Illumina (ILMN) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 28, 2015	Jul. 09, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Illumina Inc
Entity Central Index Key	1,110,803
Current Fiscal Year End Date	--01-03
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 28, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		144.7

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Current assets:
Cash and cash equivalents	$ 591,057	$ 636,154
Short-term investments	919,325	702,217
Accounts receivable, net	368,611	289,458
Inventory	223,620	191,144
Deferred tax assets, current portion	51,676	40,786
Prepaid expenses and other current assets	83,402	29,844
Total current assets	2,237,691	1,889,603
Property and equipment, net	302,840	265,264
Goodwill	724,904	724,904
Intangible assets, net	288,177	314,500
Deferred tax assets, long-term portion	66,723	49,848
Other assets	82,790	95,521
Total assets	3,703,125	3,339,640
Current liabilities:
Accounts payable	107,884	82,626
Accrued liabilities	314,722	335,276
Long-term debt, current portion	302,447	304,256
Total current liabilities	725,053	722,158
Long-term debt	1,000,829	986,780
Other long-term liabilities	183,331	167,904
Stockholders' equity:
Common stock	1,829	1,805
Additional paid-in capital	2,388,181	2,172,940
Accumulated other comprehensive income (loss)	599	(1,080)
Retained earnings	800,111	561,206
Treasury stock, at cost	(1,396,808)	(1,272,073)
Total stockholders’ equity	1,793,912	1,462,798
Total liabilities and stockholders’ equity	$ 3,703,125	$ 3,339,640

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Revenue:
Product revenue	$ 462,760	$ 390,808	$ 921,887	$ 753,019
Service and other revenue	76,618	56,760	156,056	115,330
Total revenue	539,378	447,568	1,077,943	868,349
Cost of revenue:
Cost of product revenue	119,459	114,307	239,083	225,748
Cost of service and other revenue	32,170	23,176	64,699	44,689
Amortization of acquired intangible assets	11,384	9,545	22,769	19,080
Total cost of revenue	163,013	147,028	326,551	289,517
Gross profit	376,365	300,540	751,392	578,832
Operating expense:
Research and development	96,182	82,985	187,954	160,026
Selling, general and administrative	124,441	114,649	240,758	224,222
Acquisition related expense (gain), net	2,329	(225)	(7,558)	(1,238)
Headquarter relocation	1,480	2,892	2,179	3,487
Total operating expense	224,432	200,301	423,333	386,497
Income from operations	151,933	100,239	328,059	192,335
Other income (expense):
Interest income	1,344	1,464	3,037	2,420
Interest expense	(11,205)	(9,922)	(22,369)	(19,665)
Cost-method investment gain, net			12,582
Other expense, net	(900)	(31,315)	(2,091)	(30,836)
Total other expense, net	(10,761)	(39,773)	(8,841)	(48,081)
Income before income taxes	141,172	60,466	319,218	144,254
Provision for income taxes	38,925	13,861	80,313	37,672
Net income	$ 102,247	$ 46,605	$ 238,905	$ 106,582
Net income per basic share	$ 0.71	$ 0.36	$ 1.66	$ 0.82
Net income per diluted share	$ 0.69	$ 0.31	$ 1.61	$ 0.71
Shares used in calculating basic net income per share	144,220	130,583	143,996	129,365
Shares used in calculating diluted net income per share	148,969	149,121	148,826	149,870

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 102,247	$ 46,605	$ 238,905	$ 106,582
Unrealized (loss) gain on available-for-sale securities, net of deferred tax	(1,735)	125	1,679	99
Total comprehensive income	$ 100,512	$ 46,730	$ 240,584	$ 106,681

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014
Cash flows from operating activities:
Net income	$ 238,905	$ 106,582
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	34,204	29,985
Amortization of intangible assets	26,598	25,948
Share-based compensation expense	64,875	69,420
Accretion of debt discount	20,376	17,997
Loss on extinguishment of debt	233	31,360
Incremental tax benefit related to share-based compensation	(106,162)	(77,333)
Deferred income taxes	80,581	31,512
Change in fair value of contingent consideration	(7,558)	(3,291)
Change in estimated cease-use loss	2,179	3,487
Cost-method investment gain, net	(12,582)
Other	1,192	2,180
Changes in operating assets and liabilities:
Accounts receivable	(75,189)	(17,189)
Inventory	(32,526)	(23,187)
Prepaid expenses and other current assets	(1,382)	(1,462)
Other assets	(3,346)	(16,547)
Accounts payable	30,718	13,884
Accrued liabilities	(24,437)	8,859
Accrued legal contingencies		10,664
Other long-term liabilities	1,545	2,248
Net cash provided by operating activities	238,224	215,117
Cash flows from investing activities:
Purchases of available-for-sale securities	(578,425)	(358,874)
Sales of available-for-sale securities	263,447	291,264
Maturities of available-for-sale securities	95,612	92,643
Net sales proceeds from (purchases of) strategic investments	926	(11,682)
Purchases of property and equipment	(77,902)	(42,336)
Cash paid for intangible assets	(275)	(625)
Net cash used in investing activities	(296,617)	(29,610)
Cash flows from financing activities:
Payments on financing obligations	(8,664)	(29,747)
Proceeds from issuance of convertible notes		1,132,378
Repurchases of convertible notes		(1,244,721)
Incremental tax benefit related to share-based compensation	106,162	77,333
Common stock repurchases	(34,753)	(202,431)
Taxes paid related to net share settlement of equity awards	(89,982)	(9,409)
Proceeds from issuance of common stock	42,513	54,152
Net cash provided by (used in) financing activities	15,276	(222,445)
Effect of exchange rate changes on cash and cash equivalents	(1,980)	522
Net decrease in cash and cash equivalents	(45,097)	(36,416)
Cash and cash equivalents at beginning of period	636,154	711,637
Cash and cash equivalents at end of period	$ 591,057	$ 675,221

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 28, 2015
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In management’s opinion, the accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 , from which the balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expense, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Fiscal Year The Company’s fiscal year consists of 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The three and six months ended June 28, 2015 and June 29, 2014 were both 13 and 26 weeks, respectively. Significant Accounting Policies During the three and six months ended June 28, 2015, there have been no changes in to the Company’s significant accounting policies as described in the Annual Report on Form 10-K for the fiscal year ended December 28, 2014. Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of 2016. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers . The new standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning in the first quarter of 2018 and allows for a full retrospective or a modified retrospective adoption approach. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. Net Income per Share Basic net income per share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes, equity awards, and warrants. Convertible senior notes have a dilutive impact when the average market price of the Company’s common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards and warrants are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of equity awards and warrants; the average amount of unrecognized compensation expense for equity awards; and estimated tax benefits that will be recorded in additional paid-in capital when expenses related to equity awards become deductible. In loss periods, basic net loss per share and diluted net loss per share are identical because the otherwise dilutive potential common shares become anti-dilutive and are therefore excluded. The following table presents the calculation of weighted average shares used to calculate basic and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Weighted average shares outstanding 144,220 130,583 143,996 129,365 Effect of potentially dilutive common shares from: Convertible senior notes 2,194 4,410 2,185 4,964 Equity awards 2,555 4,160 2,645 4,488 Warrants — 9,968 — 11,053 Weighted average shares used in calculation of diluted net income per share 148,969 149,121 148,826 149,870 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 4 157 3 141

