ILLUMINA, INC., 10-K filed on 2/11/2020
Annual Report
v3.19.3.a.u2
Cover Page - USD ($)
shares in Millions, $ in Billions
 12 Months Ended
Dec. 29, 2019
Feb. 07, 2020
Jun. 28, 2019
Cover page.      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 29, 2019    
Document Transition Report false    
Entity File Number 001-35406    
Entity Registrant Name Illumina, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 33-0804655    
Entity Address, Address Line One 200 Illumina Way    
Entity Address, City or Town San Diego    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92122    
City Area Code 858    
Local Phone Number 202-4500    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol ILMN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   147  
Entity Public Float     $ 48.2
Entity Central Index Key 0001110803    
Current Fiscal Year End Date --12-29    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference Portions of the registrant’s definitive proxy statement for the 2020 annual meeting of stockholders are incorporated by reference into Items 10 through 14 of Part III of this Report    
v3.19.3.a.u2
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Current assets:    
Cash and cash equivalents $ 2,042 $ 1,144
Short-term investments 1,372 2,368
Accounts receivable, net 573 514
Inventory 359 386
Prepaid expenses and other current assets 105 78
Total current assets 4,451 4,490
Property and equipment, net 889 1,075
Operating lease right-of-use assets 555  
Goodwill 824 831
Intangible assets, net 145 185
Deferred tax assets, net 64 70
Other assets 388 308
Total assets 7,316 6,959
Current liabilities:    
Accounts payable 149 184
Accrued liabilities 516 513
Long-term debt, current portion 0 1,107
Total current liabilities 665 1,804
Operating lease liabilities 695  
Long-term debt 1,141 890
Other long-term liabilities 202 359
Commitments and contingencies
Redeemable noncontrolling interests 0 61
Stockholders’ equity:    
Preferred stock, $0.01 par value, 10 million shares authorized; no shares issued and outstanding at December 29, 2019 and December 30, 2018 0 0
Common stock, $0.01 par value, 320 million shares authorized; 194 million shares issued and 147 million outstanding at December 29, 2019; 192 million shares issued and 147 million outstanding at December 30, 2018 2 2
Additional paid-in capital 3,560 3,290
Accumulated other comprehensive income (loss) 5 (1)
Retained earnings 4,067 3,083
Treasury stock, 47 million shares and 45 million shares at cost at December 29, 2019 and December 30, 2018, respectively (3,021) (2,616)
Total Illumina stockholders’ equity 4,613 3,758
Noncontrolling interests 0 87
Total stockholders’ equity 4,613 3,845
Total liabilities and stockholders’ equity $ 7,316 $ 6,959
v3.19.3.a.u2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 29, 2019
Dec. 30, 2018
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 194,000,000 192,000,000
Common stock, shares outstanding 147,000,000 147,000,000
Treasury stock, shares 47,000,000 45,000,000
v3.19.3.a.u2
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Revenue:      
Total revenue $ 3,543 $ 3,333 $ 2,752
Cost of revenue:      
Amortization of acquired intangible assets 34 35 39
Total cost of revenue 1,076 1,033 926
Gross profit 2,467 2,300 1,826
Operating expense:      
Research and development 647 623 546
Selling, general and administrative 835 794 674
Total operating expense 1,482 1,417 1,220
Income from operations 985 883 606
Other income (expense):      
Interest income 75 44 19
Interest expense (52) (57) (37)
Other income, net 110 24 455
Total other income, net 133 11 437
Income before income taxes 1,118 894 1,043
Provision for income taxes 128 112 365
Consolidated net income 990 782 678
Add: Net loss attributable to noncontrolling interests 12 44 48
Net income attributable to Illumina stockholders 1,002 826 726
Net income attributable to Illumina stockholders for earnings per share $ 1,002 $ 826 $ 725
Earnings per share attributable to Illumina stockholders:      
Basic (in dollars per share) $ 6.81 $ 5.63 $ 4.96
Diluted (in dollars per share) $ 6.74 $ 5.56 $ 4.92
Shares used in computing earnings per share:      
Basic (in shares) 147 147 146
Diluted (in shares) 149 149 148
Product revenue      
Revenue:      
Total revenue $ 2,929 $ 2,749 $ 2,289
Cost of revenue:      
Cost of revenue 802 738 679
Service and other revenue      
Revenue:      
Total revenue 614 584 463
Cost of revenue:      
Cost of revenue $ 240 $ 260 $ 208
v3.19.3.a.u2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Consolidated net income $ 990 $ 782 $ 678
Unrealized gain on available-for-sale debt securities, net of deferred tax 6 0 0
Total consolidated comprehensive income 996 782 678
Add: Comprehensive loss attributable to noncontrolling interests 12 44 48
Comprehensive income attributable to Illumina stockholders $ 1,008 $ 826 $ 726
v3.19.3.a.u2
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive (Loss) Income
Retained Earnings
Treasury Stock
Noncontrolling Interests
Beginning balance (in shares) at Jan. 01, 2017   189       43  
Beginning balance at Jan. 01, 2017 $ 2,270 $ 2 $ 2,733 $ (1) $ 1,485 $ (2,022) $ 73
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 719       726   (7)
Unrealized gain on available-for-sale debt securities, net of deferred tax 0            
Issuance of common stock, net of repurchases (in shares)   2       (1)  
Issuance of common stock, net of repurchases (248)   71     $ (319)  
Share-based compensation 164   164        
Adjustment to the carrying value of redeemable noncontrolling interests (136)   (136)        
Deconsolidation of noncontrolling interests (55)   11       (66)
Vesting of redeemable equity awards (13)   (13)        
Ending balance (in shares) at Dec. 31, 2017   191       44  
Ending balance at Dec. 31, 2017 2,749 $ 2 2,833 (1) 2,256 $ (2,341) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 816       826   (10)
Unrealized gain on available-for-sale debt securities, net of deferred tax 0            
Issuance of common stock, net of repurchases (in shares)   1       1  
Issuance of common stock, net of repurchases (229)   46     $ (275)  
Share-based compensation 193   193        
Adjustment to the carrying value of redeemable noncontrolling interests 127   127        
Vesting of redeemable equity awards (2)   (2)        
Issuance of subsidiary shares 5           5
Contributions from noncontrolling interest owners 92           92
Issuance of convertible senior notes, net of tax impact 93   93        
Ending balance (in shares) at Dec. 30, 2018   192       45  
Ending balance at Dec. 30, 2018 3,845 $ 2 3,290 (1) 3,083 $ (2,616) 87
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 999       1,002   (3)
Unrealized gain on available-for-sale debt securities, net of deferred tax 6     6      
Issuance of common stock, net of repurchases (in shares)   2       2  
Issuance of common stock, net of repurchases (346)   59     $ (405)  
Share-based compensation 194   194        
Adjustment to the carrying value of redeemable noncontrolling interests 16   16        
Deconsolidation of noncontrolling interests (82)   2       (84)
Vesting of redeemable equity awards (1)   (1)        
Ending balance (in shares) at Dec. 29, 2019   194       47  
Ending balance at Dec. 29, 2019 $ 4,613 $ 2 $ 3,560 $ 5 $ 4,067 $ (3,021) $ 0
v3.19.3.a.u2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Consolidated net income $ 990 $ 782 $ 678
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation expense 151 140 110
Amortization of intangible assets 37 39 46
Share-based compensation expense 194 193 164
Accretion of debt discount 46 41 30
Deferred income taxes 11 (18) 81
Payment of accreted debt discount (84) 0 0
Unrealized gains on marketable equity securities (53) (21) 0
Gains on deconsolidation (54) 0 (453)
Loss on Continuation Advances 8 0 0
Impairment of intangible assets     23
Other (1) 4 1
Changes in operating assets and liabilities:      
Accounts receivable (58) (105) (26)
Inventory 25 (53) (33)
Prepaid expenses and other current assets (14) 5 8
Operating lease right-of-use assets and liabilities, net (5)    
Other assets (30) (9) (5)
Accounts payable (35) 45 10
Accrued liabilities (44) 103 81
Other long-term liabilities (33) (4) 160
Net cash provided by operating activities 1,051 1,142 875
Cash flows from investing activities:      
Maturities of available-for-sale securities 1,387 860 321
Purchases of available-for-sale securities (1,010) (2,859) (742)
Sales of available-for-sale securities 629 597 322
Purchases of property and equipment (209) (296) (310)
Net purchases of strategic investments (20) (15) (29)
Cash paid for Continuation Advances (18) 0 0
Deconsolidation of Helix and GRAIL cash (29) 0 (52)
Proceeds from the deconsolidation of GRAIL 15   278
Net cash paid for acquisitions 0 (100) 0
Cash paid for intangible assets     (2)
Net cash provided by (used in) investing activities 745 (1,813) (214)
Cash flows from financing activities:      
Payments on financing obligations (550) (4) (9)
Net proceeds from issuance of debt 0 735 5
Common stock repurchases (324) (201) (251)
Proceeds from issuance of common stock 59 46 71
Taxes paid related to net share settlement of equity awards (82) (74) (68)
Contributions from noncontrolling interest owners 0 92 79
Payments on acquisition related contingent consideration liability     (3)
Net cash (used in) provided by financing activities (897) 594 (176)
Effect of exchange rate changes on cash and cash equivalents (1) (4) 5
Net increase (decrease) in cash and cash equivalents 898 (81) 490
Cash and cash equivalents at beginning of year 1,144 1,225 735
Cash and cash equivalents at end of year 2,042 1,144 1,225
Supplemental cash flow information:      
Cash paid for income taxes 164 $ 99 $ 149
Cash paid for operating lease liabilities $ 84    
v3.19.3.a.u2
Organization and Significant Accounting Policies
 12 Months Ended
Dec. 29, 2019
Accounting Policies [Abstract]  
Organization and Significant Accounting Policies
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Business Overview

We are a provider of sequencing- and array-based solutions, serving customers in the research, clinical and applied markets.  Our products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. Our customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies.

Basis of Presentation

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and include our accounts, our wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.

Variable Interest Entities (VIEs)

We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have 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. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE. See note “3. Investments and Fair Value Measurements” for further details.

Use of Estimates

The preparation of the consolidated 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.

Fiscal Year

Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. References to 2019, 2018, and 2017 refer to fiscal years ended December 29, 2019, December 30, 2018, and December 31, 2017, respectively, all of which were 52 weeks.

Functional Currency

The U.S. dollar is the functional currency of our international operations. We re-measure foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and record the net gains or losses resulting from re-measurement in other income, net in the consolidated statements of income.

Concentrations of Risk

Customers

We operate 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 our operating results. A portion of our 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 future revenues and results of operations.

International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. We are 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. Shipments to customers outside the United States comprised 48%, 47%, and 45% of total revenue in 2019, 2018, and 2017, respectively. Customers outside the United States represented 53% and 44% of our gross trade accounts receivable balance as of December 29, 2019 and December 30, 2018, respectively.

We had no customers that provided more than 10% of total revenue in 2019, 2018, and 2017. We perform regular reviews of customer activity and associated credit risks and do not require collateral or enter into netting arrangements. Historically, we have not experienced significant credit losses from accounts receivable.

