Document and Entity Information Document - USD ($) shares in Millions, $ in Billions |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Feb. 19, 2016 |
Jun. 28, 2015 |
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| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | Illumina Inc | ||
| Entity Central Index Key | 0001110803 | ||
| Current Fiscal Year End Date | --01-03 | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Document Type | 10-K | ||
| Document Period End Date | Jan. 03, 2016 | ||
| Document Fiscal Year Focus | 2015 | ||
| Document Fiscal Period Focus | FY | ||
| Amendment Flag | false | ||
| Entity Common Stock, Shares Outstanding | 147 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Public Float | $ 31.2 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock, shares authorized | 320,000,000 | 320,000,000 |
| Common stock, shares issued | 186,663,000 | 181,332,000 |
| Common stock, shares outstanding | 146,584,000 | 143,629,000 |
| Treasury stock, shares | 40,079,000 | 37,703,000 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
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| Statement of Comprehensive Income [Abstract] | |||
| Consolidated net income | $ 457,390 | $ 353,351 | $ 125,308 |
| Unrealized gain (loss) on available-for-sale securities, net of deferred tax | 1,116 | (2,314) | (889) |
| Total consolidated comprehensive income | 458,506 | 351,037 | 124,419 |
| Add: Comprehensive loss attributable to noncontrolling interests | 4,169 | ||
| Comprehensive income attributable to Illumina stockholders | $ 462,675 | $ 351,037 | $ 124,419 |
Organization and Summary of Significant Accounting Policies |
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| Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization and Business Illumina, Inc. is a provider of sequencing- and array-based solutions, which serves customers in a board range of markets, enabling the adoption of genomic solutions in research and clinical settings. The Company’s customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic laboratories, and consumer genomics companies. Basis of Presentation The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. The Company evaluates its ownership, contractual and other interests in entities that are not wholly-owned by the Company to determine if these entities are VIEs, and, if so, whether the Company is the primary beneficiary of the VIE. In determining whether the Company is the primary beneficiary of a VIE and is therefore required to consolidate the VIE, the Company applies a qualitative approach that determines whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in the consolidation or deconsolidation, as the case may be. Redeemable Noncontrolling Interests Noncontrolling interests represent the portion of equity (net assets) in an entity that is not wholly-owned by the Company that is not attributable, directly or indirectly, to the Company. Noncontrolling interests with embedded contingent redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on the condensed consolidated balance sheets. Fiscal Year The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The year ended January 3, 2016 was 53 weeks; the years ended December 28, 2014 and December 29, 2013 were 52 weeks. Use of Estimates The preparation of financial statements requires that management make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures of contingent assets and liabilities. Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2016-02, Leases (Topic 842). The new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial statements. In February 2015, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this standard. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning in the first quarter of 2018 and allows for a full retrospective or a modified retrospective adoption approach. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. Concentrations of Risk The Company operates in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact the Company’s operating results. A portion of the Company’s customers consist of university and research institutions that management believes are, to some degree, directly or indirectly supported by the United States Government. A significant change in current research funding, particularly with respect to the U.S. National Institutes of Health, could have an adverse impact on the Company’s future revenues and results of operations. The Company is also subject to risks related to its financial instruments including its cash and cash equivalents, investments, and accounts receivable. Most of the Company’s cash and cash equivalents as of January 3, 2016 were deposited with U.S. financial institutions, either domestically or with their foreign branches. The Company’s investment policy restricts the amount of credit exposure to any one issuer to 5% of the portfolio or 5% of the total issue size outstanding at the time of purchase and to any one industry sector, as defined by Bloomberg classifications, to 30% of the portfolio at the time of purchase. There is no limit to the percentage of the portfolio that may be maintained in debt securities in U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. The Company’s products require customized products and components that currently are available from a limited number of sources. The Company sources certain key products and components included in its products from single vendors. The Company performs a regular review of customer activity and associated credit risks and does not require collateral or enter into netting arrangements. Shipments to customers outside the United States comprised 46%, 49%, and 50% of the Company’s revenue for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. Customers outside the United States represented 48% of the Company’s gross trade accounts receivable balance as of both January 3, 2016 and December 28, 2014. International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. The Company is also subject to general geopolitical risks, such as political, social and economic instability, and changes in diplomatic and trade relations. The risks of international sales are mitigated in part by the extent to which sales are geographically distributed. The Company has historically not experienced significant credit losses from investments and accounts receivable. Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value:
The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities, excluding acquisition related contingent consideration liabilities, approximate the related fair values due to the short-term maturities of these instruments. Functional Currency The U.S. dollar is the functional currency of the Company’s international operations. The Company re-measures its foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and records the net gains or losses resulting from re-measurement in other expense, net in the consolidated statements of income. Acquisitions The Company measures all assets acquired and liabilities assumed, including contingent considerations and all contractual contingencies, at fair value as of the acquisition date. Contingent purchase considerations to be settled in cash are re-measured to estimated fair value at each reporting period with the change in fair value recorded in acquisition related gain, net, a component of operating expenses. In addition, the Company capitalizes in-process research and development (IPR&D) and either amortizes it over the life of the product upon commercialization, or impairs it if the project is abandoned. Post-acquisition adjustments in deferred tax asset valuation allowances and liabilities for uncertain tax positions are recorded in current period income tax expense. Cash Equivalents and Short-Term Investments Cash equivalents are comprised of short-term, highly liquid investments with maturities of 90 days or less at the date of purchase. Short-term investments consist predominantly of debt securities in U.S. government-sponsored entities, corporate debt securities, and U.S. Treasury securities. Management classifies short-term investments as available-for-sale at the time of purchase and evaluates such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of their cost basis. Realized gains, losses, and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in interest income in the consolidated statements of income. Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company reserves specific receivables if collectibility is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. Inventory Inventory is stated at the lower of cost or market, on a first in, first out basis. Inventory includes raw materials and finished goods that may be used in the research and development process and such items are expensed as consumed or expired. Provisions for slow moving, excess, and obsolete inventories are estimated based on product life cycles, quality issues, historical experience, and usage forecasts. Property and Equipment Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, which generally range from three to seven years, using the straight-line method. Amortization of leasehold improvements is recorded over the shorter of the lease term or the estimated useful life of the related assets. Maintenance and repairs are charged to operations as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expense. In 2015, as a part of the Company’s ongoing effort to upgrade its current information systems, the Company finished the implementation of the initial phase of a new enterprise resource planning software and applications to manage parts of its business operations. Certain costs incurred in the development of such internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development were capitalized as computer software costs. Costs incurred outside of the application development stage were expensed as incurred. Leases Leases are reviewed and classified as capital or operating at their inception. Additionally, the Company evaluates whether it is the accounting owner during the construction period when the Company is involved in the construction of leased assets. The Company records rent expense on a straight-line basis over the term of the lease, which includes the construction build-out period and lease extension periods, if appropriate. The difference between rent payments and straight-line rent expense is recorded as deferred rent in accrued liabilities and other long-term liabilities. Landlord allowances are amortized on a straight-line basis over the lease term as a reduction to rent expense. The Company capitalizes leasehold improvements and amortizes the value over the shorter of the lease term or expected useful lives. Headquarter relocation expenses consisted of expenses such as accelerated depreciation expense, impairment of assets, additional rent expense during the transition period in 2012 when both the new and former headquarter facilities were occupied, moving expenses, cease-use losses, and accretion of interest expense on lease exit liability. The Company completed the relocation of its headquarters in 2012 to another facility in San Diego, California and recorded cease-use losses and the corresponding facility exit obligation upon vacating its former headquarters in 2011 and 2012, calculated as the present value of the remaining lease obligation offset by estimated sublease rental receipts during the remaining lease period, adjusted for deferred items and estimated lease incentives. The Company reassesses the facility exit obligation on a quarterly basis and the key assumptions used in the calculation include the amount and timing of estimated sublease rental receipts, and the risk-adjusted discount rate. Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. The change in the carrying value of goodwill during the year ended January 3, 2016, was due to a current year acquisition. Goodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. During its goodwill impairment review, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company proceeds to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of loss, which involves comparing the implied fair value of the goodwill to the carrying value of the goodwill. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the first step of the goodwill impairment test. The Company performed its annual assessment for goodwill impairment in the second quarter of 2015, noting no impairment. The Company’s identifiable intangible assets are typically comprised of acquired core technologies, licensed technologies, customer relationships, license agreements, and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. The Company regularly performs reviews to determine if any event has occurred that may indicate its intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, the Company performs an impairment test to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, the Company estimates the fair value of the assets and records an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in the Company’s stock price and market capitalization compared to its net book value, significant changes in the ability of a particular asset to generate positive cash flows the Company’s strategic business objectives, and the pattern of utilization of a particular asset. During 2013, the Company decided to discontinue its Eco and NuPCR product lines to better align its product portfolio with its core strategy. As a result, the Company recorded a total impairment charge of $25.2 million in cost of product revenue, $22.9 million of which related to identifiable intangible assets. Derivatives The Company is exposed to foreign exchange rate risks in the normal course of business. The Company enters into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other assets or other liabilities and are not designated as hedging instruments. Changes in the value of the 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 January 3, 2016, the Company had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, and Australian dollar. As of January 3, 2016 and December 28, 2014, the total notional amount of outstanding forward contracts in place for foreign currency purchases was $61.3 million and $61.0 million, respectively. Warranties The Company generally provides a one-year warranty on instruments. Additionally, the Company provides a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses based on historical experience as well as anticipated product performance. The Company periodically reviews its warranty reserve for adequacy and adjusts the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. Revenue Recognition The Company’s 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 and instrument service contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectibility is reasonably assured. In instances where final acceptance of the product or system is required, revenue is deferred until all the acceptance criteria have been met. The Company occasionally offers discounts on newly introduced products to recent customers of existing products. These promotions sometimes involve the trade-in of existing products in exchange for a discount on new products. Where applicable, the Company defers a portion of revenue on the sales of existing products in recognition of the promotional discounts until the delivery of new products. All revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Revenue from product sales is recognized generally upon transfer of title to the customer, provided that no significant obligations remain and collection of the receivable is reasonably assured. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from genotyping and sequencing services is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer or agreed upon milestones are reached. In order to assess whether the price is fixed or determinable, the Company evaluates whether an arrangement is cancellable or subject to future changes in price, deliverables, or other terms. If it is determined that the price is not fixed or determinable, the Company defers revenue recognition until the price becomes fixed or determinable. The Company assesses collectibility based on a number of factors, including past transaction history with, and the creditworthiness of, the customer. If the Company determines that collection of a payment is not reasonably assured, revenue recognition is deferred until receipt of payment. The Company regularly enters into contracts where revenue is derived from multiple deliverables including products or services. These products or services are generally delivered within a short time frame, approximately three to six months, after the contract execution date. