideration liability, current portion | 9,490 | 2,335 | |||||
Unsettled short-term investment purchase | 9,154 | — | |||||
Facility exit obligation, current portion | 8,063 | 4,408 | |||||
Accrued royalties | 2,836 | 5,682 | |||||
Other accrued expenses | 9,731 | 10,819 | |||||
Total accrued liabilities | $ | 201,877 | $ | 177,115 |
3. | Restructuring Activities |
Employee Separation costs | Facilities Exit Costs | Other Costs | Total | ||||||||||||
Amount recorded in accrued liabilities as of January 1, 2012 | $ | 3,496 | $ | — | $ | 30 | $ | 3,526 | |||||||
Additional expenses | 2,780 | 221 | 521 | 3,522 | |||||||||||
Cash payments | (6,276 | ) | (221 | ) | (551 | ) | (7,048 | ) | |||||||
Amount recorded in accrued liabilities as of December 30, 2012 | $ | — | $ | — | $ | — | $ | — | |||||||
Cumulative expense recorded since inception in restructuring expense | $ | 10,463 | $ | 221 | $ | 974 | $ | 11,658 | |||||||
Estimated total restructuring costs to be incurred | $ | 10,463 | $ | 221 | $ | 974 | $ | 11,658 |
4. | Acquisitions |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Contingent compensation expense, included in research and development expense | $ | 3,419 | $ | 4,799 | $ | 3,675 | |||||
Contingent compensation expense, included in selling, general and administrative expense | 5,732 | 1,258 | — | ||||||||
Total contingent compensation expense | $ | 9,151 | $ | 6,057 | $ | 3,675 | |||||
IPR&D, included in acquisition related expense (gain), net | $ | — | $ | 5,425 | $ | 1,325 |
5. | Intangible Assets |
December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||||||
Weighted Average Useful Life (years) | Gross Carrying Amount | Accumulated Amortization | Intangibles, Net | Weighted Average Useful Life (years) | Gross Carrying Amount | Accumulated Amortization | Intangibles, Net | ||||||||||||||||||||
Intangible assets with finite useful lives: | |||||||||||||||||||||||||||
Licensed technologies | 6.6 | $ | 46,904 | $ | (25,271 | ) | $ | 21,633 | 8.0 | $ | 36,000 | $ | (20,000 | ) | $ | 16,000 | |||||||||||
Core technologies | 8.8 | 99,800 | (27,427 | ) | 72,373 | 9.7 | 74,800 | (18,544 | ) | 56,256 | |||||||||||||||||
Customer relationships | 5.0 | 18,780 | (2,214 | ) | 16,566 | 3.0 | 1,980 | (1,253 | ) | 727 | |||||||||||||||||
License agreements | 7.8 | 14,829 | (4,133 | ) | 10,696 | 8.9 | 12,404 | (2,605 | ) | 9,799 | |||||||||||||||||
Trade name | 10.0 | 9,600 | (672 | ) | 8,928 | 10.0 | 2,500 | (245 | ) | 2,255 | |||||||||||||||||
Indefinitely-lived Intangible Asset: | |||||||||||||||||||||||||||
In-process research & development | — | — | — | 21,438 | — | 21,438 | |||||||||||||||||||||
Total intangible assets, net | $ | 189,913 | $ | (59,717 | ) | $ | 130,196 | $ | 149,122 | $ | (42,647 | ) | $ | 106,475 |
2013 | $ | 24,644 | |
2014 | 23,860 | ||
2015 | 23,414 | ||
2016 | 18,715 | ||
2017 | 14,612 | ||
Thereafter | 24,951 | ||
Total | $ | 130,196 |
6. | Fair Value Measurements |
December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Money market funds (cash equivalent) | $ | 252,126 | $ | — | $ | — | $ | 252,126 | $ | 166,898 | $ | — | $ | — | $ | 166,898 | |||||||||||||||
Debt securities in government-sponsored entities | — | 314,873 | — | 314,873 | — | 394,039 | — | 394,039 | |||||||||||||||||||||||
Corporate debt securities | — | 472,861 | — | 472,861 | — | 433,382 | — | 433,382 | |||||||||||||||||||||||
U.S. Treasury securities | 128,489 | — | — | 128,489 | 59,169 | — | — | 59,169 | |||||||||||||||||||||||
Deferred compensation plan assets | — | 13,626 | — | 13,626 | — | 10,800 | — | 10,800 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 380,615 | $ | 801,360 | $ | — | $ | 1,181,975 | $ | 226,067 | $ | 838,221 | $ | — | $ | 1,064,288 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Acquisition related contingent consideration liabilities | $ | — | $ | — | $ | 12,519 | $ | 12,519 | $ | — | $ | — | $ | 6,638 | $ | 6,638 | |||||||||||||||
Deferred compensation liability | — | 12,071 | — | 12,071 | — | 8,970 | — | 8,970 | |||||||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | 12,071 | $ | 12,519 | $ | 24,590 | $ | — | $ | 8,970 | $ | 6,638 | $ | 15,608 |
Contingent Consideration Liability (Level 3 Measurement) | |||
Balance as of January 3, 2010 | $ | — | |
Acquisition of Helixis | 14,114 | ||
Gain recorded in acquisition related expense (gain), net | (10,376 | ) | |
Balance as of January 2, 2011 | $ | 3,738 | |
Acquisition of Epicentre | 7,400 | ||
Gain recorded in acquisition related expense (gain), net | (4,500 | ) | |
Balance as of January 1, 2012 | $ | 6,638 | |
Acquisition of BlueGnome | 7,500 | ||
Expense recorded in acquisition related expense (gain), net | 1,975 | ||
Cash payments | (3,594 | ) | |
Balance as of December 30, 2012 | $ | 12,519 |
7. | Convertible Senior Notes |
December 30, 2012 | January 1, 2012 | |||||||||||||||
2016 Notes | 2014 Notes | 2016 Notes | 2014 Notes | |||||||||||||
Principal amount of convertible notes outstanding | $ | 920,000 | $ | 40,125 | $ | 920,000 | $ | 40,125 | ||||||||
Unamortized discount of liability component | (114,594 | ) | (3,158 | ) | (147,034 | ) | (5,722 | ) | ||||||||
Net carrying amount of liability component | 805,406 | 36,967 | 772,966 | 34,403 | ||||||||||||
Less: current portion | — | (36,967 | ) | — | — | |||||||||||
Long-term debt | $ | 805,406 | $ | — | $ | 772,966 | $ | 34,403 | ||||||||
Conversion option subject to cash settlement | $ | — | $ | 3,158 | $ | — | $ | 5,722 | ||||||||
Carrying value of equity component, net of issuance costs | $ | 155,366 | $ | 111,470 | $ | 155,366 | $ | 114,035 | ||||||||
Fair value of outstanding notes | $ | 892,446 | $ | 101,470 | $ | 725,632 | $ | 60,122 | ||||||||
Remaining amortization period of discount on the liability component | 3.2 years | 1.1 years | 4.2 years | 2.1 years |
Years Ended | ||||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | ||||||||||
Contractual coupon interest expense | $ | 2,472 | $ | 2,285 | $ | 2,390 | ||||||
Accretion of discount on the liability component | $ | 35,004 | $ | 32,173 | $ | 21,407 |
8. | Commitments |
2013 | $ | 27,676 | |
2014 | 23,970 | ||
2015 | 23,197 | ||
2016 | 23,416 | ||
2017 | 23,860 | ||
Thereafter | 393,088 | ||
Total | $ | 515,207 |
Balance as of January 1, 2012: | $ | 25,049 | |
Additional facility exit obligation recorded | 24,878 | ||
Accretion of interest expense | 2,129 | ||
Cash payments | (6,704 | ) | |
Balance as of December 30, 2012 | $ | 45,352 |
Balance as of January 3, 2010 | $ | 10,215 | |
Additions charged to cost of revenue | 25,146 | ||
Repairs and replacements | (18,600 | ) | |
Balance as of January 2, 2011 | 16,761 | ||
Additions charged to cost of revenue | 17,913 | ||
Repairs and replacements | (22,708 | ) | |
Balance as of January 1, 2012 | 11,966 | ||
Additions charged to cost of revenue | 17,279 | ||
Repairs and replacements | (19,109 | ) | |
Balance as of December 30, 2012 | $ | 10,136 |
9. | Share-based Compensation Expense |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Cost of product revenue | $ | 7,575 | $ | 6,951 | $ | 5,378 | |||||
Cost of service and other revenue | 461 | 695 | 470 | ||||||||
Research and development | 30,879 | 32,105 | 25,428 | ||||||||
Selling, general and administrative | 55,409 | 52,341 | 40,369 | ||||||||
Share-based compensation expense before taxes | 94,324 | 92,092 | 71,645 | ||||||||
Related income tax benefits | (30,759 | ) | (32,168 | ) | (25,231 | ) | |||||
Share-based compensation expense, net of taxes | $ | 63,565 | $ | 59,924 | $ | 46,414 |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Stock options granted: | |||||||||||
Risk-free interest rate | 0.56 - 0.93% | 0.85 - 2.23% | 2.05 - 2.73% | ||||||||