Balance Sheet Account Details

Balance Sheet Account Details	6 Months Ended
	Jun. 28, 2015
Balance Sheet Account Details [Abstract]
Balance Sheet Account Details	Balance Sheet Account Details Short-Term Investments The following is a summary of short-term investments (in thousands): June 28, 2015 December 28, 2014 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 $ 44,219 $ 20 $ (16 ) $ 44,223 $ 51,308 $ 10 $ (55 ) $ 51,263 Corporate debt securities 658,568 71 (1,109 ) 657,530 502,924 46 (2,882 ) 500,088 U.S. Treasury securities 217,454 181 (63 ) 217,572 151,255 5 (394 ) 150,866 Total available-for-sale securities $ 920,241 $ 272 $ (1,188 ) $ 919,325 $ 705,487 $ 61 $ (3,331 ) $ 702,217 Realized gains and losses are determined based on the specific identification method and are reported in interest income. Contractual maturities of available-for-sale debt securities as of June 28, 2015 were as follows (in thousands): Estimated Fair Value Due within one year $ 416,310 After one but within five years 503,015 Total $ 919,325 Cost-Method Investments As of June 28, 2015 and December 28, 2014 , the aggregate carrying amounts of the Company’s cost-method investments in non-publicly traded companies were $51.9 million and $37.2 million , respectively, included in other assets. Revenue recognized from transactions with such companies were $14.1 million and $31.3 million , respectively, for the three and six months ended June 28, 2015 and $10.1 million and $16.7 million , respectively, for the three and six months ended June 29, 2014 . During the six months ended June 28, 2015 , the Company sold a cost-method investment and recognized a $15.1 million gain. The Company’s cost-method investments are assessed for impairment quarterly. The Company determines that it is not practicable to estimate the fair value of its cost-method investments on a regular basis and does not reassess the fair value of cost-method investments if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. No material impairment loss was recorded during the three and six months ended June 28, 2015 or June 29, 2014 . Inventory Inventory consists of the following (in thousands): June 28, December 28, Raw materials $ 84,111 $ 73,179 Work in process 115,584 94,102 Finished goods 23,925 23,863 Total inventory $ 223,620 $ 191,144 Goodwill The Company tests the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of the reporting unit annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment is required. The Company performed its annual assessment for goodwill impairment in the second quarter of 2015 , noting no impairment. Derivatives The Company is exposed to foreign exchange rate risks in the normal course of business. The Company enters into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other assets or other liabilities and are not designated as hedging instruments. Changes in the value of the derivative are recognized in other expense, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities. As of June 28, 2015 , the Company had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, and Australian dollar. As of June 28, 2015 and December 28, 2014 , the total notional amounts of outstanding forward contracts in place for foreign currency purchases were $65.5 million and $61.0 million , respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): June 28, December 28, Accrued compensation expenses $ 95,294 $ 112,606 Deferred revenue, current portion 84,677 75,294 Accrued taxes payable 39,133 38,942 Acquisition related contingent liability, current portion 36,566 44,124 Reserve for product warranties 16,365 15,616 Customer deposits 13,239 20,274 Other 29,448 28,420 Total accrued liabilities $ 314,722 $ 335,276 Warranties The Company generally provides a one -year warranty on instruments. Additionally, the Company provides a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses based on historical experience as well as anticipated product performance. The Company periodically reviews its warranty reserve for adequacy and adjusts the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. Changes in the Company’s reserve for product warranties during the three and six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Balance at beginning of period $ 15,991 $ 11,492 $ 15,616 $ 10,407 Additions charged to cost of revenue 6,924 5,620 13,821 9,812 Repairs and replacements (6,550 ) (4,112 ) (13,072 ) (7,219 ) Balance at end of period $ 16,365 $ 13,000 $ 16,365 $ 13,000 Leases Changes in the Company’s facility exit obligation related to its former headquarters lease during the three and six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Balance at beginning of period $ 36,819 $ 37,180 $ 37,700 $ 38,218 Adjustment to facility exit obligation 657 1,914 657 1,914 Accretion of interest expense 729 686 1,336 1,281 Cash payments (1,528 ) (1,300 ) (3,016 ) (2,933 ) Balance at end of period $ 36,677 $ 38,480 $ 36,677 $ 38,480 On December 30, 2014, the Company entered into a lease agreement with an affiliate of Biomed Realty Trust, Inc. (BMR) for certain office buildings in Foster City, California. Minimum lease payments during the initial term of 16 years are estimated to be $204.0 million . On June 25, 2015, the Company entered into a lease agreement with another affiliate of BMR for an office building near Cambridge, England. Minimum lease payments during the initial term of 20 years are estimated to be approximately $147.9 million . One of our Board members also serves on the Board of BMR. On March 12, 2015, the Company entered into an amendment of its headquarter lease for additional rental square footage, which is expected to increase its minimum lease payments by $44.1 million over 15 years .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 28, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table presents the Company’s hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and December 28, 2014 (in thousands): June 28, 2015 December 28, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 255,580 $ — $ — $ 255,580 $ 431,172 $ — $ — $ 431,172 Debt securities in government-sponsored entities — 44,223 — 44,223 — 51,263 — 51,263 Corporate debt securities — 657,530 — 657,530 — 500,088 — 500,088 U.S. Treasury securities 217,572 — — 217,572 150,866 — — 150,866 Deferred compensation plan assets — 26,864 — 26,864 — 23,486 — 23,486 Total assets measured at fair value $ 473,152 $ 728,617 $ — $ 1,201,769 $ 582,038 $ 574,837 $ — $ 1,156,875 Liabilities: Acquisition related contingent consideration liabilities $ — $ — $ 36,566 $ 36,566 $ — $ — $ 44,124 $ 44,124 Deferred compensation liability — 24,915 — 24,915 — 20,310 — 20,310 Total liabilities measured at fair value $ — $ 24,915 $ 36,566 $ 61,481 $ — $ 20,310 $ 44,124 $ 64,434 The Company holds available-for-sale securities that consist of highly liquid, investment grade debt securities. The Company considers information provided by the Company’s investment accounting and reporting service provider in the measurement of fair value of its debt securities. The investment service provider provides valuation information from an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. The Company’s deferred compensation plan assets consist primarily of investments in life insurance contracts carried at cash surrender value, which reflects the net asset value of the underlying publicly traded mutual funds. The Company performs control procedures to corroborate the fair value of its holdings, including comparing valuations obtained from its investment service provider to valuations reported by the Company’s asset custodians, validation of pricing sources and models, and review of key model inputs if necessary. At June 28, 2015 , the fair value of the contingent consideration liabilities consisted primarily of amounts related to the 2013 Verinata Health, Inc. acquisition. The Company reassesses the fair value of contingent consideration to be settled in cash related to its acquisitions on a quarterly basis using the income approach. Assumptions used to estimate the acquisition date fair value of the contingent consideration include discount rates ranging from 6% to 20% , volatility of 50% , risk-free rate of 0.26% , revenue projections, and the probability of achieving regulatory milestones. This fair value measurement of the contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. The changes in the fair value of the contingent considerations during the three and six months ended June 28, 2015 were due to changes in the estimated payments. Changes in estimated fair value of contingent consideration liabilities during the six months ended June 28, 2015 are as follows (in thousands): Contingent Consideration Liability (Level 3 Measurement) Balance as of December 28, 2014 $ 44,124 Change in estimated fair value, recorded in acquisition related expense (gain), net (7,558 ) Balance as of June 28, 2015 $ 36,566

