Illumina (ILMN) 10-Q 28 Apr 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares shares in Millions	3 Months Ended
	Apr. 04, 2021	Apr. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 4, 2021
Document Transition Report	false
Entity File Number	001-35406
Entity Registrant Name	Illumina, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0804655
Entity Address, Address Line One	5200 Illumina Way
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92122
City Area Code	858
Local Phone Number	202-4500
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ILMN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		146
Entity Central Index Key	0001110803
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Current assets:
Cash and cash equivalents	$ 4,433	$ 1,810
Short-term investments	197	1,662
Accounts receivable, net	517	487
Inventory	364	372
Prepaid expenses and other current assets	131	152
Total current assets	5,642	4,483
Property and equipment, net	915	922
Operating lease right-of-use assets	529	532
Goodwill	897	897
Intangible assets, net	134	142
Other assets	638	609
Total assets	8,755	7,585
Current liabilities:
Accounts payable	178	192
Accrued liabilities	602	541
Convertible senior notes, current portion	488	511
Total current liabilities	1,268	1,244
Operating lease liabilities	664	671
Term notes	992	0
Convertible senior notes	680	673
Other long-term liabilities	229	303
Stockholders’ equity:
Common stock	2	2
Additional paid-in capital	3,914	3,815
Accumulated other comprehensive income	8	2
Retained earnings	4,870	4,723
Treasury stock, at cost	(3,872)	(3,848)
Total stockholders’ equity	4,922	4,694
Total liabilities and stockholders’ equity	$ 8,755	$ 7,585

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Revenue:
Total revenue	$ 1,093	$ 859
Cost of revenue:
Amortization of acquired intangible assets	6	7
Total cost of revenue	329	240
Gross profit	764	619
Operating expense:
Research and development	197	156
Selling, general and administrative	374	274
Total operating expense	571	430
Income from operations	193	189
Other income (expense):
Interest income	1	14
Interest expense	(19)	(11)
Other expense, net	(6)	(14)
Total other expense, net	(24)	(11)
Income before income taxes	169	178
Provision for income taxes	22	5
Net income	$ 147	$ 173
Earnings per share:
Basic (in dollars per share)	$ 1.01	$ 1.18
Diluted (in dollars per share)	$ 1	$ 1.17
Shares used in computing earnings per share:
Basic (in shares)	146	147
Diluted (in shares)	147	148
Product revenue
Revenue:
Total revenue	$ 953	$ 701
Cost of revenue:
Cost of revenue	265	174
Service and other revenue
Revenue:
Total revenue	140	158
Cost of revenue:
Cost of revenue	$ 58	$ 59

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 147	$ 173
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	(1)	1
Unrealized gain on cash flow hedges, net of deferred tax	7	0
Total comprehensive income	$ 153	$ 174

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock
Beginning balance (in shares) at Dec. 29, 2019		194				47
Beginning balance at Dec. 29, 2019	$ 4,613	$ 2	$ 3,560	$ 5	$ 4,067	$ (3,021)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	173				173
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	1			1
Unrealized gain on cash flow hedges, net of deferred tax	0
Issuance of common stock, net of repurchases	(191)		32			$ (223)
Share-based compensation	39		39
Ending balance (in shares) at Mar. 29, 2020		194				47
Ending balance at Mar. 29, 2020	4,635	$ 2	3,631	6	4,240	$ (3,244)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	47				47
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	8			8
Issuance of common stock, net of repurchases (in shares)						1
Issuance of common stock, net of repurchases	(143)		2			$ (145)
Share-based compensation	16		16
Ending balance (in shares) at Jun. 28, 2020		194				48
Ending balance at Jun. 28, 2020	4,563	$ 2	3,649	14	4,287	$ (3,389)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	179				179
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	(2)			(2)
Issuance of common stock, net of repurchases	(101)		27			$ (128)
Share-based compensation	61		61
Ending balance (in shares) at Sep. 27, 2020		194				48
Ending balance at Sep. 27, 2020	4,700	$ 2	3,737	12	4,466	$ (3,517)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	257				257
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	(10)			(10)
Issuance of common stock, net of repurchases (in shares)		1				1
Issuance of common stock, net of repurchases	(331)					$ (331)
Share-based compensation	78		78
Ending balance (in shares) at Jan. 03, 2021		195				49
Ending balance at Jan. 03, 2021	4,694	$ 2	3,815	2	4,723	$ (3,848)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	147				147
Unrealized (loss) gain on available-for-sale debt securities, net of deferred tax	(1)			(1)
Unrealized gain on cash flow hedges, net of deferred tax	7			7
Issuance of common stock, net of repurchases	7		31			$ (24)
Share-based compensation	68		68
Ending balance (in shares) at Apr. 04, 2021		195				49
Ending balance at Apr. 04, 2021	$ 4,922	$ 2	$ 3,914	$ 8	$ 4,870	$ (3,872)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Cash flows from operating activities:
Net income	$ 147	$ 173
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	41	37
Amortization of intangible assets	7	7
Share-based compensation expense	67	39
Accretion of debt discount	10	10
Deferred income taxes	(79)	(29)
Losses (gains) on marketable equity securities	72	(3)
(Gain) loss on derivative assets related to terminated acquisition	(26)	95
Other	(19)	(2)
Changes in operating assets and liabilities:
Accounts receivable	(39)	99
Inventory	8	(24)
Prepaid expenses and other current assets	7	(14)
Operating lease right-of-use assets and liabilities, net	(3)	(1)
Other assets	(4)	(11)
Accounts payable	(8)	(16)
Accrued liabilities	105	(103)
Other long-term liabilities	(4)	24
Net cash provided by operating activities	282	281
Cash flows from investing activities:
Maturities of available-for-sale securities	331	107
Purchases of available-for-sale securities	(77)	(256)
Sales of available-for-sale securities	1,031	186
Cash received (paid for) derivative assets related to terminated acquisition	52	(132)
Purchases of property and equipment	(42)	(40)
Purchases of strategic investments	(3)	0
Sales of strategic investments	84	0
Net cash provided by (used in) investing activities	1,376	(135)
Cash flows from financing activities:
Net proceeds from issuance of debt	988	0
Payments on convertible senior notes	(27)	0
Common stock repurchases		(188)
Taxes paid related to net share settlement of equity awards	(24)	(35)
Proceeds from issuance of common stock	31	32
Net cash provided by (used in) financing activities	968	(191)
Effect of exchange rate changes on cash and cash equivalents	(3)	(6)
Net increase (decrease) in cash and cash equivalents	2,623	(51)
Cash and cash equivalents at beginning of period	1,810	2,042
Cash and cash equivalents at end of period	$ 4,433	$ 1,991

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Apr. 04, 2021
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Business Overview We are a provider of sequencing- and array-based solutions, serving customers in the research, clinical and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. Our customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies . Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the fiscal year ended January 3, 2021, from which the prior year balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expense, and related disclosure of contingent assets and liabilities. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. Actual results could differ from those estimates. The unaudited condensed consolidated financial statements include our accounts, our wholly-owned subsidiaries, and majority-owned or controlled companies. All intercompany transactions and balances have been eliminated in consolidation. We operate under one operating segment and report under one reportable segment. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented. Fiscal Year Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. References to Q1 2021 and Q1 2020 refer to the three months ended April 4, 2021 and March 29, 2020, respectively, which were both 13 weeks. Significant Accounting Policies During Q1 2021, there were no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended January 3, 2021. Accounting Pronouncements Pending Adoption In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). The new standard reduces the number of accounting models for convertible debt instruments, amends the accounting for certain contracts in an entity’s own equity, and modifies how certain convertible instruments and contracts that may be settled in cash or shares impact the calculation of diluted EPS. The standard is effective for us beginning in the first quarter of 2022, with early adoption permitted in Q1 2021. We did not elect to early adopt the standard in Q1 2021. We are currently evaluating the impact of ASU 2020-06 on our consolidated financial statements. Earnings per Share Basic earnings per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares. The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share: In millions Q1 2021 Q1 2020 Weighted average shares outstanding 146 147 Effect of potentially dilutive common shares from: Equity awards — 1 Convertible senior notes 1 — Weighted average shares used in calculating diluted earnings per share 147 148 Potentially dilutive shares excluded from calculation due to anti-dilutive effect — 1