Expected volatility | 41 - 48% | 41 - 53% | 46 - 48% | ||||||||
Expected term | 4.0 - 6.6 years | 4.7 - 5.5 years | 6.0 years | ||||||||
Expected dividends | — | — | — | ||||||||
Weighted average fair value per share | $ | 15.47 | $ | 27.47 | $ | 18.82 | |||||
Stock purchased under the ESPP: | |||||||||||
Risk-free interest rate | 0.09 - 0.17% | 0.16 - 0.30% | 0.17 - 0.48% | ||||||||
Expected volatility | 33 - 64% | 43 - 48% | 46 - 48% | ||||||||
Expected term | 0.5 - 1.0 year | 0.5 - 1.0 year | 0.5 - 1.0 year | ||||||||
Expected dividends | — | — | — | ||||||||
Weighted average fair value per share | $ | 16.45 | $ | 20.08 | $ | 11.10 |
10. | Stockholders’ Equity |
Options (in thousands) | Weighted- Average Exercise Price | |||||
Outstanding at January 3, 2010 | 16,089 | $ | 18.59 | |||
Granted | 2,045 | 39.11 | ||||
Exercised | (5,541 | ) | 16.65 | |||
Cancelled | (711 | ) | 21.76 | |||
Outstanding at January 2, 2011 | 11,882 | 22.83 | ||||
Granted | 1,399 | 64.98 | ||||
Exercised | (2,784 | ) | 17.98 | |||
Cancelled | (119 | ) | 33.49 | |||
Outstanding at January 1, 2012 | 10,378 | 29.69 | ||||
Granted | 251 | 40.79 | ||||
Exercised | (2,071 | ) | 20.34 | |||
Cancelled | (207 | ) | 39.18 | |||
Outstanding at December 30, 2012 | 8,351 | $ | 32.10 |
Restricted Stock (in thousands) | Weighted Average Grant-Date Fair Value per Share | |||||
Outstanding at January 3, 2010 | 2,509 | $ | 32.45 | |||
Awarded | 1,353 | 50.74 | ||||
Vested | (510 | ) | 32.10 | |||
Cancelled | (243 | ) | 33.36 | |||
Outstanding at January 2, 2011 | 3,109 | 40.39 | ||||
Awarded | 1,780 | 45.10 | ||||
Vested | (827 | ) | 36.47 | |||
Cancelled | (356 | ) | 42.15 | |||
Outstanding at January 1, 2012 | 3,706 | 43.36 | ||||
Awarded | 1,952 | 48.42 | ||||
Vested | (1,139 | ) | 40.33 | |||
Cancelled | (394 | ) | 45.05 | |||
Outstanding at December 30, 2012 | 4,125 | $ | 46.43 |
11. | Legal Proceedings |
12. | Unsolicited Tender Offer |
13. | Income Taxes |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
United States | $ | 102,296 | $ | (7,100 | ) | $ | 109,068 | ||||
Foreign | 120,312 | 140,145 | 76,311 | ||||||||
Total income before income taxes | $ | 222,608 | $ | 133,045 | $ | 185,379 |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 57,285 | $ | 43,161 | $ | 39,476 | |||||
State | 10,121 | 3,958 | 8,607 | ||||||||
Foreign | 31,504 | 24,154 | 6,330 | ||||||||
Total current provision | 98,910 | 71,273 | 54,413 | ||||||||
Deferred: | |||||||||||
Federal | (7,724 | ) | (22,738 | ) | 6,557 | ||||||
State | (7,708 | ) | (8,050 | ) | (6,808 | ) | |||||
Foreign | (12,124 | ) | 5,932 | 6,326 | |||||||
Total deferred (benefit) provision | (27,556 | ) | (24,856 | ) | 6,075 | ||||||
Total tax provision | $ | 71,354 | $ | 46,417 | $ | 60,488 |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Tax at federal statutory rate | $ | 77,913 | $ | 46,566 | $ | 64,881 | |||||
State, net of federal benefit | 4,056 | (49 | ) | 6,231 | |||||||
Research and other credits | (2,766 | ) | (6,774 | ) | (5,859 | ) | |||||
Acquired in-process research & development | 137 | 1,989 | 517 | ||||||||
Change in valuation allowance | (37 | ) | (688 | ) | (9,497 | ) | |||||
Permanent differences | 2,380 | 1,668 | 1,397 | ||||||||
Change in fair value of contingent consideration | — | (1,311 | ) | (3,632 | ) | ||||||
Impact of foreign operations | (10,644 | ) | 5,579 | 7,597 | |||||||
Other | 315 | (563 | ) | (1,147 | ) | ||||||
Total tax provision | $ | 71,354 | $ | 46,417 | $ | 60,488 |
December 30, 2012 | January 1, 2012 | ||||||
Deferred tax assets: | |||||||
Net operating losses | $ | 2,564 | $ | 4,981 | |||
Tax credits | 16,447 | 16,647 | |||||
Other accruals and reserves | 47,306 | 22,411 | |||||
Stock compensation | 39,175 | 33,811 | |||||
Inventory adjustments | 8,977 | 16,469 | |||||
Impairment of cost-method investment | 1,406 | 4,972 | |||||
Other amortization | 5,195 | 4,521 | |||||
Other | 13,469 | 8,861 | |||||
Total gross deferred tax assets | 134,539 | 112,673 | |||||
Valuation allowance on deferred tax assets | (1,756 | ) | (1,799 | ) | |||
Total deferred tax assets | 132,783 | 110,874 | |||||
Deferred tax liabilities: | |||||||
Purchased intangible amortization | (20,116 | ) | (19,760 | ) | |||
Convertible debt | (38,910 | ) | (49,404 | ) | |||
Property and equipment | (10,867 | ) | (4,369 | ) | |||
Other | (6,682 | ) | (7,953 | ) | |||
Total deferred tax liabilities | (76,575 | ) | (81,486 | ) | |||
Net deferred tax assets | $ | 56,208 | $ | 29,388 |
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
Balance at beginning of year | $ | 28,396 | $ | 22,729 | $ | 11,760 | |||||
Increases related to prior year tax positions | 2,573 | 875 | 5,066 | ||||||||
Decreases related to prior year tax positions | (69 | ) | (382 | ) | — | ||||||
Increases related to current year tax positions | 6,685 | 5,174 | 5,903 | ||||||||
Balance at end of year | $ | 37,585 | $ | 28,396 | $ | 22,729 |
14. | Employee Benefit Plans |
15. | Segment Information, Geographic Data, and Significant Customers |
Years Ended | |||||||||||
December 30, 2012 | January 1, 2012 | January 2, 2011 | |||||||||
United States | $ | 568,443 | $ | 528,723 | $ | 498,981 | |||||
United Kingdom | 81,678 | 67,578 | 60,521 | ||||||||
Other European countries | 209,726 | 210,393 | 163,062 | ||||||||
Asia-Pacific | 232,498 | 197,005 | 143,441 | ||||||||
Other markets | 56,171 | 51,836 | 36,736 | ||||||||
Total | $ | 1,148,516 | $ | 1,055,535 | $ | 902,741 |
December 30, 2012 | January 1, 2012 | ||||||
United States | $ | 126,749 | $ | 94,624 | |||
United Kingdom | 21,740 | 22,642 | |||||
Singapore | 12,504 | 14,673 | |||||
Other countries | 5,174 | 11,544 | |||||
Total | $ | 166,167 | $ | 143,483 |
16. | Quarterly Financial Information (unaudited) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
2012: | |||||||||||||||
Total revenue | $ | 272,770 | $ | 280,607 | $ | 285,874 | $ | 309,265 | |||||||
Gross profit | 181,011 | 192,997 | 195,873 | 203,647 | |||||||||||
Net income | 26,202 | 23,401 | 29,748 | 71,903 | |||||||||||
Net income per share, basic | 0.21 | 0.19 | 0.24 | 0.58 | |||||||||||
Net income per share, diluted | 0.20 | 0.18 | 0.22 | 0.53 | |||||||||||
2011: | |||||||||||||||
Total revenue | $ | 282,515 | $ | 287,450 | $ | 235,499 | $ | 250,071 | |||||||
Gross profit | 188,041 | 193,356 | 157,115 | 170,586 | |||||||||||
Net income | 24,137 | 30,620 | 20,151 | 11,720 | |||||||||||
Net income per share, basic | 0.19 | 0.25 | 0.17 | 0.10 | |||||||||||
Net income per share, diluted | 0.16 | 0.22 | 0.15 | 0.09 |
17. | Subsequent Event |
ITEM 9A. | Controls and Procedures. |
47
48
49
Other Information. |
Directors, Executive Officers, and Corporate Governance. |
Executive Compensation. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
50
Certain Relationships and Related Transactions, and Director Independence. |
Principal Accountant Fees and Services. |
Exhibits, Financial Statement Schedules. |
Balance at Beginning of Period | Additions Charged to Expense/ Revenue(1) | Deductions(2) | Balance at End of Period | ||||||||||
(In thousands) | |||||||||||||
Year ended December 30, 2012 | |||||||||||||
Allowance for doubtful accounts | $ | 3,997 | 2,191 | (1,908 | ) | $ | 4,280 | ||||||
Year ended January 1, 2012 | |||||||||||||
Allowance for doubtful accounts | $ | 1,686 | 4,201 | (1,890 | ) | $ | 3,997 | ||||||
Year ended January 2, 2011 | |||||||||||||
Allowance for doubtful accounts | $ | 1,398 | 341 | (53 | ) | $ | 1,686 |
(1) | Additions to the allowance for doubtful accounts are charged to selling, general and administrative expense. |
accounts receivable written off. |
INDEX TO EXHIBITS | |||||||||||||
Incorporated by Reference | |||||||||||||
Exhibit | Filing | Filed | |||||||||||