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jun. 28, 2015
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes As of June 28, 2015 , the Company had outstanding $311.6 million in principal amount of 0.25% convertible senior notes due March 15, 2016 (2016 Notes), $632.5 million in principal amount of 0% convertible senior notes due June 15, 2019 (2019 Notes), and $517.5 million in principal amount of 0.5% convertible senior notes due June 15, 2021 (2021 Notes). 0% Convertible Senior Notes due 2019 and 0.5% Convertible Senior Notes due 2021 In June 2014, the Company issued $632.5 million aggregate principal amount of 2019 Notes and $517.5 million aggregate principal amount of 2021 Notes. The Company used the net proceeds plus cash on hand to repurchase a portion of the outstanding 2016 Notes in privately negotiated transactions concurrently with the issuance of the 2019 and 2021 Notes. The 2019 Notes carry no coupon interest. The Company pays 0.5% interest per annum on the principal amount of the 2021 Notes, payable semiannually in arrears in cash on June 15 and December 15 of each year. The 2019 and 2021 Notes mature on June 15, 2019 and June 15, 2021 , respectively, and the implied estimated effective rates of the liability components of the Notes were 2.9% and 3.5% , respectively, assuming no conversion. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rates were applied to the 2019 and 2021 Notes, which resulted in a fair value of the liability component in aggregate of $971.5 million upon issuance, calculated as the present value of implied future payments based on the $1,150.0 million aggregate principal amount. The $161.2 million difference between the cash proceeds of $1,132.7 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the 2019 and 2021 Notes are not considered redeemable. Both the 2019 and 2021 Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election, based on an initial conversion rate, subject to adjustment, of 3.9318 shares per $1,000 principal amount of the notes (which represents an initial conversion price of approximately $254.34 per share), only in the following circumstances and to the following extent: (1) during the five business-day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2019 and 2021 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending September 30, 2014, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2019 and 2021 Notes; and (4) at any time on or after March 15, 2019 for the 2019 Notes, or March 15, 2021 for the 2021 Notes, through the second scheduled trading day immediately preceding the maturity date . As noted in the indentures for the 2019 and 2021 Notes, it is the Company’s intent and policy to settle conversions through combination settlement, which essentially involves repayment of an amount of cash equal to the “principal portion” and delivery of the “share amount” in excess of the conversion value over the principal portion in shares of common stock. As a policy election under applicable guidance related to the calculation of diluted net income per share, the Company elected the combination settlement method as its stated settlement policy and applied the treasury stock method in the calculation of the potential dilutive impact of the 2019 and 2021 Notes. Neither the 2019 nor the 2021 Notes were convertible as of June 28, 2015 and had no dilutive impact during the three and six months ended June 28, 2015 . If the 2019 and 2021 Notes were converted as of June 28, 2015 , the if-converted value would not exceed the principal amount. 0.25% Convertible Senior Notes due 2016 In 2011, the Company issued $920.0 million aggregate principal amount of 2016 Notes. The Company pays 0.25% interest per annum on the principal amount of the 2016 Notes semiannually in arrears in cash on March 15 and September 15 of each year. The 2016 Notes mature on March 15, 2016 . The effective rate of the liability component was estimated to be 4.5% . The 2016 Notes are convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at the Company’s election, based on an initial conversion rate, subject to adjustment, of 11.9687 shares per $1,000 principal amount of the 2016 Notes (which represents an initial conversion price of approximately $83.55 per share), only in the following circumstances and to the following extent: (1) during the five business-day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2016 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending March 31, 2011, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2016 Notes; and (4) at any time on or after December 15, 2015 through the second scheduled trading day immediately preceding the maturity date. Based upon meeting the stock trading price conversion requirement during the three months ended June 30, 2015, the 2016 Notes will continue to be convertible through September 30, 2015 . In conjunction with the issuance of the 2019 and 2021 Notes, the Company used the net proceeds from the issuance plus cash on hand to repurchase $600.0 million in principal amount of the outstanding 2016 Notes in privately negotiated transactions. The aggregate cash used for the repurchase was $1,244.7 million . The repurchase is accounted for as an extinguishment of debt and resulted in a $31.4 million loss for the difference between the $588.8 million fair value of debt component and the carrying value of the repurchased 2016 Notes. The $655.9 million of the repurchase price allocated to the equity component was recorded as a reduction of additional paid-in capital. As noted in the indenture for the 2016 Notes, it is the Company’s intent and policy to settle conversions through combination settlement, which essentially involves repayment of an amount of cash equal to the “principal portion” and delivery of the “share amount” in excess of the conversion value over the principal portion in shares of common stock. As a policy election under applicable guidance related to the calculation of diluted net income per share, the Company elected the combination settlement method as its stated settlement policy and applied the treasury stock method in the calculation of the dilutive impact of the 2016 Notes. The calculation of dilutive potential common shares outstanding for the three and six months ended June 28, 2015 reflects the dilutive impact from the 2016 Notes. If the remaining 2016 Notes were converted as of June 28, 2015 , the if-converted value would exceed the principal amount by $491.5 million . During the six months ended June 28, 2015 , the Company recorded a loss on extinguishment of debt calculated as the difference between the estimated fair value of the debt and the carrying value of the notes as of the settlement date. To measure the fair value of the converted notes as of the settlement date, the applicable interest rate was estimated using Level 2 observable inputs and applied to the converted notes using the same methodology as in the issuance date valuation. The following table summarizes information about the conversion of the 2016 Notes during the six months ended June 28, 2015 (in thousands, except percentage): 2016 Notes Cash paid for principal of notes converted $ 8,434 Conversion value over principal amount paid in shares of common stock $ 10,495 Number of shares of common stock issued upon conversion 56 Loss on extinguishment of debt $ 233 Effective interest rate used to measure fair value of converted notes upon conversion 1.2 % In July 2015, the Company received notices for conversions of an additional $152.5 million in principal of 2016 Notes. Summary of Convertible Senior Notes The following table summarizes information about the equity and liability components of all convertible senior notes outstanding as of the period reported (dollars in thousands). The fair values of the respective notes outstanding were measured based on quoted market prices. June 28, December 28, Principal amount of convertible notes outstanding $ 1,461,593 $ 1,470,027 Unamortized discount of liability component (158,317 ) (178,991 ) Net carrying amount of liability component 1,303,276 1,291,036 Less: current portion (302,447 ) (304,256 ) Long-term debt $ 1,000,829 $ 986,780 Carrying value of equity component, net of debt issuance cost $ 215,216 $ 215,283 Fair value of outstanding notes $ 2,178,535 $ 2,021,750 Weighted-average remaining amortization period of discount on the liability component 4.8 years 5.2 years

