Illumina (ILMN) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares shares in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2023
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		158.1
Entity Central Index Key	0001110803
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Apr. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 1,494	$ 2,011
Short-term investments	24	26
Accounts receivable, net	665	671
Inventory, net	586	568
Prepaid expenses and other current assets	403	285
Total current assets	3,172	3,561
Property and equipment, net	1,082	1,091
Operating lease right-of-use assets	658	653
Goodwill	3,239	3,239
Intangible assets, net	3,237	3,285
Other assets	423	423
Total assets	11,811	12,252
Current liabilities:
Accounts payable	242	293
Accrued liabilities	1,239	1,232
Term notes, current portion	0	500
Convertible senior notes, current portion	749	748
Total current liabilities	2,230	2,773
Operating lease liabilities	747	744
Term notes	1,487	1,487
Other long-term liabilities	654	649
Stockholders’ equity:
Common stock	2	2
Additional paid-in capital	9,311	9,207
Accumulated other comprehensive (loss) income	(1)	3
Retained earnings	1,145	1,142
Treasury stock, at cost	(3,764)	(3,755)
Total stockholders’ equity	6,693	6,599
Total liabilities and stockholders’ equity	$ 11,811	$ 12,252

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Revenue:
Total revenue	$ 1,087	$ 1,223
Cost of revenue:
Amortization of acquired intangible assets	48	40
Total cost of revenue	432	408
Gross profit	655	815
Operating expense:
Research and development	341	323
Selling, general and administrative	378	308
Total operating expense	719	631
(Loss) income from operations	(64)	184
Other income (expense):
Interest income	17	0
Interest expense	(20)	(6)
Other expense, net	(11)	(38)
Total other expense, net	(14)	(44)
(Loss) income before income taxes	(78)	140
(Benefit) provision for income taxes	(81)	54
Net income	$ 3	$ 86
Earnings per share:
Basic (in dollars per share)	$ 0.02	$ 0.55
Diluted (in dollars per share)	$ 0.02	$ 0.55
Shares used in computing earnings per share:
Basic (in shares)	158	157
Diluted (in shares)	158	159
Product revenue
Revenue:
Total revenue	$ 922	$ 1,070
Cost of revenue:
Cost of revenue	285	299
Service and other revenue
Revenue:
Total revenue	165	153
Cost of revenue:
Cost of revenue	$ 99	$ 69

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 3	$ 86
Unrealized (loss) gain on cash flow hedges, net of deferred tax	(4)	1
Total comprehensive (loss) income	$ (1)	$ 87

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions	Total	Cumulative-effect adjustment from adoption of ASU 2016-02, net of deferred tax	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative-effect adjustment from adoption of ASU 2016-02, net of deferred tax	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained Earnings Cumulative-effect adjustment from adoption of ASU 2016-02, net of deferred tax	Treasury Stock
Beginning Balance (in shares) at Jan. 02, 2022			197
Beginning balance (in shares) at Jan. 02, 2022									(40)
Beginning balance at Jan. 02, 2022	$ 10,740	$ (32)	$ 2	$ 8,938	$ (93)	$ 17	$ 5,485	$ 61	$ (3,702)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	86						86
Unrealized gain on cash flow hedges, net of deferred tax	1					1
Issuance of common stock, net of repurchases	21			33					$ (12)
Share-based compensation	79			79
Ending Balance (in shares) at Apr. 03, 2022			197
Ending balance (in shares) at Apr. 03, 2022									(40)
Ending balance at Apr. 03, 2022	$ 10,895		$ 2	8,957		18	5,632		$ (3,714)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	Accounting Standards Update 2020-06 [Member]
Net income (loss)	$ (535)						(535)
Unrealized gain on cash flow hedges, net of deferred tax	12					12
Issuance of common stock, net of repurchases	(4)								$ (4)
Share-based compensation	76			76
Ending Balance (in shares) at Jul. 03, 2022			197
Ending balance (in shares) at Jul. 03, 2022									(40)
Ending balance at Jul. 03, 2022	10,444		$ 2	9,033		30	5,097		$ (3,718)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,816)						(3,816)
Unrealized gain on cash flow hedges, net of deferred tax	9					9
Issuance of common stock, net of repurchases	28			30					$ (2)
Share-based compensation	66			66
Ending Balance (in shares) at Oct. 02, 2022			197
Ending balance (in shares) at Oct. 02, 2022									(40)
Ending balance at Oct. 02, 2022	6,731		$ 2	9,129		39	1,281		$ (3,720)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(139)						(139)
Unrealized gain on cash flow hedges, net of deferred tax	(36)					(36)
Issuance of common stock, net of repurchases (in shares)			1
Issuance of common stock, net of repurchases	(35)								$ (35)
Share-based compensation	78			78
Ending Balance (in shares) at Jan. 01, 2023			198
Ending balance (in shares) at Jan. 01, 2023									(40)
Ending balance at Jan. 01, 2023	6,599		$ 2	9,207		3	1,142		$ (3,755)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3						3
Unrealized gain on cash flow hedges, net of deferred tax	(4)					(4)
Issuance of common stock, net of repurchases	28			37					$ (9)
Share-based compensation	67			67
Ending Balance (in shares) at Apr. 02, 2023			198
Ending balance (in shares) at Apr. 02, 2023									(40)
Ending balance at Apr. 02, 2023	$ 6,693		$ 2	$ 9,311		$ (1)	$ 1,145		$ (3,764)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash flows from operating activities:
Net income	$ 3	$ 86
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	57	50
Amortization of intangible assets	50	41
Share-based compensation expense	93	92
Deferred income taxes	(17)	(21)
Net losses on strategic investments	16	44
Gain on Helix contingent value right	(3)	(5)
Change in fair value of contingent consideration liabilities	(1)	(49)
Other	7	(1)
Changes in operating assets and liabilities:
Accounts receivable	1	31
Inventory	(18)	(34)
Prepaid expenses and other current assets	(17)	11
Operating lease right-of-use assets and liabilities, net	(5)	(3)
Other assets	2	6
Accounts payable	(46)	(39)
Accrued liabilities	(123)	(45)
Other long-term liabilities	11	8
Net cash provided by operating activities	10	172
Cash flows from investing activities:
Purchases of property and equipment	(52)	(61)
Purchases of strategic investments	(3)	(13)
Cash paid for intangible asset	(1)	0
Net cash used in investing activities	(56)	(74)
Cash flows from financing activities:
Debt issuance costs paid for credit facility	(1)	0
Payments on term notes	(500)	0
Taxes paid related to net share settlement of equity awards	(9)	(12)
Proceeds from issuance of common stock	37	33
Net cash (used in) provided by financing activities	(473)	21
Effect of exchange rate changes on cash and cash equivalents	2	0
Net (decrease) increase in cash and cash equivalents	(517)	119
Cash and cash equivalents at beginning of period	2,011	1,232
Cash and cash equivalents at end of period	$ 1,494	$ 1,351

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Apr. 02, 2023
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 . On August 18, 2021, we acquired GRAIL, a healthcare company focused on early detection of multiple cancers. The acquisition is subject to ongoing legal proceedings and, currently, GRAIL must be held and operated separately and independently from Illumina pursuant to interim measures ordered by the European Commission, which prohibited our acquisition of GRAIL on September 6, 2022. GRAIL is a separate reportable segment. Refer to note “ 7. Legal Proceedings ” and note “ 9. Segment Information ,” respectively, for additional details. 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 1, 2023, 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 COVID-19 pandemic, the armed conflict between Russia and Ukraine, and macroeconomic factors such as inflation, exchange rates and concerns about an economic downturn present additional uncertainty, we continue to use the best information available to form 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. 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 2023 and Q1 2022 refer to the three months ended April 2, 2023 and April 3, 2022, respectively, which were both 13 weeks. Significant Accounting Policies During Q1 2023, 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 1, 2023. 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. We utilize the if-converted method to calculate the impact of convertible senior notes on diluted earnings per share. 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 2023 Q1 2022 Weighted average shares outstanding 158 157 Effect of potentially dilutive common shares from: Convertible senior notes — 2 Weighted average shares used in calculating diluted earnings per share 158 159 Antidilutive shares: Convertible senior notes 2 — Equity awards 1 — Potentially dilutive shares excluded from calculation due to antidilutive effect 3 —