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. For transactions with multiple deliverables, consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence exists, the Company uses its best estimate of the selling price for the deliverable. In order to establish VSOE of selling price, the Company must regularly sell the product or service on a standalone basis with a substantial majority priced within a relatively narrow range. VSOE of selling price is usually the midpoint of that range. If there are not a sufficient number of standalone sales and VSOE of selling price cannot be determined, then the Company considers whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within the industry, the Company has rarely established selling price using third-party evidence. If neither VSOE nor third party evidence of selling price exists, the Company determines its best estimate of selling price using average selling prices over a rolling 12-month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by the Company’s pricing committee adjusted for applicable discounts. The Company recognizes revenue for delivered elements only when it determines there are no uncertainties regarding customer acceptance. In certain markets, the Company sells products and provides services to customers through distributors that specialize in life science products. In most sales through distributors, the product is delivered directly to customers. In cases where the product is delivered to a distributor, revenue recognition is deferred until acceptance is received from the distributor, and/or the end-user, if required by the applicable sales contract. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers. These transactions are accounted for in accordance with the Company’s revenue recognition policy described herein. Share-Based Compensation The Company incurs share-based compensation expense related to restricted stock, its Employee Stock Purchase Plan (ESPP), and stock options. Restricted stock units (RSU), restricted stock awards (RSA), and performance stock units (PSU) are all considered restricted stock. The fair value of restricted stock is determined by the closing market price of the Company’s common stock on the date of grant. The Company recognizes share-based compensation expense based on the fair value on a straight-line basis over the requisite service periods of the awards, taking into consideration estimated forfeitures. PSU represents a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, the Company reassesses the probability of the achievement of such corporate performance goals and any additional expenses resulting from an adjustment in the estimated shares to be released are treated as a cumulative catch-up in the period of adjustment. The Company uses the Black-Scholes-Merton option-pricing model to estimate the fair value of stock purchases under ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The Company determines the expected volatility by equally weighing the historical and implied volatility of the Company’s common stock. The historical volatility is generally commensurate with the estimated expected term of the Company’s stock awards, adjusted for the impact of unusual fluctuations and other relevant factors. The implied volatility is calculated from the implied market volatility of exchange-traded call options on the Company’s common stock. The expected term of an award is based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that the Company has never declared or paid cash dividends on its common stock and does not anticipate paying such cash dividends. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards. Shipping and Handling Expenses Shipping and handling expenses are included in cost of product revenue. Research and Development Research and development expenses include personnel expenses, contractor fees, license fees, facilities costs, and utilities. Expenditures relating to research and development are expensed in the period incurred. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $18.5 million, $16.4 million, and $14.5 million for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when the Company believes it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise the Company considers all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies. The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense. Earnings per Share Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes, equity awards, and warrants. Convertible senior notes have a dilutive impact when the average market price of the Company’s common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards and warrants are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of equity awards and warrants; the average amount of unrecognized compensation expense for equity awards; and estimated tax benefits that will be recorded in additional paid-in capital when expenses related to equity awards become deductible. In loss periods, basic net loss per share and diluted net loss per share are identical because the otherwise dilutive potential common shares become anti-dilutive and are therefore excluded. The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
Accumulated Other Comprehensive Income (Loss) Comprehensive income is comprised of net income and other comprehensive income. Accumulated other comprehensive income (loss) on the consolidated balance sheets at January 3, 2016 and December 28, 2014 includes accumulated foreign currency translation adjustments and unrealized gains and losses on the Company’s available-for-sale securities. The components of accumulated other comprehensive income (loss) are as follows (in thousands):
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Balance Sheet Account Details |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Account Details | Balance Sheet Account Details Short-Term Investments The following is a summary of short-term investments (in thousands):
Contractual maturities of available-for-sale debt securities as of January 3, 2016 are as follows (in thousands):
The Company has the ability, if necessary, to liquidate any of its cash equivalents and short-term investments in order to meet its liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying Consolidated Balance Sheets. Cost-Method Investments As of January 3, 2016 and December 28, 2014, the aggregate carrying amounts of the Company’s cost-method investments in non-publicly traded companies were $56.6 million and $37.2 million, respectively, included in other assets. Revenue recognized from transactions with such companies were $61.0 million, $39.8 million, and $31.7 million for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. The Company’s cost-method investments are assessed for impairment quarterly. The Company determines that it is not practicable to estimate the fair value of its cost-method investments on a regular basis and does not reassess the fair value of cost-method investments if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. No material impairment losses were recorded during the years ended January 3, 2016, December 28, 2014, and December 29, 2013. During the year ended January 3, 2016, the Company recognized gains on dispositions of cost-method investments of $18.1 million. During the year ended December 28, 2014, the Company recorded a gain of $4.4 million associated with additional proceeds received for a cost-method investment sold in a prior period. During the year ended December 29, 2013, the Company recorded cost-method investment related gains of $61.4 million, of which $55.2 million related to the sale of the Company’s minority interest in Oxford Nanopore Technologies Ltd. Accounts Receivable Accounts receivable, net consist of the following (in thousands):
Inventory Inventory consists of the following (in thousands):
Property and Equipment Property and equipment, net consists of the following (in thousands):
Capital expenditures included accrued expenditures of $23.7 million and $14.1 million for the years ended January 3, 2016 and December 28, 2014, respectively, which were excluded from the consolidated statements of cash flows. Accrued capital expenditures were immaterial for the year ended December 29, 2013. As of January 3, 2016 and December 28, 2014, $38.6 million and $16.5 million, respectively, of computer software costs were capitalized associated with the Company’s implementation of a new enterprise resource planning software and applications. Goodwill Changes to the Company’s goodwill balance during the years ended January 3, 2016 and December 28, 2014 are as follows (in thousands):
Accrued Liabilities Accrued liabilities consist of the following (in thousands):
Investment in Helix In July 2015, the Company obtained a 50% voting equity ownership interest in Helix Holdings I, LLC (Helix), a limited liability company formed with unrelated third party investors to pursue the development and commercialization of a marketplace for consumer genomics. The Company determined that Helix is a variable interest entity as the holders of the at-risk equity investments as a group lack the power to direct the activities of Helix that most significantly impact Helix’s economic performance. Additionally, the Company determined that it has (a) unilateral power over one of the activities that most significantly impacts the economic performance of Helix through its contractual arrangements and no one individual party has unilateral power over the remaining significant activities of Helix and (b) the obligation to absorb losses of and the right to receive benefits from Helix that are potentially significant to Helix. As a result, the Company is deemed to be the primary beneficiary of Helix and is required to consolidate Helix. The assets and liabilities of Helix are not significant to the Company’s financial position as of January 3, 2016. Helix has an immaterial impact on the Company’s consolidated statements of operations and cash flows for the fiscal year ended January 3, 2016. The Company has not provided financing to Helix outside its contractual arrangements, which include the contributions of certain perpetual licenses, instruments, intangibles, initial laboratory setup, and discounted supply terms in exchange for voting equity interests in Helix. Such contributions are recorded at their historical basis as they remain within the control of the Company. Helix is financed through cash contributions made by the third party investors in exchange for voting equity interests in Helix. Redeemable Noncontrolling Interests Certain noncontrolling Helix investors may require the Company to redeem all noncontrolling interests in cash at the then approximate fair market value. The fair value of the redeemable noncontrolling interests is considered a Level 3 instrument. Such redemption right is exercisable at the option of certain noncontrolling interest holders after January 1, 2021, provided that a bona fide pursuit of the sale of Helix has occurred and an initial public offering of Helix has not been completed. As the contingent redemption is outside of the control of Illumina, the redeemable noncontrolling interests in Helix are classified outside of stockholders’ equity on the consolidated balance sheet. The balance of the redeemable noncontrolling interests is reported at the greater of its carrying value after receiving its allocation of Helix’s profits and losses or its estimated redemption value at each reporting date. As of January 3, 2016, the noncontrolling shareholders and Illumina each held 50% of Helix’s outstanding voting equity interests. The activity of the redeemable noncontrolling interests during the year ended January 3, 2016 is as follows (in thousands):
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Intangible Assets |
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| Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets | Intangible Assets The Company’s intangible assets, excluding goodwill, include acquired licensed and core technologies, customer relationships, license agreements, and trade name. Amortization for the intangible assets that have finite useful lives is generally recorded on a straight-line basis over their useful lives. The following is a summary of the Company’s identifiable intangible assets (in thousands):
As of January 3, 2016, the remaining weighted-average amortization period for identifiable intangible assets was 7.6 years. Intangible assets acquired during the year ended January 3, 2016 are as follows (in thousands):
The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, asset impairments, among other factors.
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair Value Measurements The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of January 3, 2016 and December 28, 2014 (in thousands):
The Company holds available-for-sale securities that consist of highly liquid, investment grade debt securities. The Company considers information provided by the Company’s investment accounting and reporting service provider in the measurement of fair value of its debt securities. The investment service provider provides valuation information from an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. The Company’s deferred compensation plan assets consist primarily of investments in life insurance contracts carried at cash surrender value, which reflects the net asset value of the underlying publicly traded mutual funds. The Company performs control procedures to corroborate the fair value of its holdings, including comparing valuations obtained from its investment service provider to valuations reported by the Company’s asset custodians, validation of pricing sources and models, and review of key model inputs if necessary. The Company reassesses the fair value of contingent consideration to be settled in cash related to acquisitions on a quarterly basis using the income approach. This is a Level 3 measurement. Significant assumptions used in the measurement include probabilities of achieving the remaining milestones and the discount rates, which depend on the milestone risk profiles. The changes in fair value of the contingent considerations during the years ended January 3, 2016, December 28, 2014, and December 29, 2013 were due to changes in the estimated payments and a shorter discounting period. Changes in estimated fair value of contingent consideration liabilities from December 30, 2012 through January 3, 2016 are as follows (in thousands):
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Convertible Senior Notes |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Senior Notes | Convertible Senior Notes As of January 3, 2016, the Company had outstanding $75.5 million in principal amount of 0.25% convertible senior notes due March 15, 2016, $632.5 million in principal amount of 0% convertible senior notes due June 15, 2019, and $517.5 million in principal amount of 0.5% convertible senior notes due June 15, 2021. 0% Convertible Senior Notes due 2019 and 0.5% Convertible Senior Notes due 2021 In June 2014, the Company issued $632.5 million aggregate principal amount of 0% convertible senior notes due 2019 (2019 Notes) and $517.5 million aggregate principal amount of 0.5% convertible senior notes due 2021 (2021 Notes) in an offering conducted in accordance with Rule 144A under the Securities Act of 1933, as amended. The Notes were issued at 100% of par value. The net proceeds from the issuance, after deducting the offering expenses payable by the Company, was $1,132.4 million. The Company used the net proceeds plus cash on hand to repurchase a portion of the outstanding 2016 Notes in privately negotiated transactions concurrently with the issuance of the 2019 and 2021 Notes. Both the 2019 and 2021 Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election, based on an initial conversion rate, subject to adjustment, of 3.9318 shares per $1,000 principal amount of the notes (which represents an initial conversion price of approximately $254.34 per share), only in the following circumstances and to the following extent: (1) during the five business-day period after any 10 consecutive trading day period (the measurement period) in which the trading price per 2019 and 2021 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending September 30, 2014, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2019 and 2021 Notes; and (4) at any time on or after March 15, 2019 for the 2019 Notes, or March 15, 2021 for the 2021 Notes, through the second scheduled trading day immediately preceding the maturity date. As noted in the indentures for the 2019 and 2021 Notes, it is the Company's intent and policy to settle conversions through combination settlement, which essentially involves repayment of an amount of cash equal to the “principal portion” and delivery of the “share amount” in excess of the conversion value over the principal portion in shares of common stock. In general, for each $1,000 in principal the “principal portion” of cash upon settlement is defined as the lesser of $1,000 and the conversion value during the 20-day observation period. The conversion value is the sum of the daily conversion value which is the product of the effective conversion rate divided by 20 days and the daily volume weighted average price (VWAP) of the Company's common stock. The “share amount” is the cumulative “daily share amount” during the observation period, which is calculated by dividing the daily VWAP into the difference between the daily conversion value (i.e., conversion rate x daily VWAP) and $1,000. The 2019 Notes carry no coupon interest. The Company pays 0.5% interest per annum on the principal amount of the 2021 Notes, payable semiannually in arrears in cash on June 15 and December 15 of each year, beginning on December 15, 2014. The 2019 and 2021 Notes mature on June 15, 2019 and June 15, 2021, respectively. If a designated event, as defined in the indentures for the 2019 and 2021 Notes, such as acquisition, merger, or liquidation, occurs prior to the maturity date, subject to certain limitations, holders of the notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. The Company accounts separately for the liability and equity components of the 2019 and 2021 Notes in accordance with authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. The guidance requires the carrying amount of the liability component to be estimated by measuring the fair value of a similar liability that does not have an associated conversion feature. Because the Company has no outstanding non-convertible public debt, the Company determined that market-traded senior, unsecured corporate bonds represent a similar liability to the convertible senior notes without the conversion option. