Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Oct. 02, 2016 | Oct. 21, 2016 | |
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 | Oct. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 146.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 794,697 | $ 768,770 |
Short-term investments | 741,569 | 617,450 |
Accounts receivable, net | 381,632 | 385,529 |
Inventory | 312,242 | 270,777 |
Prepaid expenses and other current assets | 47,696 | 54,297 |
Total current assets | 2,277,836 | 2,096,823 |
Property and equipment, net | 633,856 | 342,694 |
Goodwill | 775,995 | 752,629 |
Intangible assets, net | 255,560 | 273,621 |
Deferred tax assets | 182,122 | 134,515 |
Other assets | 102,458 | 87,465 |
Total assets | 4,227,827 | 3,687,747 |
Current liabilities: | ||
Accounts payable | 134,090 | 139,226 |
Accrued liabilities | 315,204 | 386,844 |
Build-to-suit lease liability | 178,311 | 9,495 |
Long-term debt, current portion | 1,250 | 74,929 |
Total current liabilities | 628,855 | 610,494 |
Long-term debt | 1,040,765 | 1,015,649 |
Other long-term liabilities | 204,273 | 180,505 |
Redeemable noncontrolling interests | 34,257 | 32,546 |
Stockholders’ equity: | ||
Common stock | 1,882 | 1,859 |
Additional paid-in capital | 2,738,001 | 2,497,501 |
Accumulated other comprehensive income | 1,314 | 36 |
Retained earnings | 1,361,652 | 1,022,765 |
Treasury stock, at cost | (1,862,702) | (1,673,608) |
Total Illumina stockholders' equity | 2,240,147 | 1,848,553 |
Noncontrolling interests | 79,530 | |
Total stockholders’ equity | 2,319,677 | 1,848,553 |
Total liabilities and stockholders’ equity | $ 4,227,827 | $ 3,687,747 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Revenue: | ||||
Product revenue | $ 513,744 | $ 470,824 | $ 1,506,416 | $ 1,392,711 |
Service and other revenue | 93,395 | 79,447 | 272,610 | 235,503 |
Total revenue | 607,139 | 550,271 | 1,779,026 | 1,628,214 |
Cost of revenue: | ||||
Cost of product revenue | 132,423 | 120,954 | 382,856 | 360,037 |
Cost of service and other revenue | 37,606 | 29,590 | 117,156 | 94,289 |
Amortization of acquired intangible assets | 10,960 | 12,188 | 32,005 | 34,957 |
Total cost of revenue | 180,989 | 162,732 | 532,017 | 489,283 |
Gross profit | 426,150 | 387,539 | 1,247,009 | 1,138,931 |
Operating expense: | ||||
Research and development | 125,917 | 99,226 | 374,500 | 287,180 |
Selling, general and administrative | 139,146 | 136,648 | 436,914 | 377,406 |
Legal contingencies | 15,000 | (9,490) | 15,000 | |
Headquarter relocation | 385 | (5,226) | 1,069 | (3,047) |
Acquisition related expense (gain), net | 1,109 | (6,449) | ||
Total operating expense | 265,448 | 246,757 | 802,993 | 670,090 |
Income from operations | 160,702 | 140,782 | 444,016 | 468,841 |
Other income (expense): | ||||
Interest income | 2,056 | 2,767 | 6,683 | 5,804 |
Interest expense | (8,208) | (12,821) | (24,880) | (35,190) |
Cost-method investment gain, net | 2,900 | 15,482 | ||
Other (expense) income, net | (186) | (4,711) | 1,116 | (6,802) |
Total other expense, net | (6,338) | (11,865) | (17,081) | (20,706) |
Income before income taxes | 154,364 | 128,917 | 426,935 | 448,135 |
Provision for income taxes | 37,429 | 13,296 | 106,387 | 93,609 |
Consolidated net income | 116,935 | 115,621 | 320,548 | 354,526 |
Add: Net loss attributable to noncontrolling interests | 11,953 | 2,556 | 18,339 | 2,556 |
Net income attributable to Illumina stockholders | 128,888 | 118,177 | 338,887 | 357,082 |
Net income attributable to Illumina stockholders for earnings per share | $ 128,682 | $ 118,128 | $ 335,597 | $ 357,033 |
Earnings per share attributable to Illumina stockholders: | ||||
Basic (in dollars per share) | $ 0.88 | $ 0.81 | $ 2.29 | $ 2.47 |
Diluted (in dollars per share) | $ 0.87 | $ 0.79 | $ 2.27 | $ 2.39 |
Shares used in computing earnings per common share: | ||||
Basic (in shares) | 146,705 | 145,349 | 146,783 | 144,447 |
Diluted (in shares) | 147,901 | 149,672 | 148,049 | 149,108 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income | $ 116,935 | $ 115,621 | $ 320,548 | $ 354,526 |
Unrealized (loss) gain on available-for-sale securities, net of deferred tax | (1,004) | 441 | 1,278 | 2,120 |
Total consolidated comprehensive income | 115,931 | 116,062 | 321,826 | 356,646 |
Add: Comprehensive loss attributable to noncontrolling interests | 11,953 | 2,556 | 18,339 | 2,556 |
Comprehensive income attributable to Illumina stockholders | $ 127,884 | $ 118,618 | $ 340,165 | $ 359,202 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity Statement - 9 months ended Oct. 02, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Beginning balance at Jan. 03, 2016 | $ 1,848,553 | $ 1,859 | $ 2,497,501 | $ 36 | $ 1,022,765 | $ (1,673,608) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 332,340 | 338,887 | (6,547) | ||||
Unrealized gain on available-for-sale securities, net of deferred tax | 1,278 | 1,278 | |||||
Issuance of common stock, net of repurchases | (142,302) | 23 | 47,115 | (189,440) | |||
Tax impact from the conversion of convertible notes | 36 | 36 | |||||
Share-based compensation | 101,494 | 101,494 | |||||
Net incremental tax benefit related to share-based compensation | 109,292 | 109,292 | |||||
Adjustment to the carrying value of redeemable noncontrolling interests | (12,023) | (12,023) | |||||
Vesting of redeemable equity awards | (1,481) | (1,481) | |||||
Vesting of non-redeemable equity awards | 0 | (28) | 28 | ||||
Issuance of subsidiary shares in business combination | 2,300 | 2,102 | 198 | ||||
Issuance of treasury stock | 3,900 | 3,554 | 346 | ||||
Contributions from noncontrolling interest owners | 80,000 | 80,000 | |||||
Proceeds from early exercise of equity awards from a subsidiary | 5,851 | 5,851 | |||||
Tax impact of deemed dividend from GRAIL, Inc. | (9,561) | (9,561) | |||||
Ending balance at Oct. 02, 2016 | $ 2,319,677 | $ 1,882 | $ 2,738,001 | $ 1,314 | $ 1,361,652 | $ (1,862,702) | $ 79,530 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 320,548 | $ 354,526 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 65,433 | 52,774 |
Amortization of intangible assets | 38,051 | 40,884 |
Share-based compensation expense | 101,845 | 97,104 |
Accretion of debt discount | 22,342 | 29,828 |
Incremental tax benefit related to share-based compensation | (109,934) | (121,703) |
Deferred income tax expense | 57,539 | 83,679 |
Cost-method investment gain, net | (15,482) | |
Change in fair value of contingent consideration | (6,449) | |
Other | 5,190 | 6,178 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,999 | (121,309) |
Inventory | (41,757) | (43,598) |
Prepaid expenses and other current assets | 3,572 | (4,982) |
Other assets | (6,060) | (428) |
Accounts payable | (7,307) | 49,532 |
Accrued liabilities | (57,325) | 23,884 |
Other long-term liabilities | 9,949 | (5,220) |
Net cash provided by operating activities | 407,085 | 419,218 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (679,064) | (713,862) |
Sales of available-for-sale securities | 406,286 | 335,351 |
Maturities of available-for-sale securities | 148,290 | 189,929 |
Net cash paid for acquisitions | (17,841) | (35,226) |
Net purchases of strategic investments | 9,075 | 4,100 |
Purchases of property and equipment | (178,353) | (107,361) |
Cash paid for intangible assets | 11,490 | 275 |
Net cash used in investing activities | (341,247) | (335,544) |
Cash flows from financing activities: | ||
Payments on financing obligations | (70,522) | (216,207) |
Payments on acquisition related contingent consideration liability | (29,200) | (1,500) |
Proceeds from issuance of debt | 5,000 | |
Incremental tax benefit related to share-based compensation | 109,934 | 121,703 |
Common stock repurchases | (113,075) | (72,256) |
Taxes paid related to net share settlement of equity awards | (76,365) | (95,157) |
Proceeds from issuance of common stock | 47,156 | 65,668 |
Proceeds from early exercise of equity awards from a subsidiary | 5,851 | |
Contributions from noncontrolling interest owners | 80,000 | 32,128 |
Net cash used in financing activities | (41,221) | (165,621) |
Effect of exchange rate changes on cash and cash equivalents | 1,310 | (2,678) |
Net increase (decrease) in cash and cash equivalents | 25,927 | (84,625) |
Cash and cash equivalents at beginning of period | 768,770 | 636,154 |
Cash and cash equivalents at end of period | $ 794,697 | $ 551,529 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2016 | |