Revenue

Revenue	3 Months Ended
	Apr. 02, 2023
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, development and licensing agreements, and cancer detection testing services related to the GRAIL business. Revenue by Source Q1 2023 Q1 2022 In millions Sequencing Microarray Total Sequencing Microarray Total Consumables $ 686 $ 78 $ 764 $ 778 $ 75 $ 853 Instruments 152 6 158 211 6 217 Total product revenue 838 84 922 989 81 1,070 Service and other revenue 138 27 165 120 33 153 Total revenue $ 976 $ 111 $ 1,087 $ 1,109 $ 114 $ 1,223 Revenue by Geographic Area Based on region of destination (in millions) Q1 2023 Q1 2022 (1) Americas $ 616 $ 648 Europe 261 286 Greater China (2) 91 127 Asia-Pacific, Middle East, and Africa (3) 119 162 Total revenue $ 1,087 $ 1,223 _____________ (1) We implemented a new global commercial structure in Q1 2023 to improve operating efficiencies and better align with local markets. We integrated Asia-Pacific and Japan with emerging markets across the Middle East, Turkey, and Commonwealth of Independent States (CIS). Beginning in Q1 2023 and going forward, we will report regional results for the following regions: Americas, Europe, Greater China, and Asia-Pacific, Middle East and Africa (AMEA). Prior period amounts have been reclassified to conform to this new presentation. (2) Region includes revenue from China, Taiwan, and Hong Kong. (3) Region includes revenue from Russia and Turkey. Performance Obligations We regularly enter into contracts with multiple performance obligations. These contracts are believed to be firm as of the balance sheet date. However, we may allow customers to make product substitutions as we launch new products. The timing of shipments depends on several factors, including agreed upon shipping schedules, which may span multiple quarters. Most performance obligations are generally satisfied within a short time frame, approximately three Contract Assets and Liabilities Contract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, were $17 million as of April 2, 2023 and January 1, 2023 and were recorded in prepaid expenses and other current assets. Contract liabilities, which consist of deferred revenue and customer deposits, as of April 2, 2023 and January 1, 2023 were $324 million and $308 million, respectively, of which the short-term portions of $258 million and $245 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q1 2023 included $95 million of previously deferred revenue that was included in contract liabilities as of January 1, 2023.

Investments and Fair Value Meas

Investments and Fair Value Measurements	3 Months Ended
	Apr. 02, 2023
Fair Value Disclosures [Abstract]
Investments and Fair Value Measurements	3. INVESTMENTS AND FAIR VALUE MEASUREMENTS Strategic Investments Marketable Equity Securities Our short-term investments consist of marketable equity securities. As of April 2, 2023 and January 1, 2023, the fair value of our marketable equity securities totaled $24 million and $26 million, respectively. Net unrealized losses on our marketable equity securities, included in other expense, net, totaled $2 million and $42 million in Q1 2023 and Q1 2022, respectively. There were no sales of our marketable equity securities in Q1 2023 or Q1 2022. Non-Marketable Equity Securities As of April 2, 2023 and January 1, 2023, the aggregate carrying amounts of our non-marketable equity securities without readily determinable fair values, included in other assets, were $28 million. Revenue recognized from transactions with our strategic investees was $36 million and $30 million for Q1 2023 and Q1 2022, respectively. Venture Funds We invest in two venture capital investment funds (the Funds) with capital commitments of $100 million, callable through April 2026, and up to $150 million, callable through July 2029, respectively, of which $7 million and up to $88 million, respectively, remained callable as of April 2, 2023. Our investments in the Funds are accounted for as equity-method investments. The aggregate carrying amounts of the Funds, included in other assets, were $172 million and $183 million as of April 2, 2023 and January 1, 2023, respectively. We recorded unrealized losses of $12 million and $2 million in Q1 2023 and Q1 2022, respectively, in other expense, net. Helix 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 our contingent value right resulted in unrealized gains of $3 million and $5 million in Q1 2023 and Q1 2022, respectively, which were included in other expense, net. Fair Value Measurements The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis: April 2, 2023 January 1, 2023 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 1,136 $ — $ — $ 1,136 $ 1,642 $ — $ — $ 1,642 Marketable equity securities 24 — — 24 26 — — 26 Helix contingent value right — — 61 61 — — 58 58 Deferred compensation plan assets — 54 — 54 — 52 — 52 Total assets measured at fair value $ 1,160 $ 54 $ 61 $ 1,275 $ 1,668 $ 52 $ 58 $ 1,778 Liabilities: Contingent consideration liabilities $ — $ — $ 411 $ 411 $ — $ — $ 412 $ 412 Deferred compensation plan liability — 52 — 52 — 51 — 51 Total liabilities measured at fair value $ — $ 52 $ 411 $ 463 $ — $ 51 $ 412 $ 463 Our marketable equity securities are measured at fair value based on quoted trade prices in active markets. Our 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. We perform control procedures to corroborate the fair value of our holdings, including comparing valuations obtained from our investment service provider to valuations reported by our asset custodians, validating pricing sources and models, and reviewing key model inputs, if necessary. We elected the fair value option to measure the contingent value right received from Helix. The fair value of such contingent value right, included in other assets, is derived using a Monte Carlo simulation. Estimates and assumptions used in the Monte Carlo simulation include probabilities related to the timing and outcome of future financing and/or liquidity events, assumptions regarding collectibility and volatility, and an estimated equity value of Helix. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. We reassess the fair value of contingent consideration related to acquisitions on a quarterly basis. Changes in the fair value of contingent consideration subsequent to the acquisition date are recognized in selling, general and administrative expense in our condensed consolidated statements of operations. The contingent value rights issued as part of the GRAIL acquisition entitle the holders to receive future cash payments on a quarterly basis (Covered Revenue Payments) representing a pro rata portion of certain GRAIL-related revenues (Covered Revenues) each year for a 12-year period. As defined in the Contingent Value Rights Agreement , 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. Covered Revenues for Q4 2022 and Q4 2021 were $23 million and $10 million, respectively, driven primarily by sales of GRAIL’s Galleri test. Covered Revenue Payments relating to such periods were approximately $217,000 and $97,000 in Q1 2023 and Q1 2022, respectively. Pursuant to the Contingent Value Rights Agreement, a portion of the Covered Revenue Payments in Q1 2022 were applied to reimburse us for certain expenses. We use a Monte Carlo simulation to estimate the fair value of contingent consideration related to the GRAIL acquisition. Estimates and assumptions used in the Monte Carlo simulation include forecasted revenues for GRAIL, a revenue risk premium, a revenue volatility estimate, an operational leverage ratio and a counterparty credit spread. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. The fair value of our contingent consideration liability related to GRAIL was $411 million and $412 million as of April 2, 2023 and January 1, 2023, respectively, of which $410 million and $411 million, respectively, was included in other long-term liabilities, with the remaining balances included in accrued liabilities. Changes in the estimated fair value of our contingent consideration liabilities during Q1 2023 were as follows: In millions Balance as of January 1, 2023 $ 412 Change in estimated fair value (1) Balance as of April 2, 2023 $ 411