Number | Exhibit Description | Form | File Number | Exhibit | Date | Herewith | |||||||
2.1 | Agreement and Plan of Merger by and among Illumina, Inc., TP Corporation, Verinata Health, Inc. and Shareholder Representative Services LLC (as the Stockholder Representative), dated as of January 6, 2013 | X | |||||||||||
3.1 | Amended and Restated Certificate of Incorporation | 8-K | 000-30361 | 3.1 | 9/23/2008 | ||||||||
3.2 | Amended and Restated Bylaws | 8-K | 000-30361 | 3.2 | 4/27/2010 | ||||||||
3.3 | Certificate of Designations of Series A Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on January 26, 2012 | 8-K | 000-30361 | 3.1 | 1/26/2012 | ||||||||
4.1 | Specimen Common Stock Certificate | S-1/A | 333-33922 | 4.1 | 7/3/2000 | ||||||||
4.2 | Rights Agreement, dated as of January 26, 2012, between Illumina, Inc. and Computershare Trust Company, N.A., as Rights Agent | 8-K | 000-30361 | 4.1 | 1/26/2012 | ||||||||
4.3 | Indenture related to the 0.625% Convertible Senior Notes due 2014, dated as of February 16, 2007, between Illumina and The Bank of New York, as trustee | 8-K | 000-30361 | 4.1 | 2/16/2007 | ||||||||
4.4 | Indenture related to the 0.25% Convertible Senior Notes due 2016, dated as of March 18, 2011, between Illumina and The Bank of New York Mellon Trust Company, N.A., as trustee | 10-Q | 000-30361 | 4.1 | 5/4/2011 | ||||||||
+10.1 | Form of Indemnification Agreement between Illumina and each of its directors and executive officers | 10-Q | 000-30361 | 10.55 | 7/25/2008 | ||||||||
+10.2 | Amended and Restated Change in Control Severance Agreement between Illumina and Jay T Flatley, dated October 22, 2008 | 10-K | 000-30361 | 10.33 | 2/26/2009 | ||||||||
+10.3 | Form of Change in Control Severance Agreement between Illumina and each of its executive officers | 10-K | 000-30361 | 10.34 | 2/26/2009 | ||||||||
+10.4 | 2000 Employee Stock Purchase Plan, as amended and restated through February 2, 2012 | 10-K | 000-30361 | 10.4 | 2/24/2012 | ||||||||
+10.5 | 2005 Stock and Incentive Plan, as amended and restated through April 22, 2010 | S-8 | 333-168393 | 4.5 | 7/29/2010 | ||||||||
+10.6 | Form of Restricted Stock Unit Agreement for Non-Employee Directors under 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10.6 | 2/24/2012 | ||||||||
+10.7 | Form of Stock Option Agreement for Non-Employee Directors under 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10.7 | 2/24/2012 | ||||||||
+10.8 | Form of Restricted Stock Unit Agreement for Employees under 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10.8 | 2/24/2012 |
Incorporated by Reference | ||||||||||||||||
Exhibit | Filing | Filed | ||||||||||||||
Number | Exhibit Description | Form | File Number | Exhibit | Date | Herewith | ||||||||||
3 | .1 | Amended and Restated Certificate of Incorporation | 8-K | 000-30361 | 3 | .1 | 09/23/08 | |||||||||
3 | .2 | Amended and Restated Bylaws | 8-K | 000-30361 | 3 | .2 | 04/29/09 | |||||||||
3 | .3 | Certificate of Designation for Series A Junior Participating Preferred Stock (included as Exhibit A to exhibit 4.3) | 8-A | 000-30361 | 4 | .3 | 05/14/01 | |||||||||
4 | .1 | Specimen Common Stock Certificate | S-1/A | 333-33922 | 4 | .1 | 07/03/00 | |||||||||
4 | .2 | Rights Agreement, dated as of May 3, 2001, between Illumina and Equiserve Trust Company, N.A. | 8-A | 000-30361 | 4 | .3 | 05/14/01 |
51
INDEX TO EXHIBITS — (Continued) | |||||||||||||
+10.9 | Form of Stock Option Agreement for Employees under 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10.9 | 2/24/2012 | ||||||||
+10.10 | New Hire Stock and Incentive Plan, as amended and restated through October 28, 2009 | 10-K | 000-30361 | 10.7 | 2/26/2010 | ||||||||
10.11 | License Agreement, effective as of May 6, 1998, between Tufts University and Illumina | 10-Q | 000-30361 | 10.5 | 5/3/2007 | ||||||||
+10.12 | The Solexa Unapproved Company Share Option Plan | 8-K | 000-30361 | 99.3 | 11/26/2007 | ||||||||
+10.13 | The Solexa Share Option Plan for Consultants | 8-K | 000-30361 | 99.4 | 11/26/2007 | ||||||||
+10.14 | Solexa Limited Enterprise Management Incentive Plan | 8-K | 000-30361 | 99.5 | 11/26/2007 | ||||||||
+10.15 | Amended and Restated Solexa 2005 Equity Incentive Plan | 10-K | 000-30361 | 10.25 | 2/26/2009 | ||||||||
+10.16 | Amended and Restated Solexa 1992 Stock Option Plan | 10-K | 000-30361 | 10.26 | 2/26/2009 | ||||||||
10.17 | License Agreement, dated June 24, 2002, between Dade Behring Marburg GmbH and Illumina (with certain confidential portions omitted) | S-3/A | 333-111496 | 10.23 | 3/2/2004 | ||||||||
10.18 | Non-exclusive License Agreement, dated January 24, 2002, between Amersham Biosciences Corp. and Illumina (with certain confidential portions omitted) | S-3/A | 333-111496 | 10.24 | 3/2/2004 | ||||||||
10.19 | Amended and Restated Lease between BMR-9885 Towne Centre Drive LLC and Illumina for the 9885 Towne Centre Drive property, dated January 26, 2007 | 10-Q | 000-30361 | 10.41 | 5/3/2007 | ||||||||
10.20 | Settlement and Cross License Agreement dated August 18, 2004 between Applera Corporation and Illumina (with certain confidential portions omitted) | 10-Q | 000-30361 | 10.27 | 11/12/2004 | ||||||||
10.21 | Collaboration Agreement, dated December 17, 2004, between Invitrogen Corporation and Illumina (with certain confidential portions omitted) | 10-K | 000-30361 | 10.28 | 3/8/2005 | ||||||||
10.22 | Joint Development and Licensing Agreement, dated May 15, 2006, between deCODE genetics, ehf. and Illumina (with certain confidential portions omitted) | 10-Q | 000-30361 | 10.32 | 8/2/2006 | ||||||||
10.23 | Lease between BMR-9885 Towne Centre Drive LLC and Illumina for the 9865 Towne Centre Drive property, dated January 26, 2007 | 10-Q | 000-30361 | 10.42 | 5/3/2007 | ||||||||
10.24 | Settlement and Release Agreement between Affymetrix, Inc. and Illumina, dated January 9, 2008 | 10-K | 000-30361 | 10.44 | 2/26/2008 | ||||||||
10.25 | Confirmation of Convertible Bond Hedge Transaction, dated February 12, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10.1 | 2/16/2007 | ||||||||
10.26 | Confirmation of Convertible Bond Hedge Transaction, dated February 12, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10.2 | 2/16/2007 |
INDEX TO EXHIBITS — (Continued) | |||||||||||||
10.27 | Confirmation Issuer Warrant Transaction, dated February 12, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10.3 | 2/16/2007 | ||||||||
10.28 | Confirmation Issuer Warrant Transaction, dated February 12, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10.4 | 2/16/2007 | ||||||||
10.29 | Amendment to the Confirmation of Issuer Warrant Transaction, dated February 13, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10.5 | 2/16/2007 | ||||||||
10.30 | Amendment to the Confirmation of Issuer Warrant Transaction, dated February 13, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10.6 | 2/16/2007 | ||||||||
10.31 | Amended and Restated Lease Agreement, dated March 27, 2012, between ARE-SD Region No. 32, LLC and Illumina | 10-Q | 000-30361 | 10.1 | 5/3/2012 | ||||||||
+10.32 | Deferred Compensation Plan, effective December 1, 2007 | 14D-9 | 005-60457 | 99(e)(6) | 2/7/2012 | ||||||||
21.1 | Subsidiaries of Illumina | X | |||||||||||
23.1 | Consent of Independent Registered Public Accounting Firm | X | |||||||||||
24.1 | Power of Attorney (included on the signature page) | X | |||||||||||
31.1 | Certification of Jay T. Flatley pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
31.2 | Certification of Marc A. Stapley pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
32.1 | Certification of Jay T. Flatley pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
32.2 | Certification of Marc A. Stapley pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||