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. 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 January 3, 2016 , 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. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which the Company is the primary beneficiary. 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. The Company evaluates its ownership, contractual and other interests in entities that are not wholly-owned by the Company to determine if these entities are VIEs, and, if so, whether the Company is the primary beneficiary of the VIE. In determining whether the Company is the primary beneficiary of a VIE and is therefore required to consolidate the VIE, the Company applies a qualitative approach that determines whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in the consolidation or deconsolidation, as the case may be. The Company has not provided financial or other support during the periods presented to its VIEs that it was not previously contractually required to provide. The equity method is used to account for investments in which the Company has the ability to exercise significant influence, but not control, over the investee. Such investments are recorded within other assets, and the share of net income or losses of equity investments is recognized on a one quarter lag in other (expense) income, net. Segment Information The Company is organized into three operating segments for purposes of evaluating its business operations and reporting its financial results. One operating segment consists of Illumina’s core operations and the other two relate to the Company’s consolidated VIEs. The combined results of operations of the Company’s consolidated VIEs became material for the three and nine months ended October 2, 2016. As such, the Company commenced reporting two segments in the third quarter of 2016. Financial information for all periods presented has been classified to reflect these changes to our reportable segments. For further information on the Company’s segments, refer to note “9. Segment Information”. 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 nine months ended October 2, 2016 and September 27, 2015 were both 13 and 39 weeks, respectively. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Significant Accounting Policies During the three and nine months ended October 2, 2016 , there have been no changes to the Company’s significant accounting policies as described in the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 . Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718) . The new standard requires income tax effects of stock compensation awards to be recognized in the income statement when the awards vest or are settled. The new standard also allows the Company to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 will be effective for the Company beginning in the first quarter of 2017. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements. In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842) . The new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. Earnings per Share Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Per-share earnings of our VIEs are included in the Company’s consolidated basic and diluted earnings per share computations based on the Company’s share of the VIE’s securities. 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 earnings per share (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Weighted average shares outstanding 146,705 145,349 146,783 144,447 Effect of potentially dilutive common shares from: Convertible senior notes — 1,670 80 2,013 Equity awards 1,196 2,653 1,186 2,648 Weighted average shares used in calculating diluted earnings per share 147,901 149,672 148,049 149,108 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 63 13 580 7 |
Balance Sheet Account Details
Balance Sheet Account Details | 9 Months Ended |
Oct. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Account Details | Balance Sheet Account Details Short-Term Investments The following is a summary of short-term investments (in thousands): October 2, 2016 January 3, 2016 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 $ 29,687 $ — $ (30 ) $ 29,657 $ 14,634 $ — $ (8 ) $ 14,626 Corporate debt securities 463,484 282 (474 ) 463,292 422,177 44 (1,127 ) 421,094 U.S. Treasury securities 248,542 182 (104 ) 248,620 182,144 3 (417 ) 181,730 Total available-for-sale securities $ 741,713 $ 464 $ (608 ) $ 741,569 $ 618,955 $ 47 $ (1,552 ) $ 617,450 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 October 2, 2016 were as follows (in thousands): Estimated Fair Value Due within one year $ 279,548 After one but within five years 462,021 Total $ 741,569 The Company has the ability, if necessary, to liquidate any of its cash equivalents and short-term investments in order to meet its liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying condensed consolidated balance sheets. Strategic Investments As of October 2, 2016 and January 3, 2016 , the aggregate carrying amounts of the Company’s cost-method investments in non-publicly traded companies included in other assets were $56.9 million and $56.6 million , respectively. Revenue recognized from transactions with such companies was $12.5 million and $42.1 million , respectively, for the three and nine months ended October 2, 2016 and $16.1 million and $47.3 million , respectively, for the three and nine months ended September 27, 2015 . During the nine months ended September 27, 2015 , the Company recognized a gain on a disposition of a cost-method investment of $18.0 million . 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 nine months ended October 2, 2016 or September 27, 2015 . On April 14, 2016, the Company announced that it has committed to invest $100.0 million in a new venture capital investment fund (the Fund). The capital commitment is callable over ten years , and up to $40.0 million can be drawn down during the first year. The Company’s investment in the Fund is accounted for as an equity method investment. During the nine months ended October 2, 2016 , the Company transferred $3.2 million of its cost-method investments to the Fund and contributed $4.4 million in cash. Inventory Inventory consists of the following (in thousands): October 2, January 3, Raw materials $ 101,646 $ 97,740 Work in process 166,050 138,322 Finished goods 44,546 34,715 Total inventory $ 312,242 $ 270,777 Property and Equipment Property and equipment, net consists of the following (in thousands): October 2, January 3, Leasehold improvements $ 197,534 $ 178,019 Machinery and equipment 264,556 224,158 Computer hardware and software 153,851 136,550 Furniture and fixtures 20,448 18,539 Building 7,670 7,670 Construction in progress 308,825 44,501 Total property and equipment, gross 952,884 609,437 Accumulated depreciation (319,028 ) (266,743 ) Total property and equipment, net $ 633,856 $ 342,694 Property and equipment, net included accrued expenditures of $194.4 million for the nine months ended October 2, 2016 , which includes $168.8 million in construction in progress recorded under build-to-suit lease accounting. Accrued capital expenditures were excluded from the condensed consolidated statements of cash flows. Accrued capital expenditures were immaterial for the nine months ended September 27, 2015 . Goodwill The Company tests the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require the Company to estimate the fair value of the reporting units 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 2016, noting no impairment. Changes in the Company’s goodwill balance during the nine months ended October 2, 2016 are as follows (in thousands): Goodwill Balance as of January 3, 2016 $ 752,629 Current period acquisitions 23,366 Balance as of October 2, 2016 $ 775,995 In January 2016, the Company closed two acquisitions consisting of $17.8 million in upfront cash payments, equity instruments, and certain contingent consideration provisions. 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 October 2, 2016 , the Company had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, and Australian dollar. As of October 2, 2016 and January 3, 2016 , the total notional amounts of outstanding forward contracts in place for foreign currency purchases were $62.2 million and $61.3 million , respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): October 2, January 3, Deferred revenue, current portion $ 116,118 $ 96,654 Accrued compensation expenses 89,527 120,662 Accrued taxes payable 30,855 44,159 Customer deposits 17,831 20,901 Acquisition related contingent liability, current portion 7,220 35,000 Other 53,653 69,468 Total accrued liabilities $ 315,204 $ 386,844 Build-to-Suit Lease Liability The Company evaluates whether it is the accounting owner during the construction period when the Company is involved in the construction of leased assets. As a result, the Company is considered the owner of three construction projects for accounting purposes only under build-to-suit lease accounting due to certain indemnification obligations related to the construction. As of October 3, 2016 and January 3, 2016, the Company has recorded $178.3 million and $9.5 million , respectively, in project construction costs incurred by the landlord as construction in progress and a corresponding build-to-suit lease liability. Once the landlord completes the construction projects, the Company will evaluate the lease in order to determine whether or not it meets the criteria for “sale-leaseback” treatment. 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 nine months ended October 2, 2016 and September 27, 2015 are as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Balance at beginning of period $ 15,679 $ 16,365 $ 16,717 $ 15,616 Additions charged to cost of product revenue 3,878 6,916 17,200 20,737 Repairs and replacements (5,180 ) (5,348 ) (19,540 ) (18,420 ) Balance at end of period $ 14,377 $ 17,933 $ 14,377 $ 17,933 Leases Changes in the Company’s facility exit obligation related to its former headquarters lease during the three and nine months ended October 2, 2016 and September 27, 2015 are as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Balance at beginning of period $ 20,557 $ 36,677 $ 22,160 $ 37,700 Adjustment to facility exit obligation 66 (5,935 ) 87 (5,278 ) Accretion of interest expense 320 590 983 1,926 Cash payments (1,198 ) (1,539 ) (3,485 ) (4,555 ) Balance at end of period $ 19,745 $ 29,793 $ 19,745 $ 29,793 On March 18, 2016, the Company entered into an agreement to sublease its office building in San Francisco, California. The Company will receive $51.2 million in minimum lease payments during the initial term of approximately eight years . On April 5, 2016, the Company entered into a lease agreement for certain office buildings being constructed in San Diego, California. Minimum lease payments during the initial term of ten years are estimated to be $127.4 million . Investments in Consolidated Variable Interest Entities GRAIL, Inc. In January 2016, the Company obtained a majority equity ownership