Financial Instruments

We are also subject to risks related to our financial instruments, including cash and cash equivalents, investments, and accounts receivable. Most of our cash and cash equivalents as of December 29, 2019 were deposited with U.S. financial institutions, either domestically or with their foreign branches. Our 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 Clearwater Analytics (Industry Sector Report), 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, U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. Historically, we have not experienced significant credit losses from financial instruments.

Suppliers

We require customized products and components that currently are available from a limited number of sources. We source certain key products and components included in our products from single vendors.

Segments

We report segment information based on the management approach. This approach designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. Management evaluates the performance of our reportable segments based upon income (loss) from operations. We do not allocate expenses between segments.

Accounting Pronouncements Adopted in 2019

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets and to disclose key information about leasing arrangements. We adopted Topic 842 on its effective date in the first quarter of 2019 using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of December 31, 2018.
We elected the available package of practical expedients upon adoption, which allowed us to carry forward our historical assessment of whether existing agreements contained a lease and the classification of our existing operating leases. We continue to report our financial position as of December 30, 2018 under the former lease accounting standard (Topic 840) in our consolidated balance sheet.
The following table summarizes the impact of Topic 842 on our consolidated balance sheet upon adoption on December 31, 2018:
 
December 31, 2018
In millions
Pre-adoption
 
Adoption Impact
 
Post-adoption
ASSETS
 
 
 
 
 
Prepaid expenses and other current assets
$
78

 
$
(8
)
 
$
70

Property and equipment, net
1,075

 
(241
)
 
834

Operating lease right-of-use assets
—

 
579

 
579

Deferred tax assets, net
70

 
6

 
76

Total assets
$
1,223

 
$
336

 
$
1,559

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Accrued liabilities
$
513

 
$
36

 
$
549

Operating lease liabilities
—

 
722

 
722

Long-term debt
1,107

 
(269
)
 
838

Other long-term liabilities
359

 
(135
)
 
224

Retained earnings
3,083

 
(18
)
 
3,065

Total liabilities and stockholders’ equity
$
5,062

 
$
336

 
$
5,398



The adoption impact summarized above was primarily due to the recognition of operating lease liabilities with corresponding right-of-use assets based on the present value of our remaining minimum lease payments, and the derecognition of existing fixed assets and financing obligations related to build-to-suit leasing arrangements that, under Topic 840, did not qualify for sale-leaseback accounting. The difference between these amounts, net of deferred tax, was recorded as a cumulative-effect adjustment to retained earnings.

Accounting Pronouncements Adopted in 2018

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard is based on the principle that revenue should be recognized in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of promised goods or services. We adopted Topic 606 using the modified retrospective transition method. The cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. There was no material difference to the consolidated financial statements in 2018 due to the adoption of Topic 606.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), which requires equity investments (other than those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value recognized in net income. This standard was effective for us beginning in the first quarter of 2018. Based on our elections, our equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient for estimating fair value are measured at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identifiable or similar investments of the same issuer. This measurement alternative was applied prospectively to such equity securities and did not result in an adjustment to retained earnings.

Accounting Pronouncements Adopted in 2017

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), which aims to simplify the accounting for share-based payment transactions, including accounting for income taxes, classification
on the statement of cash flows, accounting for forfeitures, and classification of awards as either liabilities or equity. This ASU was effective for us beginning in the first quarter of 2017. This new standard increased the volatility of net income by requiring excess tax benefits from share-based payment arrangements to be classified as discrete items within the provision for income taxes, rather than recognizing excess tax benefits in additional paid-in capital. Upon adoption in the first quarter of 2017, we recorded $45 million, net, to retained earnings, primarily related to unrealized tax benefits associated with share-based compensation. As a result of the adoption of this new standard, we made an accounting policy election to recognize forfeitures as they occur and no longer estimate expected forfeitures. In addition, ASU 2016-09 requires that excess income tax benefits from share-based compensation arrangements be classified as cash flow from operations, rather than cash flow from financing activities. We elected to apply the cash flow classification guidance retrospectively.

Accounting Pronouncements Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. We will adopt the standard on its effective date in the first quarter of 2020, using a modified retrospective approach.  We currently do not expect the adoption to have a material impact on our consolidated financial statements.

Revenue Recognition

Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services, instrument service contracts, and development and licensing agreements.

We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone 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, we rely upon prices set by management, adjusted for applicable discounts.

Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and payment is typically due within 60 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. 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. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from development and licensing agreements generally includes upfront and periodic licensing fees, contract research and development services, or payments for development and regulatory milestones. Revenue for these agreements is recognized when each distinct performance obligation is satisfied.

Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred as the amortization period for such costs, if capitalized, would have been one year or less.

In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers.

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. Up to April 25, 2019 and February 28, 2017, the date of the Helix and GRAIL deconsolidations, respectively, per-share losses of Helix and GRAIL were included in the consolidated basic and diluted earnings per share computations based on our share of the entities’ securities.

Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares.

The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share:
 
Years Ended
In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Weighted average shares outstanding
147

 
147

 
146

Effect of potentially dilutive common shares from:
 
 
 
 
 
Equity awards
1

 
1

 
2

Convertible senior notes
1

 
1

 
—

Weighted average shares used in calculating diluted earnings per share
149

 
149

 
148


Fair Value Measurements

The fair value of assets and liabilities are 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. We use 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:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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 approximate the related fair values due to the short-term maturities of these instruments.

Cash Equivalents and Debt Securities

Cash equivalents are comprised of short-term, highly-liquid investments with maturities of 90 days or less at the date of purchase.

We hold debt securities in U.S. government-sponsored entities, corporate debt securities, and U.S. Treasury securities. We have the ability, if necessary, to liquidate any of our short-term debt securities to meet our liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as short-term investments on the accompanying consolidated balance sheets. We classify short-term debt investments as available-for-sale at the time of purchase and evaluate such classification as of each balance sheet date. All short-term debt investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale debt securities are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. We evaluate our debt 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 securities will be sold 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 recorded in interest income in the consolidated statements of income.

Equity Securities and Investments

We have strategic investments in privately-held companies (non-marketable equity securities) and companies that have completed initial public offerings (marketable equity securities). Our marketable equity securities are measured at fair value. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Equity investments are classified as current or noncurrent based on the nature of the securities and their availability for use in current operations. Unrealized gains and losses for equity investments are recorded in other income, net in the consolidated statements of income.

Our equity investments are assessed for impairment quarterly. Impairment losses, equal to the difference between the carrying value and the fair value of the investment, are recorded in other income, net.

We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income, net.

Revenue recognized from transactions with our strategic investees was $71 million, $143 million, and $127 million in 2019, 2018, and 2017, respectively.

Accounts Receivable

Trade accounts receivable are recorded at the net invoice value and are not interest-bearing. Receivables are considered past due based on the contractual payment terms. We reserve specific receivables if collectibility is no longer probable. We also reserve a percentage of our trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. These reserves are re-evaluated on a regular basis and adjusted 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 net realizable value, 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 capitalized as property and equipment and depreciated. Inventory write-downs 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, using the straight-line method. Depreciation 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 expensed 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.

Costs incurred to develop internal-use software during the application development stage are recorded as computer software costs, at cost. Costs incurred in the development of such internal-use software, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software application development, are capitalized. Cost incurred outside of the application development stage are expensed as incurred.

The estimated useful lives of the major classes of property and equipment are generally as follows:
 
Estimated Useful Lives
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years


Leases

We lease approximately 2.5 million square feet of office, lab, manufacturing, and distribution facilities under various non-cancellable operating lease agreements (real estate leases). Our real estate leases have remaining lease terms of approximately 1 to 19 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms, ranging from approximately 6 months to 20 years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common-area-maintenance and administrative services. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. We do not have any material financing leases.

Operating lease right-of-use assets and liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components; therefore, fixed payments for common-area-maintenance and administrative services are included in our operating lease right-of-use assets and liabilities. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in our operating lease liabilities and are recorded on a straight-line basis over the lease terms. We sublease certain real estate to third parties and this sublease income is also recorded on a straight-line basis.

Goodwill, Intangible Assets and Other Long-Lived Assets

Assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired.

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 the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than the carrying amounts, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair values of our reporting units are less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair values of the reporting units with the carrying values, including goodwill. If the carrying amounts of the reporting units exceed the fair values, the second step of the goodwill impairment test is performed to determine the amount of loss, which involves comparing the implied fair values of the goodwill to the carrying values of the goodwill. We 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.

Our 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.

We perform regular reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed 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, we estimate the fair value of the assets and record 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 our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.

Derivatives

We are exposed to foreign exchange rate risks in the normal course of business. We enter 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 current assets or accrued liabilities and are not designated as hedging instruments. Changes in the value of the derivatives are recognized in other income, net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities.

As of December 29, 2019, we had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, Australian dollar, Canadian dollar, Singapore dollar, and British pound. As of December 29, 2019 and December 30, 2018, the total notional amounts of outstanding forward contracts in place for foreign currency purchases was $252 million and $122 million, respectively.

Warranties

We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust 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.

Share-Based Compensation

Share-based compensation expense is incurred related to restricted stock and Employee Stock Purchase Plan (ESPP).

Restricted stock units (RSU) and performance stock units (PSU) are both considered restricted stock. The fair value of restricted stock is determined by the closing market price of our common stock on the date of grant. Share-based compensation expense is recognized based on the fair value on a straight-line basis over the requisite service periods of the awards. 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, we reassess the probability of the achievement of such corporate performance goals and any increase or decrease in share-based compensation expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of adjustment.

The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchased under our ESPP. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The expected volatility is determined by equally weighing the historical and implied volatility of our common stock. The historical volatility is generally commensurate with the estimated expected term, 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 our common stock. The expected term is based on historical forfeiture experience and the terms and conditions of the ESPP. The expected dividend yield is determined to be 0% given that we have never declared or paid cash dividends on our common stock and do 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.

Forfeitures are accounted for, as incurred, as a reversal of share-based compensation expense related to awards that will not vest.

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, facilities-related costs, material costs, and license fees. Expenditures relating to research and development are expensed in the period incurred.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were $28 million, $38 million, and $30 million in 2019, 2018, and 2017, 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 we believe 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, we consider 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 impact of a tax position is recognized in the consolidated 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.
v3.19.3.a.u2
Revenue
 12 Months Ended
Dec. 29, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
2. REVENUE

Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services, instrument service contracts, and development and licensing agreements.

Revenue by Source
 
2019
 
2018
 
2017
in millions
Sequencing
 
Microarray
 
Total
 
Sequencing
 
Microarray
 
Total
 
Sequencing
 
Microarray
 
Total
Consumables
$
2,075

 
$
317

 
$
2,392

 
$
1,824

 
$
353

 
$
2,177

 
$
1,484

 
$
287

 
$
1,771

Instruments
517

 
20

 
537

 
535

 
37

 
572

 
487

 
31

 
518

Total product revenue
2,592

 
337

 
2,929

 
2,359

 
390

 
2,749

 
1,971

 
318

 
2,289

Service and other revenue
476

 
138

 
614

 
416

 
168

 
584

 
322

 
141

 
463

Total revenue
$
3,068

 
$
475

 
$
3,543

 
$
2,775

 
$
558

 
$
3,333

 
$
2,293

 
$
459

 
$
2,752


Revenue by Geographic Area
Based on region of destination (in millions)
2019
 
2018
 
2017
Americas (1)
$
1,970

 
$
1,864

 
$
1,585

Europe, Middle East, and Africa
933

 
851

 
653

Greater China (2)
372

 
365

 
292

Asia-Pacific
268

 
253

 
222

Total revenue
$
3,543

 
$
3,333

 
$
2,752

(1) Revenue for the Americas region included United States revenue of $1,859 million, $1,779 million, and $1,511 million in 2019, 2018, and 2017, respectively.
(2) Region includes revenue from China, Taiwan, and Hong Kong.