Debt

Debt	3 Months Ended
	Apr. 02, 2023
Debt Disclosure [Abstract]
Debt	4. DEBT Summary of Term Debt Obligations In millions April 2, January 1, Principal amount of 2031 Term Notes outstanding $ 500 $ 500 Principal amount of 2027 Term Notes outstanding 500 500 Principal amount of 2025 Term Notes outstanding 500 500 Principal amount of 2023 Term Notes outstanding — 500 Unamortized discounts and debt issuance costs (13) (13) Net carrying amount of term notes 1,487 1,987 Less: current portion — (500) Term notes, non-current $ 1,487 $ 1,487 Fair value of term notes outstanding (Level 2) $ 1,439 $ 1,913 Interest expense recognized on our term notes, which included amortization of debt discounts and issuance costs, was $19 million and $4 million in Q1 2023 and Q1 2022, respectively. 0.550% Term Notes due 2023 (2023 Term Notes) and 2.550% Term Notes due 2031 (2031 Term Notes) In March 2021, we issued $500 million aggregate principal amount of 2023 Term Notes and $500 million aggregate principal amount of 2031 Term Notes. The 2023 Term Notes matured and were repaid in cash on March 23, 2023. The 2031 Term Notes, which mature on March 23, 2031, accrue interest at a rate of 2.550% per annum, payable semi-annually on March 23 and September 23 of each year. We may redeem for cash all or any portion of the 2031 Term Notes, at our option, at any time prior to maturity. 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 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. 5.800% Term Notes due 2025 (2025 Term Notes) and 5.750% Term Notes due 2027 (2027 Term Notes) In December 2022, we issued $500 million aggregate principal amount of 2025 Term Notes and $500 million aggregate principal amount of 2027 Term Notes. The 2025 Term Notes, which mature on December 12, 2025, and the 2027 Term Notes, which mature on December 13, 2027, accrue interest at a rate of 5.800% and 5.750% per annum, respectively, payable semi-annually. Interest for the 2025 Term Notes is payable on June 12 and December 12 of each year, beginning on June 12, 2023. Interest for the 2027 Term Notes is payable on June 13 and December 13 of each year, beginning on June 13, 2023. We may redeem for cash all or any portion of the 2025 or 2027 Term Notes, at our option, at any time prior to maturity. Prior to November 12, 2025 for the 2025 Term Notes and prior to November 13, 2027 for the 2027 Term Notes, the notes are redeemable at make-whole premium redemption prices as defined in the applicable forms of note. After November 12, 2025 for the 2025 Term Notes and after November 13, 2027 for the 2027 Term Notes, the 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. 0% Convertible Senior Notes due 2023 (2023 Convertible Notes) In millions April 2, January 1, Principal amount outstanding $ 750 $ 750 Unamortized debt issuance costs (1) (2) Net carrying amount of convertible senior notes, current portion $ 749 $ 748 Fair value of convertible senior notes outstanding (Level 2) $ 734 $ 726 In August 2018, we issued $750 million aggregate principal amount of 2023 Convertible Notes, which carry no coupon interest and mature on August 15, 2023. The notes were not convertible as of April 2, 2023. 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. Credit Agreement On January 4, 2023, we entered into a new 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. The credit agreement dated as of March 8, 2021 and the commitments thereunder were terminated as of January 4, 2023. The Credit Facility matures, and all amounts outstanding thereunder become due and payable in full, on January 4, 2028, 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 2, 2023, there were no borrowings or letters of credit outstanding under the Credit Facility and we were in compliance with all financial and operating covenants. Any loans under the Credit Facility will have a variable interest rate based on either the term secured overnight financing rate or the alternate base rate, plus an applicable rate that varies with the Company’s debt rating and, in the case of loans bearing interest based on the term secured overnight financing rate, a credit spread adjustment equal to 0.10% per annum. 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.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Apr. 02, 2023
Equity [Abstract]
Stockholders’ Equity	5. STOCKHOLDERS’ EQUITY In Q1 2023, our Board of Directors approved an amended and restated version of the 2015 Stock Plan to increase the maximum number of shares authorized for issuance by 8.0 million shares, subject to stockholder approval. As of April 2, 2023, approximately 7.4 million shares remained available for future grants under the 2015 Stock Plan. Restricted Stock Restricted stock activity was as follows: Restricted Performance Stock Units (PSU) (1) Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 1, 2023 1,611 74 $ 311.23 $ 446.74 Awarded 1,933 367 $ 198.64 $ 252.24 Vested (22) — $ 349.82 $ — Cancelled (76) (1) $ 312.99 $ 453.00 Outstanding at April 2, 2023 3,446 440 $ 248.02 $ 284.31 _____________ (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. Liability-Classified RSU In Q1 2023, we granted RSU that will be settled in cash if stockholder approval to increase our share reserve under the amended and restated 2015 Stock Plan is not obtained. The fair value of a liability-classified award is determined on a quarterly basis, beginning at the grant date until final vesting, and is recognized over the requisite service period of the award, with recognition of a corresponding liability recorded in accrued liabilities in the condensed consolidated balance sheet. Changes in fair value are recognized in share-based compensation expense. Approximately 560,000 liability-classified RSU were outstanding at April 2, 2023. We recognized a liability of $4 million, as of April 2, 2023, and total unrecognized compensation cost was $126 million. Market-Based PSU In Q1 2023, we granted PSU with a market condition that vest based on the Company’s relative total shareholder return (rTSR) as compared to a peer group of companies measured over a three-fiscal year Stock Options Stock option activity was as follows: Units in thousands Options Weighted-Average Performance Options (1) Weighted-Average Outstanding at January 1, 2023 187 $ 319.72 17 $ 85.54 Exercised — $ — (1) $ 16.69 Outstanding at April 2, 2023 187 $ 319.72 16 $ 87.74 Exercisable at April 2, 2023 52 $ 292.69 — $ — _____________ (1) The number of units reflect awards that have been granted and for which it is assumed to be probable that the underlying performance goals will be achieved. Other Liability-Classified Awards We grant cash-based equity incentive awards to GRAIL employees. For purposes of valuation and performance measurement of the awards, GRAIL’s stand-alone valuation, as determined by GRAIL using a reasonable calculation and based on advice from independent valuation experts and analyses, is used. The awards generally have terms of four years with equal vesting annually, subject to continued employment through the vesting period. Cash-based equity incentive award activity was as follows: In millions Outstanding at January 1, 2023 $ 293 Granted 116 Vested and paid in cash (16) Cancelled (6) Change in fair value (9) Outstanding at April 2, 2023 $ 378 Estimated liability as of April 2, 2023 (included in accrued liabilities) $ 40 We recognized share-based compensation expense of $21 million and $13 million in Q1 2023 and Q1 2022, respectively. As of April 2, 2023, approximately $338 million of total unrecognized compensation cost related to awards issued to date was expected to be recognized over a weighted-average period of approximately 3.2 years. In connection with the acquisition of GRAIL, we assumed a performance-based award for which vesting is based on GRAIL’s future revenues. The award has an aggregate potential value of up to $78 million and expires, to the extent unvested, in August 2030. As of April 2, 2023, it was not probable that the performance conditions associated with the award will be achieved and, therefore, no share-based compensation expense, or corresponding liability, has been recognized in the condensed consolidated financial statements to-date. 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 2023, 0.2 million shares were issued under the ESPP. As of April 2, 2023, there were approximately 12.6 million shares available for issuance under the ESPP. The assumptions used and the resulting estimate of weighted-average fair value per share for stock purchased under the ESPP during Q1 2023 were as follows: Risk-free interest rate 0.78% - 4.79% Expected volatility 41% - 51% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 57.96 Share Repurchases We did not repurchase any shares during Q1 2023. As of April 2, 2023, authorizations to repurchase approximately $15 million of our common stock remained available under the $750 million share repurchase program authorized by our Board of Directors on February 5, 2020. The repurchases may be completed under a 10b5-1 plan or at management’s discretion. Share-Based Compensation Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our condensed consolidated statements of operations was as follows: In millions Q1 2023 Q1 2022 Cost of product revenue $ 6 $ 6 Cost of service and other revenue 1 1 Research and development 38 36 Selling, general and administrative 48 49 Share-based compensation expense, before taxes 93 92 Related income tax benefits (21) (21) Share-based compensation expense, net of taxes $ 72 $ 71 As of April 2, 2023, approximately $855 million of total unrecognized compensation cost related to restricted stock, including equity and liability-classified RSU and PSU, stock options, including performance stock options, and ESPP shares issued to date was expected to be recognized over a weighted-average period of approximately 2.9 years.