Revenue

Revenue	3 Months Ended
	Apr. 04, 2021
Revenue from Contract with Customer [Abstract]
Revenue	2. REVENUE Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services, instrument service contracts, and development and licensing agreements. Revenue by Source Q1 2021 Q1 2020 In millions Sequencing Microarray Total Sequencing Microarray Total Consumables $ 695 $ 79 $ 774 $ 553 $ 67 $ 620 Instruments 176 3 179 79 2 81 Total product revenue 871 82 953 632 69 701 Service and other revenue 108 32 140 128 30 158 Total revenue $ 979 $ 114 $ 1,093 $ 760 $ 99 $ 859 Revenue by Geographic Area Based on region of destination (in millions) Q1 2021 Q1 2020 Americas $ 562 $ 477 Europe, Middle East, and Africa 305 221 Greater China (1) 127 84 Asia-Pacific 99 77 Total revenue $ 1,093 $ 859 (1) Region includes revenue from China, Taiwan, and Hong Kong. Performance Obligations We regularly enter into contracts with multiple performance obligations. Most performance obligations are generally satisfied within a short time frame, approximately three Contract Liabilities

Investments and Fair Value Meas

Investments and Fair Value Measurements	3 Months Ended
	Apr. 04, 2021
Fair Value Disclosures [Abstract]
Investments and Fair Value Measurements	3. INVESTMENTS AND FAIR VALUE MEASUREMENTS Debt Securities Our short-term investments include available-for-sale debt securities that consisted of the following: April 4, 2021 January 3, 2021 In millions Amortized Gross Estimated Amortized Gross Estimated Debt securities in government-sponsored entities $ — $ — $ — $ 10 $ — $ 10 Corporate debt securities — — — 445 — 445 U.S. Treasury securities — — — 830 1 831 Total $ — $ — $ — $ 1,285 $ 1 $ 1,286 During Q1 2021, we sold all of our available-for-sale debt securities in anticipation of funding the pending GRAIL acquisition. See Pending Acquisition below for further details. Realized gains and losses are determined based on the specific-identification method and are reported in interest income. Strategic Investments Marketable Equity Securities As of April 4, 2021 and January 3, 2021, the fair value of our marketable equity securities, included in short-term investments, totaled $197 million and $376 million, respectively. Total unrealized losses on our marketable equity securities, included in other expense, net, were $58 million in Q1 2021. Total unrealized gains on our marketable equity securities were $3 million in Q1 2020. Total losses on marketable equity securities sold, included in other expense, net, were $14 million in Q1 2021. There were no sales of our marketable equity securities in Q1 2020. Non-Marketable Equity Securities As of April 4, 2021 and January 3, 2021, the aggregate carrying amounts of our non-marketable equity securities without readily determinable fair values, included in other assets, were $314 million in both periods. One of our investments, GRAIL, is a VIE for which we have concluded that we are not the primary beneficiary and, therefore, we do not consolidate GRAIL in our consolidated financial statements. In September 2020, we entered into an agreement to acquire GRAIL, as described in Pending Acquisition below. We have determined our maximum exposure to loss, excluding any amounts associated with the pending acquisition, to be the carrying value of our investment, which was $250 million as of both April 4, 2021 and January 3, 2021. Revenue recognized from transactions with our strategic investees was $13 million for both Q1 2021 and Q1 2020. Venture Funds We invest in two venture capital investment funds (the Funds) with capital commitments of $100 million, callable through April 2026, and up to $160 million, callable through July 2029, respectively, of which $32 million and up to $140 million, respectively, remained callable as of April 4, 2021. Our investments in the Funds are accounted for as equity-method investments. The aggregate carrying amounts of the Funds, included in other assets, were $139 million and $104 million as of April 4, 2021 and January 3, 2021, respectively. Contingent Value Right In conjunction with the deconsolidation of Helix Holdings I, LLC (Helix) in April 2019, we received a contingent value right with a 7-year term that entitles us to consideration dependent upon the outcome of Helix’s future financing and/or liquidity events. Changes in the fair value of the contingent value right resulted in an unrealized gain of $10 million in Q1 2021 and an unrealized loss of $3 million in Q1 2020, included in other expense, net. Derivative Assets Related to Terminated Acquisition On November 1, 2018, we entered into an Agreement and Plan of Merger (the PacBio Merger Agreement ) to acquire Pacific Biosciences of California, Inc. (PacBio) for an all-cash price of approximately $1.2 billion (or $8.00 per share). On January 2, 2020, we entered into an agreement to terminate the PacBio Merger Agreement (the Termination Agreement ). Pursuant to the Termination Agreement, we made a cash payment to PacBio of $98 million on January 2, 2020, which represented the Reverse Termination Fee (as defined in the PacBio Merger Agreement). The Reverse Termination Fee was repayable, without interest, if PacBio entered into a definitive agreement providing for, or consummating, a Change of Control Transaction by September 30, 2020 (as defined in the Termination Agreement), and such transaction was consummated by the two-year anniversary of the execution of the definitive agreement for such Change of Control Transaction. PacBio did not enter into a definitive agreement that provided for, or consummated, a Change of Control Transaction by September 30, 2020 (as defined in the Termination Agreement); therefore, the Reverse Termination Fee is no longer repayable. In addition, we made cash payments to PacBio of $18 million in Q4 2019, pursuant to Amendment No. 1 to the PacBio Merger Agreement , and $34 million in Q1 2020, pursuant to the Termination Agreement, collectively referred to as the Continuation Advances. Up to the $52 million of Continuation Advances is repayable, without interest, if, within two years of March 31, 2020, PacBio enters into a Change of Control Transaction or raises at least $100 million in equity or debt financing in a single transaction (with the amount repayable dependent on the amount raised by PacBio). In February 2021, PacBio entered into an investment agreement with SB Northstar LP for the issuance and sale of $900 million in aggregate principal amount of PacBio’s convertible notes. Pursuant to the PacBio Merger Agreement, PacBio repaid to us the $52 million of Continuation Advances and we recorded a gain of $26 million in Q1 2021, included in other expense, net. The potential repayments of the Continuation Advances and Reverse Termination Fee met the definition of derivative assets and were recorded at fair value. The $92 million difference between the $132 million in cash paid during Q1 2020 for the Continuation Advances and Reverse Termination Fee and the $40 million fair value of these derivative assets on the payment dates was recorded as selling, general and administrative expenses in Q1 2020. Changes in the fair value of the derivative assets were included in other expense, net. An unrealized loss of $4 million was recorded in Q1 2020. Pending Acquisition On September 20, 2020, we entered into an Agreement and Plan of Merger (the GRAIL Merger Agreement ) to acquire GRAIL for $8 billion, consisting of $3.5 billion in cash and $4.5 billion in shares of Illumina common stock, subject to a collar. The cash consideration for the transaction is expected to be funded using existing cash of both Illumina and GRAIL, plus up to $1 billion in capital raised through the issuance of term debt. Refer to note, “ 4. Debt ” for details. The transaction, which is expected to close in the second half of 2021, is subject to certain customary closing conditions, including GRAIL shareholder approval and receipt of required regulatory approvals. Refer to note, “ 7. Legal Proceedings ” for further details. In connection with the transaction, GRAIL stockholders will receive contingent value rights, which will entitle holders to receive future payments representing a pro rata portion of certain revenues each year for a 12-year period. This will reflect a 2.5% payment right to the first $1 billion of revenue each year for 12 years. Revenue above $1 billion each year will be subject to a 9% contingent payment right during this same period. Pursuant to the GRAIL Merger Agreement, we have offered GRAIL stockholders the option to receive additional stock consideration in lieu of the contingent value rights. Such additional stock consideration would be a number of shares valued, pursuant to an agreed formula, at $850 million in aggregate, subject to a cap of 3,035,714 shares. We are required to make monthly cash payments to GRAIL of $35 million (the Continuation Payments), beginning in December 2020, until the earlier of the consummation of the acquisition or termination of the GRAIL Merger Agreement, subject to certain exceptions. We made Continuation Payments to GRAIL totaling $105 million in Q1 2021, which were recorded as selling, general and administrative expenses. In April 2021, we made an additional monthly payment of $35 million. If the GRAIL Merger Agreement is terminated, we will receive shares of non-voting GRAIL preferred stock in respect of all Continuation Payments in excess of $315 million, subject to certain terms and conditions. The GRAIL Merger Agreement contains certain termination rights if the consummation of the acquisition does not occur on or before September 20, 2021, subject to a three-month extension related to obtaining certain required regulatory clearances. Upon termination of the GRAIL Merger Agreement under specified circumstances, we would be required to pay a termination fee of $300 million and make an additional $300 million investment in GRAIL in exchange for shares of non-voting GRAIL preferred stock, subject to certain terms and conditions. Fair Value Measurements The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis: April 4, 2021 January 3, 2021 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 4,041 $ — $ — $ 4,041 $ 1,512 $ — $ — $ 1,512 Debt securities in government-sponsored entities — — — — — 10 — 10 Corporate debt securities — — — — — 445 — 445 U.S. Treasury securities — — — — 831 — — 831 Marketable equity securities 197 — — 197 376 — — 376 Contingent value right — — 45 45 — — 35 35 Derivative assets related to terminated acquisition — — — — — — 26 26 Deferred compensation plan assets — 55 — 55 — 55 — 55 Total assets measured at fair value $ 4,238 $ 55 $ 45 $ 4,338 $ 2,719 $ 510 $ 61 $ 3,290 Liabilities: Deferred compensation plan liability $ — $ 53 $ — $ 53 $ — $ 51 $ — $ 51 Our available-for-sale securities consist of highly-liquid, investment-grade debt securities and marketable equity securities. We consider information provided by our investment accounting and reporting service provider in the measurement of fair value of our 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