Share-based Compensation Expens

Share-based Compensation Expense	6 Months Ended
	Jun. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Expense	Share-based Compensation Expense Share-based compensation expense for all stock awards consists of the following (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Cost of product revenue $ 2,113 $ 2,149 $ 4,445 $ 4,244 Cost of service and other revenue 466 284 745 569 Research and development 10,747 12,785 22,054 24,454 Selling, general and administrative 19,631 20,778 37,631 40,153 Share-based compensation expense before taxes 32,957 35,996 64,875 69,420 Related income tax benefits (9,315 ) (11,674 ) (18,428 ) (22,251 ) Share-based compensation expense, net of taxes $ 23,642 $ 24,322 $ 46,447 $ 47,169 The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the Employee Stock Purchase Plan (ESPP) during the six months ended June 28, 2015 are as follows: Employee Stock Purchase Rights Risk-free interest rate 0.07% - 0.17% Expected volatility 35% - 38% Expected term 0.5 - 1.0 year Expected dividends — Weighted-average fair value per share $ 53.35 As of June 28, 2015 , approximately $220.9 million of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date is expected to be recognized over a weighted-average period of approximately 2.4 years .

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 28, 2015
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity During the six months ended June 28, 2015 , the Company’s stockholders approved the 2015 Stock and Incentive Compensation Plan (the 2015 Stock Plan), which replaced both the 2005 Stock and Incentive Plan and the 2008 Verinata Health Stock Plan, and increased the maximum number of shares of common stock authorized for issuance by 2.7 million shares. As of June 28, 2015 , approximately 8.2 million shares remained available for future grants under the 2015 Stock Plan and the 2005 Solexa Equity Plan. Restricted Stock A summary of the Company’s restricted stock activity and related information for the six months ended June 28, 2015 is as follows (units in thousands): Restricted Stock Awards (RSA) Restricted Stock Units (RSU) Performance Stock Units (PSU)(1) Weighted-Average Grant-Date Fair Value per Share RSA RSU PSU Outstanding at December 28, 2014 108 2,841 1,257 $ 56.62 $ 92.35 $ 96.21 Awarded — 77 8 — $ 199.86 $ 190.16 Vested (76 ) (403 ) — 60.21 $ 71.18 — Cancelled — (180 ) (107 ) — $ 91.97 $ 84.78 Outstanding at June 28, 2015 32 2,335 1,158 $ 47.93 $ 99.60 $ 97.90 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. Stock Options The Company’s stock option activity under all stock option plans during the six months ended June 28, 2015 is as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at December 28, 2014 3,211 $ 34.74 Exercised (1,040 ) $ 27.66 Cancelled (26 ) $ 17.63 Outstanding at June 28, 2015 2,145 $ 38.38 At June 28, 2015 , outstanding options to purchase 2.0 million shares were exercisable with a weighted-average exercise price per share of $39.62 . Employee Stock Purchase Plan The price at which common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the six months ended June 28, 2015 , approximately 0.1 million shares were issued under the ESPP. As of June 28, 2015 , there were approximately 14.6 million shares available for issuance under the ESPP. Share Repurchases In January 2014, the Company’s Board of Directors authorized up to $250.0 million to repurchase shares of the Company’s common stock on a discretionary basis. In addition, on May 1, 2015, the Company’s Board of Directors authorized $150.0 million of additional repurchases under a Rule 10b5-1 plan. During the six months ended June 28, 2015 , the Company repurchased approximately 0.2 million shares for $34.8 million in the aggregate and no shares were repurchased during the three months ended June 28, 2015 . Authorizations to repurchase up to an additional $245.6 million of the Company’s common stock remained available as of June 28, 2015 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 28, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in tax jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses and other permanent differences between income before income taxes and taxable income. The effective tax rates for the three and six months ended June 28, 2015 were 27.6% and 25.2% , respectively. For the three and six months ended June 28, 2015 , the variance from the U.S. federal statutory tax rate of 35% was primarily attributable to the mix of earnings in jurisdictions with lower statutory tax rates than the U.S. federal statutory tax rate, such as in Singapore and the United Kingdom. For the six months ended June 28, 2015 , the variance from the U.S. federal statutory tax rate also resulted from the reversal of a valuation allowance related to research and development tax credits which was recorded as a discrete item. The Company is currently under examination by the IRS for tax year 2011. The IRS has not yet proposed any adjustments to the filed return.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigations or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. On November 14, 2014, the Company entered into a Settlement and License Agreement with Syntrix Biosystems, Inc. and its sole shareholders, John A. Zebala and Amy Zebala, that settled all claims in the litigation brought against the Company. On December 2, 2014, the Company and its subsidiary Verinata Health, Inc. entered into a series of agreements with Sequenom, Inc. and several other parties that, among other items, settled a patent litigation among the parties involved. For more detailed discussions on these matters, refer to note “10. Legal Proceedings” in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 28, 2014.