Supplemental Balance Sheet Deta

Supplemental Balance Sheet Details	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Balance Sheet Details	6. SUPPLEMENTAL BALANCE SHEET DETAILS Accounts Receivable In millions April 2, January 1, Trade accounts receivable, gross $ 669 $ 675 Allowance for credit losses (4) (4) Total accounts receivable, net $ 665 $ 671 Inventory In millions April 2, January 1, Raw materials $ 257 $ 247 Work in process 404 386 Finished goods 27 28 Inventory, gross 688 661 Inventory reserve (102) (93) Total inventory, net $ 586 $ 568 Accrued Liabilities In millions April 2, January 1, Legal contingencies (1) $ 476 $ 473 Contract liabilities, current portion 258 245 Accrued compensation expenses 187 188 Accrued taxes payable 74 97 Operating lease liabilities, current portion 79 76 Liability-classified equity incentive awards 44 36 Other, including warranties (2) 121 117 Total accrued liabilities $ 1,239 $ 1,232 _____________ (1) See note “ 7. Legal Proceedings ” for additional details. (2) See table below for changes in the reserve for product warranties. Changes in the reserve for product warranties were as follows: In millions Q1 2023 Q1 2022 Balance at beginning of period $ 18 $ 22 Additions charged to cost of product revenue 9 6 Repairs and replacements (8) (7) Balance at end of period $ 19 $ 21 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 Goodwill Goodwill is reviewed for impairment annually, during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill is considered to be impaired if the carrying value of the reporting unit exceeds its fair value. The assumptions used in our impairment analysis are inherently subject to uncertainty and small changes in these assumptions could have a significant impact on the concluded value. As a result of the impairment taken in Q3 2022 for our GRAIL reporting unit, the carrying value of our GRAIL reporting unit now approximates its fair value. As such, changes in our future operating results, cash flows, share price, market capitalization or discount rate, as well as future regulatory decisions and changes related to our GRAIL reporting unit, used when conducting future goodwill impairment tests could affect the estimated fair value of our GRAIL reporting unit and may result in additional goodwill impairment in the future. For example, while we believe the selected discount rate used in Q3 2022 of 22% for the GRAIL reporting unit was appropriate, an increase of 100 basis points in the discount rate would have resulted in additional impairment of approximately $350 million for the GRAIL reporting unit. We will continue to monitor for events occurring or circumstances changing which may suggest that goodwill should be reevaluated. As of April 2, 2023, remaining goodwill allocated to the GRAIL reporting unit was $2,178 million. 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. Foreign exchange contracts are carried at fair value in other current assets, other assets, accrued liabilities, or other long-term liabilities, as appropriate, 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 2, 2023, 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 2, 2023 and January 1, 2023, the total notional amounts of outstanding forward contracts in place for these foreign currency purchases were $451 million and $485 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, are recognized in other expense, net. As of April 2, 2023, we had foreign currency forward contracts in place to hedge exposures associated with forecasted revenue transactions denominated in the euro, Japanese yen, Australian dollar, Canadian dollar, and Chinese Yuan Renminbi. As of April 2, 2023 and January 1, 2023, the total notional amounts of outstanding cash flow hedge contracts in place for these foreign currency purchases were $792 million and $425 million, respectively. We reclassified $2 million and $5 million to revenue in Q1 2023 and Q1 2022, respectively. As of April 2, 2023, the fair value of the foreign currency forward contracts recorded in total assets and total liabilities was $5 million and $8 million, respectively. As of January 1, 2023, the fair value of the foreign currency forward contracts recorded in total assets and total liabilities was $8 million and $6 million, respectively.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Apr. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	7. LEGAL PROCEEDINGS 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 condensed 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. Acquisition of GRAIL Our acquisition of GRAIL remains subject to ongoing legal and regulatory proceedings in the United States and in the European Union. On March 30, 2021, the U.S. 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 alleged 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, and in the administrative court on April 13, 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. On May 28, 2021, the district court granted the FTC’s motion to dismiss the complaint without prejudice. The administrative trial commenced on August 24, 2021. On September 1, 2022, the administrative law judge (the ALJ) ruled in favor of Illumina and found that the acquisition of GRAIL did not violate Section 7 of the Clayton Act. In the decision, the ALJ found that the FTC’s complaint counsel had failed to prove its prima facie case that Illumina’s acquisition of GRAIL would result in harm to competition in a putative market for multi-cancer early detection (MCED) tests. The FTC’s complaint counsel appealed the ALJ’s decision to the full FTC on September 2, 2022. The appeal was fully briefed as of November 10, 2022 and oral argument occurred on December 13, 2022. On March 31, 2023, the FTC issued an opinion and order (the FTC Order) requiring Illumina to divest GRAIL, reversing the ALJ’s ruling. On April 5, 2023, Illumina filed a petition for review of the FTC Order in the U.S. Court of Appeals for the Fifth Circuit. On April 24, 2023, the FTC granted a motion staying in its entirety the FTC Order pending resolution of Illumina’s Fifth Circuit appeal. On April 25, 2023, the Fifth Circuit Court of Appeals granted Illumina’s request for an expedited briefing schedule, pursuant to which Illumina’s brief is due June 5, 2023, the FTC’s opposition brief is due June 26,2023, and Illumina’s reply brief is due July 11, 2023. We intend to continue to vigorously defend against the FTC action. On April 19, 2021, the European Commission accepted a request for a referral of the GRAIL acquisition for European Union merger review, submitted by a Member State of the European Union (France), and joined by several other Member States (Belgium, Greece, Iceland, the Netherlands and Norway), under Article 22(1) of Council Regulation (EC) No 139/2004 (the EU Merger Regulation). The European Commission had never solicited referrals to take jurisdiction over an acquisition of a U.S. company that had no revenue in Europe. On April 29, 2021, we filed an action in the General Court of the European Union (the EU General Court) asking for annulment of the European Commission’s assertion of jurisdiction to review the acquisition under Article 22 of the EU Merger Regulation, as the acquisition does not meet the jurisdictional criteria under the EU Merger Regulation or under the national merger control laws of any Member State of the European Union. On December 16, 2021, the EU General Court held a hearing regarding the European Commission’s assertion of jurisdiction. On July 13, 2022, the EU General Court reached a decision in favor of the European Commission, holding that the European Commission has jurisdiction under the EU Merger Regulation to review the acquisition. On September 22, 2022, we filed an appeal in the Court of Justice of the European Union asking for annulment of the EU General Court’s decision. On October 29, 2021, the European Commission adopted an order imposing interim measures (the Initial Interim Measures Order). As the Initial Interim Measures Order was set to expire on November 3, 2022, the European Commission adopted a new order imposing interim measures (the New Interim Measures Order) on October 28, 2022. On December 1, 2021, we filed an action with the EU General Court asking for annulment of the Initial Interim Measures Order. The hearing of that application has been stayed pending our appeal of the judgment of the EU General Court regarding the European Commission’s assertion of jurisdiction. On January 10, 2023, we filed an action with the EU General Court asking for annulment of the New Interim Measures Order. On January 20, 2023, the European Commission requested that these proceedings be stayed pending our appeal on jurisdiction. We submitted a filing indicating that we had no objections to the European Commission’s request, and the EU General Court stayed the proceedings on February 21, 2023. On September 6, 2022, the European Commission announced that it had completed its Phase II review of the acquisition of GRAIL and adopted a final decision (the Prohibition Decision), which found that, in its view, our acquisition of GRAIL was incompatible with the internal market in Europe because it results in a significant impediment to effective competition. On November 17, 2022, we filed an action with the EU General Court asking for annulment of the Prohibition Decision. On December 5, 2022, the European Commission issued a Statement of Objections informing Illumina of the order it intends to adopt requiring us (among other things) to divest GRAIL (the EC Divestment Decision). We filed our response to the Statement of Objections on January 16, 2023. Neither the Prohibition Decision nor such public statements indicate when any such EC Divestment Decision may be adopted. We may pursue other appeals to the EC Divestment Decision. Additionally, as a result of our decision to proceed with the completion of the acquisition of GRAIL during the pendency of the European Commission’s review, the European Commission will likely seek to impose a fine on us pursuant to Article 14(2)(b) of the EU Merger Regulation of up to 10% of our consolidated annual revenues. On July 19, 2022, the European Commission issued a Statement of Objections alleging that we breached the EU Merger Regulation by completing our acquisition of GRAIL. As a result, we have accrued $458 million, included in accrued liabilities, as of April 2, 2023, which represents 10% of our consolidated annual revenues for fiscal year 2022 in accordance with ASC 450, Contingencies . RavGen On December 3, 2020, RavGen filed a patent infringement suit against the Company claiming the Company’s use of Streck, Inc. sample collection tubes in its Verifi, Verifi Plus, and VeriSeq NIPT and liquid biopsy oncology products infringe U.S. Patent Nos. 7,332,277 and 7,727,720 (RavGen, Inc. v. Illumina, Inc., United States District Court for the District of Delaware, Case No. 1:20-cv-01644-UNA). The patents-in-suit are directed to the use of a sample-stabilizing agent that inhibits the lysis of cells. RavGen requested, among other things, an unspecified amount of damages, an injunction, and reasonable attorneys’ fees. The patents expired March 13, 2023. On January 27, 2021, the Company filed its Answer and Counterclaims denying all allegations in the Complaint and seeking declaratory judgment of non-infringement and invalidity. On July 20, 2021, the Company filed Petitions for Inter Partes Review (IPR) of the ‘277 and ‘720 patents-in-suit with the US Patent Trial and Appeal Board seeking to invalidate certain claims of the patents (PTAB) (IPR2021-01272 and IPR2021-01271). On January 26, 2022, the PTAB instituted the IPRs. On January 25, 2023, the PTAB issued Final Written Decisions in the IPRs that no challenged claim was unpatentable due to anticipation or obviousness. In parallel, on December 15, 2020, the Company requested Streck, Inc. to indemnify the Company in the RavGen litigation. On January 6, 2021, Streck responded, denying any obligation to indemnify the Company. Streck also requested that the Company stay its indemnification request pending resolution of the underlying patent infringement suit. The Company and Streck executed a tolling agreement effective April 2, 2021, staying the Company’s indemnification claim pending resolution of the underlying patent suit. On April 12, 2023, the Company and RavGen executed a confidential settlement agreement resolving the litigation. Under the settlement, among other terms, the parties denied liability and stipulated to the dismissal of the lawsuit with prejudice.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES Our 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. Our effective tax rate was 103.9% in Q1 2023 compared to 38.3% in Q1 2022. The variance from the U.S. federal statutory tax rate of 21% in Q1 2023 was primarily attributable to the $49 million tax impact of research and development expense capitalization for tax purposes, and the $44 million tax impact of GRAIL pre-acquisition net operating losses on global intangible low-taxed income (GILTI) and the utilization of U.S. foreign tax credits, respectively. This was partially offset by 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. As of April 2, 2023 and January 1, 2023, prepaid income taxes included within prepaid expenses and other current assets on the condensed consolidated balance sheets were $220 million and $116 million, respectively. The increase primarily relates to the tax benefit recorded in Q1 2023.