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry as the Company, and with similar maturities to the 2019 and 2021 Notes, the Company estimated the implied interest rates of its 2019 and 2021 Notes to be 2.9% and 3.5%, respectively, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rates were applied to the 2019 and 2021 Notes, which resulted in a fair value of the liability component in aggregate of $971.5 million upon issuance, calculated as the present value of implied future payments based on the $1,150.0 million aggregate principal amount. The $161.2 million difference between the cash proceeds of $1,132.7 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the 2019 and 2021 Notes are not considered redeemable. As a policy election under applicable guidance related to the calculation of diluted net income per share, the Company elected the combination settlement method as its stated settlement policy and applied the treasury stock method in the calculation of the potential dilutive impact of the 2019 and 2021 Notes. Neither the 2019 nor the 2021 Notes were convertible as of January 3, 2016 and had no dilutive impact during the year ended January 3, 2016. If the 2019 and 2021 Notes were converted as of January 3, 2016, the if-converted value would not exceed the principal amount. 0.25% Convertible Senior Notes due 2016 In 2011, the Company issued $920.0 million aggregate principal amount of 0.25% convertible senior notes due 2016 (2016 Notes) in an offering conducted in accordance with Rule 144A under the Securities Act of 1933, as amended. The 2016 Notes were issued at 98.25% of par value. Debt issuance costs of approximately $0.4 million were primarily comprised of legal, accounting, and other professional fees, the majority of which were recorded in other noncurrent assets and are being amortized to interest expense over the five-year term of the 2016 Notes. The 2016 Notes are convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at the Company’s election, based on an initial conversion rate, subject to adjustment, of 11.9687 shares per $1,000 principal amount of the 2016 Notes (which represents an initial conversion price of approximately $83.55 per share), only in the following circumstances and to the following extent: (1) during the five business-day period after any 10 consecutive trading day period (the measurement period) in which the trading price per 2016 Note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter (and only during that quarter) after the calendar quarter ending March 31, 2011, if the last reported sale price of the Company’s common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (3) upon the occurrence of specified events described in the indenture for the 2016 Notes; and (4) at any time on or after December 15, 2015 through the second scheduled trading day immediately preceding the maturity date. Based upon meeting the stock trading price conversion requirement during the three months ended March 30, 2014, the 2016 Notes became convertible on April 1, 2014 and continue to be convertible through March 11, 2016. As such, the remaining 2016 Notes outstanding were classified as current liabilities as of January 3, 2016. As noted in the indenture for the 2016 Notes, it is the Company’s intent and policy to settle conversions through combination settlement, which essentially involves repayment of an amount of cash equal to the “principal portion” and delivery of the “share amount” in excess of the conversion value over the principal portion in shares of common stock. In general, for each $1,000 in principal, the “principal portion” of cash upon settlement is defined as the lesser of $1,000, and the conversion value during the 20-day observation period as described in the indenture for the 2016 Notes. The conversion value is the sum of the daily conversion value which is the product of the effective conversion rate divided by 20 days and the daily volume weighted average price (VWAP) of the Company’s common stock. The “share amount” is the cumulative “daily share amount” during the observation period, which is calculated by dividing the daily VWAP into the difference between the daily conversion value (i.e., conversion rate x daily VWAP) and $1,000. The Company pays 0.25% interest per annum on the principal amount of the 2016 Notes semiannually in arrears in cash on March 15 and September 15 of each year. The 2016 Notes mature on March 15, 2016. If a designated event, as defined in the indenture for the 2016 Notes, such as an acquisition, merger, or liquidation, occurs prior to the maturity date, subject to certain limitations, holders of the 2016 Notes may require the Company to repurchase all or a portion of their 2016 Notes for cash at a repurchase price equal to 100% of the principal amount of the 2016 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. The Company accounts separately for the liability and equity components of the 2016 Notes in accordance with authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. The guidance requires the carrying amount of the liability component to be estimated by measuring the fair value of a similar liability that does not have an associated conversion feature. Because the Company has no outstanding non-convertible public debt, the Company determined that senior, unsecured corporate bonds traded on the market represent a similar liability to the convertible senior notes without the conversion option. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied interest rate of its 2016 Notes to be 4.5%, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the 2016 Notes, which resulted in a fair value of the liability component of $748.5 million upon issuance, calculated as the present value of implied future payments based on the $920.0 million aggregate principal amount. The $155.4 million difference between the cash proceeds of $903.9 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the 2016 Notes were not considered redeemable. In conjunction with the issuance of the 2019 and 2021 Notes, the Company used the net proceeds from the issuance plus cash on hand to repurchase $600.0 million in principal amount of the outstanding 2016 Notes in privately negotiated transactions. The aggregate cash used for the repurchase was $1,244.7 million. The repurchase is accounted for as an extinguishment of debt. Extinguishment accounting requires the purchase price to be allocated to the liability and equity components of the repurchased notes based on the fair value of the liability component, and the difference between the fair value and the carrying value of the liability component to be recognized as loss on extinguishment of debt. An interest rate of 1.2% upon settlement, which was estimated using Level 2 inputs, was applied to measure the fair value of the liability component of the extinguished debt. This calculation resulted in $588.8 million allocated to the debt component and $655.9 million allocated to the equity component. The $31.4 million difference between the $588.8 million fair value of debt component and the carrying value of the repurchased 2016 Notes was recorded as a loss on extinguishment of debt within other expense, net, during the year ended December 28, 2014. The $655.9 million of the repurchase price allocated to the equity component was recorded as a reduction of additional paid-in capital. As a policy election under applicable guidance related to the calculation of diluted net income per share, the Company elected the combination settlement method as its stated settlement policy and applied the treasury stock method in the calculation of dilutive impact of the 2016 Notes. During the year ended December 29, 2013, the 2016 Notes were not convertible. However, as the market price of the Company’s common stock exceeded the conversion price during the last months of 2013, the calculation of dilutive potential common shares outstanding for the year ended December 29, 2013 reflects the dilutive impact from the 2016 Notes. If the 2016 Notes were converted as of January 3, 2016, the if-converted value would exceed the principal amount by $89.3 million. 0.625% Convertible Senior Notes due 2014 In 2007, the Company issued $400.0 million principal amount of 0.625% convertible senior notes due 2014 (2014 Notes). The Company pays 0.625% interest per annum on the principal amount of the 2014 Notes semi-annually in arrears in cash on February 15 and August 15 of each year. The 2014 Notes matured on February 15, 2014. The effective interest rate of the liability component was estimated to be 8.3%. The Company entered into hedge transactions concurrently with the issuance of the 2014 Notes under which the Company was entitled to purchase up to approximately 18.3 million shares of the Company’s common stock at a strike price of approximately $21.83 per share, subject to adjustment. The convertible note hedge transactions had the effect of reducing dilution to the Company’s stockholders upon conversion of the 2014 Notes. Also concurrently with the issuance of the 2014 Notes, the Company sold to the hedge counterparties warrants exercisable, on a cashless basis, for up to approximately 18.3 million shares of the Company’s common stock at a strike price of $31.435 per share, subject to adjustment. The proceeds from these warrants partially offset the cost to the Company of the convertible note hedge transactions. The 2014 Notes were convertible into cash and shares of the Company’s common stock in various prior periods and became convertible again from April 1, 2012 through, and including, February 12, 2014, by which date all notes were converted. In all cases of conversions of the 2014 Notes, the principal amount converted was repaid with cash and the excess of the conversion value over the principal amount was paid in shares of common stock. The equity dilution resulting from the issuance of common stock related to the conversion of the 2014 Notes was offset by repurchase of the same amount of shares under the convertible note hedge transactions, which were automatically exercised in accordance with their terms at the time of each conversion. Accordingly, the hedge transactions terminated concomitant with the conversions of the 2014 Notes. As a result of the conversions of the 2016 Notes during the year ended January 3, 2016, the Company recorded a loss on extinguishment of debt calculated as the difference between the estimated fair value of the debt and the carrying value of the notes as of the settlement date. To measure the fair value of the converted notes as of the settlement date, the applicable interest rate was estimated using Level 2 observable inputs and applied to the converted notes using the same methodology as in the issuance date valuation. The following table summarizes information about the conversion of the 2016 Notes during the year ended January 3, 2016 (in thousands):
The following table summarizes information about the equity and liability components of all convertible senior notes outstanding as of the period reported (dollars in thousands). The fair values of the respective notes outstanding were measured based on quoted market prices, and is a Level 2 measurement.
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Commitments |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments | Commitments Leases The Company leases office and manufacturing facilities under various noncancellable lease agreements. Facility leases generally provide for periodic rent increases, and many contain escalation clauses and renewal options. Certain leases require the Company to pay property taxes and routine maintenance. The Company is headquartered in San Diego, California and leases facilities in San Diego and the San Francisco Bay Area in California; Madison, Wisconsin; Morrisville, North Carolina; Australia; Brazil; Canada; China; France; Japan; Singapore; the Netherlands; and the United Kingdom. In conjunction with the acquisition of Verinata Health, Inc. in 2013, the Company assumed Verinata’s building lease for which Verinata was considered the accounting owner of the leased building. As such, the Company recorded the fair value of the building as an asset as of the acquisition date. The building is depreciated over a useful life of 30 years. The Company also recorded the related lease financing obligation as a liability assumed, representing the present value of all remaining building lease payments with an interest rate of 6.0%. The annual future minimum payments, including the balloon payment at the end of the lease for the value of the building to be transferred to the landlord, are $1.0 million for 2016 and $8.4 million for 2017. On December 30, 2014, the Company entered into a lease agreement for certain office buildings to be constructed at 200-800 Lincoln Centre Drive, Foster City, California. The Company has the right to further expand the premises and lease an additional office building that may be built at this facility (the Expansion Building). The lease is for a period of 16 years (the Initial Term) with a target commencement date of July 1, 2017. Rent payments will begin upon the target commencement date. The Company has three five-year options to extend the lease. The aggregate rent during the Initial Term of the lease is expected to be approximately $204.0 million, but not including the Expansion Building. The annual future minimum payments under this lease are $3.3 million in 2017, $6.6 million in 2018, $9.4 million in 2019, $12.3 million in 2020, and $172.4 million thereafter. These payments are not included in the table below. In addition to rent, the lease requires the Company to pay certain taxes, insurance, and operating costs relating to the leased buildings. The Company evaluated its involvement during the construction period, which includes certain indemnification obligations related to the construction. As a result, the Company is considered the owner of the construction project for accounting purposes only under build-to-suit lease accounting. As of January 3, 2016, the Company recorded $9.5 million in project construction costs incurred by the landlord as construction in progress and a corresponding amount in accrued liabilities. Once the landlord completes the construction of each of the buildings, we will evaluate the lease in order to determine whether or not it meets the criteria for “sale-leaseback” treatment. On June 25, 2015, the Company entered into a lease agreement for an office building near Cambridge, England. Both of the leases at Foster City and Cambridge are with affiliates of Biomed Realty Trust, Inc. (BMR). One of our Board members also served on the Board of BMR. Annual future minimum payments under operating leases as of January 3, 2016 were as follows (in thousands):
Rent expense was $38.5 million, $33.2 million, and $28.1 million for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. The Company recorded facility exit obligations upon vacating its former headquarters in 2011. Changes in the facility exit obligation from December 30, 2012 through January 3, 2016 are as follows (in thousands):
Licensing Agreements In the normal course of its business, the Company enters, from time to time, into licensing agreements under which the Company commits to certain minimum royalty payments, some of which are subject to adjustment. Such licensing agreements may be terminated prior to the expiration of underlying intellectual property under certain circumstances. Annual future minimum royalty payments under the Company’s licensing agreements as of January 3, 2016 are as follows (in thousands):
Warranties Changes in the Company’s reserve for product warranties from December 30, 2012 through January 3, 2016 are as follows (in thousands):