Performance Obligations

We regularly enter into contracts with multiple performance obligations. Most performance obligations are generally satisfied within a short time frame, approximately three to six months, after the contract execution date. As of December 29, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $980 million, of which approximately 66% is expected to be converted to revenue through 2020, approximately 14% in the following twelve months, and the remainder thereafter.

Contract Liabilities

Contract liabilities, which consist of deferred revenue and customer deposits, as of December 29, 2019 and December 30, 2018 were $209 million and $206 million, respectively, of which the short-term portions of $167 million and $175 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in 2019 included $150 million of previously deferred revenue that was included in contract liabilities as of December 30, 2018.
v3.19.3.a.u2
Investments and Fair Value Measurements
 12 Months Ended
Dec. 29, 2019
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements
3. INVESTMENTS AND FAIR VALUE MEASUREMENTS

Debt Securities

Our short-term investments are primarily available-for-sale debt securities that consisted of the following:
 
December 29, 2019
 
December 30, 2018
In millions
Amortized
Cost
 
Gross
Unrealized
Gains
 
 
Estimated
Fair Value
 
 Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
 
Estimated
Fair Value
Debt securities in government-sponsored entities
$
18

 
$
—

 
$
18

 
$
21

 
$
—

 
$
—

 
$
21

Corporate debt securities
627

 
3

 
630

 
1,060

 
—

 
(2
)
 
1,058

U.S. Treasury securities
616

 
2

 
618

 
1,250

 
1

 
(1
)
 
1,250

Total
$
1,261

 
$
5

 
$
1,266

 
$
2,331

 
$
1

 
$
(3
)
 
$
2,329



Contractual maturities of available-for-sale debt securities, as of December 29, 2019, were as follows:
In millions
Estimated Fair Value
Due within one year
$
512

After one but within five years
754

Total
$
1,266



Strategic Investments

Marketable Equity Securities

As of December 29, 2019 and December 30, 2018, the fair value of our marketable equity securities, included in short-term investments, totaled $106 million and $39 million, respectively. Total unrealized gains on our marketable equity securities, included in other income, net, were $53 million and $21 million in 2019 and 2018, respectively.

Non-Marketable Equity Securities

As of December 29, 2019 and December 30, 2018, the aggregate carrying amounts of our non-marketable equity securities without readily determinable fair values, included in other assets, were $220 million and $231 million, respectively. The decline was primarily due to the reclassification of an equity security that became marketable in 2019 to short-term investments.

One of our non-marketable equity investments is a VIE for which we have concluded that we are not the primary beneficiary, and therefore, we do not consolidate this VIE in our consolidated financial statements. We have determined our maximum exposure to loss, as a result of our involvement with the VIE, to be the carrying value of our investment, which was $190 million and $189 million as of December 29, 2019 and December 30, 2018, respectively, recorded in other assets.

Venture Funds

We invest in two venture capital investment funds (the Funds) with capital commitments of $100 million, callable through April 2026, and up to $160 million, callable through July 2029, respectively, of which $51 million and up to $160 million, respectively, remained callable as of December 29, 2019. Our investments in the Funds are accounted for as equity-method investments. The aggregate carrying amounts of the Funds, included in other assets, were $53 million and $29 million as of December 29, 2019 and December 30, 2018, respectively.

Consolidated Variable Interest Entities

Helix Holdings I, LLC

In July 2015, we 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. We determined that Helix was a VIE 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, we determined that we had (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, we were deemed to be the primary beneficiary of Helix and were required to consolidate Helix.

As contractually committed, in July 2015, we contributed certain perpetual licenses, instruments, intangibles, initial laboratory setup, and discounted supply terms in exchange for voting equity interests in Helix. Such contributions were recorded at their historical basis as they remained within our control. Helix was financed through cash contributions made by us and the third-party investors in exchange for voting equity interests in Helix. During 2018, we made additional investments of $100 million in exchange for voting equity interests in Helix. As of December 30, 2018, the noncontrolling shareholders and Illumina each held 50% of Helix’s outstanding voting equity interests.

Certain noncontrolling Helix investors may have required us to redeem certain noncontrolling interests in cash at the then approximate redemption fair market value. Such redemption right was exercisable at the option of certain noncontrolling interest holders after January 1, 2021, provided that a bona fide pursuit of the sale of Helix had occurred and an initial public offering of Helix had not been completed. As the contingent redemption was outside of our control, the redeemable noncontrolling interests in Helix was classified outside of stockholders’ equity on the accompanying consolidated balance sheets. The balance of the redeemable noncontrolling interests was 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. The fair value of the redeemable noncontrolling interests was considered a Level 3 instrument.

As of December 30, 2018, the accompanying consolidated balance sheet included $127 million of cash, cash equivalents, and short-term investments attributable to Helix that could be used to settle its respective obligations and was not available to settle obligations of Illumina. The remaining assets and liabilities of Helix were not significant to our financial position as of December 30, 2018. Helix had an immaterial impact on our consolidated statements of income and cash flows in all periods presented.

On April 25, 2019, we entered into an agreement to sell our interest in, and relinquish control over, Helix. As part of the agreement, (i) Helix repurchased all of our outstanding equity interests in exchange for a contingent value right with a 7-year term that entitles us to consideration dependent upon the outcome of Helix’s future financing and/or liquidity events, (ii) we ceased having a controlling financial interest in Helix, including unilateral power over one of the activities that most significantly impacts the economic performance of Helix, (iii) we were relieved of any potential obligation to redeem certain noncontrolling interests, and (iv) we no longer have representation on Helix’s board of directors. As a result, we deconsolidated Helix’s financial statements effective April 25, 2019 and recorded a gain on deconsolidation of $39 million in other income, net. The gain on deconsolidation included (i) the contingent value right received from Helix recorded at a fair value of approximately $30 million, (ii) the derecognition of the carrying amounts of Helix’s assets and liabilities, and (iii) the derecognition of the noncontrolling interests related to Helix.

As of December 29, 2019, the fair value of the contingent value right received from Helix, included in other assets, was $29 million. Changes in the fair value of the contingent value right resulted in a $1 million unrealized loss in 2019, included in other income, net.

GRAIL, Inc.

In 2016, we obtained a majority equity ownership interest in GRAIL, a company formed with unrelated third-party investors to develop a blood test for early-stage cancer detection. At that time, we determined that GRAIL was a VIE as the entity lacked sufficient equity to finance its activities without additional support. Additionally, we determined that we were the primary beneficiary of GRAIL and were required to consolidate GRAIL. On February 28, 2017, GRAIL completed the initial close of its Series B preferred stock financing, we ceased to have a controlling financial interest in GRAIL, and our equity ownership was reduced from 52% to 19%. Additionally, our voting interest was reduced to 13% and we no longer had representation on GRAIL’s board of directors. As a result, we deconsolidated GRAIL’s financial statements effective February 28, 2017 and recorded a pretax gain on deconsolidation of $453 million in other income, net.

Fair Value Measurements

The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
 
December 29, 2019
 
December 30, 2018
In millions
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds (cash equivalents)
$
1,732

 
$
—

 
$
—

 
$
1,732

 
$
832

 
$
—

 
$
—

 
$
832

Debt securities in government-sponsored entities
—

 
18

 
—

 
18

 
—

 
21

 
—

 
21

Corporate debt securities
—

 
630

 
—

 
630

 
—

 
1,058

 
—

 
1,058

U.S. Treasury securities
618

 
—

 
—

 
618

 
1,250

 
—

 
—

 
1,250

Marketable equity securities
106

 
—

 
—

 
106

 
39

 
—

 
—

 
39

Contingent value right
—

 
—

 
29

 
29

 
—

 
—

 
—

 
—

Continuation Advances
—

 
—

 
10

 
10

 
—

 
—

 
—

 
—

Deferred compensation plan assets
—

 
48

 
—

 
48

 
—

 
34

 
—

 
34

Total assets measured at fair value
$
2,456

 
$
696

 
$
39

 
$
3,191

 
$
2,121

 
$
1,113

 
$
—

 
$
3,234

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation plan liability
$
—

 
$
46

 
$
—

 
$
46

 
$
—

 
$
33

 
$
—

 
$
33



We hold available-for-sale securities that consist of highly-liquid, investment-grade debt securities and marketable equity securities. We consider information provided by our investment accounting and reporting service provider in the measurement of fair value of our debt securities. The investment service provider provides valuation information from an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit 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. Our marketable equity securities are measured at fair value based on quoted trade prices in active markets. Our deferred compensation plan assets consist primarily of investments in life insurance contracts carried at cash surrender value, which reflects the net asset value of the underlying publicly traded mutual funds. We perform control procedures to corroborate the fair value of our holdings, including comparing valuations obtained from our
investment service provider to valuations reported by our asset custodians, validating pricing sources and models, and reviewing key model inputs, if necessary. We elected the fair value option to measure the contingent value right received from Helix. The fair value of our contingent value right is derived using a Monte Carlo simulation. The Continuation Advances (as defined below), related to the terminated merger agreement with Pacific Biosciences of California, Inc. (PacBio), are a derivative asset measured at fair value. Significant estimates and assumptions required for these valuations include, but are not limited to, probabilities related to the timing and outcome of future financing and/or liquidity events and an assumption regarding collectibility. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value.
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions
 12 Months Ended
Dec. 29, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Goodwill, and Acquisitions
4. INTANGIBLE ASSETS, GOODWILL, AND ACQUISITIONS

Intangible Assets
 
December 29, 2019
 
December 30, 2018
In millions
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Intangibles,
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Intangibles,
Net
Licensed technologies
$
95

 
$
(89
)
 
$
6

 
$
95

 
$
(83
)
 
$
12

Core technologies
325

 
(195
)
 
130

 
331

 
(172
)
 
159

Customer relationships
31

 
(27
)
 
4

 
32

 
(27
)
 
5

License agreements
14

 
(10
)
 
4

 
14

 
(9
)
 
5

Trade name
4

 
(3
)
 
1

 
9

 
(5
)
 
4

Total intangible assets, net
$
469

 
$
(324
)
 
$
145

 
$
481

 
$
(296
)
 
$
185



The estimated annual amortization of intangible assets for the next five years is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
In millions
Estimated Annual Amortization
2020
$
29

2021
25

2022
21

2023
20

2024
19

Thereafter
31

Total
$
145



During 2017, we performed a recoverability test when the planned use of a finite-lived acquired intangible asset changed, resulting in an impairment charge of $18 million recorded in cost of product revenue. Also, during 2017, we recorded a $5 million impairment charge of in-process research and development as the project had no future alternative use. Such impairments were recorded within the Core Illumina reportable segment. See further discussion of our segments in note “11. Segment Information and Geographic Data.”

Goodwill
In millions
Goodwill
Balance as of December 31, 2017
$
771

Acquisitions
60

Balance as of December 30, 2018
831

Helix deconsolidation
(7
)
Balance as of December 29, 2019
$
824



We performed the annual assessment for goodwill impairment in the second quarter of 2019, noting no impairment.