Segment Information

Segment Information	3 Months Ended
	Apr. 02, 2023
Segment Reporting [Abstract]
Segment Information	9. SEGMENT INFORMATION We have two reportable segments, Core Illumina and GRAIL. We report segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. Our CODM does not evaluate our operating segments using discrete asset information. We do not allocate expenses between segments. Core Illumina sells products and provides services to GRAIL, and vice versa, in accordance with contractual agreements between the entities. 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 of our operations, excluding the results of GRAIL. GRAIL: GRAIL is a healthcare company focused on early detection of multiple cancers. In millions Q1 2023 Q1 2022 Revenue: Core Illumina $ 1,076 $ 1,221 GRAIL 20 10 Eliminations (9) (8) Consolidated revenue $ 1,087 $ 1,223 Income (loss) from operations: Core Illumina $ 142 $ 362 GRAIL (204) (172) Eliminations (2) (6) Consolidated (loss) income from operations $ (64) $ 184 Total other expense, net primarily relates to Core Illumina and we do not allocate income taxes to our segments.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2023
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. 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 2023 and Q1 2022 refer to the three months ended April 2, 2023 and April 3, 2022, respectively, which were both 13 weeks.
Earnings (Loss) 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. We utilize the if-converted method to calculate the impact of convertible senior notes on diluted earnings per share. 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. Foreign exchange contracts are carried at fair value in other current assets, other assets, accrued liabilities, or other long-term liabilities, as appropriate, on the condensed consolidated balance sheets.

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 02, 2023
Accounting Policies [Abstract]
Schedule of calculation of weighted average shares used to calculate basic and diluted net (loss) income per share	The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share: In millions Q1 2023 Q1 2022 Weighted average shares outstanding 158 157 Effect of potentially dilutive common shares from: Convertible senior notes — 2 Weighted average shares used in calculating diluted earnings per share 158 159 Antidilutive shares: Convertible senior notes 2 — Equity awards 1 — Potentially dilutive shares excluded from calculation due to antidilutive effect 3 —

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Apr. 02, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	Revenue by Source Q1 2023 Q1 2022 In millions Sequencing Microarray Total Sequencing Microarray Total Consumables $ 686 $ 78 $ 764 $ 778 $ 75 $ 853 Instruments 152 6 158 211 6 217 Total product revenue 838 84 922 989 81 1,070 Service and other revenue 138 27 165 120 33 153 Total revenue $ 976 $ 111 $ 1,087 $ 1,109 $ 114 $ 1,223 Revenue by Geographic Area Based on region of destination (in millions) Q1 2023 Q1 2022 (1) Americas $ 616 $ 648 Europe 261 286 Greater China (2) 91 127 Asia-Pacific, Middle East, and Africa (3) 119 162 Total revenue $ 1,087 $ 1,223 _____________ (1) We implemented a new global commercial structure in Q1 2023 to improve operating efficiencies and better align with local markets. We integrated Asia-Pacific and Japan with emerging markets across the Middle East, Turkey, and Commonwealth of Independent States (CIS). Beginning in Q1 2023 and going forward, we will report regional results for the following regions: Americas, Europe, Greater China, and Asia-Pacific, Middle East and Africa (AMEA). Prior period amounts have been reclassified to conform to this new presentation. (2) Region includes revenue from China, Taiwan, and Hong Kong. (3) Region includes revenue from Russia and Turkey.

Investments and Fair Value Me_2

Investments and Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2023
Fair Value Disclosures [Abstract]
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 2, 2023 January 1, 2023 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 1,136 $ — $ — $ 1,136 $ 1,642 $ — $ — $ 1,642 Marketable equity securities 24 — — 24 26 — — 26 Helix contingent value right — — 61 61 — — 58 58 Deferred compensation plan assets — 54 — 54 — 52 — 52 Total assets measured at fair value $ 1,160 $ 54 $ 61 $ 1,275 $ 1,668 $ 52 $ 58 $ 1,778 Liabilities: Contingent consideration liabilities $ — $ — $ 411 $ 411 $ — $ — $ 412 $ 412 Deferred compensation plan liability — 52 — 52 — 51 — 51 Total liabilities measured at fair value $ — $ 52 $ 411 $ 463 $ — $ 51 $ 412 $ 463
Schedule of Changes in Estimated Fair Value of Acquisition Related Contingent Consideration Liabilities	Changes in the estimated fair value of our contingent consideration liabilities during Q1 2023 were as follows: In millions Balance as of January 1, 2023 $ 412 Change in estimated fair value (1) Balance as of April 2, 2023 $ 411

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 02, 2023
Debt Disclosure [Abstract]
Schedule of Debt Obligations	Summary of Term Debt Obligations In millions April 2, January 1, Principal amount of 2031 Term Notes outstanding $ 500 $ 500 Principal amount of 2027 Term Notes outstanding 500 500 Principal amount of 2025 Term Notes outstanding 500 500 Principal amount of 2023 Term Notes outstanding — 500 Unamortized discounts and debt issuance costs (13) (13) Net carrying amount of term notes 1,487 1,987 Less: current portion — (500) Term notes, non-current $ 1,487 $ 1,487 Fair value of term notes outstanding (Level 2) $ 1,439 $ 1,913 0% Convertible Senior Notes due 2023 (2023 Convertible Notes) In millions April 2, January 1, Principal amount outstanding $ 750 $ 750 Unamortized debt issuance costs (1) (2) Net carrying amount of convertible senior notes, current portion $ 749 $ 748 Fair value of convertible senior notes outstanding (Level 2) $ 734 $ 726