101.INS | XBRL Instance Document | X | |||||||||||
101.SCH | XBRL Taxonomy Extension Schema | X | |||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | X | |||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | X | |||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | X | |||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | X |
Incorporated by Reference | ||||||||||||||||
Exhibit | Filing | Filed | ||||||||||||||
Number | Exhibit Description | Form | File Number | Exhibit | Date | Herewith | ||||||||||
4 | .3 | Indenture related to the 0.625% Convertible Senior Notes due 2014, dated as of February 16, 2007, between Illumina and The Bank of New York, as trustee | 8-K | 000-30361 | 4 | .1 | 02/16/07 | |||||||||
+10 | .1 | Form of Indemnification Agreement between Illumina and each of its directors and officers | S-1/A | 333-33922 | 10 | .1 | 07/03/00 | |||||||||
+10 | .2 | 1998 Incentive Stock Plan | S-1/A | 333-33922 | 10 | .2 | 07/03/00 | |||||||||
+10 | .3 | 2000 Employee Stock Purchase Plan, as amended and restated through October 28, 2009 | X | |||||||||||||
+10 | .4 | 2000 Stock Plan, as amended and restated through March 21, 2002 | 10-Q | 000-30361 | 10 | .22 | 05/13/02 | |||||||||
+10 | .5 | 2005 Stock and Incentive Plan, as amended and restated through October 28, 2009 | X | |||||||||||||
+10 | .6 | Form of Restricted Stock Unit Agreement for Non-Employee Directors under 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10 | .35 | 02/26/09 | |||||||||
+10 | .7 | New Hire Stock and Incentive Plan, as amended and restated through October 28, 2009 | X | |||||||||||||
10 | .8 | License Agreement, effective as of May 6, 1998, between Tufts University and Illumina | 10-Q | 000-30361 | 10 | .5 | 05/03/07 | |||||||||
+10 | .9 | The Solexa Unapproved Company Share Option Plan | 8-K | 000-30361 | 99 | .3 | 11/26/07 | |||||||||
+10 | .10 | The Solexa Share Option Plan for Consultants | 8-K | 000-30361 | 99 | .4 | 11/26/07 | |||||||||
+10 | .11 | Solexa Limited Enterprise Management Incentive Plan | 8-K | 000-30361 | 99 | .5 | 11/26/07 | |||||||||
+10 | .12 | Amended and Restated Solexa 2005 Equity Incentive Plan | 10-K | 000-30361 | 10 | .25 | 02/26/09 | |||||||||
+10 | .13 | Amended and Restated Solexa 1992 Stock Option Plan | 10-K | 000-30361 | 10 | .26 | 02/26/09 | |||||||||
10 | .14 | License Agreement, dated June 24, 2002, between Dade Behring Marburg GmbH and Illumina (with certain confidential portions omitted) | S-3/A | 333-111496 | 10 | .23 | 03/02/04 | |||||||||
10 | .15 | Non-exclusive License Agreement, dated January 24, 2002, between Amersham Biosciences Corp. and Illumina (with certain confidential portions omitted) | S-3/A | 333-111496 | 10 | .24 | 03/02/04 | |||||||||
10 | .16 | Amended and Restated Lease between BMR-9885 Towne Centre Drive LLC and Illumina for the 9885 Towne Centre Drive property, dated January 26, 2007 | 10-Q | 000-30361 | 10 | .41 | 05/03/07 | |||||||||
10 | .17 | Settlement and Cross License Agreement dated August 18, 2004 between Applera Corporation and Illumina (with certain confidential portions omitted) | 10-Q | 000-30361 | 10 | .27 | 11/12/04 | |||||||||
10 | .18 | Collaboration Agreement, dated December 17, 2004, between Invitrogen Corporation and Illumina (with certain confidential portions omitted) | 10-K | 000-30361 | 10 | .28 | 03/08/05 |
52
Incorporated by Reference | ||||||||||||||||
Exhibit | Filing | Filed | ||||||||||||||
Number | Exhibit Description | Form | File Number | Exhibit | Date | Herewith | ||||||||||
+10 | .19 | Offer letter for Christian O. Henry dated April 26, 2005 | 10-Q | 000-30361 | 10 | .33 | 08/08/05 | |||||||||
10 | .20 | Joint Development and Licensing Agreement, dated May 15, 2006, between deCODE genetics, ehf. and Illumina (with certain confidential portions omitted) | 10-Q | 000-30361 | 10 | .32 | 08/02/06 | |||||||||
+10 | .21 | Amended and Restated Change in Control Severance Agreement between Illumina and Jay T Flatley, dated October 22, 2008 | 10-K | 000-30361 | 10 | .33 | 02/26/09 | |||||||||
+10 | .22 | Form of Amended and Restated Change in Control Severance Agreement between Illumina and its executive officers | 10-K | 000-30361 | 10 | .34 | 02/26/09 | |||||||||
+10 | .23 | Form of Restricted Stock Unit Agreement for Non-Employee Directors under Illumina’s 2005 Stock and Incentive Plan | 10-K | 000-30361 | 10 | .35 | 02/26/09 | |||||||||
10 | .24 | Lease between BMR-9885 Towne Centre Drive LLC and Illumina for the 9865 Towne Centre Drive property, dated January 26, 2007 | 10-Q | 000-30361 | 10 | .42 | 05/03/07 | |||||||||
10 | .25 | Settlement and Release Agreement between Affymetrix, Inc. and Illumina, dated January 9, 2008 | 10-K | 000-30361 | 10 | .44 | 02/26/08 | |||||||||
10 | .26 | Confirmation of Convertible Bond Hedge Transaction, dated February 12, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10 | .1 | 02/16/07 | |||||||||
10 | .27 | Confirmation of Convertible Bond Hedge Transaction, dated February 12, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10 | .2 | 02/16/07 | |||||||||
10 | .28 | Confirmation Issuer Warrant Transaction, dated February 12, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10 | .3 | 02/16/07 | |||||||||
10 | .29 | Confirmation Issuer Warrant Transaction, dated February 12, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10 | .4 | 02/16/07 | |||||||||
10 | .30 | Amendment to the Confirmation of Issuer Warrant Transaction, dated February 13, 2007, by and between Illumina and Goldman, Sachs & Co. | 8-K | 000-30361 | 10 | .5 | 02/16/07 | |||||||||
10 | .31 | Amendment to the Confirmation of Issuer Warrant Transaction, dated February 13, 2007, by and between Illumina and Deutsche Bank AG London | 8-K | 000-30361 | 10 | .6 | 02/16/07 | |||||||||
+10 | .32 | Indemnification Agreement between Illumina and Gregory F. Heath | 10-Q | 000-30361 | 10 | .55 | 07/25/08 | |||||||||
+10 | .33 | Indemnification Agreement between Illumina and Joel McComb | 10-Q | 000-30361 | 10 | .56 | 07/25/08 | |||||||||
+10 | .34 | Severance and Release Agreement, dated February 22, 2010, between Joel McComb and Illumina | X | |||||||||||||
21 | .1 | Subsidiaries of Illumina | X | |||||||||||||
23 | .1 | Consent of Independent Registered Public Accounting Firm | X | |||||||||||||
24 | .1 | Power of Attorney (included on the signature page) | X |
53
Incorporated by Reference | ||||||||||||||||
Exhibit | Filing | Filed | ||||||||||||||
Number | Exhibit Description | Form | File Number | Exhibit | Date | Herewith | ||||||||||
31 | .1 | Certification of Jay T. Flatley pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||||
31 | .2 | Certification of Christian O. Henry pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||||
32 | .1 | Certification of Jay T. Flatley pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||||
32 | .2 | Certification of Christian O. Henry pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X |
+ | Management contract or corporate plan or arrangement |
54
ILLUMINA, INC. | ||
By | /s/ JAY T. FLATLEY | |
Jay T. Flatley President and Chief Executive Officer |
/s/ JAY T. FLATLEY | President, Chief Executive Officer and Director (Principal Executive Officer) | February 15, 2013 | ||||
Jay T. Flatley | ||||||
/s/ M | ||||||
Senior Vice President and Chief Financial Officer (Principal Financial | February | |||||
55
Stapley | ||||||
/s/ M | Vice President and Chief Accounting Officer (Principal Accounting Officer) | February | ||||
Michel Bouchard | ||||||
/s/ W | February | |||||
William H. Rastetter | ||||||
/s/ A. B | Director | February | ||||
A. Blaine Bowman | ||||||
/s/ D | Director | February |
56
Daniel M. Bradbury | ||||
Director | February 15, 2013 | |||