Acquisitions

Edico Genome

On May 14, 2018, we acquired Edico Genome, a provider of data analysis acceleration solutions for next-generation sequencing (NGS) for total cash consideration of $100 million, net of cash acquired. As a result of this transaction, we recorded $56 million as goodwill within the Core Illumina reportable segment. In addition, we recorded developed technology of $45 million and a trade name of $1 million, with useful lives of 10 and 3 years, respectively.

PacBio

On November 1, 2018, we entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire PacBio for an all-cash price of approximately $1.2 billion (or $8.00 per share). On September 25, 2019, we entered into Amendment No. 1 to the Merger Agreement (the Amendment), which extended the End Time of the Merger Agreement (as defined in the Merger Agreement) to December 31, 2019 and provided that we make cash payments to PacBio of $6 million on or before each of October 1, 2019, November 1, 2019, and December 2, 2019. The Amendment also allowed us to unilaterally extend the End Time date until March 31, 2020 by making additional payments to PacBio totaling $34 million, which we elected to do on December 18, 2019.

On January 2, 2020, we entered into an agreement to terminate the Merger Agreement (the Termination Agreement). Pursuant to the Termination Agreement, we made a cash payment to PacBio of $98 million on January 2, 2020, which represented the Reverse Termination Fee (as defined in the Merger Agreement). Additionally, we made cash payments of $6 million and $22 million on January 2, 2020 and February 3, 2020, respectively, and will make a cash payment of $6 million on or before March 2, 2020. These payments totaling $34 million, along with the $18 million of payments made in the fourth quarter of 2019, are collectively referred to as the Continuation Advances. If PacBio enters into a definitive agreement providing for, or consummates, a Change of Control Transaction by September 30, 2020 (as defined in the Termination Agreement), and such transaction is consummated by the two-year anniversary of the execution of the definitive agreement for such Change of Control Transaction, then the Reverse Termination Fee of $98 million is repayable, without interest, to us. In addition, up to the $52 million of Continuation Advances is repayable without interest to us if, within two years of March 31, 2020, PacBio enters into a Change of Control Transaction or raises at least $100 million in equity or debt financing in a single transaction (with the amount repayable dependent on the amount raised by PacBio).

The potential repayment of the Continuation Advances meets the definition of a derivative asset and is recorded at fair value. As of December 29, 2019, the fair value of the derivative asset related to the $18 million of Continuation Advances paid in 2019 was $10 million, included in other assets. The $8 million difference between the Continuation Advances paid and the fair value of the derivative asset was recorded as selling, general and administrative expenses.
v3.19.3.a.u2
Debt and Other Commitments
 12 Months Ended
Dec. 29, 2019
Debt Disclosure [Abstract]  
Debt and Other Commitments
5. DEBT AND OTHER COMMITMENTS
Summary of debt obligations
In millions
December 29,
2019
 
December 30,
2018
Principal amount of 2023 Notes outstanding
$
750

 
$
750

Principal amount of 2021 Notes outstanding
517

 
517

Principal amount of 2019 Notes outstanding
—

 
633

Unamortized discount of liability component of convertible senior notes
(126
)
 
(175
)
       Net carrying amount of liability component of convertible senior notes
1,141

 
1,725

Obligations under financing leases
—

 
269

Other
—

 
3

Less: current portion
—

 
(1,107
)
       Long-term debt
$
1,141

 
$
890

Carrying value of equity component of convertible senior notes, net of debt issuance costs
$
213

 
$
287

Fair value of convertible senior notes outstanding (Level 2)
$
1,549

 
$
2,222

Weighted average remaining amortization period of discount on the liability component of convertible senior notes
3.2 years

 
3.9 years



0% Convertible Senior Notes due 2023 (2023 Notes)

On August 21, 2018, we issued $750 million aggregate principal amount of convertible senior notes due 2023 (2023 Notes). The net proceeds from the issuance, after deducting the offering expenses payable by us, were $735 million. The 2023 Notes carry no coupon interest and mature on August 15, 2023.

The 2023 Notes will be convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on an initial conversion rate, subject to adjustment, of 2.1845 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $457.77 per share of common stock), only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price in effect on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2023 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events described in the indenture. Regardless of the foregoing circumstances, the holders may convert their notes on or after May 15, 2023 until August 11, 2023.

It is our intent and policy to settle conversions through combination settlement; this involves repayment of an amount of cash equal to the “principal amount” and delivery of the “share amount” in excess of the conversion value over the principal amount in shares of common stock. In general, for each $1,000 in principal, the “principal amount” 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 our 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.

We may redeem for cash all or any portion of the 2023 Notes, at our option, on or after August 20, 2021 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect (currently $595.10) for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date.
 
The 2023 Notes are accounted for 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 estimating the fair value of a similar liability that does not have an associated conversion feature. Because we have no outstanding non-convertible public debt, we determined that market-traded senior, unsecured corporate bonds represent a similar liability without a conversion option. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in our industry, and with similar maturities to the 2023 Notes, we estimated an implied interest rate of 3.7%, 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 2023 Notes, which resulted in a fair value of the liability component in aggregate of $624 million upon issuance, calculated as the present value of implied future payments based on the $750 million aggregate principal amount. The $126 million difference ($93 million, net of tax) between the aggregate principal amount of $750 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the 2023 Notes are not considered redeemable.

As a policy election under applicable guidance related to the calculation of diluted net income per share, we have elected the combination settlement method as our stated settlement policy and apply the treasury stock method in the calculation of the potential dilutive impact of the 2023 Notes on net income per share each period. The 2023 Notes were not convertible as of December 29, 2019 and had no dilutive impact in 2019 and 2018. If the 2023 Notes were converted as of December 29, 2019, the if-converted value would not exceed the principal amount.

0.5% Convertible Senior Notes due 2021 (2021 Notes)

In June 2014, we issued $517 million aggregate principal amount of convertible senior notes due 2021. The net proceeds from the issuance, after deducting the offering expenses payable by us, were $509 million. We pay 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 2021 Notes mature on June 15, 2021.

The 2021 Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment, of 3.9318 shares per $1,000 principal amount of the notes (which represents an initial conversion price of approximately $254.34 per share), only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending September 30, 2014 (and only during such calendar quarter), if the last reported sale price of our common stock for 20 or more trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per 2021 Notes for each day of such measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified events described in the indenture for the 2021 Notes. Regardless of the foregoing circumstances, the holders may convert their notes on or after March 15, 2021 until June 11, 2021.

It is our intent and policy to settle conversions through combination settlement; this 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 our 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 2021 Notes are accounted for 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 estimating the fair value of a similar liability that does not have an associated conversion feature. Because we have no outstanding non-convertible public debt, we determined that market-traded senior, unsecured corporate bonds represent a similar liability without the conversion option. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry as us, and with similar maturities to the 2021 Notes, we estimated the implied interest rate of our 2021 Notes to be 3.5%, 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 2021 Notes, which resulted in a fair value of the liability component in aggregate of $423 million upon issuance, calculated as the present value of implied future payments based on the $517 million aggregate principal amount. The $87 million difference between the cash proceeds of $510 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the 2021 Notes are not considered redeemable.

As a policy election under applicable guidance related to the calculation of diluted net income per share, we elected the combination settlement method as our stated settlement policy and apply the treasury stock method in the calculation of the potential dilutive impact of the 2021 Notes. The potential dilutive impact of the 2021 notes has been included in our calculation of diluted earnings per share in 2019 and 2018. If the 2021 Notes were converted as of December 29, 2019, the if-converted value would exceed the principal amount by $146 million.

During 2018, the market price of our common stock met the stock trading price conversion requirement resulting in the 2021 Notes being convertible as of December 30, 2018 and included in long-term debt, current portion on the consolidated balance sheet. The 2021 Notes were not convertible as of December 29, 2019 and are included in long-term debt on the consolidated balance sheet.

0% Convertible Senior Notes due 2019 (2019 Notes)

In June 2014, we issued $633 million aggregate principal amount of 2019 Notes, and the implied estimated effective rate of the liability component of the Notes was 2.9%, assuming no conversion option. The net proceeds from the issuance, after deducting the offering expenses payable by us, were $623 million. The $74 million difference between the cash proceeds of $623 million and the estimated fair value of the liability component of $549 million was recorded in additional paid-in capital as the 2019 Notes were not considered redeemable. The 2019 Notes matured on June 15, 2019, by which time the principal had been converted and was repaid in cash. The excess of the conversion value over the principal amount was paid in shares of common stock.

The following table summarizes information about the conversion of the 2019 Notes during 2019:
In millions
 
Cash paid for principal of notes converted
$
633

Conversion value over principal amount, paid in shares of common stock
$
153

Number of shares of common stock issued upon conversion
0.4



Leases

As of December 29, 2019, the maturities of our operating lease liabilities were as follows:
In millions
 
2020
$
77

2021
83

2022
85

2023
86

2024
85

Thereafter
554

Total remaining lease payments (1)
970

Less: imputed interest
(230
)
Total operating lease liabilities
740

Less: current portion
(45
)
Long-term operating lease liabilities
$
695

Weighted-average remaining lease term
11.4 years

Weighted-average discount rate
4.6
%
____________________________________
(1) Total remaining lease payments exclude $44 million of legally binding minimum lease payments for leases signed but not yet commenced.

As of December 30, 2018, prior to the adoption of Topic 842, annual future minimum payments of our operating leases and build-to-suit leases, which include those leases accounted for as a financing obligation, were as follows:
In millions
Operating
Leases
 
Sublease
Income
 
Net Operating
Leases
 
Build-to-suit Leases
2019
$
59

 
$
(11
)
 
$
48

 
$
18

2020
64

 
(11
)
 
53

 
21

2021
61

 
(11
)
 
50

 
21

2022
61

 
(12
)
 
49

 
22

2023
61

 
(11
)
 
50

 
22

Thereafter
439

 
(12
)
 
427

 
179

Total minimum lease payments
$
745

 
$
(68
)
 
$
677

 
$
283



The components of our lease costs were as follows:
In millions
2019
Operating lease costs
$
84

Sublease income
(12
)
Total lease costs
$
72



Rent expense was $55 million and $46 million in 2018 and 2017, respectively, and the interest portion of lease expense for our build-to-suit arrangements was $13 million in 2018. As of December 30, 2018, we had obligations under financing leases of $269 million, representing project construction costs paid or reimbursed by our landlord for build-to-suit leases that did not qualify for sale-leaseback accounting under Topic 840. Additionally, as of December 30, 2018, the deferred rent balance related to our operating leases was $123 million, of which the long-term portion of $119 million was recorded in other long-term liabilities. Upon adoption of Topic 842 on December 31, 2018, we began to account for our build-to-suit arrangements as operating leases, derecognized the remaining obligations under financing leases, and reclassified the deferred rent balance related to our operating leases to
operating lease right-of-use assets. See note “1. Organization and Significant Accounting Policies” for further details on the adoption of Topic 842.