Debt

Debt	3 Months Ended
	Apr. 04, 2021
Debt Disclosure [Abstract]
Debt	4. DEBT Summary of Term Debt Obligations In millions April 4, Principal amount of 2031 Term Notes outstanding $ 500 Principal amount of 2023 Term Notes outstanding 500 Unamortized discounts and debt issuance costs (8) Net carrying amount of term notes 992 Less: current portion — Term notes, non-current $ 992 0.550% Term Notes due 2023 (2023 Term Notes) and 2.550% Term Notes due 2031 (2031 Term Notes) On March 23, 2021, we issued $500 million aggregate principal amount of term notes due 2023 (2023 Term Notes) and $500 million aggregate principal amount of term notes due 2031 (2031 Term Notes, together the Term Notes). We received net proceeds from the issuance of $992 million, after deducting discounts and debt issuance costs. The 2023 and 2031 Term Notes accrue interest at a rate of 0.550% and 2.550% per annum, respectively, payable semi-annually. Interest is payable on March 23 and September 23 of each year, beginning on September 23, 2021. The 2023 Term Notes mature on March 23, 2023 and the 2031 Term Notes mature on March 23, 2031. We may redeem for cash all or any portion of the Term Notes, at our option, at any time prior to maturity. The 2023 Term Notes and, prior to December 23, 2030, the 2031 Term Notes are redeemable at make-whole premium redemption prices as defined in the applicable forms of note. After December 23, 2030, the 2031 Term Notes are redeemable at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest up to, but excluding, the redemption date. Interest expense recognized on the Term Notes was $1 million during Q1 2021, which included amortization of debt discounts and issuance costs. The fair value of the Term Notes approximated the carrying value as of April 4, 2021. Summary of Convertible Debt Obligations In millions April 4, January 3, Principal amount of 2023 Convertible Senior Notes outstanding $ 750 $ 750 Principal amount of 2021 Convertible Senior Notes outstanding 491 517 Unamortized discount of liability component of convertible senior notes (73) (83) Net carrying amount of liability component of convertible senior notes 1,168 1,184 Less: current portion (488) (511) Convertible senior notes, non-current $ 680 $ 673 Carrying value of equity component of convertible senior notes, net of debt issuance costs $ 213 $ 213 Fair value of convertible senior notes outstanding (Level 2) $ 1,629 $ 1,595 Weighted-average remaining amortization period of discount on the liability component of convertible senior notes 2.3 years 2.4 years Interest expense recognized on the Convertible Senior Notes was $11 million during both Q1 2021 and Q1 2020, which included amortization of debt discounts and issuance costs. 0% Convertible Senior Notes due 2023 (2023 Convertible Notes) In August 2018, we issued $750 million aggregate principal amount of convertible senior notes due 2023 (2023 Convertible Notes). The 2023 Convertible Notes mature on August 15, 2023, and the implied estimated effective rate of the liability component of the notes was 3.7%, assuming no conversion option. The 2023 Convertible Notes will be convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on an initial conversion rate, subject to adjustment, of 2.1845 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $457.77 per share of common stock), only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price in effect on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2023 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events described in the indenture. Regardless of the foregoing circumstances, the holders may convert their notes on or after May 15, 2023 until August 11, 2023. We may redeem for cash all or any portion of the 2023 Convertible Notes, at our option, on or after August 20, 2021 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect (currently $595.10) for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. The 2023 Convertible Notes were not convertible as of April 4, 2021 and had no dilutive impact during Q1 2021. If the notes were converted as of April 4, 2021, the if-converted value would not exceed the principal amount. 0.5% Convertible Senior Notes due 2021 (2021 Convertible Notes) In June 2014, we issued $517 million aggregate principal amount of convertible senior notes due 2021 (2021 Convertible Notes). The 2021 Convertible Notes mature on June 15, 2021, and the implied estimated effective rate of the liability component of the notes was 3.5%, assuming no conversion option. The 2021 Convertible Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at our 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: (1) during any calendar quarter commencing after the calendar quarter ending September 30, 2014 (and only during such calendar quarter), if the last reported sale price of our 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; (2) during the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2021 Convertible Notes for each day of such measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified events described in the indenture. Regardless of the foregoing circumstances, the holders may convert their notes on or after March 15, 2021 until June 11, 2021. The market price of our common stock met the stock trading price conversion requirement of $330.64 and the 2021 Convertible Notes became convertible on January 1, 2021 and continue to be convertible through June 11, 2021. The potential dilutive impact of the 2021 Convertible Notes has been included in our calculation of diluted earnings per share for Q1 2021. If the notes were converted as of April 4, 2021, the if-converted value would exceed the principal amount by $275 million. During Q1 2021, a portion of the 2021 Convertible Notes were converted. The principal amount was repaid in cash, with the excess of the conversion value over the principal amount paid in shares of common stock. The following table summarizes information about the conversions during Q1 2021: In millions 2021 Notes Cash paid for principal of notes converted $ 27 Conversion value over principal amount, paid in shares of common stock $ 17 Number of shares of common stock issued upon conversion 0.04 Credit Agreement On March 8, 2021, we entered into a credit agreement (the Credit Agreement), which provides us with a $750 million senior unsecured five-year revolving credit facility, including a $40 million sublimit for swingline borrowings and a $50 million sublimit for letters of credit (the Credit Facility). The proceeds of the loans under the Credit Facility may be used to finance working capital needs and for general corporate purposes. Any loans under the Credit Facility will have a variable interest rate based on either the eurocurrency rate or the alternate base rate, plus an applicable spread that varies with the Company’s debt rating. The Credit Agreement includes an option for us to elect to increase the commitments under the Credit Facility or to enter into one or more tranches of term loans in the aggregate principal amount of up to $250 million, subject to the consent of the lenders providing the additional commitments or term loans, as applicable, and certain other conditions. The Credit Agreement contains financial and operating covenants. Pursuant to the Credit Agreement, we are required to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA), calculated based on the four consecutive fiscal quarters ending with the most recent fiscal quarter, of not greater than 3.50 to 1.00 as of the end of each fiscal quarter. Upon the consummation of any Qualified Acquisition (as defined in the Credit Agreement) and us providing notice to the Administrative Agent, the ratio increases to 4.00 to 1.00 for the fiscal quarter in which the acquisition is consummated and the three consecutive fiscal quarters thereafter. The operating covenants include, among other things, limitations on (i) the incurrence of indebtedness by our subsidiaries, (ii) liens on our and our subsidiaries assets, and (iii) certain fundamental changes and the disposition of assets by us and our subsidiaries. The Credit Agreement contains other customary covenants, representations and warranties, and events of default. The Credit Facility matures, and all amounts outstanding thereunder become due and payable in full, on March 8, 2026, subject to two one-year extensions at our option, the consent of the extending lenders and certain other conditions. We may prepay amounts borrowed and terminate commitments under the Credit Facility at any time without premium or penalty. As of April 4, 2021, there were no borrowings outstanding under the Credit Facility, and we were in compliance with all financial and operating covenants. Bridge Facility In advance of the acquisition of GRAIL, we obtained a bridge facility commitment letter from Goldman Sachs Bank USA for a 364-day senior unsecured bridge loan facility, in an aggregate principal amount of $1 billion. The bridge facility commitment letter was subject to certain conditions, including consummation of the acquisition pursuant to the GRAIL Merger Agreement. On March 23, 2021, we terminated the bridge facility commitment letter in conjunction with the issuance of the 2023 and 2031 Term Notes.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Stockholders’ Equity	5. STOCKHOLDERS’ EQUITY As of April 4, 2021, approximately 3.5 million shares remained available for future grants under the 2015 Stock Plan. Restricted Stock Restricted stock activity was as follows: Restricted Performance Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 3, 2021 1,721 — $ 313.35 — Awarded 70 390 $ 445.13 $ 477.78 Vested (17) — $ 230.58 — Cancelled (88) (6) $ 311.10 $ 486.28 Outstanding at April 4, 2021 1,686 384 $ 319.77 $ 477.65 ______________________________________ (1) The number of units reflect the estimated number of shares to be issued at the end of the performance period. Awarded units are presented net of performance adjustments. Stock Options Stock option activity was as follows: Options Weighted-Average Outstanding at January 3, 2021 10 $ 59.11 Exercised (1) $ 48.36 Outstanding and exercisable at April 4, 2021 9 $ 60.21 Employee Stock Purchase Plan The price at which common stock is purchased under the Employee Stock Purchase Plan (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 Q1 2021, approximately 0.1 million shares were issued under the ESPP. As of April 4, 2021, there were approximately 13.1 million shares available for issuance under the ESPP. Share Repurchases On February 5, 2020, our Board of Directors authorized a new share repurchase program, which supersedes all prior and available repurchase authorizations, to repurchase $750 million of outstanding common stock. The repurchases may be completed under a 10b5-1 plan or at management’s discretion. We did not repurchase any shares during Q1 2021. Authorizations to repurchase approximately $15 million of our common stock remained available as of April 4, 2021. Share-based Compensation Share-based compensation expense reported in our condensed consolidated statements of income was as follows: In millions Q1 2021 Q1 2020 Cost of product revenue $ 7 $ 5 Cost of service and other revenue 1 1 Research and development 24 15 Selling, general and administrative 35 18 Share-based compensation expense before taxes 67 39 Related income tax benefits (13) (9) Share-based compensation expense, net of taxes $ 54 $ 30 In February 2021, we modified the metrics and reduced the maximum potential payouts for our performance stock units granted in 2019 and 2020, which vest at the end of the three-year periods ended January 2, 2022 and January 1, 2023, respectively. The modifications affected 52 employees with units granted in 2019, which resulted in total incremental share-based compensation cost of approximately $41 million, and 72 employees with units granted in 2020, which resulted in total incremental share-based compensation cost of approximately $65 million. The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP during Q1 2021 were as follows: Employee Stock Purchase Rights Risk-free interest rate 0.08% - 1.56% Expected volatility 30% - 48% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 99.67 As of April 4, 2021, approximately $636 million of total unrecognized compensation cost related to restricted stock and ESPP shares issued to date was expected to be recognized over a weighted-average period of approximately 2.4 years.