Karin Eastham | ||||
F-1
F-2
January 3, | December 28, | |||||||
2010 | 2008(1) | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 144,633 | $ | 327,024 | ||||
Short-term investments | 548,894 | 313,051 | ||||||
Accounts receivable, net | 157,751 | 133,266 | ||||||
Inventory, net | 92,776 | 73,431 | ||||||
Deferred tax assets, current portion | 20,021 | 8,635 | ||||||
Prepaid expenses and other current assets | 17,515 | 14,154 | ||||||
Total current assets | 981,590 | 869,561 | ||||||
Property and equipment, net | 117,188 | 89,436 | ||||||
Long-term investments | — | 55,900 | ||||||
Goodwill | 213,452 | 213,452 | ||||||
Intangible assets, net | 43,788 | 47,755 | ||||||
Deferred tax assets, long-term portion | 47,371 | 46,242 | ||||||
Other assets | 26,548 | 4,825 | ||||||
Total assets | $ | 1,429,937 | $ | 1,327,171 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 52,781 | $ | 29,204 | ||||
Accrued liabilities | 98,253 | 80,355 | ||||||
Long-term debt, current portion | 290,202 | 276,889 | ||||||
Total current liabilities | 441,236 | 386,448 | ||||||
Other long-term liabilities | 24,656 | 18,946 | ||||||
Commitments and contingencies | ||||||||
Conversion option subject to cash settlement | 99,797 | 123,110 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at January 3, 2010 and December 28, 2008 | — | — | ||||||
Common stock, $0.01 par value, 320,000,000 shares authorized, 143,544,265 shares issued at January 3, 2010, 138,936,582 shares issued at December 28, 2008 | 1,436 | 1,389 | ||||||
Additional paid-in capital | 1,637,751 | 1,469,770 | ||||||
Accumulated other comprehensive income | 2,830 | 2,422 | ||||||
Accumulated deficit | (280,226 | ) | (352,507 | ) | ||||
Treasury stock, at cost (24,068,450 shares at January 3, 2010 and 17,927,983 shares at December 28, 2008) | (497,543 | ) | (322,407 | ) | ||||
Total stockholders’ equity | 864,248 | 798,667 | ||||||
Total liabilities and stockholders’ equity | $ | 1,429,937 | $ | 1,327,171 | ||||
F-3
Year Ended_ | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008(1) | 2007(1) | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Revenue: | ||||||||||||
Product revenue | $ | 627,240 | $ | 532,390 | $ | 326,699 | ||||||
Service and other revenue | 39,084 | 40,835 | 40,100 | |||||||||
Total revenue | 666,324 | 573,225 | 366,799 | |||||||||
Costs and expenses: | ||||||||||||
Cost of product revenue (excluding impairment of manufacturing equipment and amortization of intangible assets) | 190,714 | 192,868 | 119,991 | |||||||||
Cost of service and other revenue | 15,055 | 12,756 | 12,445 | |||||||||
Research and development | 140,616 | 99,963 | 73,943 | |||||||||
Selling, general and administrative | 176,337 | 148,014 | 101,256 | |||||||||
Impairment of manufacturing equipment | — | 4,069 | — | |||||||||
Amortization of intangible assets | 6,680 | 10,438 | 2,429 | |||||||||
Acquired in-process research and development | 11,325 | 24,660 | 303,400 | |||||||||
Litigation settlements | — | — | 54,536 | |||||||||
Total costs and expenses | 540,727 | 492,768 | 668,000 | |||||||||
Income (loss) from operations | 125,597 | 80,457 | (301,201 | ) | ||||||||
Other income (expense), net: | ||||||||||||
Interest income | 11,029 | 12,519 | 16,025 | |||||||||
Interest expense | (23,718 | ) | (22,210 | ) | (18,297 | ) | ||||||
Other income (expense), net | 1,217 | 1,921 | (47 | ) | ||||||||
Total other expense, net | (11,472 | ) | (7,770 | ) | (2,319 | ) | ||||||
Income (loss) before income taxes | 114,125 | 72,687 | (303,520 | ) | ||||||||
Provision (benefit) for income taxes | 41,844 | 33,271 | (16,215 | ) | ||||||||
Net income (loss) | $ | 72,281 | $ | 39,416 | $ | (287,305 | ) | |||||
Net income (loss) per basic share | $ | 0.59 | $ | 0.34 | $ | (2.65 | ) | |||||
Net income (loss) per diluted share | $ | 0.53 | $ | 0.30 | $ | (2.65 | ) | |||||
Shares used in calculating basic net income (loss) per share | 123,154 | 116,855 | 108,308 | |||||||||
Shares used in calculating diluted net income (loss) per share | 137,096 | 133,607 | 108,308 | |||||||||
F-4
Accumulated | ||||||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||||||
Common Stock | Paid-In | Comprehensive | Accumulated | Treasury Stock | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Income | Deficit | Shares | Amount | Equity | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2007 | 93,714 | $ | 938 | $ | 339,728 | $ | 11,294 | $ | (104,618 | ) | — | $ | — | $ | 247,342 | |||||||||||||||||
Components of comprehensive loss: | ||||||||||||||||||||||||||||||||
Net loss(1) | — | — | — | — | (287,305 | ) | — | — | (287,305 | ) | ||||||||||||||||||||||
Unrealized loss onavailable-for-sale securities, net of deferred tax | — | — | — | (10,529 | ) | — | — | — | (10,529 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 582 | — | — | — | 582 | ||||||||||||||||||||||||
Comprehensive loss | (297,252 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock | 4,654 | 46 | 30,044 | — | — | — | — | 30,090 | ||||||||||||||||||||||||
Issuance of common stock for the acquisition of Solexa, Inc. | 26,442 | 264 | 530,460 | — | — | — | — | 530,724 | ||||||||||||||||||||||||
Fair value of options assumed from Solexa, Inc. | — | — | 75,334 | — | — | — | — | 75,334 | ||||||||||||||||||||||||
Convertible note hedge | — | — | (139,040 | ) | — | — | — | — | (139,040 | ) | ||||||||||||||||||||||
Warrants issued in connection with the convertible debt issuance | — | — | 92,440 | — | — | — | — | 92,440 | ||||||||||||||||||||||||
Warrants exercised | 798 | 8 | 6,067 | — | — | — | — | 6,075 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 33,926 | — | — | — | — | 33,926 | ||||||||||||||||||||||||
Incremental tax benefit related to stock options exercised | — | — | 20,086 | — | — | — | — | 20,086 | ||||||||||||||||||||||||
Incremental tax benefit related to convertible debt issuance | — | — | 54,629 | — | — | — | — | 54,629 | ||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | — | (14,819 | ) | (251,622 | ) | (251,622 | ) | |||||||||||||||||||||
Impact of convertible debt(1) | — | — | (48,805 | ) | — | — | — | — | (48,805 | ) | ||||||||||||||||||||||
Balance as of December 30, 2007(1) | 125,608 | 1,256 | 994,869 | 1,347 | (391,923 | ) | (14,819 | ) | (251,622 | ) | 353,927 | |||||||||||||||||||||
Components of comprehensive income: | ||||||||||||||||||||||||||||||||
Net income(1) | — | — | — | — | 39,416 | — | — | 39,416 | ||||||||||||||||||||||||
Unrealized gain onavailable-for-sale securities, net of deferred tax | — | — | — | 920 | — | — | — | 920 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | (16 | ) | 155 | — | — | — | 139 | |||||||||||||||||||||||
Comprehensive income | 40,475 | |||||||||||||||||||||||||||||||
Issuance of common stock in conjunction with secondary offering, net of issuance costs | 8,050 | 80 | 342,570 | — | — | — | — | 342,650 | ||||||||||||||||||||||||
Issuance of common stock under employee stock plans | 4,923 | 49 | 44,281 | — | — | — | — | 44,330 | ||||||||||||||||||||||||
Warrants exercised | 356 | 4 | 2,987 | — | — | — | — | 2,991 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 47,695 | — | — | — | — | 47,695 | ||||||||||||||||||||||||
Incremental tax benefit related to stock options exercised | — | — | 18,501 | — | — | — | — | 18,501 | ||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | — | (3,109 | ) | (70,785 | ) | (70,785 | ) | |||||||||||||||||||||
Impact of convertible debt(1) | — | — | 18,883 | — | — | — | — | 18,883 | ||||||||||||||||||||||||
Balance as of December 28, 2008(1) | 138,937 | 1,389 | 1,469,770 | 2,422 | (352,507 | ) | (17,928 | ) | (322,407 | ) | 798,667 | |||||||||||||||||||||