interest in GRAIL, Inc. (GRAIL), a company formed with unrelated third party investors to pursue the development and commercialization of a blood test for asymptomatic cancer screening. The Company determined that GRAIL is a variable interest entity as the entity lacks sufficient equity to finance its activities without additional support. Additionally, the Company determined that it has (a) control of the entity’s Board of Directors, which has unilateral power over the activities that most significantly impact the economic performance of GRAIL and (b) the obligation to absorb losses of and the right to receive benefits from GRAIL that are potentially significant to GRAIL. As a result, the Company is deemed to be the primary beneficiary of GRAIL and is required to consolidate GRAIL. On a fully diluted basis, the Company holds a 52% equity ownership interest in GRAIL as of October 2, 2016 . During the three months ended April 3, 2016, GRAIL completed its Series A convertible preferred stock financing, raising $120.0 million , of which the Company invested $40.0 million . Additionally, the Company and GRAIL executed a long-term supply agreement in which the Company contributed certain perpetual licenses, employees, and discounted supply terms in exchange for 112.5 million shares of GRAIL’s Class B Common Stock. Such contributions are recorded at their historical basis as they remain within the control of the Company. The $80.0 million received by GRAIL from unrelated third party investors upon issuance of its Series A convertible preferred stock is classified as noncontrolling interests in stockholders’ equity on the Company’s consolidated balance sheet. During the three months ended July 3, 2016, GRAIL authorized for issuance 97.5 million shares of Series A-1 convertible preferred stock, all of which were issued to Illumina in exchange for 97.5 million shares of Illumina’s Class B Common Stock on June 23, 2016. As a result of the exchange, Illumina recorded a $9.5 million deemed dividend net of tax of $9.6 million through equity, which was eliminated in consolidation. For the three months ended October 2, 2016 , the Company absorbed approximately 50% of GRAIL’s losses based upon its proportional ownership of GRAIL’s common stock. Prior to the exchange, for the six months ended July 3, 2016, the Company absorbed 90% of GRAIL’s losses based upon its proportional ownership of GRAIL’s common stock. In accordance with GRAIL’s Equity Incentive Plan, the Company may be required to redeem certain vested stock awards in cash at the then approximate fair market value. The fair value of the redeemable noncontrolling interests is considered a Level 3 instrument. Such redemption right is exercisable at the option of the holder of the awards after February 28, 2021, provided that an initial public offering of GRAIL has not been completed. As the redemption provision is outside of the control of the Company, the redeemable noncontrolling interests in GRAIL are classified outside of stockholders’ equity on the accompanying condensed consolidated balance sheets. The balance of the redeemable noncontrolling interests is reported at the greater of its carrying value after receiving its allocation of GRAIL’s profits and losses or its estimated redemption value at each reporting date. The assets and liabilities of GRAIL, other than cash and cash equivalents, are not significant to the Company’s financial position as of October 2, 2016 . Additionally, GRAIL has an immaterial impact on the Company’s condensed consolidated statements of income and cash flows for the three and nine months ended October 2, 2016 . Helix Holdings I, LLC In July 2015, the Company obtained a 50% voting equity ownership interest in Helix Holdings I, LLC (Helix), a limited liability company formed with unrelated third party investors to pursue the development and commercialization of a marketplace for consumer genomics. The Company determined that Helix is a variable interest entity as the holder of the at-risk equity investments as a group lack the power to direct the activities of Helix that most significantly impact Helix’s economic performance. Additionally, the Company determined that it has (a) unilateral power over one of the activities that most significantly impacts the economic performance of Helix through its contractual arrangements and no one individual party has unilateral power over the remaining significant activities of Helix and (b) the obligation to absorb losses of and the right to receive benefits from Helix that are potentially significant to Helix. As a result, the Company is deemed to be the primary beneficiary of Helix and is required to consolidate Helix. As contractually committed, the Company contributed certain perpetual licenses, instruments, intangibles, initial laboratory setup, and discounted supply terms in exchange for voting equity interests in Helix. Such contributions are recorded at their historical basis as they remain within the control of the Company. Helix is financed through cash contributions made by the third party investors in exchange for voting equity interests in Helix. Certain noncontrolling Helix investors may require the Company to redeem all noncontrolling interests in cash at the then approximate fair market value. The fair value of the redeemable noncontrolling interests is considered a Level 3 instrument. Such redemption right is exercisable at the option of certain noncontrolling interest holders after January 1, 2021, provided that a bona fide pursuit of the sale of Helix has occurred and an initial public offering of Helix has not been completed. As the contingent redemption is outside of the control of Illumina, the redeemable noncontrolling interests in Helix are classified outside of stockholders’ equity on the accompanying condensed consolidated balance sheets. The balance of the redeemable noncontrolling interests is reported at the greater of its carrying value after receiving its allocation of Helix’s profits and losses or its estimated redemption value at each reporting date. As of October 2, 2016 , the noncontrolling shareholders and Illumina each held 50% of Helix’s outstanding voting equity interests. The assets and liabilities of Helix are not significant to the Company’s financial position as of October 2, 2016 . Helix has an immaterial impact on the Company’s condensed consolidated statements of income and cash flows for the three and nine months ended October 2, 2016 . As of October 2, 2016 , the accompanying condensed consolidated balance sheet includes $103.6 million of cash and cash equivalents attributable to GRAIL and Helix that will be used to settle their respective obligations and will not be available to settle obligations of the Company. Redeemable Noncontrolling Interests The activity of the redeemable noncontrolling interests during the nine months ended October 2, 2016 is as follows (in thousands): Redeemable Noncontrolling Interests Balance as of January 3, 2016 $ 32,546 Vesting of redeemable equity awards 1,481 Net loss attributable to noncontrolling interests (11,793 ) Adjustment up to the redemption value 12,023 Balance as of October 2, 2016 $ 34,257 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 02, 2016 | |
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 October 2, 2016 and January 3, 2016 (in thousands): October 2, 2016 January 3, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 503,593 $ — $ — $ 503,593 $ 391,246 $ — $ — $ 391,246 Debt securities in government-sponsored entities — 29,657 — 29,657 — 14,626 — 14,626 Corporate debt securities — 463,292 — 463,292 — 421,094 — 421,094 U.S. Treasury securities 248,620 — — 248,620 181,730 — — 181,730 Deferred compensation plan assets — 29,901 — 29,901 — 26,245 — 26,245 Total assets measured at fair value $ 752,213 $ 522,850 $ — $ 1,275,063 $ 572,976 $ 461,965 $ — $ 1,034,941 Liabilities: Acquisition related contingent consideration liabilities $ — $ — $ 5,300 $ 5,300 $ — $ — $ 35,000 $ 35,000 Deferred compensation liability — 28,447 — 28,447 — 24,925 — 24,925 Total liabilities measured at fair value $ — $ 28,447 $ 5,300 $ 33,747 $ — $ 24,925 $ 35,000 $ 59,925 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. As a result of an acquisition completed in January 2016, the Company recorded $5.3 million in contingent consideration liabilities, the majority of which are payable within 12 months after the acquisition date. The Company reassesses the fair value of any contingent consideration liabilities 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 4% to 6% and the probability of achieving certain 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. Changes in estimated fair value of contingent consideration liabilities during the nine months ended October 2, 2016 are as follows (in thousands): Contingent Consideration Liability (Level 3 Measurement) Balance as of January 3, 2016 $ 35,000 Additional liability recorded as a result of a current period acquisition 5,300 Cash payments (35,000 ) Balance as of October 2, 2016 $ 5,300 |
Debt