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Share-based Compensation Expense |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Expense | Share-based Compensation Expense Share-based compensation expense for all stock awards consists of the following (in thousands):
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average grant date fair value per share of options granted and for stock purchased under the ESPP are as follows:
As of January 3, 2016, approximately $281.6 million of total unrecognized compensation cost related to stock options, restricted stock, and ESPP shares issued to date is expected to be recognized over a weighted-average period of approximately 2.9 years. |
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Stockholders' Equity |
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| Stockholders' Equity | Stockholders’ Equity During the year ended January 3, 2016, the Company’s stockholders approved the 2015 Stock and Incentive Compensation Plan (the 2015 Stock Plan), which replaced both the 2005 Stock and Incentive Plan and the 2008 Verinata Health Stock Plan, and increased the maximum number of shares of common stock authorized for issuance by 2.7 million shares. The 2015 Stock Plan, 2005 Solexa Equity Incentive Plan (the 2005 Solexa Equity Plan), and the New Hire Stock and Incentive Plan allow for the issuance of stock options, restricted stock units and awards, and performance stock units. As of January 3, 2016, approximately 7.4 million shares remained available for future grants under the 2015 Stock Plan and the 2005 Solexa Equity Plan. There is no set number of shares reserved for issuance under the New Hire Stock and Incentive Plan. Restricted Stock The Company issues restricted stock units (RSU), restricted stock awards (RSA), and performance stock units (PSU). The Company grants RSU and PSU pursuant to its 2015 Stock and Incentive Plan and 2008 Verinata Stock Plan. RSU are share awards that, upon vesting, will deliver to the holder shares of the Company’s common stock. For grants to new hires prior to July 2011 and for grants to existing employees prior to December 2014, RSU generally vest 15% on the first anniversary of the grant date, 20% on the second anniversary of the grant date, 30% on the third anniversary of the grant date, and 35% on the fourth anniversary of the grant date. For grants to new hires subsequent to July 2011 and for grants to existing employees subsequent to December 2014, RSU generally vest over a four-year period with equal vesting on anniversaries of the grant date. The Company satisfies RSU vesting through the issuance of new shares. The Company issues PSU for which the number of shares issuable at the end of a three-year performance period can reach up to 150% of the shares approved in the award based on the Company’s performance relative to specified earnings per share targets. The Company also issues RSA that are released based on service related vesting conditions. RSA may be issued from the Company’s treasury stock or granted pursuant to the Company’s 2005 Stock and Incentive Plan. A summary of the Company’s restricted stock activity and related information from December 30, 2012 through January 3, 2016 is as follows (in thousands, except per share amounts):
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Pre-tax intrinsic values and total fair value of vested restricted stock are as follows (in thousands):
Stock Options Stock options granted at the time of hire primarily vest over a four or five-year period, with 25% or 20% of options vesting on the first anniversary of the grant date and the remaining options vesting monthly over the remaining vesting period. Stock options granted subsequent to hiring primarily vest monthly over a four or five-year period. Each grant of options has a maximum term of ten years, measured from the applicable grant date, subject to earlier termination if the optionee’s service ceases. Vesting in all cases is subject to the individual’s continued service through the vesting date. The Company satisfies option exercises through the issuance of new shares. The Company’s stock option activity under all stock option plans from December 30, 2012 through January 3, 2016 is as follows:
At January 3, 2016, outstanding options to purchase 1.6 million shares were exercisable with a weighted-average per share exercise price of $42.09. The weighted-average remaining life of options outstanding and exercisable is 3.8 years as of January 3, 2016. The aggregate intrinsic value of options outstanding and options exercisable as of January 3, 2016 was $239.8 million and $236.6 million, respectively. Aggregate intrinsic value represents the product of the number of options outstanding multiplied by the difference between the Company’s closing stock price per share on the last trading day of the fiscal period, which was $191.95 as of December 31, 2015, and the exercise price. Total intrinsic value of options exercised was $256.1 million, $330.5 million, and $141.7 million for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. Total fair value of options vested was $4.3 million, $17.2 million, and $24.0 million for the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. Employee Stock Purchase Plan A total of 15.5 million shares of the Company’s common stock have been reserved for issuance under its 2000 Employee Stock Purchase Plan, or ESPP. The ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first of the offering period or purchase date, whichever is lower. The initial offering period commenced in July 2000. Approximately 0.2 million, 0.3 million, and 0.4 million shares were issued under the ESPP during the years ended January 3, 2016, December 28, 2014, and December 29, 2013, respectively. As of January 3, 2016 and December 28, 2014, there were approximately 14.5 million and 14.7 million shares available for issuance under the ESPP, respectively. Warrants In connection with the offering of the Company’s 2014 Notes, the Company sold warrants to purchase 18.3 million shares of common stock to counterparties to the convertible note hedge transactions. The warrants had an exercise price of $31.44 per share, and the proceeds from the sale of such warrants were used by the Company to partially offset the cost of the transactions. In July 2013, the Company settled with a hedging counterparty outstanding warrants to purchase approximately 3.0 million shares of the Company’s common stock for $125.0 million in cash. The remaining warrants were exercised in full during the year ended December 28, 2014. Share Repurchases During the years ended January 3, 2016, December 28, 2014, and December 29, 2013, the Company repurchased approximately 1.7 million shares for $274.3 million, 1.5 million shares for $237.2 million, and 0.9 million shares for $50.0 million, respectively. On May 1, 2015, the Company’s Board of Directors authorized share repurchases for up to $150.0 million of repurchases under a Rule 10b5-1 plan. In addition, on October 29, 2015, the Company’s Board of Directors authorized a new discretionary share repurchase program of $250.0 million. Authorizations to repurchase up to an additional $256.1 million of its common stock remained as of January 3, 2016. |
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Legal Proceedings |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Legal Proceedings | Legal Proceedings The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. As of January 3, 2016, the Company had $19.0 million in accrued legal contingencies. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigations or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. Syntrix On November 24, 2010, Syntrix Biosystems, Inc. (Syntrix) filed suit against the Company in the United States District Court for the Western District of Washington at Tacoma (Case No. C10-5870-BHS) alleging that the Company willfully infringed U.S. Patent No. 6,951,682 by selling its BeadChip array products, and that the Company misappropriated Syntrix’s trade secrets. On January 30, 2013, the Court granted the Company’s motion for summary judgment on Syntrix’s trade secret claims, and dismissed those claims from the case. On March 14, 2013, a jury reached a verdict in favor of Syntrix, finding that Illumina’s BeadChip kits infringe the Syntrix patent. During trial, the Court dismissed Syntrix’s claim that the alleged infringement was willful. On July 1, 2013, the Court entered a Final Amended Judgment for $115.1 million, in accordance with the jury verdict, including supplemental damages and prejudgment interest. In addition, the Court awarded Syntrix an ongoing royalty of 8% for accused sales from March 15, 2013 until the patent expires on September 16, 2019. On December 3, 2013, the Company filed a Notice of Appeal to the Court of Appeals for the Federal Circuit challenging the Final Amended Judgment. On December 16, 2013, Syntrix cross appealed the Court’s dismissal of its trade secret claims and denial of its willfulness claim. For the year ended December 29, 2013, the Company recorded total charges of $132.9 million related to this matter, $114.6 million of which was recorded within operating expenses, with the remainder recorded to cost of sales. On November 14, 2014, the Company entered into a Settlement and License Agreement with Syntrix and its sole shareholders, John A. Zebala and Amy Zebala, that settled all claims in the litigation. Pursuant to the terms of the Settlement and License Agreement, the Company paid Syntrix a one-time payment of $70.0 million in exchange for a release of past damages claimed and a fully paid-up exclusive license to U.S. Patent No. 6,951,682. None of the parties made any admission of liability in entering into the Settlement and License Agreement. On November 19, 2014, the Court dismissed the litigation with prejudice and vacated the judgment against the Company. The Company allocated the $70.0 million payment on relative fair value basis, resulting in $29.5 million capitalized as an intangible asset for the value of the exclusive license, which is amortized over a period of 4.8 years on a straight-line basis, and the remaining $40.5 million to the release of past damages claimed. The fair value of license and past damages was estimated using a discounted cash flow model, and is considered to be a Level 3 measurement. The settlement of the litigation resulted in a gain of $109.4 million. $27.3 million of the total gain was recorded as reversal of cost of sales, reflecting a true-up of historical royalty expenses to the effective royalty rate. The remaining gain of $82.1 million was recorded as a legal contingency gain in operating expenses. Sequenom On December 2, 2014, the Company and its subsidiary Verinata Health, Inc. entered into a series of agreements with Sequenom, Inc. (Sequenom), its subsidiary Sequenom Center for Molecular Medicine LLC (Sequenom LLC), and Chinese University of Hong Kong (CUHK), and an agreement with the Trustees of Leland Stanford University (Stanford), that, together, (1) settled a patent litigation pending in the United States District Court for the Northern District of California (the District Court) between Verinata and Stanford, on the one hand, and Sequenom, Sequenom LLC, and Isis Innovation Limited (Isis), on the other hand, (2) requested remand of certain claims and counterclaims of Sequenom, Isis, Verinata, and Stanford from the appeal pending in the United States Court of Appeals for the Federal Circuit of a second patent litigation pending in District Court in order to seek to vacate an order related to those claims and dismiss them, and (3) settled an inter partes review related to a United States Patent No. 8,195,415, assigned to Stanford and licensed to Verinata. As part of the settlement, the Company and Sequenom have entered into a Pooled Patents Agreement and related sublicense agreements whereby (1) Sequenom granted Illumina a worldwide license to patents directed to Non-Invasive Prenatal Testing (NIPT) for Laboratory Developed Testing (LDT) and In-Vitro Diagnostic (IVD) products, which license is exclusive in the LDT field, except with respect to certain patents formerly owned by Isis, in which case it is non-exclusive, and (2) Illumina (and Verinata in some cases) granted a worldwide non-exclusive license to Sequenom under Illumina-owned and in-licensed NIPT-related patents for Sequenom to continue its business related to NIPT LDT (the patents owned or in-licensed by either the Company or Sequenom that fall under the Pooled Patents Agreement are the “Pooled Patents”). The Company also assumed, by novation, amended exclusive patent licenses from CUHK to Sequenom and entered into several new exclusive in-license agreements with CUHK related to CUHK patents directed to NIPT, and granted to Sequenom non-exclusive sublicenses under the Company’s license agreements with CUHK, Stanford, and General Hospital Corporation for Sequenom to practice NIPT LDT. The Company and Sequenom also extended, amended, and restated their current supply agreement under which Sequenom purchases from the Company equipment and supplies for NIPT LDT and other clinical fields, and entered into a separate agreement whereby Sequenom transferred to the Company certain clinical samples and data useful in the development of NIPT IVD. As consideration for the foregoing settlement arrangements, the Company agreed to pay Sequenom an aggregate of $50.0 million, as well as to pay royalties to Sequenom for sales of NIPT IVD products. The Company and Sequenom also agreed to share revenues received for exploitation of the Pooled Patents in NIPT LDT. None of the parties made any admission of liability in entering into these arrangements. The parties filed certain stipulated motions with the Federal Circuit and District Court to vacate and dismiss the associated claims and counterclaims with prejudice, which motions have been granted by the respective courts. The Company considered whether the elements received represented identifiable benefits that were sufficiently separable from the products it sells to Sequenom, and considered whether the value of these benefits could be reasonably estimated. The Company identified the legal settlement, clinical samples, the IVD and LDT patent rights as elements. The Company used a discounted cash flow analysis to estimate the value of the patent rights, replacement cost to value the samples, and an assumed royalty rate on historical sales for the legal settlement. These fair value estimates are considered Level 3 measurements. The Company determined that the aggregate fair value of the benefits received exceeded the consideration paid and allocated the $50.0 million payment to the various elements on a relative fair value basis. This resulted in $48.8 million allocated to the samples and patent rights transferred to Illumina, which were expensed in research and development expenses due to lack of alternative future use. The remaining $1.2 million was recorded as a legal contingency charge in operating expenses. |
Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes The income before income taxes summarized by region is as follows (in thousands):
The provision for income taxes consists of the following (in thousands):
The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income before taxes as follows (in thousands):
The impact of foreign operations primarily represents the difference between the actual provision for income taxes for our legal entities that operate primarily in jurisdictions that have statutory tax rates lower than the U.S. federal statutory tax rate of 35%. The most significant tax benefits from foreign operations were from the Company’s earnings in Singapore and the United Kingdom, which had statutory tax rates of 17% and 20.25%, respectively, in the year ended January 3, 2016. The impact of foreign operations also includes the U.S. foreign tax credit impact of non-U.S. earnings and uncertain tax positions related to foreign items. The cost sharing adjustment recorded in 2015 is related to the exclusion of stock compensation from prior period cost-sharing charges as a result of a recent tax court opinion in which an unrelated third party was successful in challenging such charges. If this tax court opinion is overturned in the future, our tax rate will be adversely impacted by the reversal of the discrete tax benefit recorded this year and any stock compensation that should have been included in the cost-sharing charges from this year going forward. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