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Apr. 02, 2023
Equity [Abstract]
Schedule of Restricted Stock Activity and Related Information, Restricted Stock	Restricted stock activity was as follows: Restricted Performance Stock Units (PSU) (1) Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 1, 2023 1,611 74 $ 311.23 $ 446.74 Awarded 1,933 367 $ 198.64 $ 252.24 Vested (22) — $ 349.82 $ — Cancelled (76) (1) $ 312.99 $ 453.00 Outstanding at April 2, 2023 3,446 440 $ 248.02 $ 284.31 _____________ (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.
Schedule of Restricted Stock Activity and Related Information, Performance Units	Restricted stock activity was as follows: Restricted Performance Stock Units (PSU) (1) Weighted-Average Grant Date Fair Value per Share Units in thousands RSU PSU Outstanding at January 1, 2023 1,611 74 $ 311.23 $ 446.74 Awarded 1,933 367 $ 198.64 $ 252.24 Vested (22) — $ 349.82 $ — Cancelled (76) (1) $ 312.99 $ 453.00 Outstanding at April 2, 2023 3,446 440 $ 248.02 $ 284.31 _____________ (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.
Schedule of Stock Option Activity Under all Stock Option Plans	Stock option activity was as follows: Units in thousands Options Weighted-Average Performance Options (1) Weighted-Average Outstanding at January 1, 2023 187 $ 319.72 17 $ 85.54 Exercised — $ — (1) $ 16.69 Outstanding at April 2, 2023 187 $ 319.72 16 $ 87.74 Exercisable at April 2, 2023 52 $ 292.69 — $ — _____________ (1) The number of units reflect awards that have been granted and for which it is assumed to be probable that the underlying performance goals will be achieved.
Schedule of Share-based Payment Arrangement, Liability - Classified Awards, Activity	Cash-based equity incentive award activity was as follows: In millions Outstanding at January 1, 2023 $ 293 Granted 116 Vested and paid in cash (16) Cancelled (6) Change in fair value (9) Outstanding at April 2, 2023 $ 378 Estimated liability as of April 2, 2023 (included in accrued liabilities) $ 40
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 and the resulting estimate of weighted-average fair value per share for stock purchased under the ESPP during Q1 2023 were as follows: Risk-free interest rate 0.78% - 4.79% Expected volatility 41% - 51% Expected term 0.5 - 1.0 year Expected dividends 0 % Weighted-average grant-date fair value per share $ 57.96
Schedule of Share-based Compensation Expense for all Stock Awards	Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our condensed consolidated statements of operations was as follows: In millions Q1 2023 Q1 2022 Cost of product revenue $ 6 $ 6 Cost of service and other revenue 1 1 Research and development 38 36 Selling, general and administrative 48 49 Share-based compensation expense, before taxes 93 92 Related income tax benefits (21) (21) Share-based compensation expense, net of taxes $ 72 $ 71

Supplemental Balance Sheet De_2

Supplemental Balance Sheet Details (Tables)	3 Months Ended
	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable In millions April 2, January 1, Trade accounts receivable, gross $ 669 $ 675 Allowance for credit losses (4) (4) Total accounts receivable, net $ 665 $ 671
Schedule of Inventory	Inventory In millions April 2, January 1, Raw materials $ 257 $ 247 Work in process 404 386 Finished goods 27 28 Inventory, gross 688 661 Inventory reserve (102) (93) Total inventory, net $ 586 $ 568
Schedule of Accrued Liabilities	Accrued Liabilities In millions April 2, January 1, Legal contingencies (1) $ 476 $ 473 Contract liabilities, current portion 258 245 Accrued compensation expenses 187 188 Accrued taxes payable 74 97 Operating lease liabilities, current portion 79 76 Liability-classified equity incentive awards 44 36 Other, including warranties (2) 121 117 Total accrued liabilities $ 1,239 $ 1,232 _____________ (1) See note “ 7. Legal Proceedings ” for additional details. (2) See table below for changes in the reserve for product warranties.
Schedule of Changes in Reserve for Product Warranties	Changes in the reserve for product warranties were as follows: In millions Q1 2023 Q1 2022 Balance at beginning of period $ 18 $ 22 Additions charged to cost of product revenue 9 6 Repairs and replacements (8) (7) Balance at end of period $ 19 $ 21

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Apr. 02, 2023
Segment Reporting [Abstract]
Schedule of Operating Performance and Assets by Segment	In millions Q1 2023 Q1 2022 Revenue: Core Illumina $ 1,076 $ 1,221 GRAIL 20 10 Eliminations (9) (8) Consolidated revenue $ 1,087 $ 1,223 Income (loss) from operations: Core Illumina $ 142 $ 362 GRAIL (204) (172) Eliminations (2) (6) Consolidated (loss) income from operations $ (64) $ 184 Total other expense, net primarily relates to Core Illumina and we do not allocate income taxes to our segments.

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. 02, 2023	Apr. 03, 2022
Weighted average shares used to calculate basic and diluted earnings per share
Weighted average shares outstanding (in shares)	158	157
Effect of potentially dilutive common shares from:
Equity awards (in shares)	0	2
Weighted average shares used in calculating diluted earnings (loss) per share (in shares)	158	159
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	3	0
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	2	0
Equity awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	1	0

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Disaggregation of Revenue [Line Items]
Consolidated revenue	$ 1,087	$ 1,223
Americas
Disaggregation of Revenue [Line Items]
Consolidated revenue	616	648
Europe
Disaggregation of Revenue [Line Items]
Consolidated revenue	261	286
Greater China
Disaggregation of Revenue [Line Items]
Consolidated revenue	91	127
Asia-Pacific, Middle East, and Africa
Disaggregation of Revenue [Line Items]
Consolidated revenue	119	162
Total product revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	922	1,070
Consumables
Disaggregation of Revenue [Line Items]
Consolidated revenue	764	853
Instruments
Disaggregation of Revenue [Line Items]
Consolidated revenue	158	217
Service and other revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	165	153
Sequencing
Disaggregation of Revenue [Line Items]
Consolidated revenue	976	1,109
Sequencing | Total product revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	838	989
Sequencing | Consumables
Disaggregation of Revenue [Line Items]
Consolidated revenue	686	778
Sequencing | Instruments
Disaggregation of Revenue [Line Items]
Consolidated revenue	152	211
Sequencing | Service and other revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	138	120
Microarray
Disaggregation of Revenue [Line Items]
Consolidated revenue	111	114
Microarray | Total product revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	84	81
Microarray | Consumables
Disaggregation of Revenue [Line Items]
Consolidated revenue	78	75
Microarray | Instruments
Disaggregation of Revenue [Line Items]
Consolidated revenue	6	6
Microarray | Service and other revenue
Disaggregation of Revenue [Line Items]
Consolidated revenue	$ 27	$ 33

Revenue - Performance Obligatio

Revenue - Performance Obligation (Details) $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,133
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Product or service delivery period (in months)	3 months
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Product or service delivery period (in months)	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation (as a percent)	88%
Expected timing of remaining performance obligation (in months)	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation (as a percent)	6%
Expected timing of remaining performance obligation (in months)	12 months

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Jan. 01, 2023
Revenue from Contract with Customer [Abstract]
Contract asset	$ 17	$ 17
Contract with customer, liability	324	308
Contract liabilities, current portion	258	$ 245
Revenue recognized	$ 95

Investments and Fair Value Me_3

Investments and Fair Value Measurements - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
	Aug. 18, 2021 USD ($)	Apr. 30, 2019	Apr. 02, 2023 USD ($) fund	Jan. 01, 2023 USD ($)	Apr. 03, 2022 USD ($)	Jan. 02, 2022 USD ($)
Schedule of Investments [Line Items]
Marketable equity securities			$ 24,000	$ 26,000
Unrealized gain (loss)			(2,000)		$ (42,000)
Strategic equity investments, without readily determinable fair values			28,000	28,000
Gain on Helix contingent value right			3,000		5,000
GRAIL Inc
Schedule of Investments [Line Items]
Contingent value right, terms (in years)	12 years
Covered revenues of GRAIL, contingent consideration liability				23,000		$ 10,000
Payment for contingent consideration			217		97
Contingent consideration liabilities			411,000	412,000
Contingent consideration, noncurrent			410,000	411,000
GRAIL Inc | Payment Rights Of One Billion, Each Twelve Years
Schedule of Investments [Line Items]
Contingent payment rights (as a percent)	2.50%
Business acquisition, contingent value rights, revenue threshold	$ 1,000,000
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
Contingent payment rights, second percentage (as a percent)	9%
Helix Holdings I, LLC
Schedule of Investments [Line Items]
Contingent value right, terms (in years)		7 years
Gain on Helix contingent value right			$ 3,000		5,000
Venture Capital Investment Fund (the Fund)
Schedule of Investments [Line Items]
Number of venture capital investment funds | fund			2
Equity method investments			$ 172,000	$ 183,000
Unrealized (loss) gain on investments			(12,000)		(2,000)
Venture Capital Investment Fund (the Fund), One
Schedule of Investments [Line Items]
Commitment in new venture capital investment fund			100,000
Remaining capital commitment			7,000
Venture Capital Investment Fund (the Fund), Two
Schedule of Investments [Line Items]
Commitment in new venture capital investment fund			150,000
Remaining capital commitment			88,000
Investee
Schedule of Investments [Line Items]
Revenue from transactions with strategic investees			$ 36,000		$ 30,000