Supplemental Balance Sheet Deta

Supplemental Balance Sheet Details	3 Months Ended
	Apr. 04, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Balance Sheet Details	6. SUPPLEMENTAL BALANCE SHEET DETAILS Accounts Receivable In millions April 4, January 3, Trade accounts receivable, gross $ 520 $ 491 Allowance for credit losses (3) (4) Total accounts receivable, net $ 517 $ 487 Inventory In millions April 4, January 3, Raw materials $ 89 $ 106 Work in process 252 244 Finished goods 23 22 Total inventory $ 364 $ 372 Accrued Liabilities In millions April 4, January 3, Contract liabilities, current portion $ 188 $ 186 Accrued compensation expenses 152 153 Accrued taxes payable 116 68 Operating lease liabilities, current portion 53 51 Other, including warranties (a) 93 83 Total accrued liabilities $ 602 $ 541 (a) Changes in the reserve for product warranties were as follows: In millions Q1 2021 Q1 2020 Balance at beginning of period $ 13 $ 14 Additions charged to cost of product revenue 8 3 Repairs and replacements (6) (5) Balance at end of period $ 15 $ 12 We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six Derivative Financial Instruments We are exposed to foreign exchange rate risks in the normal course of business and use derivative financial instruments to partially offset this exposure. We do not use derivative financial instruments for speculative or trading purposes. All foreign exchange contracts are carried at fair value in other current assets or accrued liabilities on the condensed consolidated balance sheets. We use foreign exchange forward contracts to manage foreign currency risks related to monetary assets and liabilities denominated in currencies other than the U.S. dollar. These derivative financial instruments have terms of one month or less and are not designated as hedging instruments. Changes in fair value of these derivatives are recognized in other expense, net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities. As of April 4, 2021, we had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, Australian dollar, Canadian dollar, Singapore dollar, Chinese Yuan Renminbi, and British pound. As of April 4, 2021 and January 3, 2021, the total notional amounts of outstanding forward contracts in place for these foreign currency purchases were $462 million and $405 million, respectively. We also use foreign currency forward contracts to hedge portions of our foreign currency exposure associated with forecasted revenue transactions. These derivative financial instruments have terms up to 24 months and are designated as cash flow hedges. Changes in fair value of our cash flow hedges are recorded as a component of accumulated other comprehensive income and are reclassified to revenue in the same period the underlying hedged transactions are recorded. We regularly review the effectiveness of our cash flow hedges and consider them to be ineffective if it becomes probable that the forecasted transactions will not occur in the identified period. Changes in fair value of the ineffective portions of our cash flow hedges, if any, will be recognized in other expense, net. As of April 4, 2021, we had foreign currency forward contracts in place to hedge exposures associated with forecasted revenue transactions denominated in the euro, Japanese yen, Australian dollar, and Canadian dollar. As of April 4, 2021 and January 3, 2021, the total notional amounts of outstanding cash flow hedge contracts in place for these foreign currency purchases were $327 million and $305 million, respectively.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Apr. 04, 2021
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	7. LEGAL PROCEEDINGS On March 30, 2021, the Federal Trade Commission (the FTC) filed an administrative complaint and a motion for a preliminary injunction in the United States District Court for the District of Columbia. In both actions, the FTC alleges that our acquisition of GRAIL would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18. We filed an answer to the FTC’s complaint in federal district court on April 6, 2021. On April 20, 2021, the United States District Court for the District of Columbia granted our motion to transfer venue to the United States District Court for the Southern District of California. If the district court or administrative court rule in favor of the FTC, the completion of the acquisition of GRAIL may be delayed for a significant period of time (including beyond the outside date of September 20, 2021, which may be extended by three months in certain circumstances) or prevented from occurring. We intend to vigorously defend the FTC actions. We are 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, we assess, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the consolidated 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 resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures in consideration of many factors, which include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. We may change our estimates if our assessment of the various factors changes and the amount of ultimate loss may differ from our estimates, resulting in a material effect on our business, financial condition, results of operations, and/or cash flows.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 04, 2021
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 04, 2021
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 our accounts, our wholly-owned subsidiaries, and majority-owned or controlled companies. All intercompany transactions and balances have been eliminated in consolidation. We operate under one operating segment and report under one reportable segment. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results for the interim periods presented.
Fiscal Year	Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31.
Accounting Pronouncements and Pending Adoption	Accounting Pronouncements Pending Adoption In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). The new standard reduces the number of accounting models for convertible debt instruments, amends the accounting for certain contracts in an entity’s own equity, and modifies how certain convertible instruments and contracts that may be settled in cash or shares impact the calculation of diluted EPS. The standard is effective for us beginning in the first quarter of 2022,
Earnings per Share	Basic earnings per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares.
Warranties	We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six
Derivatives	We are exposed to foreign exchange rate risks in the normal course of business and use derivative financial instruments to partially offset this exposure. We do not use derivative financial instruments for speculative or trading purposes. All foreign exchange contracts are carried at fair value in other current assets or accrued liabilities on the condensed consolidated balance sheets.