In November 2015, the FASB issued ASU No. 2015-17, which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. The amendments in ASU No. 2015-17 are effective for fiscal years and interim periods within those years, beginning after 15 December 2016, with early adoption permitted. The new guidance may be applied either on a prospective or retrospective basis. The Company adopted ASU No. 2015-17 prospectively as of January 3, 2016. Prior periods were not retrospectively adjusted for this change in accounting principle. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available positive and negative evidence. Based on the available evidence as of January 3, 2016, the Company was not able to conclude it is more likely than not certain U.S. deferred tax assets will be realized. Therefore, the Company recorded a valuation allowance of $13.4 million against certain deferred tax assets, including $3.1 million against certain foreign deferred tax assets. During the year ended January 3, 2016, the valuation allowance decreased by $1.8 million, primarily due to a $6.1 million decrease in the provision for income taxes related to state research and development credits realized, offset by a $2.3 million increase in the provision for income taxes related to the valuation allowance on other U.S. and foreign deferred tax assets, and a $2.0 million increase in goodwill related pre-acquisition deferred tax assets from an acquired entity. As of January 3, 2016, the Company had net operating loss carryforwards for federal and state tax purposes of $102.6 million and $351.1 million, respectively, which will begin to expire in 2020 and 2017, respectively, unless utilized prior. The Company also had federal and state tax credit carryforwards of $49.8 million and $78.4 million, respectively, which will begin to expire in 2025 and 2019, respectively, unless utilized prior. Pursuant to Section 382 and 383 of the Internal Revenue Code, utilization of the Company’s net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of January 3, 2016 are net of any previous limitations due to Section 382 and 383. The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. During the year ended January 3, 2016, the Company realized $125.5 million of such excess tax benefits, and accordingly recorded a corresponding credit to additional paid-in capital. As of January 3, 2016, the Company had $70.8 million of unrealized excess tax benefits associated with share-based compensation. These tax benefits will be accounted for as a credit to additional paid-in capital, if and when realized, rather than a reduction of the provision for income taxes. The Company’s manufacturing operations in Singapore operate under various tax holidays and incentives that begin to expire in 2018. For the year ended January 3, 2016, these tax holidays and incentives resulted in a $23.3 million decrease to the provision for income taxes and an increase in diluted earnings per share attributable to Illumina stockholders of $0.16. It is the Company’s intention to indefinitely reinvest all current and future foreign earnings in order to ensure sufficient working capital to support and expand existing operations outside the United States. Accordingly, residual U.S. income taxes have not been provided on $511.9 million of undistributed earnings of foreign subsidiaries as of January 3, 2016. In the event the Company was required to repatriate funds from outside of the United States, such repatriation would be subject to local laws, customs, and tax consequences. It is not practicable for the Company to determine the total amount of unrecognized deferred U.S. income tax liability because of the complexities associated with its hypothetical calculation. The following table summarizes the gross amount of the Company’s uncertain tax positions (in thousands):
Included in the balance of uncertain tax positions as of January 3, 2016 and December 28, 2014, were $47.1 million and $42.6 million, respectively, of net unrecognized tax benefits that, if recognized, would reduce the Company’s effective income tax rate in future periods. Any interest and penalties related to uncertain tax positions are reflected in the provision for income taxes. The Company recognized income of $0.2 million during the year ended January 3, 2016, and expense of $0.7 million, and $1.0 million, during the years ended December 28, 2014, and December 29, 2013, respectively, related to potential interest and penalties on uncertain tax positions. The Company recorded a liability for potential interest and penalties of $4.5 million and $4.4 million as of January 3, 2016 and December 28, 2014, respectively. Tax years 1997 to 2014 remain subject to future examination by the major tax jurisdictions in which the Company is subject to tax. Given the uncertainty of potential adjustments from examination as well as the potential expiration of the statute of limitations, it is reasonably possible that the balance of unrecognized tax benefits could change significantly over the next 12 months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be determined given the number of matters and the number of years that are potentially subject to examination. |
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Employee Benefit Plans |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Deferred Compensation Arrangements [Abstract] | |
| Employee Benefit Plans | Employee Benefit Plans Retirement Plan The Company has a 401(k) savings plan covering substantially all of its employees in the United States. Company contributions to the plan are discretionary. During the years ended January 3, 2016, December 28, 2014, and December 29, 2013, the Company made matching contributions of $11.5 million, $9.5 million, and $7.0 million, respectively. Deferred Compensation Plan The Company adopted the Illumina, Inc. Deferred Compensation Plan (the Plan) that became effective January 1, 2008. The Company’s senior level employees can contribute up to 80% of their base salary and 100% of their variable cash compensation. Members of the board of directors can contribute up to 100% of their director fees and equity awards. The Company has agreed to credit the participants’ contributions with earnings that reflect the performance of certain independent investment funds. On a discretionary basis, the Company may also make employer contributions to participant accounts in any amount determined by the Company. The vesting schedules of employer contributions are at the sole discretion of the Compensation Committee. However, all employer contributions shall become 100% vested upon the occurrence of the participant’s disability, death or retirement or a change in control of the Company. The benefits under this plan are unsecured. Participants are generally eligible to receive payment of their vested benefit at the end of their elected deferral period or after termination of their employment with the Company for any reason or at a later date to comply with the restrictions of Section 409A. In January 2008, the Company also established a rabbi trust for the benefit of the participants under the Plan. In accordance with authoritative guidance related to consolidation of variable interest entities and accounting for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested, the Company has included the assets of the rabbi trust in its consolidated balance sheet since the trust’s inception. As of January 3, 2016 and December 28, 2014, the assets of the trust were $26.2 million and $23.5 million, respectively, and liabilities of the Company were $24.9 million and $20.3 million, respectively. The assets and liabilities are classified as other assets and accrued liabilities, respectively, on the Company’s consolidated balance sheets. Changes in the values of the assets held by the rabbi trust are recorded in other expense, net in the consolidated statements of income, and changes in the values of the deferred compensation liabilities are recorded in cost of revenue or operating expenses. |
Segment Information, Geographic Data, and Significant Customers |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information, Geographic Data, and Significant Customers | Segment Information, Geographic Data, and Significant Customers The Company had revenue in the following regions for the years ended January 3, 2016, December 28, 2014, and December 29, 2013 (in thousands):
Revenues are attributable to geographic areas based on the region of destination. The majority of our product sales consist of consumables and instruments. For the years ended January 3, 2016, December 28, 2014, and December 29, 2013, consumable sales represented 58%, 56%, and 62%, respectively, of total revenues and instrument sales comprised 27%, 30%, and 26%, respectively, of total revenues. The Company’s customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic laboratories, and consumer genomics companies. The Company had no customers that provided more than 10% of total revenue in the years ended January 3, 2016, December 28, 2014, and December 29, 2013. Net long-lived assets exclude goodwill and other intangible assets since they are not allocated on a geographic basis. The Company had net long-lived assets consisting of property and equipment in the following regions as of January 3, 2016 and December 28, 2014 (in thousands):
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Quarterly Financial Information (unaudited) |
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| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results and cash flows of interim periods. All quarters for fiscal years 2015 and 2014 ended January 3, 2016 and December 28, 2014 were 13 weeks, except for the fourth quarter of fiscal year 2015, which was 14 weeks. Summarized quarterly data for fiscal years 2015 and 2014 are as follows (in thousands, except per share amounts):
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Subsequent Events |
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| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events GRAIL, Inc. Investment In January 2016, GRAIL, Inc. (GRAIL), a new company, majority owned by Illumina, was formed to enable cancer screening via a blood test. GRAIL completed its initial round of Series A preferred stock financing, raising over $100 million, of which lllumina invested $40 million. In conjunction with this transaction, Illumina and GRAIL executed a long-term supply agreement that provides for discounted supply terms. Acquisitions In January 2016, the Company closed two acquisitions consisting of $18 million in upfront cash payments, equity instruments and certain contingent consideration provisions that could aggregate up to approximately $49 million upon the achievement of defined milestones. |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES |
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| Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Valuation and Qualifying Accounts and Reserves | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
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Organization and Summary of Significant Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | |||||||||||||
| Basis of Presentation | The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities (VIEs) for which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. |
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| Variable Interest Entity | The Company evaluates its ownership, contractual and other interests in entities that are not wholly-owned by the Company to determine if these entities are VIEs, and, if so, whether the Company is the primary beneficiary of the VIE. In determining whether the Company is the primary beneficiary of a VIE and is therefore required to consolidate the VIE, the Company applies a qualitative approach that determines whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in the consolidation or deconsolidation, as the case may be. |
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| Redeemable Noncontrolling Interests | Noncontrolling interests represent the portion of equity (net assets) in an entity that is not wholly-owned by the Company that is not attributable, directly or indirectly, to the Company. Noncontrolling interests with embedded contingent redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on the condensed consolidated balance sheets. |
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| Fiscal Year | The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The year ended January 3, 2016 was 53 weeks; the years ended December 28, 2014 and December 29, 2013 were 52 weeks. |
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| Use of Estimates | The preparation of financial statements requires that management make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
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| Recent Accounting Pronouncements | In February 2016, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2016-02, Leases (Topic 842). The new standard requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. ASU 2016-02 will be effective for the Company beginning in the first quarter of 2019. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of ASU 2016-02 on its consolidated financial statements. In February 2015, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new standard modifies current guidance on consolidation under the variable interest model and the voting model. ASU 2015-02 will be effective for the Company beginning in the first quarter of 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this standard. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning in the first quarter of 2018 and allows for a full retrospective or a modified retrospective adoption approach. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. |
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| Concentrations of Risk | The Company operates in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact the Company’s operating results. A portion of the Company’s customers consist of university and research institutions that management believes are, to some degree, directly or indirectly supported by the United States Government. A significant change in current research funding, particularly with respect to the U.S. National Institutes of Health, could have an adverse impact on the Company’s future revenues and results of operations. The Company is also subject to risks related to its financial instruments including its cash and cash equivalents, investments, and accounts receivable. Most of the Company’s cash and cash equivalents as of January 3, 2016 were deposited with U.S. financial institutions, either domestically or with their foreign branches. The Company’s investment policy restricts the amount of credit exposure to any one issuer to 5% of the portfolio or 5% of the total issue size outstanding at the time of purchase and to any one industry sector, as defined by Bloomberg classifications, to 30% of the portfolio at the time of purchase. There is no limit to the percentage of the portfolio that may be maintained in debt securities in U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. The Company’s products require customized products and components that currently are available from a limited number of sources. The Company sources certain key products and components included in its products from single vendors. The Company performs a regular review of customer activity and associated credit risks and does not require collateral or enter into netting arrangements. International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. The Company is also subject to general geopolitical risks, such as political, social and economic instability, and changes in diplomatic and trade relations. The risks of international sales are mitigated in part by the extent to which sales are geographically distributed. The Company has historically not experienced significant credit losses from investments and accounts receivable. |
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| Fair Value Measurements | The Company determines the fair value of its assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value:
The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities, excluding acquisition related contingent consideration liabilities, approximate the related fair values due to the short-term maturities of these instruments. |
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| Functional Currency | The U.S. dollar is the functional currency of the Company’s international operations. The Company re-measures its foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and records the net gains or losses resulting from re-measurement in other expense, net in the consolidated statements of income. |
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| Acquisitions | The Company measures all assets acquired and liabilities assumed, including contingent considerations and all contractual contingencies, at fair value as of the acquisition date. Contingent purchase considerations to be settled in cash are re-measured to estimated fair value at each reporting period with the change in fair value recorded in acquisition related gain, net, a component of operating expenses. In addition, the Company capitalizes in-process research and development (IPR&D) and either amortizes it over the life of the product upon commercialization, or impairs it if the project is abandoned. Post-acquisition adjustments in deferred tax asset valuation allowances and liabilities for uncertain tax positions are recorded in current period income tax expense. |