Basis of Presentation and Sum14

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 28, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In management’s opinion, the accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 , from which the balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expense, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Fiscal Year	Fiscal Year The Company’s fiscal year consists of 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The three and six months ended June 28, 2015 and June 29, 2014 were both 13 and 26 weeks, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of 2016. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers . The new standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning in the first quarter of 2018 and allows for a full retrospective or a modified retrospective adoption approach. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements.
Net Income per Share	Net Income per Share Basic net income per share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes, equity awards, and warrants. Convertible senior notes have a dilutive impact when the average market price of the Company’s common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards and warrants are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of equity awards and warrants; the average amount of unrecognized compensation expense for equity awards; and estimated tax benefits that will be recorded in additional paid-in capital when expenses related to equity awards become deductible. In loss periods, basic net loss per share and diluted net loss per share are identical because the otherwise dilutive potential common shares become anti-dilutive and are therefore excluded.
Goodwill	Goodwill The Company tests the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of the reporting unit annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment is required. The Company performed its annual assessment for goodwill impairment in the second quarter of 2015 , noting no impairment.
Derivatives	Derivatives The Company is exposed to foreign exchange rate risks in the normal course of business. The Company enters into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other assets or other liabilities and are not designated as hedging instruments. Changes in the value of the derivative are recognized in other expense, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities. As of June 28, 2015 , the Company had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, and Australian dollar. As of June 28, 2015 and December 28, 2014 , the total notional amounts of outstanding forward contracts in place for foreign currency purchases were $65.5 million and $61.0 million , respectively.
Warranties	Warranties The Company generally provides a one -year warranty on instruments. Additionally, the Company provides a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses based on historical experience as well as anticipated product performance. The Company periodically reviews its warranty reserve for adequacy and adjusts the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue.

Basis of Presentation and Sum15

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 28, 2015
Accounting Policies [Abstract]
Weighted average shares used to calculate basic and diluted net income per share	The following table presents the calculation of weighted average shares used to calculate basic and diluted net income per share (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Weighted average shares outstanding 144,220 130,583 143,996 129,365 Effect of potentially dilutive common shares from: Convertible senior notes 2,194 4,410 2,185 4,964 Equity awards 2,555 4,160 2,645 4,488 Warrants — 9,968 — 11,053 Weighted average shares used in calculation of diluted net income per share 148,969 149,121 148,826 149,870 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 4 157 3 141

Balance Sheet Account Details (

Balance Sheet Account Details (Tables)	6 Months Ended
	Jun. 28, 2015
Balance Sheet Account Details [Abstract]
Short-term investments	The following is a summary of short-term investments (in thousands): June 28, 2015 December 28, 2014 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 $ 44,219 $ 20 $ (16 ) $ 44,223 $ 51,308 $ 10 $ (55 ) $ 51,263 Corporate debt securities 658,568 71 (1,109 ) 657,530 502,924 46 (2,882 ) 500,088 U.S. Treasury securities 217,454 181 (63 ) 217,572 151,255 5 (394 ) 150,866 Total available-for-sale securities $ 920,241 $ 272 $ (1,188 ) $ 919,325 $ 705,487 $ 61 $ (3,331 ) $ 702,217
Contractual maturities of available-for-sale debt securities	Contractual maturities of available-for-sale debt securities as of June 28, 2015 were as follows (in thousands): Estimated Fair Value Due within one year $ 416,310 After one but within five years 503,015 Total $ 919,325
Inventory	Inventory consists of the following (in thousands): June 28, December 28, Raw materials $ 84,111 $ 73,179 Work in process 115,584 94,102 Finished goods 23,925 23,863 Total inventory $ 223,620 $ 191,144
Accrued liabilities	Accrued liabilities consist of the following (in thousands): June 28, December 28, Accrued compensation expenses $ 95,294 $ 112,606 Deferred revenue, current portion 84,677 75,294 Accrued taxes payable 39,133 38,942 Acquisition related contingent liability, current portion 36,566 44,124 Reserve for product warranties 16,365 15,616 Customer deposits 13,239 20,274 Other 29,448 28,420 Total accrued liabilities $ 314,722 $ 335,276
Warranties	Changes in the Company’s reserve for product warranties during the three and six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Balance at beginning of period $ 15,991 $ 11,492 $ 15,616 $ 10,407 Additions charged to cost of revenue 6,924 5,620 13,821 9,812 Repairs and replacements (6,550 ) (4,112 ) (13,072 ) (7,219 ) Balance at end of period $ 16,365 $ 13,000 $ 16,365 $ 13,000
Leases	Changes in the Company’s facility exit obligation related to its former headquarters lease during the three and six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Balance at beginning of period $ 36,819 $ 37,180 $ 37,700 $ 38,218 Adjustment to facility exit obligation 657 1,914 657 1,914 Accretion of interest expense 729 686 1,336 1,281 Cash payments (1,528 ) (1,300 ) (3,016 ) (2,933 ) Balance at end of period $ 36,677 $ 38,480 $ 36,677 $ 38,480

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 28, 2015
Fair Value Disclosures [Abstract]
Fair value measurements	The following table presents the Company’s hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and December 28, 2014 (in thousands): June 28, 2015 December 28, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 255,580 $ — $ — $ 255,580 $ 431,172 $ — $ — $ 431,172 Debt securities in government-sponsored entities — 44,223 — 44,223 — 51,263 — 51,263 Corporate debt securities — 657,530 — 657,530 — 500,088 — 500,088 U.S. Treasury securities 217,572 — — 217,572 150,866 — — 150,866 Deferred compensation plan assets — 26,864 — 26,864 — 23,486 — 23,486 Total assets measured at fair value $ 473,152 $ 728,617 $ — $ 1,201,769 $ 582,038 $ 574,837 $ — $ 1,156,875 Liabilities: Acquisition related contingent consideration liabilities $ — $ — $ 36,566 $ 36,566 $ — $ — $ 44,124 $ 44,124 Deferred compensation liability — 24,915 — 24,915 — 20,310 — 20,310 Total liabilities measured at fair value $ — $ 24,915 $ 36,566 $ 61,481 $ — $ 20,310 $ 44,124 $ 64,434
Changes in estimated fair value of contingent consideration liabilities	Changes in estimated fair value of contingent consideration liabilities during the six months ended June 28, 2015 are as follows (in thousands): Contingent Consideration Liability (Level 3 Measurement) Balance as of December 28, 2014 $ 44,124 Change in estimated fair value, recorded in acquisition related expense (gain), net (7,558 ) Balance as of June 28, 2015 $ 36,566

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jun. 28, 2015
Debt Disclosure [Abstract]
Summarized information about the conversion of the 2016 Notes	The following table summarizes information about the conversion of the 2016 Notes during the six months ended June 28, 2015 (in thousands, except percentage): 2016 Notes Cash paid for principal of notes converted $ 8,434 Conversion value over principal amount paid in shares of common stock $ 10,495 Number of shares of common stock issued upon conversion 56 Loss on extinguishment of debt $ 233 Effective interest rate used to measure fair value of converted notes upon conversion 1.2 %
Summarized information about equity and liability components of convertible senior notes	The following table summarizes information about the equity and liability components of all convertible senior notes outstanding as of the period reported (dollars in thousands). The fair values of the respective notes outstanding were measured based on quoted market prices. June 28, December 28, Principal amount of convertible notes outstanding $ 1,461,593 $ 1,470,027 Unamortized discount of liability component (158,317 ) (178,991 ) Net carrying amount of liability component 1,303,276 1,291,036 Less: current portion (302,447 ) (304,256 ) Long-term debt $ 1,000,829 $ 986,780 Carrying value of equity component, net of debt issuance cost $ 215,216 $ 215,283 Fair value of outstanding notes $ 2,178,535 $ 2,021,750 Weighted-average remaining amortization period of discount on the liability component 4.8 years 5.2 years