Debt | 9 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes As of October 2, 2016 , the Company had outstanding $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 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. 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 . Neither the 2019 nor the 2021 Notes were convertible as of October 2, 2016 and had no dilutive impact during the three and nine months ended October 2, 2016 . If the 2019 and 2021 Notes were converted as of October 2, 2016 , 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 0.25% convertible senior notes due 2016 (2016 Notes) with a maturity date of March 15, 2016 . The effective rate of the liability component was estimated to be 4.5% . Based upon meeting the stock trading price conversion requirement during the three months ended March 30, 2014, the 2016 Notes became convertible on April 1, 2014 through, and including, March 11, 2016 . All notes were converted by March 11, 2016. During the nine months ended October 2, 2016 , 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 loss recorded on extinguishment of debt for the nine months ended October 2, 2016 was immaterial. The following table summarizes information about the conversion of the 2016 Notes during the nine months ended October 2, 2016 (in thousands): 2016 Notes Cash paid for principal of notes converted $ 75,543 Conversion value over principal amount paid in shares of common stock $ 63,753 Number of shares of common stock issued upon conversion 409 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, and is a Level 2 measurement. October 2, January 3, Principal amount of convertible notes outstanding $ 1,150,000 $ 1,225,547 Unamortized discount of liability component (112,716 ) (134,969 ) Net carrying amount of liability component 1,037,284 1,090,578 Less: current portion — (74,929 ) Long-term debt $ 1,037,284 $ 1,015,649 Carrying value of equity component, net of debt issuance cost $ 161,237 $ 213,811 Fair value of outstanding notes $ 1,224,169 $ 1,456,451 Weighted-average remaining amortization period of discount on the liability component 3.9 years 4.6 years Other As of October 2, 2016 , the accompanying condensed consolidated balance sheets include $1.3 million and $3.4 million in current and long-term debt, respectively, related to an outstanding line of credit held by Helix. |
Share-based Compensation Expens
Share-based Compensation Expense | 9 Months Ended |
Oct. 02, 2016 | |
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 Nine Months Ended October 2, September 27, October 2, September 27, Cost of product revenue $ 1,799 $ 2,567 $ 5,949 $ 7,012 Cost of service and other revenue 1,261 498 2,114 1,243 Research and development 11,515 9,098 32,889 31,152 Selling, general and administrative 20,008 20,066 60,893 57,697 Share-based compensation expense before taxes 34,583 32,229 101,845 97,104 Related income tax benefits (7,604 ) (9,876 ) (23,082 ) (28,304 ) Share-based compensation expense, net of taxes $ 26,979 $ 22,353 $ 78,763 $ 68,800 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 nine months ended October 2, 2016 are as follows: Employee Stock Purchase Rights Risk-free interest rate 0.40% - 0.50% Expected volatility 40% - 44% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average fair value per share $ 47.88 As of October 2, 2016 , approximately $203.2 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 | 9 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity As of October 2, 2016 , approximately 7.5 million shares remained available for future grants under the 2015 Stock Plan and the 2005 Solexa Equity Plan. Restricted Stock The Company’s restricted stock activity and related information for the nine months ended October 2, 2016 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 January 3, 2016 21 2,206 583 $ 47.93 $ 131.80 $ 169.41 Awarded 22 174 30 $ 179.00 $ 156.32 $ 156.75 Vested — (383 ) — $ — $ 85.57 — Cancelled — (197 ) (99 ) $ — $ 136.40 $ 163.51 Outstanding at October 2, 2016 43 1,800 514 $ 114.59 $ 143.46 $ 169.81 ______________________________________ (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 nine months ended October 2, 2016 is as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at January 3, 2016 1,599 $ 41.95 Exercised (532 ) $ 29.65 Cancelled (2 ) $ 46.35 Outstanding at October 2, 2016 1,065 $ 48.08 At October 2, 2016 , outstanding options to purchase 1.1 million shares were exercisable with a weighted-average exercise price per share of $48.08 . 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 day of the offering period or purchase date, whichever is lower. During the nine months ended October 2, 2016 , approximately 0.2 million shares were issued under the ESPP. As of October 2, 2016 , there were approximately 14.3 million shares available for issuance under the ESPP. Share Repurchases On July 28, 2016, the Company’s Board of Directors authorized a new share repurchase program, which supersedes all prior and available repurchase authorizations, to repurchase $250.0 million of outstanding common stock. During the three months ended October 2, 2016 , 0.1 million shares for $13.1 million were repurchased. During the nine months ended October 2, 2016 , the Company repurchased approximately 0.8 million shares for $113.1 million in aggregate. Authorizations to repurchase up to an additional $236.9 million of the Company’s common stock remained available as of October 2, 2016 . |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2016 | |
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 nine months ended October 2, 2016 were 24.2% and 24.9% , respectively. For the three and nine months ended October 2, 2016 , 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; offset slightly by the tax impact associated with the investments in our consolidated variable interest entities. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Oct. 02, 2016 | |
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 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 July 1, 2016, the Company entered into a Settlement and License Agreement with Enzo Life Sciences, Inc. (Enzo) that settled all claims in the litigation. Pursuant to the terms of the Settlement and License Agreement, the Company paid Enzo a one-time payment of $21.0 million for release of past damages claimed and a fully paid-up non-exclusive license to U.S. Patent No. 7,064,197. None of the parties made any admission of liability in entering into the Settlement and License Agreement. The Company allocated the $21.0 million settlement on a relative fair value basis, resulting in $11.5 million capitalized as an intangible asset and a corresponding gain recorded in legal contingencies for the value of the license, which will be amortized over a period of 7 years on a straight-line basis, and the remaining $9.5 million related to past damages claimed. The fair value of the license and past damages was estimated using a discounted cash flow model, and is considered to be a Level 3 measurement. |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information The Company has two reportable segments: Core Illumina and one segment related to the combined activities of the Company’s consolidated VIEs, GRAIL and Helix. The Company reports segment information based on the management approach. This approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenues and income (losses) from operations. Based on the information used by the CODM, the Company has determined its reportable segments as follows: Core Illumina : Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. Core Illumina includes all operations of the Company, excluding the results of its two consolidated VIEs. Consolidated VIEs: GRAIL : GRAIL was created to enable the early detection of cancer in asymptomatic individuals through a simple blood screen based on the concentration of circulating tumor nucleic acids. GRAIL is currently in the early stages of developing this test and as such, has no revenues to date. Helix : Helix was established to enable individuals to explore their genetic information by providing affordable sequencing and database services for consumers through third party partners, driving the creation of an ecosystem of consumer applications. Management evaluates the performance of the Company’s operating segments based upon income (loss) from operations. The Company does not allocate expenses between segments. Core Illumina sells products and provides services to GRAIL and Helix in accordance with contractual agreements between the entities. The following table presents the operating performance of each reportable segment (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Segment revenues: Core Illumina $ 615,135 $ 550,271 $ 1,792,150 $ 1,628,214 Consolidated VIEs — — — — Elimination of intersegment revenues (7,996 ) — (13,124 ) — Consolidated revenues $ 607,139 $ 550,271 $ 1,779,026 $ 1,628,214 Segment operating income (loss): Core Illumina $ 190,742 $ 145,893 $ 501,411 $ 473,952 Consolidated VIEs (25,136 ) (5,111 ) (49,700 ) (5,111 ) Elimination of intersegment earnings (4,904 ) — (7,695 ) — Consolidated operating income $ 160,702 $ 140,782 $ 444,016 $ 468,841 The following table presents the total assets of each reportable segment (in thousands): October 2, January 3, Segment assets: Core Illumina $ 4,095,182 $ 3,657,953 Consolidated VIEs 190,904 30,447 Elimination of intersegment assets (58,259 ) (653 ) Consolidated total assets $ 4,227,827 $ 3,687,747 |
Basis of Presentation and Sum16
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
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. |
Consolidation | The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which the Company is the primary beneficiary. 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. |
Variable Interest Entities | The Company evaluates its ownership, contractual and other interests in entities that are not wholly-owned by the Company to determine if these entities are VIEs, and, if so, whether the Company is the primary beneficiary of the VIE. In determining whether the Company is the primary beneficiary of a VIE and is therefore required to consolidate the VIE, the Company applies a qualitative approach that determines whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in the consolidation or deconsolidation, as the case may be. The Company has not provided financial or other support during the periods presented to its VIEs that it was not previously contractually required to provide. |