Components of comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 72,281 | — | — | 72,281 | ||||||||||||||||||||||||
Unrealized gain onavailable-for-sale securities, net of deferred tax | — | — | 408 | — | — | — | 408 | |||||||||||||||||||||||||
Comprehensive income | 72,689 | |||||||||||||||||||||||||||||||
Issuance of common stock | 3,569 | 36 | 39,343 | — | — | — | — | 39,379 | ||||||||||||||||||||||||
Warrants exercised | 954 | 10 | 7,566 | — | — | — | — | 7,576 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 60,813 | — | — | — | — | 60,813 | ||||||||||||||||||||||||
Incremental tax benefit related to stock options exercised | — | — | 39,319 | — | — | — | — | 39,319 | ||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | — | (6,140 | ) | (175,136 | ) | (175,136 | ) | |||||||||||||||||||||
Impact of convertible debt | 84 | 1 | 20,940 | — | — | — | — | 20,941 | ||||||||||||||||||||||||
Balance as of January 3, 2010 | 143,544 | $ | 1,436 | $ | 1,637,751 | $ | 2,830 | $ | (280,226 | ) | (24,068 | ) | $ | (497,543 | ) | $ | 864,248 | |||||||||||||||
F-5
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008(1) | 2007(1) | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 72,281 | $ | 39,416 | $ | (287,305 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Acquired in-process research and development | 11,325 | 24,660 | 303,400 | |||||||||
Amortization of intangible assets | 6,680 | 10,438 | 2,429 | |||||||||
Amortization of debt discount | 20,286 | 18,883 | 15,335 | |||||||||
Depreciation expense | 24,504 | 17,285 | 11,464 | |||||||||
Impairment of manufacturing equipment | — | 4,069 | — | |||||||||
Stock-based compensation expense | 60,811 | 47,688 | 33,746 | |||||||||
Incremental tax benefit related to stock options exercised | (39,319 | ) | (18,501 | ) | (20,086 | ) | ||||||
Deferred income taxes | 29,704 | 31,533 | (17,197 | ) | ||||||||
Other non-cash adjustments | (487 | ) | 803 | 1,347 | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (18,578 | ) | (57,672 | ) | (37,060 | ) | ||||||
Inventory | (19,201 | ) | (19,560 | ) | (27,130 | ) | ||||||
Prepaid expenses and other current assets | (3,429 | ) | 2,322 | (6,128 | ) | |||||||
Other assets | (2,670 | ) | (1,815 | ) | 2,612 | |||||||
Accounts payable | 11,778 | 4,840 | 12,262 | |||||||||
Litigation settlements payable | — | (54,536 | ) | 54,536 | ||||||||
Accrued income taxes | 2,378 | 2,377 | 1,586 | |||||||||
Accrued liabilities | 17,619 | 29,339 | 15,901 | |||||||||
Other long-term liabilities | 814 | 6,313 | (3,418 | ) | ||||||||
Net cash provided by operating activities | 174,496 | 87,882 | 56,294 | |||||||||
Cash flows from investing activities: | ||||||||||||
Cash (paid for) obtained in acquisition, including cash paid for transaction costs | (1,325 | ) | (24,666 | ) | 72,075 | |||||||
Sale of secured convertible debentures | — | — | 3,593 | |||||||||
Purchases ofavailable-for-sale securities | (694,487 | ) | (568,707 | ) | (598,383 | ) | ||||||
Sales and maturities ofavailable-for-sale securities | 515,216 | 411,817 | 479,415 | |||||||||
Purchase of property and equipment | (51,822 | ) | (59,693 | ) | (24,301 | ) | ||||||
Investments in other entities | (19,900 | ) | — | — | ||||||||
Cash paid for intangible assets | (3,400 | ) | (36,000 | ) | (85 | ) | ||||||
Net cash used in investing activities | (255,718 | ) | (277,249 | ) | (67,686 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Payments on current portion of long-term debt | (10,000 | ) | (15 | ) | (95 | ) | ||||||
Proceeds from issuance of convertible debt, net of issuance costs | — | — | 390,269 | |||||||||
Purchase of convertible note hedges | — | — | (139,040 | ) | ||||||||
Proceeds from the exercise of warrants | 7,576 | 2,991 | 98,515 | |||||||||
Common stock repurchases | (175,136 | ) | (70,785 | ) | (251,622 | ) | ||||||
Proceeds from secondary offering, net of issuance cost | — | 342,650 | — | |||||||||
Proceeds from issuance of common stock | 39,379 | 44,330 | 30,179 | |||||||||
Incremental tax benefit related to stock options exercised | 39,319 | 18,501 | 20,086 | |||||||||
Net cash (used in) provided by financing activities | (98,862 | ) | 337,672 | 148,292 | ||||||||
Effect of foreign currency translation on cash and cash equivalents | (2,307 | ) | 3,778 | (345 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (182,391 | ) | 152,083 | 136,555 | ||||||||
Cash and cash equivalents at beginning of period | 327,024 | 174,941 | 38,386 | |||||||||
Cash and cash equivalents at end of period | $ | 144,633 | $ | 327,024 | $ | 174,941 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 2,437 | $ | 2,553 | $ | 1,378 | ||||||
Cash paid (refunded) for income taxes | $ | 10,361 | $ | (1,653 | ) | $ | 2,581 | |||||
F-6
F-7
F-8
F-9
F-10
F-11
/s/ ROBERT S. EPSTEIN | Director | February 15, 2013 | ||
Robert S. Epstein | ||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Debt securities in government sponsored entities | $ | 289,701 | $ | — | $ | — | $ | 289,701 | ||||||||
Corporate debt securities | 192,821 | — | — | 192,821 | ||||||||||||
Auction rate securities | — | — | 54,900 | 54,900 | ||||||||||||
U.S. Treasury securities | 11,472 | — | — | 11,472 | ||||||||||||
Total assets measured at fair value | $ | 493,994 | $ | — | $ | 54,900 | $ | 548,894 | ||||||||
F-12
F-13
F-14
Year Ended | ||||||
January 3, | December 28, | December 30, | ||||
2010 | 2008 | 2007 | ||||
Interest rate — stock options | 1.69 - 1.97% | 2.31 - 3.52% | 3.68 - 4.90% | |||
Interest rate — stock purchases | 0.28 - 2.90% | 1.88 - 4.71% | 4.71 -4.86% | |||
Volatility — stock options | 55 - 58% | 51 - 65% | 55-70% | |||
Volatility — stock purchases | 48 - 58% | 53 - 69% | 69 - 76% | |||
Expected life — stock options | 5 years | 5 - 6 years | 6 years | |||
Expected life — stock purchases | 6 - 12 months | 6 - 12 months | 6 - 12 months | |||
Expected dividend yield | 0% | 0% | 0% | |||
Weighted average fair value per share of options granted | $14.79 | $18.31 | $12.86 | |||
Weighted average fair value per share of employee stock purchases | $9.24 | $11.45 | $7.33 |
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Cost of product revenue | $ | 4,776 | $ | 4,710 | $ | 4,045 | ||||||
Cost of service and other revenue | 514 | 400 | 279 | |||||||||
Research and development | 19,960 | 14,086 | 10,016 | |||||||||
Selling, general and administrative | 35,561 | 28,492 | 19,406 | |||||||||
Share-based compensation expense before taxes | 60,811 | 47,688 | 33,746 | |||||||||
Related income tax benefits | (20,121 | ) | (15,844 | ) | (11,005 | ) | ||||||
Share-based compensation expense, net of taxes | $ | 40,690 | $ | 31,844 | $ | 22,741 | ||||||
Net share-based compensation expense per share of common stock: | ||||||||||||
Basic | $ | 0.33 | $ | 0.27 | $ | 0.21 | ||||||
Diluted | $ | 0.30 | $ | 0.24 | $ | 0.21 | ||||||
F-15
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Weighted-average shares outstanding | 123,154 | 116,855 | 108,328 | |||||||||
Less: Weighted-average shares of common stock subject to repurchase | — | — | (20 | ) | ||||||||
Weighted-average shares used in calculating basic net income (loss) per share | 123,154 | 116,855 | 108,308 | |||||||||
Plus: Effect of dilutive Convertible Senior Notes | 6,497 | 6,653 | — | |||||||||
Plus: Effect of dilutive equity awards | 4,335 | 5,373 | — | |||||||||
Plus: Effect of dilutive warrants sold in connection with the Convertible Senior Notes | 1,566 | 2,487 | — | |||||||||
Plus: Effect of dilutive warrants assumed in the acquisition of Solexa | 1,544 | 2,239 | — | |||||||||
Weighted-average shares used in calculating diluted net income (loss) per share | 137,096 | 133,607 | 108,308 | |||||||||
Weighted average shares excluded from calculation due to anti-dilutive effect | 924 | 370 | 42,882 | |||||||||