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| Cash Equivalents | Cash equivalents are comprised of short-term, highly liquid investments with maturities of 90 days or less at the date of purchase. |
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| Short-Term Investments | Short-term investments consist predominantly of debt securities in U.S. government-sponsored entities, corporate debt securities, and U.S. Treasury securities. Management classifies short-term investments as available-for-sale at the time of purchase and evaluates such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of their cost basis. Realized gains, losses, and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in interest income in the consolidated statements of income. |
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| Accounts Receivable | Trade accounts receivable are recorded at the net invoice value and are not interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company reserves specific receivables if collectibility is no longer reasonably assured. The Company also reserves a percentage of its trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. The Company re-evaluates such reserves on a regular basis and adjusts its reserves as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. |
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| Inventory | Inventory is stated at the lower of cost or market, on a first in, first out basis. Inventory includes raw materials and finished goods that may be used in the research and development process and such items are expensed as consumed or expired. Provisions for slow moving, excess, and obsolete inventories are estimated based on product life cycles, quality issues, historical experience, and usage forecasts. |
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| Property and Equipment | Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, which generally range from three to seven years, using the straight-line method. Amortization of leasehold improvements is recorded over the shorter of the lease term or the estimated useful life of the related assets. Maintenance and repairs are charged to operations as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expense. In 2015, as a part of the Company’s ongoing effort to upgrade its current information systems, the Company finished the implementation of the initial phase of a new enterprise resource planning software and applications to manage parts of its business operations. Certain costs incurred in the development of such internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development were capitalized as computer software costs. Costs incurred outside of the application development stage were expensed as incurred. |
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| Leases | Leases are reviewed and classified as capital or operating at their inception. Additionally, the Company evaluates whether it is the accounting owner during the construction period when the Company is involved in the construction of leased assets. The Company records rent expense on a straight-line basis over the term of the lease, which includes the construction build-out period and lease extension periods, if appropriate. The difference between rent payments and straight-line rent expense is recorded as deferred rent in accrued liabilities and other long-term liabilities. Landlord allowances are amortized on a straight-line basis over the lease term as a reduction to rent expense. The Company capitalizes leasehold improvements and amortizes the value over the shorter of the lease term or expected useful lives. Headquarter relocation expenses consisted of expenses such as accelerated depreciation expense, impairment of assets, additional rent expense during the transition period in 2012 when both the new and former headquarter facilities were occupied, moving expenses, cease-use losses, and accretion of interest expense on lease exit liability. The Company completed the relocation of its headquarters in 2012 to another facility in San Diego, California and recorded cease-use losses and the corresponding facility exit obligation upon vacating its former headquarters in 2011 and 2012, calculated as the present value of the remaining lease obligation offset by estimated sublease rental receipts during the remaining lease period, adjusted for deferred items and estimated lease incentives. The Company reassesses the facility exit obligation on a quarterly basis and the key assumptions used in the calculation include the amount and timing of estimated sublease rental receipts, and the risk-adjusted discount rate. |
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| Goodwill, Intangible Assets and Other Long-Lived Assets | Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. The change in the carrying value of goodwill during the year ended January 3, 2016, was due to a current year acquisition. Goodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. During its goodwill impairment review, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company proceeds to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of loss, which involves comparing the implied fair value of the goodwill to the carrying value of the goodwill. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the first step of the goodwill impairment test. The Company performed its annual assessment for goodwill impairment in the second quarter of 2015, noting no impairment. The Company’s identifiable intangible assets are typically comprised of acquired core technologies, licensed technologies, customer relationships, license agreements, and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. The Company regularly performs reviews to determine if any event has occurred that may indicate its intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, the Company performs an impairment test to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, the Company estimates the fair value of the assets and records an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in the Company’s stock price and market capitalization compared to its net book value, significant changes in the ability of a particular asset to generate positive cash flows the Company’s strategic business objectives, and the pattern of utilization of a particular asset. |
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| Derivatives | The Company is exposed to foreign exchange rate risks in the normal course of business. The Company enters into foreign exchange contracts to manage foreign currency risks related to monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. These foreign exchange contracts are carried at fair value in other assets or other liabilities and are not designated as hedging instruments. Changes in the value of the derivatives are recognized in other expense, net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities. |
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| Warranties | The Company generally provides a one-year warranty on instruments. Additionally, the Company provides a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses based on historical experience as well as anticipated product performance. The Company periodically reviews its warranty reserve for adequacy and adjusts the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. |
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| Revenue Recognition | The Company’s 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 and instrument service contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectibility is reasonably assured. In instances where final acceptance of the product or system is required, revenue is deferred until all the acceptance criteria have been met. The Company occasionally offers discounts on newly introduced products to recent customers of existing products. These promotions sometimes involve the trade-in of existing products in exchange for a discount on new products. Where applicable, the Company defers a portion of revenue on the sales of existing products in recognition of the promotional discounts until the delivery of new products. All revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities. Revenue from product sales is recognized generally upon transfer of title to the customer, provided that no significant obligations remain and collection of the receivable is reasonably assured. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from genotyping and sequencing services is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer or agreed upon milestones are reached. In order to assess whether the price is fixed or determinable, the Company evaluates whether an arrangement is cancellable or subject to future changes in price, deliverables, or other terms. If it is determined that the price is not fixed or determinable, the Company defers revenue recognition until the price becomes fixed or determinable. The Company assesses collectibility based on a number of factors, including past transaction history with, and the creditworthiness of, the customer. If the Company determines that collection of a payment is not reasonably assured, revenue recognition is deferred until receipt of payment. The Company regularly enters into contracts where revenue is derived from multiple deliverables including products or services. These products or services are generally delivered within a short time frame, approximately three to six months, after the contract execution date. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. For transactions with multiple deliverables, consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence exists, the Company uses its best estimate of the selling price for the deliverable. In order to establish VSOE of selling price, the Company must regularly sell the product or service on a standalone basis with a substantial majority priced within a relatively narrow range. VSOE of selling price is usually the midpoint of that range. If there are not a sufficient number of standalone sales and VSOE of selling price cannot be determined, then the Company considers whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within the industry, the Company has rarely established selling price using third-party evidence. If neither VSOE nor third party evidence of selling price exists, the Company determines its best estimate of selling price using average selling prices over a rolling 12-month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by the Company’s pricing committee adjusted for applicable discounts. The Company recognizes revenue for delivered elements only when it determines there are no uncertainties regarding customer acceptance. In certain markets, the Company sells products and provides services to customers through distributors that specialize in life science products. In most sales through distributors, the product is delivered directly to customers. In cases where the product is delivered to a distributor, revenue recognition is deferred until acceptance is received from the distributor, and/or the end-user, if required by the applicable sales contract. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers. These transactions are accounted for in accordance with the Company’s revenue recognition policy described herein. |
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| Share-Based Compensation | The Company incurs share-based compensation expense related to restricted stock, its Employee Stock Purchase Plan (ESPP), and stock options. Restricted stock units (RSU), restricted stock awards (RSA), and performance stock units (PSU) are all considered restricted stock. The fair value of restricted stock is determined by the closing market price of the Company’s common stock on the date of grant. The Company recognizes share-based compensation expense based on the fair value on a straight-line basis over the requisite service periods of the awards, taking into consideration estimated forfeitures. PSU represents a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, the Company reassesses the probability of the achievement of such corporate performance goals and any additional expenses resulting from an adjustment in the estimated shares to be released are treated as a cumulative catch-up in the period of adjustment. The Company uses the Black-Scholes-Merton option-pricing model to estimate the fair value of stock purchases under ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The Company determines the expected volatility by equally weighing the historical and implied volatility of the Company’s common stock. The historical volatility is generally commensurate with the estimated expected term of the Company’s stock awards, adjusted for the impact of unusual fluctuations and other relevant factors. The implied volatility is calculated from the implied market volatility of exchange-traded call options on the Company’s common stock. The expected term of an award is based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that the Company has never declared or paid cash dividends on its common stock and does not anticipate paying such cash dividends. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards. |
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| Shipping and Handling Expenses | Shipping and handling expenses are included in cost of product revenue. |
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| Research and Development | Research and development expenses include personnel expenses, contractor fees, license fees, facilities costs, and utilities. Expenditures relating to research and development are expensed in the period incurred. |
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| Advertising Costs | The Company expenses advertising costs as incurred. |
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| Income Taxes | The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date. Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when the Company believes it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise the Company considers all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies. The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense. |
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| Earnings per Share | Basic earnings per share attributable to Illumina stockholders is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Illumina stockholders is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under convertible senior notes, equity awards, and warrants. Convertible senior notes have a dilutive impact when the average market price of the Company’s common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards and warrants are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of equity awards and warrants; the average amount of unrecognized compensation expense for equity awards; and estimated tax benefits that will be recorded in additional paid-in capital when expenses related to equity awards become deductible. In loss periods, basic net loss per share and diluted net loss per share are identical because the otherwise dilutive potential common shares become anti-dilutive and are therefore excluded. |
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| Accumulated Other Comprehensive Income (Loss) | Comprehensive income is comprised of net income and other comprehensive income. Accumulated other comprehensive income (loss) on the consolidated balance sheets at January 3, 2016 and December 28, 2014 includes accumulated foreign currency translation adjustments and unrealized gains and losses on the Company’s available-for-sale securities. |
Organization and Summary of Significant Accounting Policies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Earnings Per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
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| Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Antidilutive Securities | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
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| Summary of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in thousands):
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Balance Sheet Account Details (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Short-term Investments | The following is a summary of short-term investments (in thousands):
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| Summary of Contractual Maturities of Available-for-sale Debt Securities | Contractual maturities of available-for-sale debt securities as of January 3, 2016 are as follows (in thousands):
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| Summary of Accounts Receivable | Accounts receivable, net consist of the following (in thousands):
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| Summary of Inventory | Inventory consists of the following (in thousands):
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| Summary of Property and Equipment | Property and equipment, net consists of the following (in thousands):