Equity Method Investments | The equity method is used to account for investments in which the Company has the ability to exercise significant influence, but not control, over the investee. Such investments are recorded within other assets, and the share of net income or losses of equity investments is recognized on a one quarter lag in other (expense) income, net. |
Segment Information | The Company is organized into three operating segments for purposes of evaluating its business operations and reporting its financial results. One operating segment consists of Illumina’s core operations and the other two relate to the Company’s consolidated VIEs. The combined results of operations of the Company’s consolidated VIEs became material for the three and nine months ended October 2, 2016. As such, the Company commenced reporting two segments in the third quarter of 2016. Financial information for all periods presented has been classified to reflect these changes to our reportable segments. For further information on the Company’s segments, refer to note “9. Segment Information”. |
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 nine months ended October 2, 2016 and September 27, 2015 were both 13 and 39 weeks, respectively. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718) . The new standard requires income tax effects of stock compensation awards to be recognized in the income statement when the awards vest or are settled. The new standard also allows the Company to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 will be effective for the Company beginning in the first quarter of 2017. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements. In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (Topic 842) . The new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. |
Earnings per Share | Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Per-share earnings of our VIEs are included in the Company’s consolidated basic and diluted earnings per share computations based on the Company’s share of the VIE’s securities. 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. |
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. |
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 Sum17
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Earnings Per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Weighted average shares outstanding 146,705 145,349 146,783 144,447 Effect of potentially dilutive common shares from: Convertible senior notes — 1,670 80 2,013 Equity awards 1,196 2,653 1,186 2,648 Weighted average shares used in calculating diluted earnings per share 147,901 149,672 148,049 149,108 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 63 13 580 7 |
Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Antidilutive Securities | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Weighted average shares outstanding 146,705 145,349 146,783 144,447 Effect of potentially dilutive common shares from: Convertible senior notes — 1,670 80 2,013 Equity awards 1,196 2,653 1,186 2,648 Weighted average shares used in calculating diluted earnings per share 147,901 149,672 148,049 149,108 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 63 13 580 7 |
Balance Sheet Account Details (
Balance Sheet Account Details (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Short-term Investments | The following is a summary of short-term investments (in thousands): October 2, 2016 January 3, 2016 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 $ 29,687 $ — $ (30 ) $ 29,657 $ 14,634 $ — $ (8 ) $ 14,626 Corporate debt securities 463,484 282 (474 ) 463,292 422,177 44 (1,127 ) 421,094 U.S. Treasury securities 248,542 182 (104 ) 248,620 182,144 3 (417 ) 181,730 Total available-for-sale securities $ 741,713 $ 464 $ (608 ) $ 741,569 $ 618,955 $ 47 $ (1,552 ) $ 617,450 |
Summary of Contractual Maturities of Available-for-sale Debt Securities | Contractual maturities of available-for-sale debt securities as of October 2, 2016 were as follows (in thousands): Estimated Fair Value Due within one year $ 279,548 After one but within five years 462,021 Total $ 741,569 |
Summary of Inventory | Inventory consists of the following (in thousands): October 2, January 3, Raw materials $ 101,646 $ 97,740 Work in process 166,050 138,322 Finished goods 44,546 34,715 Total inventory $ 312,242 $ 270,777 |
Summary of Property and Equipment | Property and equipment, net consists of the following (in thousands): October 2, January 3, Leasehold improvements $ 197,534 $ 178,019 Machinery and equipment 264,556 224,158 Computer hardware and software 153,851 136,550 Furniture and fixtures 20,448 18,539 Building 7,670 7,670 Construction in progress 308,825 44,501 Total property and equipment, gross 952,884 609,437 Accumulated depreciation (319,028 ) (266,743 ) Total property and equipment, net $ 633,856 $ 342,694 |
Summary of Changes in Goodwill | Changes in the Company’s goodwill balance during the nine months ended October 2, 2016 are as follows (in thousands): Goodwill Balance as of January 3, 2016 $ 752,629 Current period acquisitions 23,366 Balance as of October 2, 2016 $ 775,995 |
Summary of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): October 2, January 3, Deferred revenue, current portion $ 116,118 $ 96,654 Accrued compensation expenses 89,527 120,662 Accrued taxes payable 30,855 44,159 Customer deposits 17,831 20,901 Acquisition related contingent liability, current portion 7,220 35,000 Other 53,653 69,468 Total accrued liabilities $ 315,204 $ 386,844 |
Summary of Changes in Reserve for Product Warranties | Changes in the Company’s reserve for product warranties during the three and nine months ended October 2, 2016 and September 27, 2015 are as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Balance at beginning of period $ 15,679 $ 16,365 $ 16,717 $ 15,616 Additions charged to cost of product revenue 3,878 6,916 17,200 20,737 Repairs and replacements (5,180 ) (5,348 ) (19,540 ) (18,420 ) Balance at end of period $ 14,377 $ 17,933 $ 14,377 $ 17,933 |
Summary of Changes in Facility Exit Obligation Related to the Former Headquarters Lease | Changes in the Company’s facility exit obligation related to its former headquarters lease during the three and nine months ended October 2, 2016 and September 27, 2015 are as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Balance at beginning of period $ 20,557 $ 36,677 $ 22,160 $ 37,700 Adjustment to facility exit obligation 66 (5,935 ) 87 (5,278 ) Accretion of interest expense 320 590 983 1,926 Cash payments (1,198 ) (1,539 ) (3,485 ) (4,555 ) Balance at end of period $ 19,745 $ 29,793 $ 19,745 $ 29,793 |
Summary of Activity of Redeemable Noncontrolling Interests | The activity of the redeemable noncontrolling interests during the nine months ended October 2, 2016 is as follows (in thousands): Redeemable Noncontrolling Interests Balance as of January 3, 2016 $ 32,546 Vesting of redeemable equity awards 1,481 Net loss attributable to noncontrolling interests (11,793 ) Adjustment up to the redemption value 12,023 Balance as of October 2, 2016 $ 34,257 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s hierarchy for assets and liabilities measured at fair value on a recurring basis as of October 2, 2016 and January 3, 2016 (in thousands): October 2, 2016 January 3, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 503,593 $ — $ — $ 503,593 $ 391,246 $ — $ — $ 391,246 Debt securities in government-sponsored entities — 29,657 — 29,657 — 14,626 — 14,626 Corporate debt securities — 463,292 — 463,292 — 421,094 — 421,094 U.S. Treasury securities 248,620 — — 248,620 181,730 — — 181,730 Deferred compensation plan assets — 29,901 — 29,901 — 26,245 — 26,245 Total assets measured at fair value $ 752,213 $ 522,850 $ — $ 1,275,063 $ 572,976 $ 461,965 $ — $ 1,034,941 Liabilities: Acquisition related contingent consideration liabilities $ — $ — $ 5,300 $ 5,300 $ — $ — $ 35,000 $ 35,000 Deferred compensation liability — 28,447 — 28,447 — 24,925 — 24,925 Total liabilities measured at fair value $ — $ 28,447 $ 5,300 $ 33,747 $ — $ 24,925 $ 35,000 $ 59,925 |
Summary of Changes in Estimated Fair Value of Contingent Consideration Liabilities | Changes in estimated fair value of contingent consideration liabilities during the nine months ended October 2, 2016 are as follows (in thousands): Contingent Consideration Liability (Level 3 Measurement) Balance as of January 3, 2016 $ 35,000 Additional liability recorded as a result of a current period acquisition 5,300 Cash payments (35,000 ) Balance as of October 2, 2016 $ 5,300 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Conversion of 2016 Notes | The following table summarizes information about the conversion of the 2016 Notes during the nine months ended October 2, 2016 (in thousands): 2016 Notes Cash paid for principal of notes converted $ 75,543 Conversion value over principal amount paid in shares of common stock $ 63,753 Number of shares of common stock issued upon conversion 409 |
Summary of Information about Equity and Liability Components of Convertible Senior Notes Outstanding | 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, and is a Level 2 measurement. October 2, January 3, Principal amount of convertible notes outstanding $ 1,150,000 $ 1,225,547 Unamortized discount of liability component (112,716 ) (134,969 ) Net carrying amount of liability component 1,037,284 1,090,578 Less: current portion — (74,929 ) Long-term debt $ 1,037,284 $ 1,015,649 Carrying value of equity component, net of debt issuance cost $ 161,237 $ 213,811 Fair value of outstanding notes $ 1,224,169 $ 1,456,451 Weighted-average remaining amortization period of discount on the liability component 3.9 years 4.6 years |