Purchase Obligations

In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily related to licensing and supply arrangements. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities or pricing as of the reporting date. Licensing agreements under which we commit to minimum royalty payments, some of which are subject to adjustment, may be terminated prior to the expiration of underlying intellectual property under certain circumstances. Annual minimum payments for noncancelable purchase obligations as of December 29, 2019 were not material.
v3.19.3.a.u2
Stockholders' Equity
 12 Months Ended
Dec. 29, 2019
Equity [Abstract]  
Stockholders' Equity
6. STOCKHOLDERS’ EQUITY

The 2015 Stock and Incentive Compensation Plan (the 2015 Stock 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 December 29, 2019, approximately 4.3 million shares remained available for future grants under the 2015 Stock Plan. There is no set number of shares reserved for issuance under the New Hire Stock and Incentive Plan.

Restricted Stock

We issue restricted stock units (RSU) and performance stock units (PSU), both of which are considered restricted stock. We grant restricted stock pursuant to the 2015 Stock Plan and satisfy such grants through the issuance of new shares. RSU are share awards that, upon vesting, will deliver to the holder shares of our common stock. RSU generally vest over a four-year period with equal vesting on anniversaries of the grant date. We issue 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 our performance relative to specified earnings per share targets and continued employment through the vesting period.

Restricted stock activity was as follows:
 
 
Restricted
Stock Units
(RSU)
 
Performance
Stock Units
(PSU)(1)
 
Weighted-Average Grant-
Date Fair Value per Share
Units in thousands
 
 
 
RSU
 
PSU
Outstanding at January 1, 2017
 
2,293

 
460

 
$
141.80

 
$
158.66

Awarded
 
879

 
238

 
$
207.38

 
$
191.53

Vested
 
(861
)
 
(92
)
 
$
131.62

 
$
189.09

Cancelled
 
(226
)
 
(64
)
 
$
149.03

 
$
173.83

Outstanding at December 31, 2017
 
2,085

 
542

 
$
172.92

 
$
166.15

Awarded
 
655

 
336

 
$
322.04

 
$
232.08

Vested
 
(731
)
 
(188
)
 
$
170.50

 
$
176.15

Cancelled
 
(169
)
 
(30
)
 
$
172.30

 
$
162.54

Outstanding at December 30, 2018
 
1,840

 
660

 
$
227.00

 
$
196.99

Awarded
 
698

 
(41
)
 
$
313.70

 
$
254.52

Vested
 
(694
)
 
(283
)
 
$
205.51

 
$
133.11

Cancelled
 
(144
)
 
(65
)
 
$
225.48

 
$
181.79

Outstanding at December 29, 2019
 
1,700

 
271

 
$
271.49

 
$
258.66

______________________________________
(1)
The number of units reflect the estimated number of shares to be issued at the end of the performance period.

Pre-tax intrinsic values and fair value of vested restricted stock was as follows:
In millions
2019
 
2018
 
2017
Pre-tax intrinsic value of outstanding restricted stock:
 
 
 
 
 
RSU
$
565

 
$
549

 
$
456

PSU
$
90

 
$
197

 
$
118

 
 
 
 
 
 
Fair value of restricted stock vested:
 
 
 
 
 
RSU
$
210

 
$
125

 
$
113

PSU
$
38

 
$
33

 
$
17



Stock Options

Stock option activity was as follows:
 
Options
(in thousands)
 
Weighted-
Average
Exercise Price
Outstanding at January 1, 2017
1,045

 
$
48.56

Exercised
(723
)
 
$
49.31

Outstanding at December 31, 2017
322

 
$
46.93

Exercised
(130
)
 
$
35.68

Outstanding at December 30, 2018
192

 
$
54.52

Exercised
(134
)
 
$
53.61

Outstanding and exercisable at December 29, 2019
58

 
$
56.65



The weighted-average remaining life of options outstanding and exercisable was 1.2 years as of December 29, 2019.

The aggregate intrinsic value of options outstanding and options exercisable as of December 29, 2019 was $16 million. Aggregate intrinsic value represents the product of the number of options outstanding multiplied by the difference between our closing stock price per share on the last trading day of the fiscal period, which was $332.29 as of December 27, 2019, and the exercise price. Total intrinsic value of options exercised was $34 million, $33 million, and $101 million in 2019, 2018, and 2017, respectively.

Employee Stock Purchase Plan

A total of 15.5 million shares of our common stock have been reserved for issuance under our 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 day 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 0.3 million shares were issued under the ESPP during 2019, 2018, and 2017, respectively. As of December 29, 2019 and December 30, 2018, there were approximately 13.5 million and 13.7 million shares available for issuance under the ESPP, respectively.

Share Repurchases

During 2019, 2018, and 2017, we repurchased approximately 1.1 million shares for $324 million, 0.6 million shares for $201 million (of which 0.3 million shares for $103 million was repurchased concurrently with the offering of our 2023 Notes), and 1.4 million shares for $251 million, respectively. As of December 29, 2019, authorizations to repurchase $226 million of our common stock remained available under the $550 million share repurchase program authorized by our Board of Directors on February 6, 2019. On February 5, 2020, our Board of Directors authorized a new share repurchase program, which superseded all prior and available repurchase authorizations, to repurchase $750 million of outstanding common stock. The repurchases may be completed under a 10b5-1 plan or at management’s discretion.

Share-based Compensation
    
Share-based compensation expense reported in our consolidated statements of income was as follows:
In millions
2019
 
2018
 
2017
Cost of product revenue
$
19

 
$
16

 
$
12

Cost of service and other revenue
4

 
3

 
2

Research and development
66

 
60

 
51

Selling, general and administrative
105

 
114

 
99

Share-based compensation expense, before taxes
194

 
193

 
164

Related income tax benefits
(41
)
 
(39
)
 
(48
)
Share-based compensation expense, net of taxes
$
153

 
$
154

 
$
116



The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP were as follows:
 
2019
 
2018
 
2017
Risk-free interest rate
1.88% - 2.56%

 
 1.22% - 2.45%

 
0.50% - 1.22%

Expected volatility
30% - 38%

 
 29% - 39%

 
29% - 44%

Expected term
0.5 - 1.0 year

 
 0.5 - 1.0 year

 
0.5 - 1.0 year

Expected dividends
0
%
 
0
%
 
0
%
Weighted-average grant-date fair value per share
$
75.47

 
$
61.59

 
$
46.81



As of December 29, 2019, approximately $463 million of total unrecognized compensation cost related to restricted stock and ESPP shares issued to date was expected to be recognized over a weighted-average period of approximately 2.6 years.
v3.19.3.a.u2
Supplemental Balance Sheet Details
 12 Months Ended
Dec. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Balance Sheet Details
7. SUPPLEMENTAL BALANCE SHEET DETAILS

Accounts Receivable
in millions
December 29,
2019
 
December 30,
2018
Trade accounts receivable, gross
$
575

 
$
516

Allowance for doubtful accounts
(2
)
 
(2
)
Total accounts receivable, net
$
573

 
$
514



Inventory
in millions
December 29,
2019
 
December 30,
2018
Raw materials
$
108

 
$
117

Work in process
225

 
218

Finished goods
26

 
51

Total inventory
$
359

 
$
386



Property and Equipment
in millions
December 29,
2019
 
December 30,
2018
Leasehold improvements
$
622

 
$
567

Machinery and equipment
401

 
382

Computer hardware and software
272

 
217

Furniture and fixtures
45

 
45

Buildings
44

 
285

Construction in progress
73

 
100

Total property and equipment, gross
1,457

 
1,596

Accumulated depreciation
(568
)
 
(521
)
Total property and equipment, net
$
889

 
$
1,075



Property and equipment, net included non-cash expenditures of $20 million, $35 million and $117 million in 2019, 2018, and 2017, respectively, which were excluded from the consolidated statements of cash flows. Such non-cash expenditures included $18 million and $79 million recorded under build-to-suit lease accounting in 2018 and 2017, respectively.

As of December 30, 2018, property and equipment, net included $241 million of project construction costs paid or reimbursed by our landlord related to our build-to-suit leases that did not qualify for sale-leaseback accounting under Topic 840. Upon adoption of Topic 842 on December 31, 2018, we derecognized the Buildings related to our build-to-suit leasing arrangements and began to account for these leases as operating leases. See note “1. Organization and Significant Accounting Policies” for further details on the adoption impact of Topic 842.

Accrued Liabilities
in millions
December 29,
2019
 
December 30,
2018
Contract liabilities, current portion
$
167

 
$
175

Accrued compensation expenses
154

 
193

Accrued taxes payable
86

 
82

Operating lease liabilities, current portion
45

 
—

Other, including warranties (a)
64

 
63

Total accrued liabilities
$
516

 
$
513



(a) Changes in the reserve for product warranties were as follows:
in millions
 
Balance as of January 1, 2017
$
13

Additions charged to cost of revenue
26

Repairs and replacements
(22
)
Balance as of December 31, 2017
17

Additions charged to cost of revenue
27

Repairs and replacements
(25
)
Balance as of December 30, 2018
19

Additions charged to cost of revenue
20

Repairs and replacements
(25
)
Balance as of December 29, 2019
$
14



Redeemable Noncontrolling Interests

Changes in the redeemable noncontrolling interest were as follows:
in millions
 
Balance as of January 1, 2017
$
44

Amount released from escrow
79

Vesting of redeemable equity awards
13

Net loss attributable to noncontrolling interests
(41
)
Adjustment up to the redemption value
136

Deconsolidation of GRAIL
(11
)
Balance as of December 31, 2017
$
220

Vesting of redeemable equity awards
2

Net loss attributable to noncontrolling interests
(34
)
Adjustment down to the redemption value
(127
)
Balance as of December 30, 2018
61

Vesting of redeemable equity awards
1

Net loss attributable to noncontrolling interests
(9
)
Adjustment down to the redemption value
(16
)
Release of potential obligation to noncontrolling interests
(37
)
Balance as of December 29, 2019
$
—



Accumulated Other Comprehensive Income (Loss)
in millions
December 29,
2019
 
December 30,
2018
Foreign currency translation adjustments
$
1

 
$
1

Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax
4

 
(2
)
Total accumulated other comprehensive income (loss)
$
5

 
$
(1
)
v3.19.3.a.u2
Legal Proceedings
 12 Months Ended
Dec. 29, 2019
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings
8. LEGAL PROCEEDINGS

We are involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, we assess, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability
is recorded in the consolidated financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures in consideration of many factors, which include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. We may change our estimates if our assessment of the various factors changes and the amount of ultimate loss may differ from our estimates, resulting in a material effect on our business, financial condition, results of operations, and/or cash flows.
v3.19.3.a.u2
Income Taxes
 12 Months Ended
Dec. 29, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
9. INCOME TAXES

Income before income taxes summarized by region was as follows:
In millions
2019
 
2018
 
2017
United States
$
242

 
$
54

 
$
458

Foreign
876

 
840

 
585

Total income before income taxes
$
1,118

 
$
894

 
$
1,043



The provision for income taxes consisted of the following:
In millions
2019
 
2018
 
2017
Current:
 

 
 

 
 

Federal
$
32

 
$
47

 
$
259

State
7

 
15

 
21

Foreign
84

 
68

 
51

Total current provision
123

 
130

 
331

Deferred:
 

 
 

 
 

Federal
1

 
—

 
36

State
(1
)
 
(16
)
 
—

Foreign
5

 
(2
)
 
(2
)
Total deferred expense (benefit)
5

 
(18
)
 
34

Total tax provision
$
128

 
$
112

 
$
365



The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income before taxes as follows:
In millions
2019
 
2018
 
2017
Tax at federal statutory rate
$
235

 
$
188

 
$
365

State, net of federal benefit
18

 
13

 
19

Research and other credits
(37
)
 
(23
)
 
(12
)
Change in valuation allowance
(2
)
 
(12
)
 
12

Impact of foreign operations
(57
)
 
(59
)
 
(130
)
Investments in consolidated variable interest entities
(5
)
 
9

 
(3
)
Impact of U.S. Tax Reform
—

 
11

 
150

Stock compensation
(20
)
 
(24
)
 
(41
)
Other
(4
)
 
9

 
5

Total tax provision
$
128

 
$
112

 
$
365



The determination of the impact of the Tax Cuts and Jobs Act that was enacted on December 22, 2017 (U.S. Tax Reform) may change following future legislation or further interpretation of the U.S. Tax Reform based on the
publication of proposed U.S. Treasury regulations and guidance from the Internal Revenue Service and state tax authorities. We continue to evaluate the impacts of U.S. Tax Reform as we interpret the legislation, including the global intangible low-taxed income (GILTI) provisions which subject our foreign earnings to a minimum level of tax. We have elected to account for GILTI as a period cost in our consolidated financial statements.