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 04, 2021
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 millions Q1 2021 Q1 2020 Weighted average shares outstanding 146 147 Effect of potentially dilutive common shares from: Equity awards — 1 Convertible senior notes 1 — Weighted average shares used in calculating diluted earnings per share 147 148 Potentially dilutive shares excluded from calculation due to anti-dilutive effect — 1

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Apr. 04, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	Revenue by Source Q1 2021 Q1 2020 In millions Sequencing Microarray Total Sequencing Microarray Total Consumables $ 695 $ 79 $ 774 $ 553 $ 67 $ 620 Instruments 176 3 179 79 2 81 Total product revenue 871 82 953 632 69 701 Service and other revenue 108 32 140 128 30 158 Total revenue $ 979 $ 114 $ 1,093 $ 760 $ 99 $ 859 Revenue by Geographic Area Based on region of destination (in millions) Q1 2021 Q1 2020 Americas $ 562 $ 477 Europe, Middle East, and Africa 305 221 Greater China (1) 127 84 Asia-Pacific 99 77 Total revenue $ 1,093 $ 859 (1) Region includes revenue from China, Taiwan, and Hong Kong.

Investments and Fair Value Me_2

Investments and Fair Value Measurements (Tables)	3 Months Ended
	Apr. 04, 2021
Fair Value Disclosures [Abstract]
Schedule of Short-term Investments	Our short-term investments include available-for-sale debt securities that consisted of the following: April 4, 2021 January 3, 2021 In millions Amortized Gross Estimated Amortized Gross Estimated Debt securities in government-sponsored entities $ — $ — $ — $ 10 $ — $ 10 Corporate debt securities — — — 445 — 445 U.S. Treasury securities — — — 830 1 831 Total $ — $ — $ — $ 1,285 $ 1 $ 1,286
Schedule of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis: April 4, 2021 January 3, 2021 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 4,041 $ — $ — $ 4,041 $ 1,512 $ — $ — $ 1,512 Debt securities in government-sponsored entities — — — — — 10 — 10 Corporate debt securities — — — — — 445 — 445 U.S. Treasury securities — — — — 831 — — 831 Marketable equity securities 197 — — 197 376 — — 376 Contingent value right — — 45 45 — — 35 35 Derivative assets related to terminated acquisition — — — — — — 26 26 Deferred compensation plan assets — 55 — 55 — 55 — 55 Total assets measured at fair value $ 4,238 $ 55 $ 45 $ 4,338 $ 2,719 $ 510 $ 61 $ 3,290 Liabilities: Deferred compensation plan liability $ — $ 53 $ — $ 53 $ — $ 51 $ — $ 51

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 04, 2021
Debt Disclosure [Abstract]
Schedule of Debt Obligations	Summary of Term Debt Obligations In millions April 4, Principal amount of 2031 Term Notes outstanding $ 500 Principal amount of 2023 Term Notes outstanding 500 Unamortized discounts and debt issuance costs (8) Net carrying amount of term notes 992 Less: current portion — Term notes, non-current $ 992 Summary of Convertible Debt Obligations In millions April 4, January 3, Principal amount of 2023 Convertible Senior Notes outstanding $ 750 $ 750 Principal amount of 2021 Convertible Senior Notes outstanding 491 517 Unamortized discount of liability component of convertible senior notes (73) (83) Net carrying amount of liability component of convertible senior notes 1,168 1,184 Less: current portion (488) (511) Convertible senior notes, non-current $ 680 $ 673 Carrying value of equity component of convertible senior notes, net of debt issuance costs $ 213 $ 213 Fair value of convertible senior notes outstanding (Level 2) $ 1,629 $ 1,595 Weighted-average remaining amortization period of discount on the liability component of convertible senior notes 2.3 years 2.4 years
Schedule of Debt Conversions	The following table summarizes information about the conversions during Q1 2021: In millions 2021 Notes Cash paid for principal of notes converted $ 27 Conversion value over principal amount, paid in shares of common stock $ 17 Number of shares of common stock issued upon conversion 0.04

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Apr. 04, 2021
Equity [Abstract]
Schedule of Restricted Stock Activity and Related Information, Restricted Stock	Restricted stock activity was as follows: Restricted Performance Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 3, 2021 1,721 — $ 313.35 — Awarded 70 390 $ 445.13 $ 477.78 Vested (17) — $ 230.58 — Cancelled (88) (6) $ 311.10 $ 486.28 Outstanding at April 4, 2021 1,686 384 $ 319.77 $ 477.65 ______________________________________
Schedule of Restricted Stock Activity and Related Information, Performance Units	Restricted stock activity was as follows: Restricted Performance Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 3, 2021 1,721 — $ 313.35 — Awarded 70 390 $ 445.13 $ 477.78 Vested (17) — $ 230.58 — Cancelled (88) (6) $ 311.10 $ 486.28 Outstanding at April 4, 2021 1,686 384 $ 319.77 $ 477.65 ______________________________________
Schedule of Stock Option Activity Under all Stock Option Plans	Stock option activity was as follows: Options Weighted-Average Outstanding at January 3, 2021 10 $ 59.11 Exercised (1) $ 48.36 Outstanding and exercisable at April 4, 2021 9 $ 60.21
Schedule of Share-based Compensation Expense for all Stock Awards	Share-based compensation expense reported in our condensed consolidated statements of income was as follows: In millions Q1 2021 Q1 2020 Cost of product revenue $ 7 $ 5 Cost of service and other revenue 1 1 Research and development 24 15 Selling, general and administrative 35 18 Share-based compensation expense before taxes 67 39 Related income tax benefits (13) (9) Share-based compensation expense, net of taxes $ 54 $ 30
Schedule 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 ESPP during Q1 2021 were as follows: Employee Stock Purchase Rights Risk-free interest rate 0.08% - 1.56% Expected volatility 30% - 48% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 99.67