Share-based Compensation Expe21
Share-based Compensation Expense (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of 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 Nine Months Ended October 2, September 27, October 2, September 27, Cost of product revenue $ 1,799 $ 2,567 $ 5,949 $ 7,012 Cost of service and other revenue 1,261 498 2,114 1,243 Research and development 11,515 9,098 32,889 31,152 Selling, general and administrative 20,008 20,066 60,893 57,697 Share-based compensation expense before taxes 34,583 32,229 101,845 97,104 Related income tax benefits (7,604 ) (9,876 ) (23,082 ) (28,304 ) Share-based compensation expense, net of taxes $ 26,979 $ 22,353 $ 78,763 $ 68,800 |
Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan | 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 nine months ended October 2, 2016 are as follows: Employee Stock Purchase Rights Risk-free interest rate 0.40% - 0.50% Expected volatility 40% - 44% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average fair value per share $ 47.88 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Summary of Restricted Stock Activity and Related Information, Restricted Stock | The Company’s restricted stock activity and related information for the nine months ended October 2, 2016 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 January 3, 2016 21 2,206 583 $ 47.93 $ 131.80 $ 169.41 Awarded 22 174 30 $ 179.00 $ 156.32 $ 156.75 Vested — (383 ) — $ — $ 85.57 — Cancelled — (197 ) (99 ) $ — $ 136.40 $ 163.51 Outstanding at October 2, 2016 43 1,800 514 $ 114.59 $ 143.46 $ 169.81 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. |
Summary of Restricted Stock Activity and Related Information, Performance Units | The Company’s restricted stock activity and related information for the nine months ended October 2, 2016 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 January 3, 2016 21 2,206 583 $ 47.93 $ 131.80 $ 169.41 Awarded 22 174 30 $ 179.00 $ 156.32 $ 156.75 Vested — (383 ) — $ — $ 85.57 — Cancelled — (197 ) (99 ) $ — $ 136.40 $ 163.51 Outstanding at October 2, 2016 43 1,800 514 $ 114.59 $ 143.46 $ 169.81 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. |
Summary of Stock Option Activity Under all Stock Option Plans | The Company’s stock option activity under all stock option plans during the nine months ended October 2, 2016 is as follows: Options (in thousands) Weighted-Average Exercise Price Outstanding at January 3, 2016 1,599 $ 41.95 Exercised (532 ) $ 29.65 Cancelled (2 ) $ 46.35 Outstanding at October 2, 2016 1,065 $ 48.08 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Summary of Operating Performance and Assets by Segment | The following table presents the operating performance of each reportable segment (in thousands): Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, Segment revenues: Core Illumina $ 615,135 $ 550,271 $ 1,792,150 $ 1,628,214 Consolidated VIEs — — — — Elimination of intersegment revenues (7,996 ) — (13,124 ) — Consolidated revenues $ 607,139 $ 550,271 $ 1,779,026 $ 1,628,214 Segment operating income (loss): Core Illumina $ 190,742 $ 145,893 $ 501,411 $ 473,952 Consolidated VIEs (25,136 ) (5,111 ) (49,700 ) (5,111 ) Elimination of intersegment earnings (4,904 ) — (7,695 ) — Consolidated operating income $ 160,702 $ 140,782 $ 444,016 $ 468,841 The following table presents the total assets of each reportable segment (in thousands): October 2, January 3, Segment assets: Core Illumina $ 4,095,182 $ 3,657,953 Consolidated VIEs 190,904 30,447 Elimination of intersegment assets (58,259 ) (653 ) Consolidated total assets $ 4,227,827 $ 3,687,747 |
Basis of Presentation and Sum24
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Weighted average shares used to calculate basic and diluted earnings per share | ||||
Weighted average shares outstanding | 146,705 | 145,349 | 146,783 | 144,447 |
Effect of potentially dilutive common shares from: | ||||
Convertible senior notes | 1,670 | 80 | 2,013 | |
Equity awards | 1,196 | 2,653 | 1,186 | 2,648 |
Weighted average shares used in calculating diluted earnings per share | 147,901 | 149,672 | 148,049 | 149,108 |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 63 | 13 | 580 | 7 |
Balance Sheet Account Details -
Balance Sheet Account Details - Summary of Short-term Investments (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Available-for-sale securities: | ||
Amortized Cost | $ 741,713 | $ 618,955 |
Gross Unrealized Gains | 464 | 47 |
Gross Unrealized Losses | (608) | (1,552) |
Estimated Fair Value | 741,569 | 617,450 |
Debt securities in government sponsored entities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 29,687 | 14,634 |
Gross Unrealized Losses | (30) | (8) |
Estimated Fair Value | 29,657 | 14,626 |
Corporate debt securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 463,484 | 422,177 |
Gross Unrealized Gains | 282 | 44 |
Gross Unrealized Losses | (474) | (1,127) |
Estimated Fair Value | 463,292 | 421,094 |
U.S. Treasury securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 248,542 | 182,144 |
Gross Unrealized Gains | 182 | 3 |
Gross Unrealized Losses | (104) | (417) |
Estimated Fair Value | $ 248,620 | $ 181,730 |
Balance Sheet Account Details26
Balance Sheet Account Details - Summary of Contractual Maturities of Available-for-sale Debt Securities (Details) $ in Thousands | Oct. 02, 2016USD ($) |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |
Due within one year | $ 279,548 |
After one but within five years | 462,021 |
Total | $ 741,569 |
Balance Sheet Account Details27
Balance Sheet Account Details - Narrative - Strategic Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | Apr. 14, 2016 | Jan. 03, 2016 | |
Schedule of Investments [Line Items] | ||||||
Cost-method investment gain | $ 18 | |||||
Commitment in new venture capital investment fund | $ 100 | |||||
Callable period | 10 years | |||||
Capital commitment draw down allowed | $ 40 | |||||
Cost-Method Investee [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Revenue from transactions with Company's cost-method investments in non-publicly traded companies | $ 12.5 | $ 16.1 | 42.1 | $ 47.3 | ||
Other Assets [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Company's cost-method investments in non-publicly traded companies | 56.9 | 56.9 | $ 56.6 | |||
Equity method investments | 3.2 | 3.2 | ||||
Cash and Cash Equivalents [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | $ 4.4 | $ 4.4 |
Balance Sheet Account Details28
Balance Sheet Account Details - Summary of Inventory (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Inventory [Abstract] | ||
Raw materials | $ 101,646 | $ 97,740 |
Work in process | 166,050 | 138,322 |
Finished goods | 44,546 | 34,715 |
Total inventory | $ 312,242 | $ 270,777 |
Balance Sheet Account Details29
Balance Sheet Account Details - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 952,884 | $ 609,437 |
Accumulated depreciation | 319,028 | 266,743 |
Total property and equipment, net | 633,856 | 342,694 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 197,534 | 178,019 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 264,556 | 224,158 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 153,851 | 136,550 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 20,448 | 18,539 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 7,670 | 7,670 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 308,825 | $ 44,501 |
Balance Sheet Account Details30
Balance Sheet Account Details - Narrative - Property and Equipment (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |
Accrued expenditures included in capital expenditures | $ 194.4 |
Construction in progress | |
Property, Plant and Equipment [Line Items] | |
Accrued expenditures included in capital expenditures | $ 168.8 |
Balance Sheet Account Details31
Balance Sheet Account Details - Summary of Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 752,629 |
Current period acquisitions | 23,366 |
Ending balance | $ 775,995 |
Balance Sheet Account Details32
Balance Sheet Account Details - Narrative - Goodwill (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2016USD ($)business | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of acquisitions closed | business | 2 |
Upfront cash payments, equity instruments and certain contingent consideration provisions | $ | $ 17.8 |
Balance Sheet Account Details33
Balance Sheet Account Details - Narrative - Derivatives (Details) - USD ($) $ in Millions | Oct. 02, 2016 | Jan. 03, 2016 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 62.2 | $ 61.3 |
Balance Sheet Account Details34
Balance Sheet Account Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Deferred revenue, current portion | $ 116,118 | $ 96,654 |
Accrued compensation expenses | 89,527 | 120,662 |
Accrued taxes payable | 30,855 | 44,159 |
Customer deposits | 17,831 | 20,901 |
Acquisition related contingent liability, current portion | 7,220 | 35,000 |
Other | 53,653 | 69,468 |
Total accrued liabilities | $ 315,204 | $ 386,844 |
Balance Sheet Account Details35
Balance Sheet Account Details - Narrative - Build-to-Suit Lease Liability (Details) $ in Thousands | Oct. 02, 2016USD ($)Leases | Jan. 03, 2016USD ($) |
Leases [Abstract] | ||
Number of projects accounted for under build-to-suit lease accounting | Leases | 3 | |
Build-to-suit lease liability | $ | $ 178,311 | $ 9,495 |
Balance Sheet Account Details36
Balance Sheet Account Details - Narrative - Warranties (Details) | 9 Months Ended |
Oct. 02, 2016 | |
Instruments [Member] | |
Product Warranty Liability [Line Items] | |
Warranty period | 1 year |
Consumables [Member] | Minimum [Member] | |
Product Warranty Liability [Line Items] | |