F-16
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Foreign currency translation adjustments | $ | 1,338 | $ | 1,338 | ||||
Unrealized gain onavailable-for-sale securities, net of deferred tax | 1,492 | 1,084 | ||||||
Total other comprehensive income | $ | 2,830 | $ | 2,422 | ||||
/s/ PAUL GRINT | February 15, 2013 | |||
Paul Grint | ||||
F-17
F-18
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Accounts receivable from product and service sales | $ | 157,536 | $ | 132,564 | ||||
Other receivables | 1,613 | 1,840 | ||||||
159,149 | 134,404 | |||||||
Allowance for doubtful accounts | (1,398 | ) | (1,138 | ) | ||||
Total | $ | 157,751 | $ | 133,266 | ||||
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Raw materials | $ | 39,144 | $ | 32,501 | ||||
Work in process | 51,670 | 34,063 | ||||||
Finished goods | 1,962 | 6,867 | ||||||
Total inventory, net | $ | 92,776 | $ | 73,431 | ||||
F-19
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Leasehold improvements | $ | 55,322 | $ | 26,637 | ||||
Manufacturing and laboratory equipment | 92,956 | 83,317 | ||||||
Computer equipment and software | 37,071 | 27,490 | ||||||
Furniture and fixtures | 5,993 | 4,167 | ||||||
191,342 | 141,611 | |||||||
Accumulated depreciation and amortization | (74,154 | ) | (52,175 | ) | ||||
Total | $ | 117,188 | $ | 89,436 | ||||
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Compensation | $ | 32,487 | $ | 30,330 | ||||
Short-term deferred revenue | 27,445 | 15,862 | ||||||
Taxes | 12,109 | 9,456 | ||||||
Reserve for product warranties | 10,215 | 8,203 | ||||||
Customer deposits | 6,121 | 6,583 | ||||||
Accrued royalties | 2,552 | 2,695 | ||||||
Legal and other professional fees | 1,818 | 1,708 | ||||||
Other | 5,506 | 5,518 | ||||||
Total | $ | 98,253 | $ | 80,355 | ||||
F-20
January 3, 2010 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Available-for-sale securities: | ||||||||||||||||
Debt securities in government sponsored entities | $ | 289,101 | $ | 702 | $ | (102 | ) | $ | 289,701 | |||||||
Corporate debt securities | 190,949 | 2,039 | (166 | ) | 192,822 | |||||||||||
U.S. treasury securities | 11,487 | 12 | (28 | ) | 11,471 | |||||||||||
Totalavailable-for-sale securities | 491,537 | 2,753 | (296 | ) | 493,994 | |||||||||||
Trading securities: | ||||||||||||||||
Auction rate securities | 54,900 | — | (6,129 | ) | 48,771 | |||||||||||
Put option | — | 6,129 | — | 6,129 | ||||||||||||
Total trading securities | 54,900 | 6,129 | (6,129 | ) | 54,900 | |||||||||||
Total short-term investments | $ | 546,437 | $ | 8,882 | $ | (6,425 | ) | $ | 548,894 | |||||||
December 28, 2008 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Available-for-sale securities: | ||||||||||||||||
Debt securities in government sponsored entities | $ | 218,964 | $ | 1,544 | $ | — | $ | 220,508 | ||||||||
Corporate debt securities | 92,301 | 547 | (305 | ) | 92,543 | |||||||||||
Total | $ | 311,265 | $ | 2,091 | $ | (305 | ) | $ | 313,051 | |||||||
January 3, 2010 | December 28, 2008 | |||||||||||||||
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
Fair Value | Losses | Fair Value | Losses | |||||||||||||
Government sponsored entities | $ | 73,783 | $ | (102 | ) | $ | — | $ | — | |||||||
Corporate debt securities | 26,488 | (166 | ) | 19,240 | (305 | ) | ||||||||||
U.S. treasury securities | 4,471 | (28 | ) | — | — | |||||||||||
Total | $ | 104,742 | $ | (296 | ) | $ | 19,240 | $ | (305 | ) | ||||||
F-21
Estimated | ||||
Fair Value | ||||
Due within one year | $ | 169,671 | ||
After one but within five years | 324,323 | |||
Total | $ | 493,994 | ||
Fair value as of December 28, 2008 | $ | 47,235 | ||
Redeemed by issuer | (1,000 | ) | ||
Unrealized Gain(1) | 2,536 | |||
Fair value as of January 3, 2010 | $ | 48,771 | ||
F-22
Fair value as of December 28, 2008 | $ | 8,665 | ||
Unrealized loss(1) | (2,536 | ) | ||
Fair value as of January 3, 2010 | $ | 6,129 | ||
F-23
January 3, 2010 | December 28, 2008 | |||||||||||||||||||||||
Gross Carrying | Accumulated | Intangibles, | Gross Carrying | Accumulated | Intangibles, | |||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||
Licensed technology | $ | 36,000 | $ | (11,820 | ) | $ | 24,180 | $ | 36,000 | $ | (7,788 | ) | $ | 28,212 | ||||||||||
Core technology | 23,500 | (6,854 | ) | 16,646 | 23,500 | (4,504 | ) | 18,996 | ||||||||||||||||
Customer relationships | 900 | (875 | ) | 25 | 900 | (575 | ) | 325 | ||||||||||||||||
License agreements | 4,456 | (1,519 | ) | 2,937 | 1,154 | (932 | ) | 222 | ||||||||||||||||
Total intangible assets, net | $ | 64,856 | $ | (21,068 | ) | $ | 43,788 | $ | 61,554 | $ | (13,799 | ) | $ | 47,755 | ||||||||||
F-24
2010 | $ | 6,816 | ||
2011 | 6,781 | |||
2012 | 6,770 | |||
2013 | 6,755 | |||
2014 | 6,736 | |||
Thereafter | 9,930 | |||
Total | $ | 43,788 | ||
Balance as of January 1, 2007 | $ | 996 | ||
Additions charged to cost of revenue | 4,939 | |||
Repairs and replacements | (2,219 | ) | ||
Balance as of December 30, 2007 | 3,716 | |||
Additions charged to cost of revenue | 13,044 | |||
Repairs and replacements | (8,557 | ) | ||
Balance as of December 28, 2008 | 8,203 | |||
Additions charged to cost of revenue | 14,613 | |||
Repairs and replacements | (12,601 | ) | ||
Balance as of January 3, 2010 | $ | 10,215 | ||
F-25
F-26
January 3, 2010 | ||||
Adjustments | ||||
Assets: | ||||
Prepaid expenses and other current assets | $ | (2,051 | ) | |
Deferred tax assets, long-term portion | (38,135 | ) | ||
Total assets | (40,186 | ) | ||
Liabilities and Stockholders’ Equity: | ||||
Current portion of long-term debt | (99,797 | ) | ||
Conversion option subject to cash settlement | 99,797 | |||
Stockholder’s equity | (40,186 | ) | ||
Total liabilities and stockholders’ equity | (40,186 | ) |
Director | ||||
December 28, 2008 | ||||||||||||
Pre adoption | Adjustments | Post adoption | ||||||||||
Assets: | ||||||||||||
Prepaid expenses and other current assets | $ | 9,530 | $ | 4,624 | $ | 14,154 | ||||||
Deferred tax assets, long-term portion | 93,603 | (47,361 | ) | 46,242 | ||||||||
Other assets | 12,017 | (7,192 | ) | 4,825 | ||||||||
Total assets | 1,377,100 | (49,929 | ) | 1,327,171 | ||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||
Current portion of long-term debt | 399,999 | (123,110 | ) | 276,889 | ||||||||
Conversion option subject to cash settlement | — | 123,110 | 123,110 | |||||||||
Stockholder’s equity | 848,596 | (49,929 | ) | 798,667 | ||||||||
Total liabilities and stockholders’ equity | 1,377,100 | (49,929 | ) | 1,327,171 |
F-27
Year Ended | ||||||||||||||||||||||||
December 28, 2008 | December 30, 2007 | |||||||||||||||||||||||
Pre adoption | Adjustments | Post adoption | Pre adoption | Adjustments | Post adoption | |||||||||||||||||||
Income (loss) from operations | $ | 80,457 | $ | — | $ | 80,457 | $ | (301,201 | ) | $ | — | $ | (301,201 | ) | ||||||||||
Interest expense | (3,991 | ) | (18,219 | )* | (22,210 | ) | (3,562 | ) | (14,735 | )* | (18,297 | ) | ||||||||||||
Provision (benefit) for income taxes | 40,429 | (7,158 | ) | 33,271 | (10,426 | ) | (5,789 | ) | (16,215 | ) | ||||||||||||||
Net income (loss) | 50,477 | (11,061 | ) | 39,416 | (278,359 | ) | (8,946 | ) | (287,305 | ) | ||||||||||||||
Net income (loss) per basic share | 0.43 | (0.09 | ) | 0.34 | (2.57 | ) | (0.08 | ) | (2.65 | ) | ||||||||||||||
Net income (loss) per diluted share | 0.38 | (0.08 | ) | 0.30 | (2.57 | ) | (0.08 | ) | (2.65 | ) |
F-28
2010 | $ | 11,668 | ||
2011 | 12,393 | |||
2012 | 12,477 | |||
2013 | 11,907 | |||
2014 | 10,403 | |||
Thereafter | 89,567 | |||
Total | $ | 148,415 | ||
F-29
Weighted- | ||||||||
Average | ||||||||
Options | Exercise Price | |||||||
Outstanding at January 1, 2007 | 16,718,240 | $ | 6.97 | |||||