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 21%. The most significant tax benefits from foreign operations were from our earnings in Singapore and the United Kingdom, which had statutory tax rates of 17% and 19%, respectively, in 2019. 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.

Significant components of deferred tax assets and liabilities were as follows:
In millions
December 29,
2019
 
December 30,
2018
Deferred tax assets:
 

 
 

Net operating losses
$
21

 
$
26

Tax credits
63

 
63

Other accruals and reserves
12

 
28

Stock compensation
20

 
20

Deferred rent
—

 
30

Cost sharing adjustment
21

 
21

Other amortization
16

 
13

Obligations under financing leases
—

 
70

Operating lease liabilities
158

 
—

Investments
2

 
1

Other
45

 
28

Total gross deferred tax assets
358

 
300

Valuation allowance on deferred tax assets
(13
)
 
(15
)
Total deferred tax assets
345

 
285

Deferred tax liabilities:
 

 
 

Purchased intangible amortization
(27
)
 
(32
)
Convertible debt
(30
)
 
(41
)
Property and equipment
(47
)
 
(94
)
Operating lease right-of-use assets
(111
)
 
—

Investments
(62
)
 
(45
)
Other
(5
)
 
(3
)
Total deferred tax liabilities
(282
)
 
(215
)
Deferred tax assets, net
$
63

 
$
70



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 December 29, 2019, we were not able to conclude it is more likely than not certain deferred tax assets will be realized. Therefore, a valuation allowance of $13 million was recorded against certain U.S. and foreign deferred tax assets.

As of December 29, 2019, we had net operating loss carryforwards for federal and state tax purposes of $29 million and $115 million, respectively, which will begin to expire in 2020 and 2025, respectively, unless utilized prior. We
also had federal and state tax credit carryforwards of $1 million and $106 million, which will begin to expire in 2037 and 2022, respectively, unless utilized prior.

Pursuant to Section 382 and 383 of the Internal Revenue Code, utilization of 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 December 29, 2019 are net of any previous limitations due to Section 382 and 383.

Our manufacturing operations in Singapore operate under various tax holidays and incentives that begin to expire in 2023. These tax holidays and incentives resulted in a $33 million, $36 million, and $49 million decrease to the provision for income taxes in 2019, 2018, and 2017, respectively. These tax holidays and incentives resulted in an increase in diluted earnings per share attributable to Illumina stockholders of $0.22, $0.24, and $0.33, in 2019, 2018, and 2017, respectively.

It is our intention to indefinitely reinvest the historical earnings of our foreign subsidiaries generated prior to 2017 to ensure sufficient working capital and to expand existing operations outside the United States. Accordingly, state and foreign income and withholding taxes have not been provided on $889 million of undistributed earnings of foreign subsidiaries as of December 29, 2019. In the event we are required to repatriate funds from outside of the United States, such repatriation would be subject to local laws, customs, and tax consequences. As of December 29, 2019, we asserted that $331 million of foreign earnings would not be indefinitely reinvested, and accordingly, recorded a deferred tax liability of $5 million.

The following table summarizes the gross amount of our uncertain tax positions:
In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Balance at beginning of year
$
88

 
$
79

 
$
65

Increases related to prior year tax positions
1

 
1

 
2

Decreases related to prior year tax positions
—

 
(1
)
 
—

Increases related to current year tax positions
12

 
12

 
14

Decreases related to lapse of statute of limitations
(22
)
 
(3
)
 
(2
)
Balance at end of year
$
79

 
$
88

 
$
79



Included in the balance of uncertain tax positions as of December 29, 2019 and December 30, 2018, were $68 million and $78 million, respectively, of net unrecognized tax benefits that, if recognized, would reduce the effective income tax rate in future periods.

Any interest and penalties related to uncertain tax positions are reflected in the provision for income taxes. We recognized income of $3 million in 2019 and recognized expense of $3 million and $1 million in 2018 and 2017, respectively, related to potential interest and penalties on uncertain tax positions. We recorded a liability for potential interest and penalties of $7 million and $11 million as of December 29, 2019 and December 30, 2018, respectively.

Tax years 1997 to 2018 remain subject to future examination by the major tax jurisdictions in which we are 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. Due to the number of years remaining that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.
v3.19.3.a.u2
Employee Benefit Plans
 12 Months Ended
Dec. 29, 2019
Postemployment Benefits [Abstract]  
Employee Benefit Plans
10. EMPLOYEE BENEFIT PLANS

Retirement Plan

We have a 401(k) savings plan covering substantially all of our employees in the United States. Our contributions to the plan are discretionary. During 2019, 2018, and 2017, we made matching contributions of $20 million, $20 million, and $17 million, respectively.

Deferred Compensation Plan

The Illumina, Inc. Deferred Compensation Plan (the Plan) allows senior level employees to contribute up to 60% of their base salary and 100% of their variable cash compensation, and members of the board of directors to contribute up to 100% of their director fees and equity awards. Under the Plan, we credit the participants’ contributions with earnings that reflect the performance of certain independent investment funds. On a discretionary basis, we may also make employer contributions to participant accounts in any amount determined by us. 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 Illumina. 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 for any reason or at a later date to comply with the restrictions of Section 409A.

We also established a rabbi trust for the benefit of the participants under the Plan and have included the assets of the rabbi trust in the consolidated balance sheets. As of December 29, 2019 and December 30, 2018, the assets of the trust were $48 million and $34 million, respectively, and our liabilities were $46 million and $33 million, respectively. The assets and liabilities are classified as other assets and accrued liabilities, respectively, on the consolidated balance sheets. Changes in the values of the assets held by the rabbi trust are recorded in other income, 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.
v3.19.3.a.u2
Segments and Geographic Data
 12 Months Ended
Dec. 29, 2019
Segment Reporting [Abstract]  
Segments and Geographic Data
11. SEGMENTS AND GEOGRAPHIC DATA


Reportable Segment Information

We have one reportable segment as of December 29, 2019, Core Illumina, which relates to Illumina’s core operations. Prior to the Helix deconsolidation on April 25, 2019, our reportable segments included both Core Illumina and Consolidated VIEs (Helix) and prior to the deconsolidation of GRAIL on February 28, 2017, our Consolidated VIEs included the combined operations of Helix and GRAIL. See note “3. Investments and Fair Value Measurements” for further details.

Core Illumina:

Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. Core Illumina includes all of our operations, excluding the results of our consolidated VIEs.

Consolidated VIEs:

Helix: Helix was established to enable individuals to explore their genetic information by providing affordable sequencing and database services for consumers through third-party partners, driving the creation of an ecosystem of consumer applications.

GRAIL: GRAIL was created to develop a blood test for early-stage cancer detection. GRAIL was in the early stages of developing this test and as such, had no revenues through the date of deconsolidation on February 28, 2017.

Core Illumina sells products and provides services to Helix and GRAIL in accordance with contractual agreements between the entities.
 In millions
2019
 
2018
 
2017
Revenue:
 
 
 
 
 
Core Illumina
$
3,543

 
$
3,334

 
$
2,754

Consolidated VIEs
1

 
10

 
6

Eliminations
(1
)
 
(11
)
 
(8
)
Consolidated revenue
$
3,543

 
$
3,333

 
$
2,752

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
Core Illumina
$
186

 
$
175

 
$
153

Consolidated VIEs
3

 
6

 
6

Eliminations
(1
)
 
(2
)
 
(3
)
Consolidated depreciation and amortization
$
188

 
$
179

 
$
156

 
 
 
 
 
 
Income (loss) from operations:
 
 
 
 
 
Core Illumina
$
1,008

 
$
970

 
$
696

Consolidated VIEs
(24
)
 
(90
)
 
(92
)
Eliminations
1

 
3

 
2

Consolidated income from operations
$
985

 
$
883

 
$
606

In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Total assets:
 
 
 
 
 
Core Illumina
$
7,316

 
$
6,912

 
$
5,223

Consolidated VIEs
—

 
154

 
45

Eliminations
—

 
(107
)
 
(11
)
Consolidated total assets
$
7,316

 
$
6,959

 
$
5,257

 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
Core Illumina
$
209

 
$
294

 
$
306

Consolidated VIEs
—

 
2

 
4

Consolidated capital expenditures
$
209

 
$
296

 
$
310



Geographic Data

Net long-lived assets, consisting of property and equipment, by region was as follows:
In millions
December 29,
2019
 
December 30,
2018
United States
$
696

 
$
907

Singapore
112

 
96

United Kingdom
62

 
62

Other countries
19

 
10

Total
$
889

 
$
1,075


Net long-lived assets exclude goodwill and other intangible assets since they are not allocated on a geographic basis.

Refer to note “2. Revenue” for revenue by geographic area.
v3.19.3.a.u2
Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 29, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited)
12. 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 2019 and 2018, were 13 weeks.
In millions (except per share amounts)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
2019
 

 
 

 
 

 
 

Total revenue
$
846

 
$
838

 
$
907

 
$
953

Gross profit
$
584

 
$
573

 
$
648

 
$
662

Consolidated net income
$
224

 
$
293

 
$
234

 
$
239

Net income attributable to Illumina stockholders
$
233

 
$
296

 
$
234

 
$
239

Earnings per share attributable to Illumina stockholders:
 
 
 
 
 
 
 
Basic
$
1.58

 
$
2.01

 
$
1.59

 
$
1.63

Diluted
$
1.57

 
$
1.99

 
$
1.58

 
$
1.61

2018
 
 
 
 
 
 
 
Total revenue
$
782

 
$
830

 
$
853

 
$
867

Gross profit
$
538

 
$
575

 
$
597

 
$
590

Consolidated net income
$
197

 
$
200

 
$
188

 
$
198

Net income attributable to Illumina stockholders
$
208

 
$
209

 
$
199

 
$
210

Earnings per share attributable to Illumina stockholders:
 
 
 
 
 
 
 
Basic
$
1.42

 
$
1.42

 
$
1.35

 
$
1.43

Diluted
$
1.41

 
$
1.41

 
$
1.33

 
$
1.41


Certain amounts may not recalculate using the rounded amounts provided.
v3.19.3.a.u2
Organization and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 29, 2019
Accounting Policies [Abstract]  
Basis of Presentation
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and include our accounts, our wholly-owned subsidiaries, majority-owned or controlled companies, and variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Variable Interest Entities (VIEs) We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have 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. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE.
Use of Estimates
The preparation of the consolidated 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.
Fiscal Year Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31.
Functional Currency The U.S. dollar is the functional currency of our international operations. We re-measure foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and record the net gains or losses resulting from re-measurement in other income, net in the consolidated statements of income.
Concentrations of Risk
Customers

We operate 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 our operating results. A portion of our 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 future revenues and results of operations.