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| Summary of Changes in Goodwill | Changes to the Company’s goodwill balance during the years ended January 3, 2016 and December 28, 2014 are as follows (in thousands):
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| Summary of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
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| Summary of Activity of Redeemable Noncontrolling Interests | The activity of the redeemable noncontrolling interests during the year ended January 3, 2016 is as follows (in thousands):
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Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Identifiable Intangible Assets | The following is a summary of the Company’s identifiable intangible assets (in thousands):
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| Summary of Intangible Assets Acquired | Intangible assets acquired during the year ended January 3, 2016 are as follows (in thousands):
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| Summary of the Estimated Annual Amortization of Intangible Assets | The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, asset impairments, among other factors.
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of January 3, 2016 and December 28, 2014 (in thousands):
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| Summary of Changes in Estimated Fair Value of Contingent Consideration Liabilities | Changes in estimated fair value of contingent consideration liabilities from December 30, 2012 through January 3, 2016 are as follows (in thousands):
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Convertible Senior Notes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Conversion of 2016 Notes | The following table summarizes information about the conversion of the 2016 Notes during the year ended January 3, 2016 (in thousands):
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| Summary of Information about Equity and Liability Components of Convertible Senior Notes Outstanding | The following table summarizes information about the equity and liability components of all convertible senior notes outstanding as of the period reported (dollars in thousands). The fair values of the respective notes outstanding were measured based on quoted market prices, and is a Level 2 measurement.
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Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Annual Future Minimum Payments under Operating Leases | Annual future minimum payments under operating leases as of January 3, 2016 were as follows (in thousands):
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| Summary of Changes in the Facility Exit Obligation | Changes in the facility exit obligation from December 30, 2012 through January 3, 2016 are as follows (in thousands):
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| Summary of Annual Future Minimum Royalty Payments under Licensing Agreements | Annual future minimum royalty payments under the Company’s licensing agreements as of January 3, 2016 are as follows (in thousands):
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| Summary of Changes in Reserve for Product Warranties | Changes in the Company’s reserve for product warranties from December 30, 2012 through January 3, 2016 are as follows (in thousands):
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Share-based Compensation Expense (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Share-based Compensation Expense for all Stock Awards | Share-based compensation expense for all stock awards consists of the following (in thousands):
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| Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan | The assumptions used for the specified reporting periods and the resulting estimates of weighted-average grant date fair value per share of options granted and for stock purchased under the ESPP are as follows:
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Stockholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Restricted Stock Activity and Related Information, Restricted Stock | A summary of the Company’s restricted stock activity and related information from December 30, 2012 through January 3, 2016 is as follows (in thousands, except per share amounts):
______________________________________
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| Summary of Restricted Stock Activity and Related Information, Performance Units | A summary of the Company’s restricted stock activity and related information from December 30, 2012 through January 3, 2016 is as follows (in thousands, except per share amounts):
______________________________________
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| Summary of Pre-tax Intrinsic Values of Vested Restricted Stock | Pre-tax intrinsic values and total fair value of vested restricted stock are as follows (in thousands):
|
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| Summary of Total Fair Value of Vested Restricted Stock | Pre-tax intrinsic values and total fair value of vested restricted stock are as follows (in thousands):
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| Summary of Stock Option Activity Under all Stock Option Plans | The Company’s stock option activity under all stock option plans from December 30, 2012 through January 3, 2016 is as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Income before Income Taxes by Region | The income before income taxes summarized by region is as follows (in thousands):
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| Summary of Provision for Income Taxes | The provision for income taxes consists of the following (in thousands):
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| Summary of Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Federal Statutory Rate | The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income before taxes as follows (in thousands):
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| Summary of Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
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| Summary of the Gross Amount of Uncertain Tax Positions | The following table summarizes the gross amount of the Company’s uncertain tax positions (in thousands):
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Segment Information, Geographic Data, and Significant Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Revenue by Region | The Company had revenue in the following regions for the years ended January 3, 2016, December 28, 2014, and December 29, 2013 (in thousands):
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| Summary of Net Long-lived Assets Consisting of Property and Equipment by Region | The Company had net long-lived assets consisting of property and equipment in the following regions as of January 3, 2016 and December 28, 2014 (in thousands):
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Quarterly Financial Information (unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Quarterly Data | Summarized quarterly data for fiscal years 2015 and 2014 are as follows (in thousands, except per share amounts):
|
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Organization and Summary of Significant Accounting Policies - Narrative - Concentrations of Risk (Details) |
12 Months Ended | ||||
|---|---|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Credit concentration risk [Member] | Investment portfolio [Member] | |||||
| Concentration Risk [Line Items] | |||||
| Maximum investment portfolio credit exposure | 5.00% | ||||
| Credit concentration risk [Member] | Issue size [Member] | |||||
| Concentration Risk [Line Items] | |||||
| Maximum investment portfolio credit exposure | 5.00% | ||||
| Industry credit concentration risk [Member] | Investment portfolio [Member] | |||||
| Concentration Risk [Line Items] | |||||
| Maximum investment portfolio credit exposure | 30.00% | ||||
| Geographic concentration risk [Member] | Sales revenue, net [Member] | Outside the United States [Member] | |||||
| Concentration Risk [Line Items] | |||||
| Concentration percent | 46.00% | 49.00% | 50.00% | ||
| Geographic concentration risk [Member] | Accounts receivable [Member] | Outside the United States [Member] | |||||
| Concentration Risk [Line Items] | |||||
| Concentration percent | 48.00% | 48.00% | |||
Organization and Summary of Significant Accounting Policies - Narrative - Property and Equipment (Details) |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Minimum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 3 years |
| Maximum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 7 years |
Organization and Summary of Significant Accounting Policies - Narrative - Goodwill, Intangible Assets and Other Long-Lived Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Finite-Lived Intangible Assets [Line Items] | ||
| Impairments | $ (2,000) | $ 25,214 |
| Cost of product revenue [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Impairments | 25,200 | |
| Intangible asset impairments | $ 22,900 | |
Organization and Summary of Significant Accounting Policies - Narrative - Derivatives (Details) - USD ($) $ in Millions |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Foreign exchange forward [Member] | Not designated as hedging instrument [Member] | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Notional amount of outstanding forward contracts | $ 61.3 | $ 61.0 |
Organization and Summary of Significant Accounting Policies - Narrative - Warranties (Details) |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Instruments [Member] | |
| Product Warranty Liability [Line Items] | |
| Warranty period | 1 year |
| Consumables [Member] | Minimum [Member] | |
| Product Warranty Liability [Line Items] | |
| Warranty period | 6 months |
| Consumables [Member] | Maximum [Member] | |
| Product Warranty Liability [Line Items] | |
| Warranty period | 12 months |
Organization and Summary of Significant Accounting Policies - Narrative - Revenue Recognition (Details) |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
| Period of time average selling prices are observed to establish best estimate of selling price | 12 months |
| Minimum [Member] | |
| Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
| Product or service delivery period | 3 months |
| Maximum [Member] | |
| Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
| Product or service delivery period | 6 months |
Organization and Summary of Significant Accounting Policies - Narrative - Share-Based Compensation (Details) |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Accounting Policies [Abstract] | |
| Expected dividend yield | 0.00% |
Organization and Summary of Significant Accounting Policies - Narrative - Advertising Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Accounting Policies [Abstract] | |||
| Advertising expense | $ 18.5 | $ 16.4 | $ 14.5 |
Organization and Summary of Significant Accounting Policies - Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Weighted average shares used to calculate basic and diluted net income per share [Line Items] | |||
| Weighted average shares outstanding | 144,826 | 135,553 | 125,076 |
| Effect of potentially dilutive common shares from: | |||
| Convertible senior notes | 1,661 | 3,489 | 1,340 |
| Equity awards | 2,582 | 4,340 | 4,404 |
| Warrants | 5,595 | 9,116 | |
| Weighted average shares used in calculating diluted net income per share | 149,069 | 148,977 | 139,936 |
| Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 139 | 124 | 996 |
Organization and Summary of Significant Accounting Policies - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
Dec. 30, 2012 |
|---|---|---|---|---|
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Total accumulated other comprehensive income (loss) | $ 1,848,553 | $ 1,462,798 | $ 1,533,202 | $ 1,318,581 |
| Foreign currency translation adjustments [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Total accumulated other comprehensive income (loss) | 1,289 | 1,289 | ||
| Unrealized loss on available-for-sale securities, net of deferred tax [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Total accumulated other comprehensive income (loss) | (1,253) | (2,369) | ||
| AOCI attributable to parent [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Total accumulated other comprehensive income (loss) | $ 36 | $ (1,080) | $ 1,234 | $ 2,123 |
Balance Sheet Account Details - Summary of Short-term Investments (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Available-for-sale securities: | ||
| Amortized Cost | $ 618,955 | $ 705,487 |
| Gross Unrealized Gains | 47 | 61 |
| Gross Unrealized Losses | (1,552) | (3,331) |
| Estimated Fair Value | 617,450 | 702,217 |
| Debt securities in government sponsored entities [Member] | ||
| Available-for-sale securities: | ||
| Amortized Cost | 14,634 | 51,308 |
| Gross Unrealized Gains | 10 | |
| Gross Unrealized Losses | (8) | (55) |
| Estimated Fair Value | 14,626 | 51,263 |
| Corporate debt securities [Member] | ||
| Available-for-sale securities: | ||
| Amortized Cost | 422,177 | 502,924 |
| Gross Unrealized Gains | 44 | 46 |
| Gross Unrealized Losses | (1,127) | (2,882) |
| Estimated Fair Value | 421,094 | 500,088 |
| U.S. Treasury securities [Member] | ||
| Available-for-sale securities: | ||
| Amortized Cost | 182,144 | 151,255 |
| Gross Unrealized Gains | 3 | 5 |
| Gross Unrealized Losses | (417) | (394) |
| Estimated Fair Value | $ 181,730 | $ 150,866 |
Balance Sheet Account Details - Summary of Contractual Maturities of Available-for-sale Debt Securities (Details) $ in Thousands |
Jan. 03, 2016
USD ($)
|
|---|---|
| Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |
| Due within one year | $ 276,219 |
| After one but within five years | 341,231 |
| Total | $ 617,450 |
Balance Sheet Account Details - Narrative - Cost-Method Investments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Schedule of Cost-method Investments [Line Items] | |||
| Cost-method investment gain | $ 18.1 | $ 4.4 | $ 61.4 |
| Oxford Nanopore Technologies [Member] | |||
| Schedule of Cost-method Investments [Line Items] | |||
| Cost-method investment gain | 55.2 | ||
| Cost-method investee [Member] | |||
| Schedule of Cost-method Investments [Line Items] | |||
| Revenue from transactions with Company's cost-method investments in non-publicly traded companies | 61.0 | 39.8 | $ 31.7 |
| Other assets [Member] | |||
| Schedule of Cost-method Investments [Line Items] | |||
| Cost-method investments in non-publicly traded companies | $ 56.6 | $ 37.2 | |
Balance Sheet Account Details - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Accounts Receivable [Line Items] | ||
| Total accounts receivable, gross | $ 393,742 | $ 294,917 |
| Allowance for doubtful accounts | (8,213) | (5,459) |
| Total accounts receivable, net | 385,529 | 289,458 |
| Accounts receivable from product and service sales [Member] | ||
| Accounts Receivable [Line Items] | ||
| Total accounts receivable, gross | 393,106 | 292,847 |
| Other receivables [Member] | ||
| Accounts Receivable [Line Items] | ||
| Total accounts receivable, gross | $ 636 | $ 2,070 |
Balance Sheet Account Details - Summary of Inventory (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Inventory [Abstract] | ||
| Raw materials | $ 97,740 | $ 73,179 |
| Work in process | 138,322 | 94,102 |
| Finished goods | 34,715 | 23,863 |
| Total inventory | $ 270,777 | $ 191,144 |
Balance Sheet Account Details - Narrative - Property and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
|
| Property, Plant and Equipment [Line Items] | ||
| Accrued expenditures included in capital expenditures | $ 23.7 | $ 14.1 |
| Enterprise resource planning software and applications [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Capitalized computer software costs | $ 38.6 | $ 16.5 |
Balance Sheet Account Details - Summary of Changes in Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
|
| Goodwill Rollforward] | ||
| Balance at beginning of period | $ 724,904 | $ 723,061 |
| Current period acquisition | 27,725 | 3,338 |
| Purchase price allocation adjustments related to prior year acquisitions | (1,495) | |
| Balance at end of period | $ 752,629 | $ 724,904 |
Balance Sheet Account Details - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Accrued Liabilities, Current [Abstract] | ||
| Accrued compensation expenses | $ 120,662 | $ 112,606 |
| Deferred revenue, current portion | 96,654 | 75,294 |
| Accrued taxes payable | 44,159 | 38,942 |
| Acquisition related contingent consideration liability | 35,000 | 44,124 |
| Customer deposits | 20,901 | 20,274 |
| Other | 78,963 | 44,036 |
| Total accrued liabilities | $ 396,339 | $ 335,276 |
Balance Sheet Account Details - Narrative - Investment in Helix (Details) |
Jan. 03, 2016 |
Jul. 31, 2015 |
|---|---|---|
| Helix Holdings I, LLC [Member] | VIE, Primary beneficiary [Member] | ||
| Schedule of Equity Method Investments [Line Items] | ||
| Voting equity ownership interest percentage | 50.00% | 50.00% |
Balance Sheet Account Details - Narrative - Redeemable Noncontrolling Interests (Details) - Helix Holdings I, LLC [Member] - VIE, Primary beneficiary [Member] |