Supplemental Balance Sheet De_2

Supplemental Balance Sheet Details (Tables)	3 Months Ended
	Apr. 04, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable In millions April 4, January 3, Trade accounts receivable, gross $ 520 $ 491 Allowance for credit losses (3) (4) Total accounts receivable, net $ 517 $ 487
Summary of Inventory	Inventory In millions April 4, January 3, Raw materials $ 89 $ 106 Work in process 252 244 Finished goods 23 22 Total inventory $ 364 $ 372
Summary of Accrued Liabilities	Accrued Liabilities In millions April 4, January 3, Contract liabilities, current portion $ 188 $ 186 Accrued compensation expenses 152 153 Accrued taxes payable 116 68 Operating lease liabilities, current portion 53 51 Other, including warranties (a) 93 83 Total accrued liabilities $ 602 $ 541 (a) Changes in the reserve for product warranties were as follows: In millions Q1 2021 Q1 2020 Balance at beginning of period $ 13 $ 14 Additions charged to cost of product revenue 8 3 Repairs and replacements (6) (5) Balance at end of period $ 15 $ 12
Summary of Changes in Reserve for Product Warranties	Changes in the reserve for product warranties were as follows: In millions Q1 2021 Q1 2020 Balance at beginning of period $ 13 $ 14 Additions charged to cost of product revenue 8 3 Repairs and replacements (6) (5) Balance at end of period $ 15 $ 12

Organization and Significant _4

Organization and Significant Accounting Policies - Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Weighted average shares used to calculate basic and diluted earnings per share
Weighted average shares outstanding (in shares)	146	147
Effect of potentially dilutive common shares from:
Equity awards (in shares)	0	1
Convertible senior notes (in shares)	1	0
Weighted average shares used in calculating diluted earnings per share (in shares)	147	148
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	0	1

Organization and Significant _5

Organization and Significant Accounting Policies - Narrative (Details)	3 Months Ended
	Apr. 04, 2021segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1
Number of reportable segments	1

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,093	$ 859
Americas
Disaggregation of Revenue [Line Items]
Total revenue	562	477
Europe, Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue	305	221
Greater China
Disaggregation of Revenue [Line Items]
Total revenue	127	84
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	99	77
Consumables
Disaggregation of Revenue [Line Items]
Total revenue	774	620
Instruments
Disaggregation of Revenue [Line Items]
Total revenue	179	81
Total product revenue
Disaggregation of Revenue [Line Items]
Total revenue	953	701
Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	140	158
Sequencing
Disaggregation of Revenue [Line Items]
Total revenue	979	760
Sequencing | Consumables
Disaggregation of Revenue [Line Items]
Total revenue	695	553
Sequencing | Instruments
Disaggregation of Revenue [Line Items]
Total revenue	176	79
Sequencing | Total product revenue
Disaggregation of Revenue [Line Items]
Total revenue	871	632
Sequencing | Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	108	128
Microarray
Disaggregation of Revenue [Line Items]
Total revenue	114	99
Microarray | Consumables
Disaggregation of Revenue [Line Items]
Total revenue	79	67
Microarray | Instruments
Disaggregation of Revenue [Line Items]
Total revenue	3	2
Microarray | Total product revenue
Disaggregation of Revenue [Line Items]
Total revenue	82	69
Microarray | Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 32	$ 30

Revenue - Remaining Performance

Revenue - Remaining Performance Obligation (Details) $ in Millions	3 Months Ended
	Apr. 04, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 1,129
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Product or service delivery period	3 years
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Product or service delivery period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-05
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation	91.00%
Expected timing of remaining performance obligation	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-05
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation	8.00%
Expected timing of remaining performance obligation	12 months

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Jan. 03, 2021
Revenue from Contract with Customer [Abstract]
Contract with customer, liability	$ 232	$ 230
Contract liabilities, current portion	188	$ 186
Revenue recognized	$ 83

Investments and Fair Value Me_3

Investments and Fair Value Measurements - Summary of Short-term Investments (Details) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Available-for-sale debt securities:
Amortized Cost	$ 0	$ 1,285
Gross Unrealized Gains	0	1
Estimated Fair Value	0	1,286
Debt securities in government-sponsored entities
Available-for-sale debt securities:
Amortized Cost	0	10
Gross Unrealized Gains	0	0
Estimated Fair Value	0	10
Corporate debt securities
Available-for-sale debt securities:
Amortized Cost	0	445
Gross Unrealized Gains	0	0
Estimated Fair Value	0	445
U.S. Treasury securities
Available-for-sale debt securities:
Amortized Cost	0	830
Gross Unrealized Gains	0	1
Estimated Fair Value	$ 0	$ 831

Investments and Fair Value Me_4

Investments and Fair Value Measurements - Narrative (Details)	Sep. 20, 2020USD ($)shares	Jan. 02, 2020USD ($)	Apr. 25, 2019	Nov. 01, 2018USD ($)$ / shares	Apr. 30, 2021USD ($)	Mar. 02, 2020USD ($)	Apr. 04, 2021USD ($)fund	Mar. 29, 2020USD ($)	Dec. 29, 2019USD ($)	Feb. 28, 2021USD ($)	Jan. 03, 2021USD ($)
Schedule of Investments [Line Items]
Marketable equity securities							$ 197,000,000				$ 376,000,000
Marketable equity securities unrealized (losses) and gains							(58,000,000)	$ 3,000,000
Losses on marketable equity securities							14,000,000	0
Strategic equity investments, without readily determinable fair values							$ 314,000,000				314,000,000
Number of venture capital investment funds | fund							2
Equity method investments							$ 139,000,000				104,000,000
(Gain) loss on derivative assets related to terminated acquisition							26,000,000	(95,000,000)
GRAIL Inc
Schedule of Investments [Line Items]
Contingent value right, terms	12 years
Cash payments	$ 3,500,000,000
Merger agreement consideration	8,000,000,000
Business combination, equity Interests Issued and Issuable (in shares)	4,500,000,000
Capital raised	1,000,000,000
Business acquisition, contingent value rights, stock consideration aggregate value	$ 850,000,000
Business acquisition, contingent value rights (in shares) | shares	3,035,714
Business Combination, continuation payments	$ 35,000,000
Business combination, threshold of continuation payments	315,000,000
Termination fee	300,000,000
Investment to be made if merger does not occur	$ 300,000,000
GRAIL Inc | Subsequent Event
Schedule of Investments [Line Items]
Business Combination, continuation payments					$ 35,000,000
GRAIL Inc | Payment Rights Of One Billion, Each Twelve Years
Schedule of Investments [Line Items]
Contingent payment rights, first percentage	2.50%
Business acquisition, contingent value rights, revenue threshold	$ 1,000,000,000
GRAIL Inc | Payment Rights Of Above One Billion, Each Twelve Years
Schedule of Investments [Line Items]
Business acquisition, contingent value rights, revenue threshold	$ 1,000,000,000
Contingent payment rights, second percentage	9.00%
GRAIL Inc | Selling, General and Administrative
Schedule of Investments [Line Items]
Business Combination, continuation payments							105,000,000
Pacific Biosciences of California, Inc (PacBio)
Schedule of Investments [Line Items]
Cash payments				$ 1,200,000,000		$ 34,000,000		132,000,000	$ 18,000,000
Share price (in dollars per share) | $ / shares				$ 8
Loss on contract termination		$ 98,000,000
Business combination, contingent consideration arrangements, maximum outcome		52,000,000
Equity or debt financing to be raised		$ 100,000,000
Derivative asset							40,000,000
Pacific Biosciences of California, Inc (PacBio) | Selling, General and Administrative
Schedule of Investments [Line Items]
(Gain) loss on derivative assets related to terminated acquisition							(92,000,000)
Pacific Biosciences of California, Inc (PacBio) | Other Operating Income (Expense)
Schedule of Investments [Line Items]
(Gain) loss on derivative assets related to terminated acquisition								(4,000,000)
S B Northstar L P
Schedule of Investments [Line Items]
Business combination, contingent consideration arrangements, maximum outcome										$ 52,000,000
(Gain) loss on derivative assets related to terminated acquisition							26,000,000
Helix Holdings I, LLC
Schedule of Investments [Line Items]
Contingent value right, terms			7 years
Unrealized gain (loss) from contingent value right							10,000,000	(3,000,000)
Pacific Biosciences of California, Inc (PacBio) | S B Northstar L P | Convertible Senior Notes
Schedule of Investments [Line Items]
Principal amount of notes outstanding										$ 900,000,000
Venture Capital Investment Fund (the Fund)
Schedule of Investments [Line Items]
Commitment in new venture capital investment fund							100,000,000
Remaining capital commitment							32,000,000
Second Venture Capital Investment Fund
Schedule of Investments [Line Items]
Commitment in new venture capital investment fund							160,000,000
Remaining capital commitment							140,000,000
Investee
Schedule of Investments [Line Items]
Revenue from transactions with strategic investees							13,000,000	$ 13,000,000
Variable Interest Entity, Primary Beneficiary | GRAIL, Inc.
Schedule of Investments [Line Items]
Net Assets							$ 250,000,000				$ 250,000,000