Share-based Compensation Expe19

Share-based Compensation Expense (Tables)	6 Months Ended
	Jun. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense for all stock awards	Share-based compensation expense for all stock awards consists of the following (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Cost of product revenue $ 2,113 $ 2,149 $ 4,445 $ 4,244 Cost of service and other revenue 466 284 745 569 Research and development 10,747 12,785 22,054 24,454 Selling, general and administrative 19,631 20,778 37,631 40,153 Share-based compensation expense before taxes 32,957 35,996 64,875 69,420 Related income tax benefits (9,315 ) (11,674 ) (18,428 ) (22,251 ) Share-based compensation expense, net of taxes $ 23,642 $ 24,322 $ 46,447 $ 47,169
Assumptions used to estimate the fair value per share of employee stock purchase rights granted	The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the Employee Stock Purchase Plan (ESPP) during the six months ended June 28, 2015 are as follows: Employee Stock Purchase Rights Risk-free interest rate 0.07% - 0.17% Expected volatility 35% - 38% Expected term 0.5 - 1.0 year Expected dividends — Weighted-average fair value per share $ 53.35

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 28, 2015
Equity [Abstract]
Restricted stock activity	A summary of the Company’s restricted stock activity and related information for the six months ended June 28, 2015 is as follows (units in thousands): Restricted Stock Awards (RSA) Restricted Stock Units (RSU) Performance Stock Units (PSU)(1) Weighted-Average Grant-Date Fair Value per Share RSA RSU PSU Outstanding at December 28, 2014 108 2,841 1,257 $ 56.62 $ 92.35 $ 96.21 Awarded — 77 8 — $ 199.86 $ 190.16 Vested (76 ) (403 ) — 60.21 $ 71.18 — Cancelled — (180 ) (107 ) — $ 91.97 $ 84.78 Outstanding at June 28, 2015 32 2,335 1,158 $ 47.93 $ 99.60 $ 97.90
Stock option activity under all stock option plans	The Company’s stock option activity under all stock option plans during the six months ended June 28, 2015 is as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at December 28, 2014 3,211 $ 34.74 Exercised (1,040 ) $ 27.66 Cancelled (26 ) $ 17.63 Outstanding at June 28, 2015 2,145 $ 38.38

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Weighted average shares used to calculate basic and diluted net income per share
Weighted average shares outstanding	144,220	130,583	143,996	129,365
Effect of potentially dilutive common shares from:
Convertible senior notes	2,194	4,410	2,185	4,964
Equity awards	2,555	4,160	2,645	4,488
Warrants		9,968		11,053
Weighted average shares used in calculation of diluted net income per share	148,969	149,121	148,826	149,870
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	4	157	3	141

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Accounting Policies [Abstract]
Quarterly operating cycle

Balance Sheet Account Details23

Balance Sheet Account Details (Details) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Available-for-sale securities:
Available for sale securities, Amortized Cost	$ 920,241	$ 705,487
Available for sale securities, Gross Unrealized Gains	272	61
Available for sale securities, Gross Unrealized Losses	(1,188)	(3,331)
Available for sale securities, Estimated Fair Value	919,325	702,217
Debt securities in government sponsored entities [Member]
Available-for-sale securities:
Available for sale securities, Amortized Cost	44,219	51,308
Available for sale securities, Gross Unrealized Gains	20	10
Available for sale securities, Gross Unrealized Losses	(16)	(55)
Available for sale securities, Estimated Fair Value	44,223	51,263
Corporate debt securities [Member]
Available-for-sale securities:
Available for sale securities, Amortized Cost	658,568	502,924
Available for sale securities, Gross Unrealized Gains	71	46
Available for sale securities, Gross Unrealized Losses	(1,109)	(2,882)
Available for sale securities, Estimated Fair Value	657,530	500,088
U.S. Treasury securities [Member]
Available-for-sale securities:
Available for sale securities, Amortized Cost	217,454	151,255
Available for sale securities, Gross Unrealized Gains	181	5
Available for sale securities, Gross Unrealized Losses	(63)	(394)
Available for sale securities, Estimated Fair Value	$ 217,572	$ 150,866

Balance Sheet Account Details24

Balance Sheet Account Details (Details 1) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Due within one year	$ 416,310
After one but within five years	503,015
Available for sale securities, Estimated Fair Value	$ 919,325	$ 702,217

Balance Sheet Account Details25

Balance Sheet Account Details (Details 2) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Inventory [Abstract]
Raw Materials	$ 84,111	$ 73,179
Work in process	115,584	94,102
Finished goods	23,925	23,863
Total inventory	$ 223,620	$ 191,144

Balance Sheet Account Details26

Balance Sheet Account Details (Details 3) - USD ($) $ in Thousands	Jun. 28, 2015	Mar. 29, 2015	Dec. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013
Accrued Liabilities, Current [Abstract]
Accrued compensation expenses	$ 95,294		$ 112,606
Deferred revenue, current portion	84,677		75,294
Accrued taxes payable	39,133		38,942
Acquisition related contingent liability, current portion	36,566		44,124
Product Warranty Accrual, Current	16,365	$ 15,991	15,616	$ 13,000	$ 11,492	$ 10,407
Customer deposits	13,239		20,274
Other	29,448		28,420
Total accrued liabilities	$ 314,722		$ 335,276

Balance Sheet Account Details27

Balance Sheet Account Details (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Reserve for product warranties [Roll Forward]
Balance at beginning of period	$ 15,991	$ 11,492	$ 15,616	$ 10,407
Additions charged to cost of revenue	6,924	5,620	13,821	9,812
Repairs and replacements	(6,550)	(4,112)	(13,072)	(7,219)
Balance at end of period	$ 16,365	$ 13,000	$ 16,365	$ 13,000

Balance Sheet Account Details28

Balance Sheet Account Details (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Headquarter Facility Exit Obligation [Roll Forward]
Balance at beginning of period	$ 36,819	$ 37,180	$ 37,700	$ 38,218
Adjustment to facility exit obligation	657	1,914	657	1,914
Accretion of interest expense	729	686	1,336	1,281
Cash payments	(1,528)	(1,300)	(3,016)	(2,933)
Balance at end of period	$ 36,677	$ 38,480	$ 36,677	$ 38,480