Investments and Fair Value Me_4

Investments and Fair Value Measurements - Fair Value Hierarchy of Assets and Liabilities (Details) - USD ($) $ in Millions	Apr. 02, 2023	Jan. 01, 2023
Assets:
Marketable equity securities	$ 24	$ 26
Fair Value, Measurements, Recurring
Assets:
Money market funds (cash equivalents)	1,136	1,642
Marketable equity securities	24	26
Helix contingent value right	61	58
Deferred compensation plan assets	54	52
Total assets measured at fair value	1,275	1,778
Liabilities:
Contingent consideration liabilities	411	412
Deferred compensation plan liability	52	51
Total liabilities measured at fair value	463	463
Fair Value, Measurements, Recurring | Level 1
Assets:
Money market funds (cash equivalents)	1,136	1,642
Marketable equity securities	24	26
Helix contingent value right	0	0
Deferred compensation plan assets	0	0
Total assets measured at fair value	1,160	1,668
Liabilities:
Contingent consideration liabilities	0	0
Deferred compensation plan liability	0	0
Total liabilities measured at fair value	0	0
Fair Value, Measurements, Recurring | Level 2
Assets:
Money market funds (cash equivalents)	0	0
Marketable equity securities	0	0
Helix contingent value right	0	0
Deferred compensation plan assets	54	52
Total assets measured at fair value	54	52
Liabilities:
Contingent consideration liabilities	0	0
Deferred compensation plan liability	52	51
Total liabilities measured at fair value	52	51
Fair Value, Measurements, Recurring | Level 3
Assets:
Money market funds (cash equivalents)	0	0
Marketable equity securities	0	0
Helix contingent value right	61	58
Deferred compensation plan assets	0	0
Total assets measured at fair value	61	58
Liabilities:
Contingent consideration liabilities	411	412
Deferred compensation plan liability	0	0
Total liabilities measured at fair value	$ 411	$ 412

Investments and Fair Value Me_5

Investments and Fair Value Measurements - Changes in Estimated Fair Value of Acquisition Related Contingent Consideration Liabilities (Details) - Business Combination Contingent Consideration Liability $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 412
Change in estimated fair value	(1)
Ending balance	$ 411

Debt - Summary of Term Debt Obl

Debt - Summary of Term Debt Obligations (Details) - Term Notes - USD ($)	Apr. 02, 2023	Jan. 01, 2023	Dec. 13, 2022	Mar. 23, 2021
Debt Instrument [Line Items]
Unamortized discounts and debt issuance costs	$ (13,000,000)	$ (13,000,000)
Net carrying amount of convertible senior notes, current portion	1,487,000,000	1,987,000,000
Less: current portion	0	(500,000,000)
Term notes, non-current	1,487,000,000	1,487,000,000
Level 2
Debt Instrument [Line Items]
Fair value of term notes outstanding (Level 2)	1,439,000,000	1,913,000,000
2031 Term Notes
Debt Instrument [Line Items]
Principal amount outstanding	500,000,000	500,000,000		$ 500,000,000
2027 Term Notes
Debt Instrument [Line Items]
Principal amount outstanding	500,000,000	500,000,000	$ 500,000,000
2025 Term Notes
Debt Instrument [Line Items]
Principal amount outstanding	500,000,000	500,000,000	$ 500,000,000
2023 Term Notes
Debt Instrument [Line Items]
Principal amount outstanding	$ 0	$ 500,000,000		$ 500,000,000

Debt - Narrative (Details)

Debt - Narrative (Details)		1 Months Ended	3 Months Ended
	Jan. 04, 2023 USD ($) consecutive_fiscal_quarter one_year_extension	Aug. 31, 2018 USD ($) day $ / shares	Apr. 02, 2023 USD ($)	Apr. 03, 2022 USD ($)	Jan. 01, 2023 USD ($)	Dec. 13, 2022 USD ($)	Mar. 23, 2021 USD ($)
Term Notes
Debt Instrument [Line Items]
Interest expense recognized			$ 19,000,000	$ 4,000,000
Redemption price (as a percent)			100%
2023 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate (as a percent)							0.55%
Principal amount outstanding			$ 0		$ 500,000,000		$ 500,000,000
2031 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate (as a percent)							2.55%
Principal amount outstanding			500,000,000		500,000,000		$ 500,000,000
2025 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate (as a percent)						5.80%
Principal amount outstanding			500,000,000		500,000,000	$ 500,000,000
2027 Term Notes | Term Notes
Debt Instrument [Line Items]
Stated rate (as a percent)						5.75%
Principal amount outstanding			$ 500,000,000		500,000,000	$ 500,000,000
2023 Convertible Notes | Convertible Senior Notes
Debt Instrument [Line Items]
Stated rate (as a percent)			0%
Principal amount outstanding		$ 750,000,000	$ 750,000,000		$ 750,000,000
Redemption price (as a percent)		100%
Debt conversion ratio		0.0021845
Conversion price (in dollars per share) | $ / shares		$ 457.77
Threshold common stock trading days (in days) | day		20
Threshold consecutive common stock trading days (in days) | day		30
Threshold percentage of common stock price trigger (as a percent)		130%
Threshold note trading days (in days) | day		5
Threshold consecutive note trading days (in days) | day		10
Threshold percentage of note price trigger (as a percent)		98%
Convertible stock price trigger (in dollars per share) | $ / shares		$ 595.10
The Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 750,000,000
Debt instrument term (in years)	5 years
The Credit Agreement | Line of Credit | Swingline Borrowings
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 40,000,000
Number of one year extension, credit facility | one_year_extension	2
Period of extension option, credit facility	1 year
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
Number of consecutive fiscal quarters, minimum debt to EBITDA ratio | consecutive_fiscal_quarter	4
Debt instrument, covenant, minimum debt to EBITDA ratio	3.50
Debt instrument, covenant, minimum debt to EBITDA ratio upon consummation of acquisition	4
Number of consecutive fiscal quarters, minimum debt to EBITDA ratio upon consummation of acquisition | consecutive_fiscal_quarter	3
The Credit Agreement | Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Credit spread adjustment rate (as a percent)	0.10%

Debt - Summary of Convertible D

Debt - Summary of Convertible Debt Obligations (Details) - 2023 Convertible Notes - Convertible Senior Notes - USD ($)	Apr. 02, 2023	Jan. 01, 2023	Aug. 31, 2018
Debt Instrument [Line Items]
Stated rate (as a percent)	0%
Principal amount outstanding	$ 750,000,000	$ 750,000,000	$ 750,000,000
Unamortized debt issuance costs	(1,000,000)	(2,000,000)
Net carrying amount of convertible senior notes, current portion	749,000,000	748,000,000
Level 2
Debt Instrument [Line Items]
Fair value of convertible senior notes outstanding (Level 2)	$ 734,000,000	$ 726,000,000

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) shares in Thousands, $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized | shares	8,000
Unrecognized compensation cost | $	$ 855
Liability-Classified RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding | shares	560
Total liability recognized for liability-classified RSU | $	$ 4
Unrecognized compensation cost | $	126
Liability-Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 338
Share based compensation vesting performance period (in years)	4 years
Market-Based PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation vesting performance period (in years)	3 years
Granted award (as a percent)	175%
Outstanding (in shares) | shares	272
2015 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) | shares	7,400

Stockholders_ Equity - Summary

Stockholders’ Equity - Summary of Restricted Stock Activity and Related Information (Details) shares in Thousands	3 Months Ended
	Apr. 02, 2023 $ / shares shares
Restricted Stock Units (RSUs)
Stock Units
Outstanding at period start (in shares) | shares	1,611,000
Awarded (in shares) | shares	1,933,000
Vested (in shares) | shares	(22,000)
Cancelled (in shares) | shares	(76,000)
Outstanding at period end (in shares) | shares	3,446,000
Weighted-Average Grant Date Fair Value per Share
Outstanding at period start (in dollars per share) | $ / shares	$ 311.23
Awarded (in dollars per share) | $ / shares	198.64
Vested (in dollars per share) | $ / shares	349.82
Cancelled (in dollars per share) | $ / shares	312.99
Outstanding at period end (in dollars per share) | $ / shares	$ 248.02
Performance Stock Units (PSU)
Stock Units
Outstanding at period start (in shares) | shares	74
Awarded (in shares) | shares	367
Vested (in shares) | shares	0
Cancelled (in shares) | shares	(1)
Outstanding at period end (in shares) | shares	440
Weighted-Average Grant Date Fair Value per Share
Outstanding at period start (in dollars per share) | $ / shares	$ 446.74
Awarded (in dollars per share) | $ / shares	252.24
Vested (in dollars per share) | $ / shares	0
Cancelled (in dollars per share) | $ / shares	453
Outstanding at period end (in dollars per share) | $ / shares	$ 284.31