Investments and Fair Value Me_5

Investments and Fair Value Measurements - Fair Value Hierarchy of Assets and Liabilities (Details) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Assets:
Available-for-sale securities	$ 0	$ 1,286
Marketable equity securities	197	376
Debt securities in government-sponsored entities
Assets:
Available-for-sale securities	0	10
Corporate debt securities
Assets:
Available-for-sale securities	0	445
U.S. Treasury securities
Assets:
Available-for-sale securities	0	831
Fair Value, Measurements, Recurring
Assets:
Marketable equity securities	197	376
Contingent value right	45	35
Derivative assets related to terminated acquisition	0	26
Deferred compensation plan assets	55	55
Total assets measured at fair value	4,338	3,290
Liabilities:
Deferred compensation plan liability	53	51
Fair Value, Measurements, Recurring | Money market funds (cash equivalents)
Assets:
Money market funds (cash equivalents)	4,041	1,512
Fair Value, Measurements, Recurring | Debt securities in government-sponsored entities
Assets:
Available-for-sale securities	0	10
Fair Value, Measurements, Recurring | Corporate debt securities
Assets:
Available-for-sale securities	0	445
Fair Value, Measurements, Recurring | U.S. Treasury securities
Assets:
Available-for-sale securities	0	831
Fair Value, Measurements, Recurring | Level 1
Assets:
Marketable equity securities	197	376
Contingent value right	0	0
Derivative assets related to terminated acquisition	0	0
Deferred compensation plan assets	0	0
Total assets measured at fair value	4,238	2,719
Liabilities:
Deferred compensation plan liability	0	0
Fair Value, Measurements, Recurring | Level 1 | Money market funds (cash equivalents)
Assets:
Money market funds (cash equivalents)	4,041	1,512
Fair Value, Measurements, Recurring | Level 1 | Debt securities in government-sponsored entities
Assets:
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities
Assets:
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities
Assets:
Available-for-sale securities	0	831
Fair Value, Measurements, Recurring | Level 2
Assets:
Marketable equity securities	0	0
Contingent value right	0	0
Derivative assets related to terminated acquisition	0	0
Deferred compensation plan assets	55	55
Total assets measured at fair value	55	510
Liabilities:
Deferred compensation plan liability	53	51
Fair Value, Measurements, Recurring | Level 2 | Money market funds (cash equivalents)
Assets:
Money market funds (cash equivalents)	0	0
Fair Value, Measurements, Recurring | Level 2 | Debt securities in government-sponsored entities
Assets:
Available-for-sale securities	0	10
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities
Assets:
Available-for-sale securities	0	445
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities
Assets:
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3
Assets:
Marketable equity securities	0	0
Contingent value right	45	35
Derivative assets related to terminated acquisition	0	26
Deferred compensation plan assets	0	0
Total assets measured at fair value	45	61
Liabilities:
Deferred compensation plan liability	0	0
Fair Value, Measurements, Recurring | Level 3 | Money market funds (cash equivalents)
Assets:
Money market funds (cash equivalents)	0	0
Fair Value, Measurements, Recurring | Level 3 | Debt securities in government-sponsored entities
Assets:
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities
Assets:
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities
Assets:
Available-for-sale securities	$ 0	$ 0

Debt - Summary of Term Debt Obl

Debt - Summary of Term Debt Obligations (Details) - Term Notes - USD ($)	Apr. 04, 2021	Mar. 23, 2021
Debt Instrument [Line Items]
Unamortized discount of liability component of convertible senior notes	$ (8,000,000)
Net carrying amount of liability component of convertible senior notes	992,000,000
Less: current portion	0
Long term debt noncurrent	992,000,000
2031 Term Notes
Debt Instrument [Line Items]
Principal amount of notes outstanding	500,000,000	$ 500,000,000
2023 Term Notes
Debt Instrument [Line Items]
Principal amount of notes outstanding	$ 500,000,000	$ 500,000,000

Debt - Summary of Convertible D

Debt - Summary of Convertible Debt Obligations (Details) - Convertible Senior Notes - USD ($)	3 Months Ended	12 Months Ended
	Apr. 04, 2021	Jan. 03, 2021	Aug. 30, 2018	Jun. 30, 2014
Debt Instrument [Line Items]
Unamortized discount of liability component of convertible senior notes	$ (73,000,000)	$ (83,000,000)
Net carrying amount of liability component of convertible senior notes	1,168,000,000	1,184,000,000
Less: current portion	(488,000,000)	(511,000,000)
Long term debt noncurrent	680,000,000	673,000,000
Carrying value of equity component of convertible senior notes, net of debt issuance costs	$ 213,000,000	$ 213,000,000
Weighted-average remaining amortization period of discount on the liability component of convertible senior notes	2 years 3 months 18 days	2 years 4 months 24 days
Level 2
Debt Instrument [Line Items]
Fair value of convertible senior notes outstanding (Level 2)	$ 1,629,000,000	$ 1,595,000,000
2023 Convertible Notes
Debt Instrument [Line Items]
Principal amount of notes outstanding	750,000,000	750,000,000	$ 750,000,000
2021 Convertible Notes
Debt Instrument [Line Items]
Principal amount of notes outstanding	$ 491,000,000	$ 517,000,000		$ 517,000,000

Debt - Narrative (Details)

Debt - Narrative (Details)	Mar. 23, 2021USD ($)	Mar. 08, 2021USD ($)	Aug. 21, 2018	Aug. 30, 2018USD ($)day$ / shares	Jun. 30, 2014USD ($)day$ / shares	Apr. 04, 2021USD ($)renewal$ / shares	Mar. 29, 2020USD ($)	Jan. 03, 2021USD ($)
Term Notes
Debt Instrument [Line Items]
Net proceeds	$ 992,000,000
Redemption price, percentage						100.00%
Interest expense recognized						$ 1,000,000
Convertible Senior Notes
Debt Instrument [Line Items]
Interest expense recognized						11,000,000	$ 11,000,000
2023 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate	0.55%
Principal amount of notes outstanding	$ 500,000,000					500,000,000
2031 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate	2.55%
Principal amount of notes outstanding	$ 500,000,000					500,000,000
2023 Convertible Notes | Convertible Senior Notes
Debt Instrument [Line Items]
Stated rate				0.00%
Principal amount of notes outstanding				$ 750,000,000		750,000,000		$ 750,000,000
Redemption price, percentage				100.00%
Effective interest rate used to measure fair value of convertible senior note				3.70%
Conversion rate			0.0021845
Conversion price (in dollars per share) | $ / shares				$ 457.77
Threshold common stock trading days | day				20
Threshold consecutive common stock trading days | day				30
Threshold percentage of common stock price trigger				130.00%
Threshold note trading days | day				5
Threshold consecutive note trading days | day				10
Threshold percentage of note price trigger				98.00%
Convertible stock price trigger (in dollars per share) | $ / shares				$ 595.10
2021 Convertible Notes
Debt Instrument [Line Items]
Cash paid for principal of notes converted						27,000,000
2021 Convertible Notes | Convertible Senior Notes
Debt Instrument [Line Items]
Stated rate					0.50%
Principal amount of notes outstanding					$ 517,000,000	$ 491,000,000		$ 517,000,000
Effective interest rate used to measure fair value of convertible senior note					3.50%
Conversion rate					0.0039318
Conversion price (in dollars per share) | $ / shares					$ 254.34
Threshold common stock trading days | day					20
Threshold consecutive common stock trading days | day					30
Threshold percentage of common stock price trigger					130.00%
Threshold note trading days | day					5
Threshold consecutive note trading days | day					10
Threshold percentage of note price trigger					98.00%
Convertible stock price trigger (in dollars per share) | $ / shares						$ 330.64
Debt instrument, convertible, if-converted value in excess of principal						$ 275,000,000
The Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Debt instrument term, number of renewal | renewal						2
Debt instrument, renewal term						1 year
Borrowings outstanding						$ 0
The Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 750,000,000
Debt instrument term		5 years
The Credit Agreement | Line of Credit | Swingline Borrowings
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 40,000,000
The Credit Agreement | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		50,000,000
The Credit Agreement | Unsecured Debt
Debt Instrument [Line Items]
Debt instrument, face amount, optional increase in additional borrowings		$ 250,000,000
Debt instrument, covenant, minimum debt to EBITDA ratio						3.50
Debt instrument, covenant, minimum debt to EBITDA ratio upon consummation of acquisition						4
Bridge Facility | Unsecured Debt
Debt Instrument [Line Items]
Principal amount of notes outstanding						$ 1,000,000,000
Debt instrument term						364 days