Balance Sheet Account Details29

Balance Sheet Account Details (Details Textual) - USD ($) $ in Millions	Jun. 26, 2015	Mar. 13, 2015	Dec. 31, 2014	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Jun. 25, 2015	Mar. 12, 2015	Dec. 30, 2014	Dec. 28, 2014
Company's cost-method investments in non-publicly traded companies				$ 51.9		$ 51.9					$ 37.2
Revenue from Company's cost-method investments in non-publicly traded companies				14.1	$ 10.1	31.3	$ 16.7
Cost-method investment gain						15.1
Derivative, Notional Amount				$ 65.5		$ 65.5					$ 61
Instrument warranty period						1 year
Lease Term	20 years	15 years	16 years
Future minimum payment due for lease addition in period								$ 147.9	$ 44.1	$ 204
Minimum [Member]
Warranty on consumable sales through the expiration date						6 months
Maximum [Member]
Warranty on consumable sales through the expiration date						12 months

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Dec. 28, 2014
Change in estimated fair value of the contingent consideration liability
Change in estimated fair value, recorded in acquisition related expense (gain), net	$ (7,558)	$ (3,291)
Fair Value, Measurements, Recurring [Member]
Assets:
Money market funds (cash equivalents)			$ 255,580	$ 431,172
Deferred compensation plan assets			26,864	23,486
Total assets measured at fair value			1,201,769	1,156,875
Liabilities:
Acquisition related contingent consideration liabilities	44,124		36,566	44,124
Deferred compensation liability			24,915	20,310
Total liabilities measured at fair value			61,481	64,434
Change in estimated fair value of the contingent consideration liability
Balance as of December 28, 2014	44,124
Balance as of June 28, 2015	36,566
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Money market funds (cash equivalents)			255,580	431,172
Total assets measured at fair value			473,152	582,038
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Deferred compensation plan assets			26,864	23,486
Total assets measured at fair value			728,617	574,837
Liabilities:
Deferred compensation liability			24,915	20,310
Total liabilities measured at fair value			24,915	20,310
Fair Value, Inputs, Level 3 [Member]
Liabilities:
Acquisition related contingent consideration liabilities	44,124		36,566	44,124
Change in estimated fair value of the contingent consideration liability
Balance as of December 28, 2014	44,124
Change in estimated fair value, recorded in acquisition related expense (gain), net	(7,558)
Balance as of June 28, 2015	36,566
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Liabilities:
Acquisition related contingent consideration liabilities	44,124		36,566	44,124
Total liabilities measured at fair value			36,566	44,124
Change in estimated fair value of the contingent consideration liability
Balance as of December 28, 2014	44,124
Balance as of June 28, 2015	$ 36,566
Debt securities in government sponsored entities [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			44,223	51,263
Debt securities in government sponsored entities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			44,223	51,263
Corporate debt securities [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			657,530	500,088
Corporate debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			657,530	500,088
U.S. Treasury securities [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			217,572	150,866
U.S. Treasury securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Investments, fair value disclosure			$ 217,572	$ 150,866

Fair Value Measurements (Deta31

Fair Value Measurements (Details Textual) - Verinata [Member]	Feb. 21, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Assumptions, Expected Volatility Rate	50.00%
Fair Value Assumptions, Risk Free Interest Rate	0.26%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	20.00%
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	6.00%

Convertible Senior Notes (Detai

Convertible Senior Notes (Details) shares in Thousands, $ in Thousands	Jun. 11, 2014USD ($)	Jun. 28, 2015USD ($)shares	Jun. 29, 2014USD ($)
Extinguishment of Debt [Line Items]
Cash paid for principal of notes converted			$ 1,244,721
Loss on extinguishment of debt		$ (233)	$ (31,360)
2016 Notes [Member]
Extinguishment of Debt [Line Items]
Cash paid for principal of notes converted	$ 1,244,700	8,434
Conversion value over principal amount paid in shares of common stock		$ 10,495
Number of shares of common stock issued upon conversion | shares		56
Loss on extinguishment of debt	$ 31,400	$ 233
Effective interest rate used to measure fair value of converted notes upon conversion		1.20%

Convertible Senior Notes (Det33

Convertible Senior Notes (Details 1) - Debt Instrument, Name [Domain] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 28, 2015	Dec. 28, 2014
Summarized information about equity and liability components of convertible senior notes
Principal amount of convertible notes outstanding	$ 1,461,593	$ 1,470,027
Unamortized discount of liability component	(158,317)	(178,991)
Net carrying amount of liability component	1,303,276	1,291,036
Less: current portion	(302,447)	(304,256)
Long-term debt	1,000,829	986,780
Carrying value of equity component, net of debt issuance cost	215,216	215,283
Fair value of outstanding notes	$ 2,178,535	$ 2,021,750
Weighted-average remaining amortization period of discount on the liability component	4 years 10 months	5 years 2 months

Convertible Senior Notes (Det34

Convertible Senior Notes (Details Textual)	Jun. 11, 2014USD ($)$ / shares	Jul. 26, 2015USD ($)	Jun. 28, 2015USD ($)	Jun. 29, 2014USD ($)	Jan. 01, 2012USD ($)$ / shares	Dec. 28, 2014USD ($)
Debt Instrument [Line Items]
Fair value of liability component			$ 1,303,276,000			$ 1,291,036,000
Carrying value of equity component, net of debt issuance cost			215,216,000			$ 215,283,000
Repurchase amount				$ 1,244,721,000
Loss on extinguishment of debt			(233,000)	$ (31,360,000)
2019 Notes [Member]
Debt Instrument [Line Items]
Issuance of convertible senior notes	$ 632,500,000		632,500,000
Interest rate on convertible senior notes	0.00%
Debt maturity date	Jun. 15, 2019
Effective interest rates of liability component	2.90%
2021 Notes [Member]
Debt Instrument [Line Items]
Issuance of convertible senior notes	$ 517,500,000		517,500,000
Interest rate on convertible senior notes	0.50%
Debt maturity date	Jun. 15, 2021
Effective interest rates of liability component	3.50%
2019 and 2021 Notes [Member]
Debt Instrument [Line Items]
Issuance of convertible senior notes	$ 1,150,000,000
Fair value of liability component	971,500,000
Carrying value of equity component, net of debt issuance cost	161,200,000
Cash proceeds	$ 1,132,700,000
Conversion rate per $1,000 principal amount of notes (in shares per thousand dollars)	3.9318
Principal amount used in calculating incremental share settlement amount	$ 1,000
Conversion price (in dollars per share) | $ / shares	$ 254.34
Circumstances of converting notes at referred conversion ratio	(1) during the five business-day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2019 and 2021 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending September 30, 2014, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2019 and 2021 Notes; and (4) at any time on or after March 15, 2019 for the 2019 Notes, or March 15, 2021 for the 2021 Notes, through the second scheduled trading day immediately preceding the maturity date
Number of consecutive trading days in the measurement period (in days)	10 days
Conversion triggering common stock trading price as a percentage of price last reported in Measurement period converted at conversion rate	less than 98%
Minimum number of consecutive trading days on which trading price is examined for triggering of conversion (in days)	20 days
Number of consecutive trading days on which trading price is examined for triggering of conversion	30 days
Conversion triggering common stock price as a percentage of applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter	exceeds 130%
2016 Notes [Member]
Debt Instrument [Line Items]
Issuance of convertible senior notes			$ 311,600,000		$ 920,000,000
Interest rate on convertible senior notes					0.25%
Debt maturity date					Mar. 15, 2016
Effective interest rates of liability component					4.50%
Conversion rate per $1,000 principal amount of notes (in shares per thousand dollars)					11.9687
Principal amount used in calculating incremental share settlement amount					$ 1,000
Conversion price (in dollars per share) | $ / shares					$ 83.55
Circumstances of converting notes at referred conversion ratio					(1) during the five business-day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2016 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending March 31, 2011, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2016 Notes; and (4) at any time on or after December 15, 2015 through the second scheduled trading day immediately preceding the maturity date.
Number of consecutive trading days in the measurement period (in days)					10 days
Conversion triggering common stock trading price as a percentage of price last reported in Measurement period converted at conversion rate					less than 98%
Minimum number of consecutive trading days on which trading price is examined for triggering of conversion (in days)					20 days
Number of consecutive trading days on which trading price is examined for triggering of conversion					30 days
Conversion triggering common stock price as a percentage of applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter					exceeds 130%
Convertible senior note conversion end period			Sep. 30, 2015
Repurchased principal amount	$ 600,000,000
Repurchase amount	1,244,700,000		$ 8,434,000
Loss on extinguishment of debt	31,400,000		233,000
Repayment of convertible debt - debt component	588,800,000
Repayment of convertible debt - equity component	$ 655,900,000
If-converted value in excess of principal			$ 491,500,000
Subsequent Event [Member] | 2016 Notes [Member]
Debt Instrument [Line Items]
Repurchase amount		$ 152,500,000