Options assumed through business combination | 2,848,664 | $ | 10.69 | |||||
Granted | 7,569,016 | $ | 20.32 | |||||
Exercised | (4,358,572 | ) | $ | 6.03 | ||||
Cancelled | (1,929,480 | ) | $ | 11.19 | ||||
Outstanding at December 30, 2007 | 20,847,868 | $ | 12.13 | |||||
Granted | 3,091,108 | $ | 34.23 | |||||
Exercised | (4,571,855 | ) | $ | 8.52 | ||||
Cancelled | (1,232,917 | ) | $ | 19.93 | ||||
Outstanding at December 28, 2008 | 18,134,204 | $ | 16.26 | |||||
Granted | 1,560,024 | $ | 28.86 | |||||
Exercised | (2,965,606 | ) | $ | 10.56 | ||||
Cancelled | (639,184 | ) | $ | 14.88 | ||||
Outstanding at January 3, 2010 | 16,089,438 | $ | 18.59 | |||||
Weighted | ||||||||||||||||||||
Weighted | Average | |||||||||||||||||||
Average | Weighted | Exercise Price | ||||||||||||||||||
Range of | Options | Remaining Life | Average | Options | of Options | |||||||||||||||
Exercise Prices | Outstanding | in Years | Exercise Price | Exercisable | Exercisable | |||||||||||||||
$0.20-4.26 | 1,969,183 | 3.25 | $ | 3.36 | 1,602,420 | $ | 3.15 | |||||||||||||
$4.30-6.85 | 1,676,898 | 4.99 | $ | 5.41 | 1,449,009 | $ | 5.31 | |||||||||||||
$6.87-13.30 | 1,803,330 | 5.66 | $ | 10.75 | 1,312,461 | $ | 10.71 | |||||||||||||
$13.43-17.58 | 1,624,453 | 6.90 | $ | 15.62 | 869,862 | $ | 15.58 | |||||||||||||
$17.60-19.61 | 1,371,403 | 6.87 | $ | 18.74 | 718,826 | $ | 18.74 | |||||||||||||
$19.71-20.04 | 1,888,561 | 6.96 | $ | 20.03 | 934,462 | $ | 20.04 | |||||||||||||
$20.12-27.97 | 1,673,797 | 8.09 | $ | 24.38 | 496,340 | $ | 23.76 | |||||||||||||
$28.03-32.49 | 2,197,532 | 8.20 | $ | 29.97 | 727,353 | $ | 30.49 | |||||||||||||
$32.58-41.37 | 1,624,281 | 8.29 | $ | 35.05 | 650,680 | $ | 35.46 | |||||||||||||
$42.02-44.38 | 260,000 | 8.58 | $ | 44.11 | 87,291 | $ | 44.09 | |||||||||||||
$0.20-44.38 | 16,089,438 | 6.59 | $ | 18.59 | 8,848,704 | $ | 15.08 | |||||||||||||
F-30
Gerald Möller | ||||
/s/ DAVID R. WALT | ||||
February 15, 2013 | ||||
David R. Walt | ||||
/s/ ROY WHITFIELD | Director | February 15, 2013 | ||
F-31
Number of Shares | Exercise Price | Expiration Date | ||||||
16,380 | $ | 7.27 | 4/25/2010 | |||||
307,132 | $ | 7.27 | 7/12/2010 | |||||
732,230 | $ | 10.91 | 11/23/2010 | |||||
1,027,412 | $ | 10.91 | 1/19/2011 | |||||
18,322,320(1) | $ | 31.44 | 2/15/2014 | |||||
20,405,474 | ||||||||
F-32
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
United States | $ | 65,081 | $ | 46,205 | $ | 43,710 | ||||||
Foreign | 49,044 | 26,482 | (347,230 | ) | ||||||||
Total income (loss) before income taxes | $ | 114,125 | $ | 72,687 | $ | (303,520 | ) | |||||
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Current: | ||||||||||||
Federal | $ | 43,565 | $ | 13,868 | $ | 18,564 | ||||||
State | 2,511 | 2,134 | 4,801 | |||||||||
Foreign | 6,204 | 5,042 | (2,172 | ) | ||||||||
Total current provision | 52,280 | 21,044 | 21,193 | |||||||||
Deferred: | ||||||||||||
Federal | (14,607 | ) | 11,700 | (25,071 | ) | |||||||
State | 5,184 | 901 | (12,594 | ) | ||||||||
Foreign | (1,013 | ) | (374 | ) | 257 | |||||||
Total deferred provision | (10,436 | ) | 12,227 | (37,408 | ) | |||||||
Total tax provision (benefit) | $ | 41,844 | $ | 33,271 | $ | (16,215 | ) | |||||
F-33
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Tax at federal statutory rate | $ | 39,944 | $ | 25,440 | $ | (106,232 | ) | |||||
State, net of federal benefit | 4,275 | 3,461 | (10,304 | ) | ||||||||
Research and other credits | (4,050 | ) | (4,060 | ) | (3,118 | ) | ||||||
Acquired in-process research & development | 4,386 | 9,508 | 116,916 | |||||||||
Change in valuation allowance | (1,967 | ) | (6,892 | ) | (17,125 | ) | ||||||
Permanent differences | 2,093 | 1,449 | 653 | |||||||||
Foreign rate adjustments | (5,400 | ) | 4,124 | 3,160 | ||||||||
Other | 2,563 | 241 | (165 | ) | ||||||||
Total tax provision (benefit) | $ | 41,844 | $ | 33,271 | $ | (16,215 | ) | |||||
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
Deferred tax assets: | ||||||||
Net operating losses | $ | 15,869 | $ | 33,839 | ||||
Tax credits | 18,681 | 19,139 | ||||||
Other accruals and reserves | 17,813 | 11,341 | ||||||
Stock compensation | 25,442 | 15,962 | ||||||
Inventory capitalization | 4,172 | 3,555 | ||||||
Other amortization | 4,216 | 3,101 | ||||||
Other | 10,808 | 6,612 | ||||||
Total deferred tax assets | 97,001 | 93,549 | ||||||
Valuation allowance on deferred tax assets | (14,852 | ) | (15,200 | ) | ||||
Net deferred tax assets | 82,149 | 78,349 | ||||||
Deferred tax liabilities: | ||||||||
Purchased intangible amortization | (5,043 | ) | (5,985 | ) | ||||
Accrued litigation settlements | (3,810 | ) | (11,084 | ) | ||||
Convertible debt | (3,901 | ) | (4,905 | ) | ||||
Other | (2,810 | ) | (1,498 | ) | ||||
Total deferred tax liabilities | (15,564 | ) | (23,472 | ) | ||||
Net deferred tax assets | $ | 66,585 | $ | 54,877 | ||||
F-34
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
Balance at beginning of year | $ | 9,402 | $ | 7,000 | $ | 5,381 | ||||||
Increases related to current year tax positions | 2,358 | 2,402 | 1,619 | |||||||||
Balance at end of year | $ | 11,760 | $ | 9,402 | $ | 7,000 | ||||||
F-35
F-36
Year Ended | ||||||||||||
January 3, | December 28, | December 30, | ||||||||||
2010 | 2008 | 2007 | ||||||||||
United States | $ | 347,195 | $ | 280,064 | $ | 207,692 | ||||||
United Kingdom | 55,854 | 67,973 | 34,196 | |||||||||
Other European countries | 140,931 | 127,397 | 75,360 | |||||||||
Asia-Pacific | 96,396 | 72,740 | 35,155 | |||||||||
Other markets | 25,948 | 25,051 | 14,396 | |||||||||
Total | $ | 666,324 | $ | 573,225 | $ | 366,799 | ||||||
January 3, | December 28, | |||||||
2010 | 2008 | |||||||
United States | $ | 75,095 | $ | 65,630 | ||||
United Kingdom | 27,862 | 9,849 | ||||||
Other European countries | 864 | 1,055 | ||||||
Singapore | 12,599 | 12,586 | ||||||
Other Asia-Pacific countries | 768 | 316 | ||||||
Total | $ | 117,188 | $ | 89,436 | ||||
F-37
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2009: | ||||||||||||||||
Total revenue | $ | 165,757 | $ | 161,643 | $ | 158,360 | $ | 180,564 | ||||||||
Total cost of revenue (excluding impairment of manufacturing equipment and amortization of intangible assets) | 54,022 | 48,815 | 49,564 | 53,368 | ||||||||||||
Net income | 18,811 | 24,688 | 17,077 | 11,705 | ||||||||||||
Net income per share, basic | 0.15 | 0.20 | 0.14 | 0.10 | ||||||||||||
Net income per share, diluted | 0.14 | 0.18 | 0.12 | 0.09 | ||||||||||||
2008: | ||||||||||||||||
Total revenue | $ | 121,861 | $ | 140,177 | $ | 150,260 | $ | 160,927 | ||||||||
Total cost of revenue (excluding amortization of intangible assets) | 46,081 | 50,459 | 54,430 | 54,654 | ||||||||||||
Net income (loss)(1) | 10,743 | 12,659 | (10,078 | ) | 26,092 | |||||||||||
Net income (loss) per share, basic(1) | 0.10 | 0.11 | (0.08 | ) | 0.21 | |||||||||||
Net income (loss) per share, diluted(1) | 0.08 | 0.09 | (0.08 | ) | 0.20 |
F-38
Balance at | Additions Charged | |||||||||||||||
Beginning of | to Expense/ | Balance at End of | ||||||||||||||
Period | Revenue(1) | Deductions(2) | Period | |||||||||||||
(In thousands) | ||||||||||||||||
Year ended January 3, 2010 | ||||||||||||||||
Allowance for doubtful accounts | $ | 1,138 | 828 | (568 | ) | $ | 1,398 | |||||||||
Reserve for inventory | 6,431 | 8,403 | (4,237 | ) | 10,597 | |||||||||||
Year ended December 28, 2008 | ||||||||||||||||
Allowance for doubtful accounts | $ | 540 | 893 | (295 | ) | $ | 1,138 | |||||||||
Reserve for inventory | 2,089 | 7,154 | (2,812 | ) | 6,431 | |||||||||||
Year ended December 30, 2007 | ||||||||||||||||
Allowance for doubtful accounts | $ | 338 | 237 | (35 | ) | $ | 540 | |||||||||
Reserve for inventory | 850 | 2,302 | (1,063 | ) | 2,089 |