Debt - Summary of Debt Conversi

Debt - Summary of Debt Conversions (Details) - 2021 Convertible Notes shares in Thousands, $ in Millions	3 Months Ended
	Apr. 04, 2021USD ($)shares
Short-term Debt [Line Items]
Cash paid for principal of notes converted	$ 27
Conversion value over principal amount, paid in shares of common stock	$ 17
Number of shares of common stock issued upon conversion (in shares) | shares	40

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) shares in Millions	Apr. 04, 2021shares
2015 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	3.5

Stockholders_ Equity - Summary

Stockholders’ Equity - Summary of Restricted Stock Activity and Related Information (Details) shares in Thousands	3 Months Ended
	Apr. 04, 2021$ / sharesshares
Restricted Stock Units (RSU)
Stock Units
Outstanding at period start (in shares)	1,721
Awarded (in shares)	70
Vested (in shares)	(17)
Cancelled (in shares)	(88)
Outstanding at period end (in shares)	1,686
Weighted-Average Grant Date Fair Value per Share
Outstanding at period start (in dollars per share) | $ / shares	$ 313.35
Awarded (in dollars per share) | $ / shares	445.13
Vested (in dollars per share) | $ / shares	230.58
Cancelled (in dollars per share) | $ / shares	311.10
Outstanding at period end (in dollars per share) | $ / shares	$ 319.77
Performance Stock Units (PSU)
Stock Units
Outstanding at period start (in shares)	0
Awarded (in shares)	390
Vested (in shares)	0
Cancelled (in shares)	(6)
Outstanding at period end (in shares)	384
Weighted-Average Grant Date Fair Value per Share
Outstanding at period start (in dollars per share) | $ / shares	$ 0
Awarded (in dollars per share) | $ / shares	477.78
Cancelled (in dollars per share) | $ / shares	486.28
Outstanding at period end (in dollars per share) | $ / shares	$ 477.65

Stockholders_ Equity - Summar_2

Stockholders’ Equity - Summary of Stock Option Activity Under all Stock Option Plans (Details) shares in Thousands	3 Months Ended
	Apr. 04, 2021$ / sharesshares
Options
Outstanding at period start (in shares) | shares	10
Exercised (in shares) | shares	(1)
Outstanding at period end (in shares) | shares	9
Exercisable at period end (in shares) | shares	9
Weighted-Average Exercise Price
Outstanding at period start (in dollars per share) | $ / shares	$ 59.11
Exercised (in dollars per share) | $ / shares	48.36
Outstanding at period end (in dollars per share) | $ / shares	60.21
Exercisable at period end (in dollars per share) | $ / shares	$ 60.21

Stockholders_ Equity - Narrat_2

Stockholders’ Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock shares in Millions	3 Months Ended
	Apr. 04, 2021shares
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)	0.1
Shares available for issuance (in shares)	13.1

Stockholders_ Equity - Narrat_3

Stockholders’ Equity - Narrative - Share Repurchases (Details) - Common Stock - USD ($)	3 Months Ended
	Apr. 04, 2021	Feb. 05, 2020
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 750,000,000
Repurchased common stock (in shares)	0
Dollar amount remaining in authorized stock repurchase program	$ 15,000,000

Stockholders_ Equity - Summar_3

Stockholders’ Equity - Summary of Share-based Compensation Expense for all Stock Awards (Details) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2021USD ($)employee	Apr. 04, 2021USD ($)	Mar. 29, 2020USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes		$ 67	$ 39
Related income tax benefits		(13)	(9)
Share-based compensation expense, net of taxes		54	30
Performance Stock Units (PSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation vesting performance period	3 years
Performance Shares, Granted In 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees effected by modification | employee	52
Incremental share-based compensation cost	$ 41
Performance Shares, Granted In 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees effected by modification | employee	72
Incremental share-based compensation cost	$ 65
Cost of product revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes		7	5
Cost of service and other revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes		1	1
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes		24	15
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes		$ 35	$ 18

Stockholders_ Equity- Summary o

Stockholders’ Equity- Summary of Assumptions Used to Estimate the Weighted Average Fair Value Per Share (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 04, 2021USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date | $	$ 636
Weighted-average period of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares granted to date	2 years 4 months 24 days
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	30.00%
Expected volatility, maximum	48.00%
Expected dividends	0.00%
Weighted-average fair value per share (in dollars per share) | $ / shares	$ 99.67
Minimum | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.08%
Expected term	6 months
Maximum | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.56%
Expected term	1 year

Supplemental Balance Sheet De_3

Supplemental Balance Sheet Details - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade accounts receivable, gross	$ 520	$ 491
Allowance for credit losses	(3)	(4)
Total accounts receivable, net	$ 517	$ 487

Supplemental Balance Sheet De_4

Supplemental Balance Sheet Details - Summary of Inventory (Details) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 89	$ 106
Work in process	252	244
Finished goods	23	22
Total inventory	$ 364	$ 372

Supplemental Balance Sheet De_5

Supplemental Balance Sheet Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contract liabilities, current portion	$ 188	$ 186
Accrued compensation expenses	152	153
Accrued taxes payable	116	68
Operating lease liabilities, current portion	53	51
Other, including warranties	93	83
Total accrued liabilities	$ 602	$ 541

Supplemental Balance Sheet De_6

Supplemental Balance Sheet Details - Summary of Changes in Reserve for Product Warranties (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Reserve for product warranties [Roll Forward]
Balance at beginning of period	$ 13	$ 14
Additions charged to cost of product revenue	8	3
Repairs and replacements	(6)	(5)
Balance at end of period	$ 15	$ 12

Supplemental Balance Sheet De_7

Supplemental Balance Sheet Details - Narrative - Warranties (Details)	3 Months Ended
	Apr. 04, 2021
Instruments
Product Warranty Liability [Line Items]
Warranty period	1 year
Consumables | Minimum
Product Warranty Liability [Line Items]
Warranty period	6 months
Consumables | Maximum
Product Warranty Liability [Line Items]
Warranty period	12 months

Supplemental Balance Sheet De_8

Supplemental Balance Sheet Details - Narrative - Derivatives (Details) - Foreign Exchange Forward - USD ($) $ in Millions	Apr. 04, 2021	Jan. 03, 2021
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount	$ 462	$ 405
Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount	$ 327	$ 305

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Apr. 04, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	13.10%