Warranty period | 6 months |
Consumables [Member] | Maximum [Member] | |
Product Warranty Liability [Line Items] | |
Warranty period | 12 months |
Balance Sheet Account Details37
Balance Sheet Account Details - Summary of Changes in Reserve for Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Reserve for product warranties [Roll Forward] | ||||
Balance at beginning of period | $ 15,679 | $ 16,365 | $ 16,717 | $ 15,616 |
Additions charged to cost of product revenue | 3,878 | 6,916 | 17,200 | 20,737 |
Repairs and replacements | (5,180) | (5,348) | (19,540) | (18,420) |
Balance at end of period | $ 14,377 | $ 17,933 | $ 14,377 | $ 17,933 |
Balance Sheet Account Details38
Balance Sheet Account Details - Summary of Changes in Facility Exit Obligation Related to the Former Headquarters Lease (Details) - Facility Exit Obligation [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Headquarter Facility Exit Obligation [Roll Forward] | ||||
Balance at beginning of period | $ 20,557 | $ 36,677 | $ 22,160 | $ 37,700 |
Adjustment to facility exit obligation | 66 | (5,935) | 87 | (5,278) |
Accretion of interest expense | 320 | 590 | 983 | 1,926 |
Cash payments | (1,198) | (1,539) | (3,485) | (4,555) |
Balance at end of period | $ 19,745 | $ 29,793 | $ 19,745 | $ 29,793 |
Balance Sheet Account Details39
Balance Sheet Account Details - Narrative - Leases (Details) - USD ($) $ in Millions | Apr. 05, 2016 | Mar. 18, 2016 |
March 2016 Lease Agreements [Member] | ||
Capital Leased Assets [Line Items] | ||
Future minimum payments to be received under sublease | $ 51.2 | |
Operating lease term | 8 years | |
April 2016 Lease Agreements [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital lease term | 10 years | |
Future minimum payment due for lease addition in period | $ 127.4 |
Balance Sheet Account Details40
Balance Sheet Account Details - Narrative - Investment in Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jul. 03, 2016 | Apr. 03, 2016 | Jul. 03, 2016 | Oct. 02, 2016 | Sep. 27, 2015 | Jan. 03, 2016 | Jul. 31, 2015 | Dec. 28, 2014 | |
Variable Interest Entity [Line Items] | ||||||||
Contributions from noncontrolling interest owners | $ 80,000 | $ 32,128 | ||||||
Noncontrolling shareholders interest percentage | 50.00% | |||||||
Cash and cash equivalents attributable to variable interest entities | $ 794,697 | $ 551,529 | $ 768,770 | $ 636,154 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents attributable to variable interest entities | $ 103,600 | |||||||
GRAIL, Inc. [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Deemed dividend | $ 9,500 | |||||||
Deemed dividend, tax effect | $ 9,600 | |||||||
GRAIL, Inc. [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Equity ownership interest percentage | 52.00% | |||||||
Series A financing | $ 120,000 | |||||||
Amount contributed | 40,000 | |||||||
Contributions from noncontrolling interest owners | $ 80,000 | |||||||
Percentage of entity's losses absorbed | 90.00% | |||||||
Helix Holdings I, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Equity ownership interest percentage | 50.00% | 50.00% | ||||||
GRAIL Class B [Member] | GRAIL, Inc. [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Stock exchanged (in shares) | 112.5 | |||||||
GRAIL Class A-1 Convertible [Member] | GRAIL, Inc. [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Stock exchanged (in shares) | 97.5 | |||||||
Illumina Class B [Member] | GRAIL, Inc. [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Stock exchanged (in shares) | 97.5 |
Balance Sheet Account Details41
Balance Sheet Account Details - Summary of Activity of Redeemable Noncontrolling Interests (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |
Balance as of January 3, 2016 | $ 32,546 |
Vesting of redeemable equity awards | 1,481 |
Net loss attributable to noncontrolling interests | (11,793) |
Adjustment up to the redemption value | 12,023 |
Balance as of October 2, 2016 | $ 34,257 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Assets: | ||
Available-for-sale securities | $ 741,569 | $ 617,450 |
Debt securities in government sponsored entities [Member] | ||
Assets: | ||
Available-for-sale securities | 29,657 | 14,626 |
Corporate debt securities [Member] | ||
Assets: | ||
Available-for-sale securities | 463,292 | 421,094 |
U.S. Treasury securities [Member] | ||
Assets: | ||
Available-for-sale securities | 248,620 | 181,730 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Deferred compensation plan assets | 29,901 | 26,245 |
Total assets measured at fair value | 1,275,063 | 1,034,941 |
Liabilities: | ||
Acquisition related contingent consideration liabilities | 5,300 | 35,000 |
Deferred compensation liability | 28,447 | 24,925 |
Total liabilities measured at fair value | 33,747 | 59,925 |
Fair Value, Measurements, Recurring [Member] | Debt securities in government sponsored entities [Member] | ||
Assets: | ||
Available-for-sale securities | 29,657 | 14,626 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Available-for-sale securities | 463,292 | 421,094 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Available-for-sale securities | 248,620 | 181,730 |
Fair Value, Measurements, Recurring [Member] | Money market funds (cash equivalents) [Member] | ||
Assets: | ||
Money market funds (cash equivalents) | 503,593 | 391,246 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Total assets measured at fair value | 752,213 | 572,976 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Available-for-sale securities | 248,620 | 181,730 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market funds (cash equivalents) [Member] | ||
Assets: | ||
Money market funds (cash equivalents) | 503,593 | 391,246 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Deferred compensation plan assets | 29,901 | 26,245 |
Total assets measured at fair value | 522,850 | 461,965 |
Liabilities: | ||
Deferred compensation liability | 28,447 | 24,925 |
Total liabilities measured at fair value | 28,447 | 24,925 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt securities in government sponsored entities [Member] | ||
Assets: | ||
Available-for-sale securities | 29,657 | 14,626 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Available-for-sale securities | 463,292 | 421,094 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Liabilities: | ||
Acquisition related contingent consideration liabilities | 5,300 | 35,000 |
Total liabilities measured at fair value | $ 5,300 | $ 35,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Contingent Consideration Liability [Member] $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Additional liability recorded as a result of a current period acquisition | $ 5,300 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate for assessment of the acquisition date fair value | 4.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate for assessment of the acquisition date fair value | 6.00% |
Fair Value Measurements - Sum44
Fair Value Measurements - Summary of Changes in Estimated Fair Value of Contingent Consideration Liabilities (Details) - Contingent Consideration Liability [Member] $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 35,000 |
Additional liability recorded as a result of a current period acquisition | 5,300 |
Cash payments | (35,000) |
Ending balance | $ 5,300 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Convertible Senior Notes [Member] | 1 Months Ended | 9 Months Ended | |
Jun. 29, 2014USD ($)$ / shares | Oct. 02, 2016USD ($)day | Dec. 31, 2011USD ($) | |
2019 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ | $ 632,500,000 | $ 632,500,000 | |
Interest rate on convertible senior notes | 0.00% | ||
Effective interest rate used to measure fair value of converted notes upon conversion | 2.90% | ||
Conversion rate | 0.0039318 | ||
Conversion price (in dollars per share) | $ / shares | $ 254.34 | ||
Threshold note trading days | 5 | ||
Threshold consecutive note trading days | 10 days | ||
Threshold percentage of note price trigger | 98.00% | ||
Threshold common stock trading days | 20 | ||
Threshold consecutive common stock trading days | 30 days | ||
Threshold percentage of common stock price trigger | 130.00% | ||
2021 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ | $ 517,500,000 | $ 517,500,000 | |
Interest rate on convertible senior notes | 0.50% | ||
Effective interest rate used to measure fair value of converted notes upon conversion | 3.50% | ||
Conversion rate | 0.0039318 | ||
Conversion price (in dollars per share) | $ / shares | $ 254.34 | ||
Threshold note trading days | 5 | ||
Threshold consecutive note trading days | 10 days | ||
Threshold percentage of note price trigger | 98.00% | ||
Threshold common stock trading days | 20 | ||
Threshold consecutive common stock trading days | 30 days | ||
Threshold percentage of common stock price trigger | 130.00% | ||
2016 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ | $ 920,000,000 | ||
Interest rate on convertible senior notes | 0.25% | ||
Effective interest rate used to measure fair value of converted notes upon conversion | 4.50% |
Debt - Summary of Conversion of
Debt - Summary of Conversion of 2016 Notes (Details) - Convertible Senior Notes [Member] - 2016 Notes [Member] shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($)shares | |
Extinguishment of Debt [Line Items] | |
Cash paid for principal of notes converted | $ 75,543 |
Conversion value over principal amount paid in shares of common stock | $ 63,753 |
Number of shares of common stock issued upon conversion | shares | 409 |
Debt - Summary of Information a
Debt - Summary of Information about Equity and Liability Components of Convertible Senior Notes Outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 02, 2016 | Jan. 03, 2016 | |