Share-based Compensation Expe35

Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Share-based Compensation
Share-based compensation expense before taxes	$ 32,957	$ 35,996	$ 64,875	$ 69,420
Related income tax benefits	(9,315)	(11,674)	(18,428)	(22,251)
Share-based compensation expense, net of taxes	23,642	24,322	46,447	47,169
Cost of product revenue
Share-based Compensation
Share-based compensation expense before taxes	2,113	2,149	4,445	4,244
Cost of service and other revenue
Share-based Compensation
Share-based compensation expense before taxes	466	284	745	569
Research and development
Share-based Compensation
Share-based compensation expense before taxes	10,747	12,785	22,054	24,454
Selling, general and administrative
Share-based Compensation
Share-based compensation expense before taxes	$ 19,631	$ 20,778	$ 37,631	$ 40,153

Share-based Compensation Expe36

Share-based Compensation Expense (Details 1) - 6 months ended Jun. 28, 2015 - Employee Stock Purchase Rights [Member] - $ / shares	Total
Assumptions used to estimate the fair value per share of employee stock purchase rights granted
Risk-free interest rate, minimum	0.07%
Risk-free interest rate, maximum	0.17%
Expected volatility, minimum	35.00%
Expected volatility, maximum	38.00%
Expected dividends	0.00%
Weighted-average fair value per share (in dollars per share)	$ 53.35
Minimum [Member]
Assumptions used to estimate the fair value per share of employee stock purchase rights granted
Expected term (in years)	6 months
Maximum [Member]
Assumptions used to estimate the fair value per share of employee stock purchase rights granted
Expected term (in years)	1 year

Share-based Compensation Expe37

Share-based Compensation Expense (Details Textual) - Jun. 28, 2015 - USD ($) $ in Millions	Total
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized compensation cost related to stock options, restricted stock, and ESPP shares issued to date	$ 220.9
Weighted-average period of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date (in years)	2 years 5 months

Stockholders' Equity (Details)

Stockholders' Equity (Details) - 6 months ended Jun. 28, 2015 - $ / shares shares in Thousands		Total
Restricted Stock Awards (RSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at period start (in shares)		108
Vested (in shares)		(76)
Outstanding at period end (in shares)		32
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share)		$ 56.62
Weighted-Average Grant Date Fair Value per Share, Vested (in dollars per share)		60.21
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share)		$ 47.93
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at period start (in shares)		2,841
Awarded (in shares)		77
Vested (in shares)		(403)
Cancelled (in shares)		(180)
Outstanding at period end (in shares)		2,335
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share)		$ 92.35
Weighted-Average Grant Date Fair Value per Share, Awarded (in dollars per share)		199.86
Weighted-Average Grant Date Fair Value per Share, Vested (in dollars per share)		71.18
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share)		91.97
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share)		$ 99.60
Performance Stock Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at period start (in shares)	[1]	1,257
Awarded (in shares)	[1]	8
Cancelled (in shares)	[1]	(107)
Outstanding at period end (in shares)	[1]	1,158
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share)		$ 96.21
Weighted-Average Grant Date Fair Value per Share, Awarded (in dollars per share)		190.16
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share)		84.78
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share)		$ 97.90
[1]	The number of units reflect the estimated number of shares to be issued at the end of the performance period.

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - 6 months ended Jun. 28, 2015 - $ / shares shares in Thousands	Total
Stock option activity
Outstanding at period start (in shares)	3,211
Options, Exercised (in shares)	(1,040)
Options, Cancelled (in shares)	(26)
Outstanding at period end (in shares)	2,145
Weighted-Average Exercise Price, Outstanding at period start (in dollars per share)	$ 34.74
Weighted-Average Exercise Price, Exercised (in dollars per share)	27.66
Weighted-Average Exercise Price, Cancelled (in dollars per share)	17.63
Weighted-Average Exercise Price, Outstanding at period end (in dollars per share)	$ 38.38

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	May. 01, 2015	Jan. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercisable (in shares)	2,000,000
Stock options exercisable outstanding weighted-average exercise price per share (in dollars per share)	$ 39.62
Number of shares repurchased	200,000
Payments for Repurchase of Common Stock	$ 34,753	$ 202,431
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 245,600
2015 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase the maximum number of shares of common stock authorized for issuance (in shares)	2,700,000
2015 Illumina and 2005 Solexa Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	8,200,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	14,600,000
Specified percentage of the fair market value of the common stock on the first or last day of the offering period whichever is lower at which stock is purchased	85.00%
Total shares issued under the ESPP	100,000
January 30 2014 Stock Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount				$ 250,000
May 1, 2015 Stock Repurchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount			$ 150,000

Income Taxes (Details Textual)

Income Taxes (Details Textual) - Jun. 28, 2015	Total	Total
Income Tax Disclosure [Abstract]
Effective tax rate	27.60%	25.20%
U.S. federal statutory tax rate	35.00%	35.00%