International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. We are 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. Shipments to customers outside the United States comprised 48%, 47%, and 45% of total revenue in 2019, 2018, and 2017, respectively. Customers outside the United States represented 53% and 44% of our gross trade accounts receivable balance as of December 29, 2019 and December 30, 2018, respectively.

We had no customers that provided more than 10% of total revenue in 2019, 2018, and 2017. We perform regular reviews of customer activity and associated credit risks and do not require collateral or enter into netting arrangements. Historically, we have not experienced significant credit losses from accounts receivable.

Financial Instruments

We are also subject to risks related to our financial instruments, including cash and cash equivalents, investments, and accounts receivable. Most of our cash and cash equivalents as of December 29, 2019 were deposited with U.S. financial institutions, either domestically or with their foreign branches. Our 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 Clearwater Analytics (Industry Sector Report), 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, U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. Historically, we have not experienced significant credit losses from financial instruments.

Suppliers

We require customized products and components that currently are available from a limited number of sources. We source certain key products and components included in our products from single vendors.
Segments
We report segment information based on the management approach. This approach designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. Management evaluates the performance of our reportable segments based upon income (loss) from operations. We do not allocate expenses between segments.
Accounting Pronouncements Adopted and Pending Adoption
Accounting Pronouncements Adopted in 2019

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as lease liabilities with corresponding right-of-use assets and to disclose key information about leasing arrangements. We adopted Topic 842 on its effective date in the first quarter of 2019 using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of December 31, 2018.
We elected the available package of practical expedients upon adoption, which allowed us to carry forward our historical assessment of whether existing agreements contained a lease and the classification of our existing operating leases. We continue to report our financial position as of December 30, 2018 under the former lease accounting standard (Topic 840) in our consolidated balance sheet.
The following table summarizes the impact of Topic 842 on our consolidated balance sheet upon adoption on December 31, 2018:
 
December 31, 2018
In millions
Pre-adoption
 
Adoption Impact
 
Post-adoption
ASSETS
 
 
 
 
 
Prepaid expenses and other current assets
$
78

 
$
(8
)
 
$
70

Property and equipment, net
1,075

 
(241
)
 
834

Operating lease right-of-use assets
—

 
579

 
579

Deferred tax assets, net
70

 
6

 
76

Total assets
$
1,223

 
$
336

 
$
1,559

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Accrued liabilities
$
513

 
$
36

 
$
549

Operating lease liabilities
—

 
722

 
722

Long-term debt
1,107

 
(269
)
 
838

Other long-term liabilities
359

 
(135
)
 
224

Retained earnings
3,083

 
(18
)
 
3,065

Total liabilities and stockholders’ equity
$
5,062

 
$
336

 
$
5,398



The adoption impact summarized above was primarily due to the recognition of operating lease liabilities with corresponding right-of-use assets based on the present value of our remaining minimum lease payments, and the derecognition of existing fixed assets and financing obligations related to build-to-suit leasing arrangements that, under Topic 840, did not qualify for sale-leaseback accounting. The difference between these amounts, net of deferred tax, was recorded as a cumulative-effect adjustment to retained earnings.

Accounting Pronouncements Adopted in 2018

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard is based on the principle that revenue should be recognized in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of promised goods or services. We adopted Topic 606 using the modified retrospective transition method. The cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. There was no material difference to the consolidated financial statements in 2018 due to the adoption of Topic 606.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), which requires equity investments (other than those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value recognized in net income. This standard was effective for us beginning in the first quarter of 2018. Based on our elections, our equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient for estimating fair value are measured at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identifiable or similar investments of the same issuer. This measurement alternative was applied prospectively to such equity securities and did not result in an adjustment to retained earnings.

Accounting Pronouncements Adopted in 2017

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), which aims to simplify the accounting for share-based payment transactions, including accounting for income taxes, classification
on the statement of cash flows, accounting for forfeitures, and classification of awards as either liabilities or equity. This ASU was effective for us beginning in the first quarter of 2017. This new standard increased the volatility of net income by requiring excess tax benefits from share-based payment arrangements to be classified as discrete items within the provision for income taxes, rather than recognizing excess tax benefits in additional paid-in capital. Upon adoption in the first quarter of 2017, we recorded $45 million, net, to retained earnings, primarily related to unrealized tax benefits associated with share-based compensation. As a result of the adoption of this new standard, we made an accounting policy election to recognize forfeitures as they occur and no longer estimate expected forfeitures. In addition, ASU 2016-09 requires that excess income tax benefits from share-based compensation arrangements be classified as cash flow from operations, rather than cash flow from financing activities. We elected to apply the cash flow classification guidance retrospectively.

Accounting Pronouncements Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. We will adopt the standard on its effective date in the first quarter of 2020, using a modified retrospective approach.  We currently do not expect the adoption to have a material impact on our consolidated financial statements.
Revenue Recognition, Shipping and Handling Expenses
Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of instruments and consumables used in genetic analysis. Service and other revenue primarily consists of revenue generated from genotyping and sequencing services, instrument service contracts, and development and licensing agreements.

We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone 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, we rely upon prices set by management, adjusted for applicable discounts.

Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and payment is typically due within 60 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. 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. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from development and licensing agreements generally includes upfront and periodic licensing fees, contract research and development services, or payments for development and regulatory milestones. Revenue for these agreements is recognized when each distinct performance obligation is satisfied.

Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expenses when incurred as the amortization period for such costs, if capitalized, would have been one year or less.

In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers.
Shipping and handling expenses are included in cost of product revenue.
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. Up to April 25, 2019 and February 28, 2017, the date of the Helix and GRAIL deconsolidations, respectively, per-share losses of Helix and GRAIL were included in the consolidated basic and diluted earnings per share computations based on our share of the entities’ securities.

Potentially dilutive common shares consist of shares issuable under convertible senior notes and equity awards. Convertible senior notes have a dilutive impact when the average market price of our common stock exceeds the applicable conversion price of the respective notes. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method. In addition, proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares.
Fair Value Measurements
The fair value of assets and liabilities are 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. We use 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:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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 approximate the related fair values due to the short-term maturities of these instruments.

Cash Equivalents Cash equivalents are comprised of short-term, highly-liquid investments with maturities of 90 days or less at the date of purchase.
Debt Securities
We hold debt securities in U.S. government-sponsored entities, corporate debt securities, and U.S. Treasury securities. We have the ability, if necessary, to liquidate any of our short-term debt securities to meet our liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase are classified as short-term investments on the accompanying consolidated balance sheets. We classify short-term debt investments as available-for-sale at the time of purchase and evaluate such classification as of each balance sheet date. All short-term debt investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale debt securities are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. We evaluate our debt 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 securities will be sold 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 recorded in interest income in the consolidated statements of income.
Equity Securities and Investments
We have strategic investments in privately-held companies (non-marketable equity securities) and companies that have completed initial public offerings (marketable equity securities). Our marketable equity securities are measured at fair value. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Equity investments are classified as current or noncurrent based on the nature of the securities and their availability for use in current operations. Unrealized gains and losses for equity investments are recorded in other income, net in the consolidated statements of income.

Our equity investments are assessed for impairment quarterly. Impairment losses, equal to the difference between the carrying value and the fair value of the investment, are recorded in other income, net.

We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income, net.
Accounts Receivable
Trade accounts receivable are recorded at the net invoice value and are not interest-bearing. Receivables are considered past due based on the contractual payment terms. We reserve specific receivables if collectibility is no longer probable. We also reserve a percentage of our trade receivable balance based on collection history and current economic trends that might impact the level of future credit losses. These reserves are re-evaluated on a regular basis and adjusted 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 net realizable value, 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 capitalized as property and equipment and depreciated. Inventory write-downs 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, using the straight-line method. Depreciation 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 expensed 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.

Costs incurred to develop internal-use software during the application development stage are recorded as computer software costs, at cost. Costs incurred in the development of such internal-use software, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software application development, are capitalized. Cost incurred outside of the application development stage are expensed as incurred.

The estimated useful lives of the major classes of property and equipment are generally as follows:
 
Estimated Useful Lives
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years
Leases
We lease approximately 2.5 million square feet of office, lab, manufacturing, and distribution facilities under various non-cancellable operating lease agreements (real estate leases). Our real estate leases have remaining lease terms of approximately 1 to 19 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms, ranging from approximately 6 months to 20 years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common-area-maintenance and administrative services. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. We do not have any material financing leases.

Operating lease right-of-use assets and liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components; therefore, fixed payments for common-area-maintenance and administrative services are included in our operating lease right-of-use assets and liabilities. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in our operating lease liabilities and are recorded on a straight-line basis over the lease terms. We sublease certain real estate to third parties and this sublease income is also recorded on a straight-line basis.
Goodwill, Intangible Assets and Other Long-Lived Assets
Assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired.

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 the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than the carrying amounts, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair values of our reporting units are less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair values of the reporting units with the carrying values, including goodwill. If the carrying amounts of the reporting units exceed the fair values, the second step of the goodwill impairment test is performed to determine the amount of loss, which involves comparing the implied fair values of the goodwill to the carrying values of the goodwill. We 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.

Our 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.

We perform regular reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed 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, we estimate the fair value of the assets and record 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 our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
Derivatives
We are exposed to foreign exchange rate risks in the normal course of business. We enter 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 current assets or accrued liabilities and are not designated as hedging instruments. Changes in the value of the derivatives are recognized in other income, net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities.

Warranties
We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust 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.
Share-Based Compensation
Share-based compensation expense is incurred related to restricted stock and Employee Stock Purchase Plan (ESPP).

Restricted stock units (RSU) and performance stock units (PSU) are both considered restricted stock. The fair value of restricted stock is determined by the closing market price of our common stock on the date of grant. Share-based compensation expense is recognized based on the fair value on a straight-line basis over the requisite service periods of the awards. 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, we reassess the probability of the achievement of such corporate performance goals and any increase or decrease in share-based compensation expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of adjustment.

The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchased under our ESPP. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The expected volatility is determined by equally weighing the historical and implied volatility of our common stock. The historical volatility is generally commensurate with the estimated expected term, 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 our common stock. The expected term is based on historical forfeiture experience and the terms and conditions of the ESPP. The expected dividend yield is determined to be 0% given that we have never declared or paid cash dividends on our common stock and do 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.