Jan. 03, 2016 |
Jul. 31, 2015 |
|---|---|---|
| Redeemable Noncontrolling Interest [Line Items] | ||
| Noncontrolling shareholders percentage | 50.00% | |
| Parent ownership percentage | 50.00% | 50.00% |
Balance Sheet Account Details - Summary of Activity of Redeemable Noncontrolling Interests (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Jan. 03, 2016
USD ($)
| |
| Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |
| Balance as of December 28, 2014 | $ 0 |
| Cash contributions | 56,875 |
| Amount held in escrow by third party | (24,747) |
| Vested portion of stock units | 418 |
| Net loss attributable to noncontrolling interests | (4,169) |
| Adjustment to the redemption value | 4,169 |
| Balance as of January 3, 2016 | $ 32,546 |
Intangible Assets - Narrative (Details) |
12 Months Ended |
|---|---|
Jan. 03, 2016 | |
| Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
| Remaining weighted-average amortization period for identifiable intangible assets | 7 years 7 months |
Intangible Assets - Summary of Intangible Assets Acquired (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Jan. 03, 2016
USD ($)
| |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Gross Carrying Amount | $ 12,853 |
| Core technologies [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Weighted-Average Useful Lives (in years) | 5 years |
| Gross Carrying Amount | $ 3,698 |
| Customer relationships [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Weighted-Average Useful Lives (in years) | 10 years |
| Gross Carrying Amount | $ 8,076 |
| License agreements [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Weighted-Average Useful Lives (in years) | 4 years 7 months |
| Gross Carrying Amount | $ 400 |
| Trade name [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Weighted-Average Useful Lives (in years) | 3 years |
| Gross Carrying Amount | $ 679 |
Intangible Assets - Summary of the Estimated Annual Amortization of Intangible Assets (Details) $ in Thousands |
Jan. 03, 2016
USD ($)
|
|---|---|
| Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
| 2016 | $ 49,608 |
| 2017 | 45,137 |
| 2018 | 35,652 |
| 2019 | 32,249 |
| 2020 | 24,533 |
| Thereafter | 86,442 |
| Total | $ 273,621 |
Fair Value Measurements - Summary of Changes in Estimated Fair Value of Contingent Consideration Liabilities (Details) - Contingent consideration liability [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
| Beginning balance | $ 44,124 | $ 49,480 | $ 12,519 |
| Additional liability recorded for current period acquisitions | 60,184 | ||
| Change in estimated fair value, recorded in acquisition related gain, net | (6,124) | (5,356) | (18,784) |
| Cash payments | (3,000) | (4,439) | |
| Ending balance | $ 35,000 | $ 44,124 | $ 49,480 |
Commitments - Summary of Annual Future Minimum Payments under Operating Leases (Details) $ in Thousands |
Jan. 03, 2016
USD ($)
|
|---|---|
| Operating Leases | |
| 2016 | $ 39,397 |
| 2017 | 37,909 |
| 2018 | 39,853 |
| 2019 | 43,027 |
| 2020 | 43,656 |
| Thereafter | 488,127 |
| Total minimum lease payments | 691,969 |
| Sublease Income | |
| 2016 | (3,252) |
| 2017 | (3,113) |
| 2018 | (3,206) |
| 2019 | (3,303) |
| 2020 | (3,291) |
| Thereafter | (8,878) |
| Total minimum lease payments | (25,043) |
| Net Operating Leases | |
| 2016 | 36,145 |
| 2017 | 34,796 |
| 2018 | 36,647 |
| 2019 | 39,724 |
| 2020 | 40,365 |
| Thereafter | 479,249 |
| Total minimum lease payments | $ 666,926 |
Commitments - Summary of Changes in the Facility Exit Obligation (Details) - Facility exit obligation [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Headquarter Facility Exit Obligation [Roll Forward] | |||
| Beginning balance | $ 37,700 | $ 38,218 | $ 45,352 |
| Adjustment to facility exit obligation | (5,303) | 2,555 | (114) |
| Accretion of interest expense | 2,294 | 2,638 | 2,738 |
| Cash payments | (12,531) | (5,711) | (9,758) |
| Ending balance | $ 22,160 | $ 37,700 | $ 38,218 |
Commitments - Summary of Annual Future Minimum Royalty Payments under Licensing Agreements (Details) - Royalty payments [Member] $ in Thousands |
Jan. 03, 2016
USD ($)
|
|---|---|
| Royalty Payments | |
| 2016 | $ 12,380 |
| 2017 | 13,410 |
| 2018 | 18,455 |
| 2019 | 23,500 |
| 2020 | 23,550 |
| Total minimum royalty payments | $ 91,295 |
Commitments - Summary of Changes in Reserve for Product Warranties (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Reserve for product warranties | |||
| Balance as of beginning of period | $ 15,616 | $ 10,407 | $ 10,136 |
| Additions charged to cost of revenue | 27,574 | 24,150 | 15,674 |
| Repairs and replacements | (26,473) | (18,941) | (15,403) |
| Balance as of end of period | $ 16,717 | $ 15,616 | $ 10,407 |
Share-based Compensation Expense - Summary of Share-based Compensation Expense for all Stock Awards (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Share-based Compensation | |||
| Share-based compensation expense before taxes | $ 132,593 | $ 152,551 | $ 105,826 |
| Related income tax benefits | (38,986) | (44,194) | (32,819) |
| Share-based compensation expense, net of taxes | 93,607 | 108,357 | 73,007 |
| Cost of product revenue [Member] | |||
| Share-based Compensation | |||
| Share-based compensation expense before taxes | 9,841 | 9,451 | 6,223 |
| Cost of service and other revenue [Member] | |||
| Share-based Compensation | |||
| Share-based compensation expense before taxes | 1,609 | 1,204 | 777 |
| Research and development [Member] | |||
| Share-based Compensation | |||
| Share-based compensation expense before taxes | 42,001 | 50,880 | 37,439 |
| Selling, general and administrative [Member] | |||
| Share-based Compensation | |||
| Share-based compensation expense before taxes | $ 79,142 | $ 91,016 | $ 61,387 |
Share-based Compensation Expense - Narrative (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Jan. 03, 2016
USD ($)
| |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Unrecognized compensation cost related to stock options, restricted stock units and ESPP shares issued to date | $ 281.6 |
| Weighted-average period of unrecognized compensation cost related to stock options, restricted stock, and ESPP shares issued to date | 2 years 11 months |
Stockholders' Equity - Summary of Pre-tax Intrinsic Values and Total Fair Value of Vested Restricted Stock (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Restricted stock awards (RSA) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Pre-tax intrinsic value of outstanding restricted stock | $ 4,041 | $ 20,321 | $ 27,384 |
| Fair value of restricted stock vested | 5,104 | 6,712 | 11,750 |
| Restricted stock units (RSU) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Pre-tax intrinsic value of outstanding restricted stock | 423,391 | 534,708 | 400,421 |
| Fair value of restricted stock vested | 85,683 | 76,646 | 56,212 |
| Performance stock units (PSU) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Pre-tax intrinsic value of outstanding restricted stock | 111,958 | 236,606 | $ 121,555 |
| Fair value of restricted stock vested | $ 45,014 | $ 37,313 | |
Stockholders' Equity - Narrative (Details) shares in Millions |
12 Months Ended |
|---|---|
|
Jan. 03, 2016
shares
| |
| 2015 Stock Plan [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Increase in the maximum number of shares of common stock authorized for issuance | 2.7 |
| 2015 Illumina and 2005 Solexa Equity Plans [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Shares available for issuance | 7.4 |
Stockholders' Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP [Member] - Employee stock [Member] - shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| ESPP number of shares reserved for issuance | 15.5 | ||
| Specified percentage of the fair market value of the common stock on the first or last day of the offering period whichever is lower at which stock is purchased | 85.00% | ||
| Total shares issued under the ESPP | 0.2 | 0.3 | 0.4 |
| Shares available for issuance | 14.5 | 14.7 | |
Stockholders' Equity - Narrative - Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
Jul. 31, 2013 |
Dec. 29, 2013 |
Dec. 31, 2007 |
|
| Equity [Abstract] | |||
| Number of common shares called by warrants | 18.3 | ||
| Price per right Board of Directors are entitled to redeem rights (in dollars per right) | $ 31.435 | ||
| Number of common shares callable by warrants settled in period | 3.0 | ||
| Payments on retirement of warrants (in dollars) | $ 125,000 | $ 125,000 |
Stockholders' Equity - Narrative - Share Repurchases (Details) - USD ($) shares in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
Oct. 29, 2015 |
May. 01, 2015 |
|
| Class of Stock [Line Items] | |||||
| Common stock repurchases | $ 274,324,000 | $ 237,183,000 | $ 50,020,000 | ||
| Common stock [Member] | |||||
| Class of Stock [Line Items] | |||||
| Repurchase of common shares (in shares) | 1.7 | 1.5 | 0.9 | ||
| Common stock repurchases | $ 274,300,000 | $ 237,200,000 | $ 50,000,000 | ||
| Dollar amount remaining in authorized stock repurchase program | $ 256,100,000 | ||||
| Common stock [Member] | Rule 10b5-1 Share Repurchase Plan [Member] | |||||
| Class of Stock [Line Items] | |||||
| Stock repurchase program authorized amount | $ 150,000,000 | ||||
| Common stock [Member] | October 2015 Share Repurchase Plan [Member] | |||||
| Class of Stock [Line Items] | |||||
| Stock repurchase program authorized amount | $ 250,000,000 | ||||
Income Taxes - Summary of Income before Income Taxes by Region (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Income Tax Disclosure [Abstract] | |||
| United States | $ 217,674 | $ 176,974 | $ (53,703) |
| Foreign | 365,468 | 271,784 | 213,017 |
| Income before income taxes | $ 583,142 | $ 448,758 | $ 159,314 |
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Current: | |||
| Federal | $ 106,062 | $ 60,984 | $ 78,419 |
| State | 18,240 | 12,381 | 8,854 |
| Foreign | 46,397 | 41,815 | 39,416 |
| Total current provision | 170,699 | 115,180 | 126,689 |
| Deferred: | |||
| Federal | (11,534) | (3,191) | (69,102) |
| State | (31,779) | (4,974) | (15,222) |
| Foreign | (1,634) | (11,608) | (8,359) |
| Total deferred benefit | (44,947) | (19,773) | (92,683) |
| Total tax provision | $ 125,752 | $ 95,407 | $ 34,006 |
Income Taxes - Summary of Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Federal Statutory Rate (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Income Tax Disclosure [Abstract] | |||
| Tax at federal statutory rate | $ 204,100 | $ 157,065 | $ 55,760 |
| State, net of federal benefit | 8,821 | 5,023 | 647 |
| Research and other credits | (19,853) | (16,144) | (10,977) |
| Change in valuation allowance | (3,750) | (4,212) | 10,544 |
| Change in fair value of contingent consideration | (2,143) | (1,321) | (3,859) |
| Impact of foreign operations | (42,356) | (42,215) | (18,006) |
| Cost sharing adjustment | (24,813) | ||
| Other | 5,746 | (2,789) | (103) |
| Total tax provision | $ 125,752 | $ 95,407 | $ 34,006 |
Income Taxes - Summary of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Deferred tax assets: | ||
| Net operating losses | $ 35,448 | $ 47,738 |
| Tax credits | 40,590 | 32,192 |
| Other accruals and reserves | 42,223 | 41,676 |
| Stock compensation | 52,199 | 54,570 |
| Deferred rent | 30,355 | 25,975 |
| Cost sharing adjustment | 24,813 | |
| Other amortization | 32,782 | 28,203 |
| Other | 27,727 | 36,048 |
| Total gross deferred tax assets | 286,137 | 266,402 |
| Valuation allowance on deferred tax assets | (13,392) | (15,191) |
| Total deferred tax assets | 272,745 | 251,211 |
| Deferred tax liabilities: | ||
| Purchased intangible amortization | (78,270) | (85,612) |
| Convertible debt | (47,863) | (61,383) |
| Property and equipment | (15,090) | (16,521) |
| Other | (825) | (1,670) |
| Total deferred tax liabilities | (142,048) | (165,186) |
| Net deferred tax assets | $ 130,697 | $ 86,025 |
Income Taxes - Summary of the Gross Amount of Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Balance at beginning of year | $ 52,088 | $ 49,046 | $ 37,585 |
| Increases related to prior year tax positions | 2,185 | 426 | 4,794 |
| Decreases related to prior year tax positions | (1,115) | (804) | (223) |
| Increases related to current year tax positions | 10,584 | 8,756 | 7,503 |
| Decreases related to lapse of statute of limitations | (7,600) | (5,336) | (613) |
| Balance at end of year | $ 56,142 | $ 52,088 | $ 49,046 |
Segment Information, Geographic Data, and Significant Customers - Summary of Revenue by Region (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2016 |
Sep. 27, 2015 |
Jun. 28, 2015 |
Mar. 29, 2015 |
Dec. 28, 2014 |
Sep. 28, 2014 |
Jun. 29, 2014 |
Mar. 30, 2014 |
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Revenue | $ 591,548 | $ 550,271 | $ 539,378 | $ 538,565 | $ 512,379 | $ 480,630 | $ 447,568 | $ 420,781 | $ 2,219,762 | $ 1,861,358 | $ 1,421,178 |
| United States [Member] | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Revenue | 1,207,373 | 950,703 | 714,662 | ||||||||
| Europe [Member] | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Revenue | 527,406 | 466,536 | 354,682 | ||||||||
| Asia-Pacific [Member] | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Revenue | 379,575 | 342,702 | 276,442 | ||||||||
| Other markets [Member] | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Revenue | $ 105,408 | $ 101,417 | $ 75,392 | ||||||||
Segment Information, Geographic Data, and Significant Customers - Narrative (Details) - Sales revenue, net [Member] - Product concentration risk [Member] |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Products and services, consumables [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Percent of sales | 58.00% | 56.00% | 62.00% |
| Products and services, instruments [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Percent of sales | 27.00% | 30.00% | 26.00% |
Segment Information, Geographic Data, and Significant Customers - Summary of Net Long-lived Assets Consisting of Property and Equipment by Region (Details) - USD ($) $ in Thousands |
Jan. 03, 2016 |
Dec. 28, 2014 |
|---|---|---|
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||
| Long-lived assets | $ 342,694 | $ 265,264 |
| United States [Member] | ||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||
| Long-lived assets | 273,193 | 204,717 |
| United Kingdom [Member] | ||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||
| Long-lived assets | 33,271 | 31,965 |
| Singapore [Member] | ||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||
| Long-lived assets | 30,127 | 22,326 |
| Other countries [Member] | ||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||
| Long-lived assets | $ 6,103 | $ 6,256 |
Quarterly Financial Information (unaudited) - Summary of Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2016 |
Sep. 27, 2015 |
Jun. 28, 2015 |
Mar. 29, 2015 |
Dec. 28, 2014 |
Sep. 28, 2014 |
Jun. 29, 2014 |
Mar. 30, 2014 |
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Quarterly Financial Information Disclosure [Abstract] | |||||||||||
| Total revenue | $ 591,548 | $ 550,271 | $ 539,378 | $ 538,565 | $ 512,379 | $ 480,630 | $ 447,568 | $ 420,781 | $ 2,219,762 | $ 1,861,358 | $ 1,421,178 |
| Gross profit | 410,359 | 387,539 | 376,365 | 375,027 | 384,937 | 333,941 | 300,540 | 278,292 | 1,549,290 | 1,297,710 | 911,887 |
| Consolidated net income | 102,864 | 115,621 | 102,247 | 136,658 | 457,390 | 353,351 | 125,308 | ||||
| Net loss attributable to noncontrolling interests | 1,613 | 2,556 | 4,169 | ||||||||
| Net income attributable to Illumina stockholders | $ 104,477 | $ 118,177 | $ 102,247 | $ 136,658 | $ 153,280 | $ 93,489 | $ 46,605 | $ 59,977 | $ 461,559 | $ 353,351 | $ 125,308 |
| Earnings per share attributable to Illumina stockholders: | |||||||||||
| Earnings per share attributable to Illumina stockholders, basic (in dollars per share) | $ 0.72 | $ 0.81 | $ 0.71 | $ 0.95 | $ 1.08 | $ 0.66 | $ 0.36 | $ 0.47 | $ 3.19 | $ 2.61 | $ 1.00 |
| Earnings per share attributable to Illumina stockholders, diluted (in dollars per share) | $ 0.70 | $ 0.79 | $ 0.69 | $ 0.92 | $ 1.03 | $ 0.63 | $ 0.31 | $ 0.40 | $ 3.10 | $ 2.37 | $ 0.90 |
Subsequent Events - Narrative (Details) - Subsequent event [Member] |
1 Months Ended |
|---|---|
|
Jan. 31, 2016
USD ($)
business
| |
| Subsequent Event [Line Items] | |
| Number of acquisitions closed | business | 2 |
| Upfront cash payments, equity instruments and certain contingent consideration provisions | $ 18,000,000 |
| Contingent consideration provisions | 49,000,000 |
| GRAIL, Inc. [Member] | |
| Subsequent Event [Line Items] | |
| Amount contributed | 40,000,000 |
| GRAIL, Inc. [Member] | |
| Subsequent Event [Line Items] | |
| Series A financing | $ 100,000,000 |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 03, 2016 |
Dec. 28, 2014 |
Dec. 29, 2013 |
|
| Movement in Valuation Allowances and Reserves [Roll Forward] | |||
| Balance at Beginning of Period | $ 5,459 | $ 3,680 | $ 4,280 |
| Additions Charged to Expenses/(Reductions from Revenue) | 3,213 | 1,870 | (422) |
| Deductions | (459) | (91) | (178) |
| Balance at End of Period | $ 8,213 | $ 5,459 | $ 3,680 |