Stockholders_ Equity - Summar_2

Stockholders’ Equity - Summary of Stock Option Activity Under all Stock Option Plans (Details) shares in Thousands	3 Months Ended
	Apr. 02, 2023 $ / shares shares
Options
Options
Outstanding at period start (in shares) | shares	187
Exercised (in shares) | shares	0
Outstanding at period end (in shares) | shares	187
Exercisable at period end (in shares) | shares	52
Weighted-Average Exercise Price
Outstanding at period start (in dollars per share) | $ / shares	$ 319.72
Exercised (in dollars per share) | $ / shares	0
Outstanding at period end (in dollars per share) | $ / shares	319.72
Exercisable at period end (in dollars per share) | $ / shares	$ 292.69
Performance stock options
Options
Outstanding at period start (in shares) | shares	17
Exercised (in shares) | shares	(1)
Outstanding at period end (in shares) | shares	16
Exercisable at period end (in shares) | shares	0
Weighted-Average Exercise Price
Outstanding at period start (in dollars per share) | $ / shares	$ 85.54
Exercised (in dollars per share) | $ / shares	16.69
Outstanding at period end (in dollars per share) | $ / shares	87.74
Exercisable at period end (in dollars per share) | $ / shares	$ 0

Stockholders_ Equity - Narrat_2

Stockholders’ Equity - Narrative - Other Liability - Classified Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes	$ 93	$ 92
Unrecognized compensation cost	$ 855
Weighted-average period of unrecognized compensation cost (in years)	2 years 10 months 24 days
Liability-Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation vesting performance period (in years)	4 years
Share-based compensation expense before taxes	$ 21	$ 13
Unrecognized compensation cost	$ 338
Weighted-average period of unrecognized compensation cost (in years)	3 years 2 months 12 days
Aggregated potential value	$ 78

Stockholders_ Equity - Other Li

Stockholders’ Equity - Other Liability - Classified Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Jan. 01, 2023
Share-Based Compensation Arrangement By Share-Based Payment Award Liability-Classified Awards, Outstanding [Roll Forward]
Liability-classified equity incentive awards	$ 44	$ 36
Liability-Based Awards
Share-Based Compensation Arrangement By Share-Based Payment Award Liability-Classified Awards, Outstanding [Roll Forward]
Estimated liability, Beginning balance	293
Granted	116
Vested and paid in cash	(16)
Cancelled	(6)
Change in fair value	(9)
Estimated liability, Ending balance	378
Liability-classified equity incentive awards	$ 40

Stockholders_ Equity - Narrat_3

Stockholders’ Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock shares in Millions	3 Months Ended
	Apr. 02, 2023 shares
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 (as a percent)	85%
Total shares issued under the ESPP (in shares)	0.2
Shares available for issuance (in shares)	12.6

Stockholders_ Equity- Summary o

Stockholders’ Equity- Summary of Assumptions Used to Estimate the Weighted Average Fair Value Per Share (Details) - Employee Stock	3 Months Ended
	Apr. 02, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate minimum (as a percent)	0.78%
Risk free interest rate maximum (as a percent)	4.79%
Expected volatility, minimum (as a percent)	41%
Expected volatility, maximum (as a percent)	51%
Expected dividends	0%
Weighted-average fair value per share (in dollars per share)	$ 57.96
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	1 year

Stockholders_ Equity - Narrat_4

Stockholders’ Equity - Narrative - Share Repurchases (Details) - Common Stock - USD ($)	3 Months Ended
	Apr. 02, 2023	Feb. 05, 2020
Class of Stock [Line Items]
Repurchased common stock (in shares)	0
Dollar amount remaining in authorized stock repurchase program	$ 15,000,000
Stock repurchase program, authorized amount		$ 750,000,000

Stockholders_ Equity - Summar_3

Stockholders’ Equity - Summary of Share-based Compensation Expense for all Stock Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes	$ 93	$ 92
Related income tax benefits	(21)	(21)
Share-based compensation expense, net of taxes	72	71
Cost of product revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes	6	6
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	38	36
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before taxes	$ 48	$ 49

Supplemental Balance Sheet De_3

Supplemental Balance Sheet Details - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions	Apr. 02, 2023	Jan. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade accounts receivable, gross	$ 669	$ 675
Allowance for credit losses	(4)	(4)
Total accounts receivable, net	$ 665	$ 671

Supplemental Balance Sheet De_4

Supplemental Balance Sheet Details - Summary of Inventory (Details) - USD ($) $ in Millions	Apr. 02, 2023	Jan. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 257	$ 247
Work in process	404	386
Finished goods	27	28
Inventory, gross	688	661
Inventory reserve	(102)	(93)
Total inventory, net	$ 586	$ 568

Supplemental Balance Sheet De_5

Supplemental Balance Sheet Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Apr. 02, 2023	Jan. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Legal contingencies	$ 476	$ 473
Contract liabilities, current portion	258	245
Accrued compensation expenses	187	188
Accrued taxes payable	74	97
Operating lease liabilities, current portion	79	76
Liability-classified equity incentive awards	44	36
Other, including warranties	121	117
Total accrued liabilities	$ 1,239	$ 1,232

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. 02, 2023	Apr. 03, 2022
Reserve for product warranties [Roll Forward]
Balance at beginning of period	$ 18	$ 22
Additions charged to cost of product revenue	9	6
Repairs and replacements	(8)	(7)
Balance at end of period	$ 19	$ 21

Supplemental Balance Sheet De_7

Supplemental Balance Sheet Details - Narrative - Warranties (Details)	3 Months Ended
	Apr. 02, 2023
Instruments
Product Warranty Liability [Line Items]
Warranty period (in months)	1 year
Consumables | Minimum
Product Warranty Liability [Line Items]
Warranty period (in months)	6 months
Consumables | Maximum
Product Warranty Liability [Line Items]
Warranty period (in months)	12 months

Supplemental Balance Sheet De_8

Supplemental Balance Sheet Details - Narrative - Goodwill (Details) $ in Millions	3 Months Ended
	Oct. 02, 2022 USD ($)	Apr. 02, 2023 USD ($)	Jan. 01, 2023 USD ($)
Indefinite-lived Intangible Assets [Line Items]
Goodwill		$ 3,239	$ 3,239
GRAIL
Indefinite-lived Intangible Assets [Line Items]
Fair value of discount rate (as a percent)	22%
Goodwill		$ 2,178
Change in discount rate	0.0100
Potential impairment rate	$ 350

Supplemental Balance Sheet De_9

Supplemental Balance Sheet Details - Narrative - Derivatives (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Derivative [Line Items]
Other comprehensive income (loss) hedge	$ 2	$ 5
Foreign Exchange Forward
Derivative [Line Items]
Derivative assets related to terminated acquisition	5
Derivative liability	$ 8
Derivative asset, current amount			$ 8
Derivative liability, current amount			6
Foreign Exchange Forward | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, term of contract (in months)	1 month
Derivative, notional amount	$ 451		485
Foreign Exchange Forward | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, term of contract (in months)	24 months
Derivative, notional amount	$ 792		$ 425

Legal Proceedings (Details)

Legal Proceedings (Details) - GRAIL $ in Millions	3 Months Ended	12 Months Ended
	Apr. 02, 2023 USD ($)	Jan. 01, 2023
Loss Contingencies [Line Items]
Potential fine as a percent of consolidated annual revenues	0.10	0.10
Loss contingency accrual	$ 458

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	103.90%	38.30%
Impact on tax rate due to capitalization of research and development expenses	$ 49
Impact on tax rate due to GILTI and U.S. foreign tax credits	44
Income tax receivable	$ 220		$ 116

Segment Information - Summary o

Segment Information - Summary of Operating Performance and Assets by Segment (Details) $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($) segment	Apr. 03, 2022 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2
Segment Reporting Information [Line Items]
Consolidated revenue	$ 1,087	$ 1,223
Consolidated (loss) income from operations	(64)	184
Operating Segments | Core Illumina
Segment Reporting Information [Line Items]
Consolidated revenue	1,076	1,221
Consolidated (loss) income from operations	142	362
Operating Segments | GRAIL
Segment Reporting Information [Line Items]
Consolidated revenue	20	10
Consolidated (loss) income from operations	(204)	(172)
Eliminations
Segment Reporting Information [Line Items]
Consolidated revenue	(9)	(8)
Consolidated (loss) income from operations	$ (2)	$ (6)