Summarized information about equity and liability components of convertible senior notes | ||
Less: current portion | $ (1,250) | $ (74,929) |
Long-term debt | 1,040,765 | 1,015,649 |
Convertible Senior Notes [Member] | ||
Summarized information about equity and liability components of convertible senior notes | ||
Principal amount of convertible notes outstanding | 1,150,000 | 1,225,547 |
Unamortized discount of liability component | (112,716) | (134,969) |
Net carrying amount of liability component | 1,037,284 | 1,090,578 |
Less: current portion | (74,929) | |
Long-term debt | 1,037,284 | 1,015,649 |
Carrying value of equity component, net of debt issuance cost | $ 161,237 | $ 213,811 |
Weighted-average remaining amortization period of discount on the liability component | 3 years 11 months | 4 years 7 months |
Fair Value, Inputs, Level 2 [Member] | Convertible Senior Notes [Member] | ||
Summarized information about equity and liability components of convertible senior notes | ||
Fair value of outstanding notes | $ 1,224,169 | $ 1,456,451 |
Debt - Other Narrative (Details
Debt - Other Narrative (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 03, 2016 |
Line of Credit Facility [Line Items] | ||
Long-term debt, current portion | $ 1,250 | $ 74,929 |
Long-term debt | 1,040,765 | $ 1,015,649 |
Helix Holdings I, LLC [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, current portion | 1,300 | |
Long-term debt | $ 3,400 |
Share-based Compensation Expe49
Share-based Compensation Expense - Summary of Share-based Compensation Expense for all Stock Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Share-based Compensation | ||||
Share-based compensation expense before taxes | $ 34,583 | $ 32,229 | $ 101,845 | $ 97,104 |
Related income tax benefits | (7,604) | (9,876) | (23,082) | (28,304) |
Share-based compensation expense, net of taxes | 26,979 | 22,353 | 78,763 | 68,800 |
Cost of product revenue [Member] | ||||
Share-based Compensation | ||||
Share-based compensation expense before taxes | 1,799 | 2,567 | 5,949 | 7,012 |
Cost of service and other revenue [Member] | ||||
Share-based Compensation | ||||
Share-based compensation expense before taxes | 1,261 | 498 | 2,114 | 1,243 |
Research and development [Member] | ||||
Share-based Compensation | ||||
Share-based compensation expense before taxes | 11,515 | 9,098 | 32,889 | 31,152 |
Selling, general and administrative [Member] | ||||
Share-based Compensation | ||||
Share-based compensation expense before taxes | $ 20,008 | $ 20,066 | $ 60,893 | $ 57,697 |
Share-based Compensation Expe50
Share-based Compensation Expense - Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan (Details) - Employee Stock [Member] | 9 Months Ended |
Oct. 02, 2016$ / shares | |
Assumptions used to estimate the fair value per share of employee stock purchase rights granted | |
Expected volatility, minimum | 40.00% |
Expected volatility, maximum | 44.00% |
Expected dividends | 0.00% |
Weighted-average fair value per share (in dollars per share) | $ 47.88 |
Minimum [Member] | |
Assumptions used to estimate the fair value per share of employee stock purchase rights granted | |
Risk-free interest rate | 0.40% |
Expected term | 6 months |
Maximum [Member] | |
Assumptions used to estimate the fair value per share of employee stock purchase rights granted | |
Risk-free interest rate | 0.50% |
Expected term | 1 year |
Share-based Compensation Expe51
Share-based Compensation Expense - Narrative (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date | $ 203.2 |
Weighted-average period of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date | 2 years 5 months |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) shares in Millions | Oct. 02, 2016shares |
2015 Illumina and 2005 Solexa Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance (in shares) | 7.5 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Activity and Related Information (Details) shares in Thousands | 9 Months Ended |
Oct. 02, 2016$ / sharesshares | |
Restricted Stock Awards (RSA) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at period start (in shares) | shares | 21 |
Awarded (in shares) | shares | 22 |
Outstanding at period end (in shares) | shares | 43 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share) | $ / shares | $ 47.93 |
Weighted-Average Grant Date Fair Value per Share, Awarded (in dollars per share) | $ / shares | 179 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share) | $ / shares | $ 114.59 |
Restricted Stock Units (RSU) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at period start (in shares) | shares | 2,206 |
Awarded (in shares) | shares | 174 |
Vested (in shares) | shares | (383) |
Cancelled (in shares) | shares | (197) |
Outstanding at period end (in shares) | shares | 1,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share) | $ / shares | $ 131.80 |
Weighted-Average Grant Date Fair Value per Share, Awarded (in dollars per share) | $ / shares | 156.32 |
Weighted-Average Grant Date Fair Value per Share, Vested (in dollars per share) | $ / shares | 85.57 |
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share) | $ / shares | 136.40 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share) | $ / shares | $ 143.46 |
Performance Stock Units (PSU) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at period start (in shares) | shares | 583 |
Awarded (in shares) | shares | 30 |
Cancelled (in shares) | shares | (99) |
Outstanding at period end (in shares) | shares | 514 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period start (in dollars per share) | $ / shares | $ 169.41 |
Weighted-Average Grant Date Fair Value per Share, Awarded (in dollars per share) | $ / shares | 156.75 |
Weighted-Average Grant Date Fair Value per Share, Cancelled (in dollars per share) | $ / shares | 163.51 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at period end (in dollars per share) | $ / shares | $ 169.81 |
Stockholders' Equity - Summar54
Stockholders' Equity - Summary of Stock Option Activity Under all Stock Option Plans (Details) shares in Thousands | 9 Months Ended |
Oct. 02, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding at period start (in shares) | shares | 1,599 |
Options, Exercised (in shares) | shares | (532) |
Options, Cancelled (in shares) | shares | (2) |
Options, Outstanding at period end (in shares) | shares | 1,065 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-Average Exercise Price, Options, Outstanding at period start (in dollars per share) | $ / shares | $ 41.95 |
Weighted-Average Exercise Price, Options, Exercised (in dollars per share) | $ / shares | 29.65 |
Weighted-Average Exercise Price, Options, Cancelled (in dollars per share) | $ / shares | 46.35 |
Weighted-Average Exercise Price, Options, Outstanding at period end (in dollars per share) | $ / shares | $ 48.08 |
Stockholders' Equity - Narrat55
Stockholders' Equity - Narrative - Stock Options (Details) shares in Millions | Oct. 02, 2016$ / sharesshares |
Equity [Abstract] | |
Stock options exercisable (in shares) | shares | 1.1 |
Stock options exercisable outstanding weighted-average exercise price per share (in dollars per share) | $ / shares | $ 48.08 |
Stockholders' Equity - Narrat56
Stockholders' Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP [Member] - Employee Stock [Member] shares in Millions | 9 Months Ended |
Oct. 02, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 (in shares) | 0.2 |
Shares available for issuance (in shares) | 14.3 |
Stockholders' Equity - Narrat57
Stockholders' Equity - Narrative - Share Repurchases (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Oct. 02, 2016 | Sep. 27, 2015 | Jul. 28, 2016 | |
Class of Stock [Line Items] | ||||
Common stock repurchases | $ 113,075 | $ 72,256 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase of common shares (in shares) | 0.1 | 0.8 | ||
Common stock repurchases | $ 13,100 | $ 113,100 | ||
Additional amount authorized to repurchase | $ 236,900 | $ 236,900 | ||
Common Stock [Member] | July 2016 Share Repurchase Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 250,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Oct. 02, 2016 | Oct. 02, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 24.20% | 24.90% |
U.S. federal statutory tax rate | 35.00% | 35.00% |
Legal Proceedings - Narrative (
Legal Proceedings - Narrative (Details) - Settled Litigation [Member] - Enzo [Member] $ in Millions | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Settlement payment | $ 21 |
Amortization period of intangible asset | 7 years |
Finite-Lived Intangible Assets [Member] | |
Loss Contingencies [Line Items] | |
Settlement payment | $ 11.5 |
Release Of Past Damages [Member] | |
Loss Contingencies [Line Items] | |
Settlement payment | $ 9.5 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | Jan. 03, 2016 | |
Segment Reporting Information [Line Items] | |||||
Segment revenues | $ 607,139 | $ 550,271 | $ 1,779,026 | $ 1,628,214 | |
Segment operating income (loss) | 160,702 | 140,782 | 444,016 | 468,841 | |
Segment assets | 4,227,827 | 4,227,827 | $ 3,687,747 | ||
Core Illumina | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 615,135 | 550,271 | 1,792,150 | 1,628,214 | |
Segment operating income (loss) | 190,742 | 145,893 | 501,411 | 473,952 | |
Segment assets | 4,095,182 | 4,095,182 | 3,657,953 | ||
Consolidated VIEs | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating income (loss) | (25,136) | $ (5,111) | (49,700) | $ (5,111) | |
Segment assets | 190,904 | 190,904 | 30,447 | ||
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | (7,996) | (13,124) | |||
Segment operating income (loss) | (4,904) | (7,695) | |||
Segment assets | $ (58,259) | $ (58,259) | $ (653) |