Forfeitures are accounted for, as incurred, as a reversal of share-based compensation expense related to awards that will not vest.
Research and Development Research and development expenses include personnel expenses, contractor fees, facilities-related costs, material costs, and license fees. Expenditures relating to research and development are expensed in the period incurred.
Advertising Costs Advertising costs are expensed as incurred.
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 we believe 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, we consider 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 impact of a tax position is recognized in the consolidated 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.

v3.19.3.a.u2
Organization and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 29, 2019
Accounting Policies [Abstract]  
Summary of Impact of Topic 842
The following table summarizes the impact of Topic 842 on our consolidated balance sheet upon adoption on December 31, 2018:
 
December 31, 2018
In millions
Pre-adoption
 
Adoption Impact
 
Post-adoption
ASSETS
 
 
 
 
 
Prepaid expenses and other current assets
$
78

 
$
(8
)
 
$
70

Property and equipment, net
1,075

 
(241
)
 
834

Operating lease right-of-use assets
—

 
579

 
579

Deferred tax assets, net
70

 
6

 
76

Total assets
$
1,223

 
$
336

 
$
1,559

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
Accrued liabilities
$
513

 
$
36

 
$
549

Operating lease liabilities
—

 
722

 
722

Long-term debt
1,107

 
(269
)
 
838

Other long-term liabilities
359

 
(135
)
 
224

Retained earnings
3,083

 
(18
)
 
3,065

Total liabilities and stockholders’ equity
$
5,062

 
$
336

 
$
5,398
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:
 
Years Ended
In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Weighted average shares outstanding
147

 
147

 
146

Effect of potentially dilutive common shares from:
 
 
 
 
 
Equity awards
1

 
1

 
2

Convertible senior notes
1

 
1

 
—

Weighted average shares used in calculating diluted earnings per share
149

 
149

 
148
Summary of Estimated Useful Lives of Major Classes of Property and Equipment
The estimated useful lives of the major classes of property and equipment are generally as follows:
 
Estimated Useful Lives
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years


in millions
December 29,
2019
 
December 30,
2018
Leasehold improvements
$
622

 
$
567

Machinery and equipment
401

 
382

Computer hardware and software
272

 
217

Furniture and fixtures
45

 
45

Buildings
44

 
285

Construction in progress
73

 
100

Total property and equipment, gross
1,457

 
1,596

Accumulated depreciation
(568
)
 
(521
)
Total property and equipment, net
$
889

 
$
1,075
v3.19.3.a.u2
Revenue (Tables)
 12 Months Ended
Dec. 29, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenue by Source
 
2019
 
2018
 
2017
in millions
Sequencing
 
Microarray
 
Total
 
Sequencing
 
Microarray
 
Total
 
Sequencing
 
Microarray
 
Total
Consumables
$
2,075

 
$
317

 
$
2,392

 
$
1,824

 
$
353

 
$
2,177

 
$
1,484

 
$
287

 
$
1,771

Instruments
517

 
20

 
537

 
535

 
37

 
572

 
487

 
31

 
518

Total product revenue
2,592

 
337

 
2,929

 
2,359

 
390

 
2,749

 
1,971

 
318

 
2,289

Service and other revenue
476

 
138

 
614

 
416

 
168

 
584

 
322

 
141

 
463

Total revenue
$
3,068

 
$
475

 
$
3,543

 
$
2,775

 
$
558

 
$
3,333

 
$
2,293

 
$
459

 
$
2,752


Revenue by Geographic Area
Based on region of destination (in millions)
2019
 
2018
 
2017
Americas (1)
$
1,970

 
$
1,864

 
$
1,585

Europe, Middle East, and Africa
933

 
851

 
653

Greater China (2)
372

 
365

 
292

Asia-Pacific
268

 
253

 
222

Total revenue
$
3,543

 
$
3,333

 
$
2,752

(1) Revenue for the Americas region included United States revenue of $1,859 million, $1,779 million, and $1,511 million in 2019, 2018, and 2017, respectively.
(2) Region includes revenue from China, Taiwan, and Hong Kong.
v3.19.3.a.u2
Investments and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 29, 2019
Fair Value Disclosures [Abstract]  
Summary of Short-term Investments
Our short-term investments are primarily available-for-sale debt securities that consisted of the following:
 
December 29, 2019
 
December 30, 2018
In millions
Amortized
Cost
 
Gross
Unrealized
Gains
 
 
Estimated
Fair Value
 
 Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
 
Estimated
Fair Value
Debt securities in government-sponsored entities
$
18

 
$
—

 
$
18

 
$
21

 
$
—

 
$
—

 
$
21

Corporate debt securities
627

 
3

 
630

 
1,060

 
—

 
(2
)
 
1,058

U.S. Treasury securities
616

 
2

 
618

 
1,250

 
1

 
(1
)
 
1,250

Total
$
1,261

 
$
5

 
$
1,266

 
$
2,331

 
$
1

 
$
(3
)
 
$
2,329
Summary of Contractual Maturities of Available-for-sale Debt Securities
Contractual maturities of available-for-sale debt securities, as of December 29, 2019, were as follows:
In millions
Estimated Fair Value
Due within one year
$
512

After one but within five years
754

Total
$
1,266
Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
 
December 29, 2019
 
December 30, 2018
In millions
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds (cash equivalents)
$
1,732

 
$
—

 
$
—

 
$
1,732

 
$
832

 
$
—

 
$
—

 
$
832

Debt securities in government-sponsored entities
—

 
18

 
—

 
18

 
—

 
21

 
—

 
21

Corporate debt securities
—

 
630

 
—

 
630

 
—

 
1,058

 
—

 
1,058

U.S. Treasury securities
618

 
—

 
—

 
618

 
1,250

 
—

 
—

 
1,250

Marketable equity securities
106

 
—

 
—

 
106

 
39

 
—

 
—

 
39

Contingent value right
—

 
—

 
29

 
29

 
—

 
—

 
—

 
—

Continuation Advances
—

 
—

 
10

 
10

 
—

 
—

 
—

 
—

Deferred compensation plan assets
—

 
48

 
—

 
48

 
—

 
34

 
—

 
34

Total assets measured at fair value
$
2,456

 
$
696

 
$
39

 
$
3,191

 
$
2,121

 
$
1,113

 
$
—

 
$
3,234

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred compensation plan liability
$
—

 
$
46

 
$
—

 
$
46

 
$
—

 
$
33

 
$
—

 
$
33
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions (Tables)
 12 Months Ended
Dec. 29, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-lived Intangible Assets
 
December 29, 2019
 
December 30, 2018
In millions
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Intangibles,
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Intangibles,
Net
Licensed technologies
$
95

 
$
(89
)
 
$
6

 
$
95

 
$
(83
)
 
$
12

Core technologies
325

 
(195
)
 
130

 
331

 
(172
)
 
159

Customer relationships
31

 
(27
)
 
4

 
32

 
(27
)
 
5

License agreements
14

 
(10
)
 
4

 
14

 
(9
)
 
5

Trade name
4

 
(3
)
 
1

 
9

 
(5
)
 
4

Total intangible assets, net
$
469

 
$
(324
)
 
$
145

 
$
481

 
$
(296
)
 
$
185
Schedule of Estimated Annual Amortization of Finite-lived Intangible Assets
The estimated annual amortization of intangible assets for the next five years is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
In millions
Estimated Annual Amortization
2020
$
29

2021
25

2022
21

2023
20

2024
19

Thereafter
31

Total
$
145
Schedule of Goodwill
In millions
Goodwill
Balance as of December 31, 2017
$
771

Acquisitions
60

Balance as of December 30, 2018
831

Helix deconsolidation
(7
)
Balance as of December 29, 2019
$
824
v3.19.3.a.u2
Debt and Other Commitments (Tables)
 12 Months Ended
Dec. 29, 2019
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
Summary of debt obligations
In millions
December 29,
2019
 
December 30,
2018
Principal amount of 2023 Notes outstanding
$
750

 
$
750

Principal amount of 2021 Notes outstanding
517

 
517

Principal amount of 2019 Notes outstanding
—

 
633

Unamortized discount of liability component of convertible senior notes
(126
)
 
(175
)
       Net carrying amount of liability component of convertible senior notes
1,141

 
1,725

Obligations under financing leases
—

 
269

Other
—

 
3

Less: current portion
—

 
(1,107
)
       Long-term debt
$
1,141

 
$
890

Carrying value of equity component of convertible senior notes, net of debt issuance costs
$
213

 
$
287

Fair value of convertible senior notes outstanding (Level 2)
$
1,549

 
$
2,222

Weighted average remaining amortization period of discount on the liability component of convertible senior notes
3.2 years

 
3.9 years
Schedule of Debt Conversions
The following table summarizes information about the conversion of the 2019 Notes during 2019:
In millions
 
Cash paid for principal of notes converted
$
633

Conversion value over principal amount, paid in shares of common stock
$
153

Number of shares of common stock issued upon conversion
0.4
Summary of Leases
As of December 29, 2019, the maturities of our operating lease liabilities were as follows:
In millions
 
2020
$
77

2021
83

2022
85

2023
86

2024
85

Thereafter
554

Total remaining lease payments (1)
970

Less: imputed interest
(230
)
Total operating lease liabilities
740

Less: current portion
(45
)
Long-term operating lease liabilities
$
695

Weighted-average remaining lease term
11.4 years

Weighted-average discount rate
4.6
%
____________________________________
(1) Total remaining lease payments exclude $44 million of legally binding minimum lease payments for leases signed but not yet commenced.
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
As of December 30, 2018, prior to the adoption of Topic 842, annual future minimum payments of our operating leases and build-to-suit leases, which include those leases accounted for as a financing obligation, were as follows:
In millions
Operating
Leases
 
Sublease
Income
 
Net Operating
Leases
 
Build-to-suit Leases
2019
$
59

 
$
(11
)
 
$
48

 
$
18

2020
64

 
(11
)
 
53

 
21

2021
61

 
(11
)
 
50

 
21

2022
61

 
(12
)
 
49

 
22

2023
61

 
(11
)
 
50

 
22

Thereafter
439

 
(12
)
 
427

 
179

Total minimum lease payments
$
745

 
$
(68
)
 
$
677

 
$
283
Components of Lease Costs
The components of our lease costs were as follows:
In millions
2019
Operating lease costs
$
84

Sublease income
(12
)
Total lease costs
$
72
v3.19.3.a.u2
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 29, 2019
Equity [Abstract]  
Summary of Restricted Stock Activity and Related Information, Restricted Stock
Restricted stock activity was as follows:
 
 
Restricted
Stock Units
(RSU)
 
Performance
Stock Units
(PSU)(1)
 
Weighted-Average Grant-
Date Fair Value per Share
Units in thousands
 
 
 
RSU
 
PSU
Outstanding at January 1, 2017
 
2,293

 
460

 
$
141.80

 
$
158.66

Awarded
 
879

 
238

 
$
207.38

 
$
191.53

Vested
 
(861
)
 
(92
)
 
$
131.62

 
$
189.09

Cancelled
 
(226
)
 
(64
)
 
$
149.03

 
$
173.83

Outstanding at December 31, 2017
 
2,085

 
542

 
$
172.92

 
$
166.15

Awarded
 
655

 
336

 
$
322.04

 
$
232.08

Vested
 
(731
)
 
(188
)
 
$
170.50

 
$
176.15

Cancelled
 
(169
)
 
(30
)
 
$
172.30

 
$
162.54

Outstanding at December 30, 2018
 
1,840

 
660

 
$
227.00

 
$
196.99

Awarded
 
698

 
(41
)
 
$
313.70

 
$
254.52

Vested
 
(694
)
 
(283
)
 
$
205.51

 
$
133.11

Cancelled
 
(144
)
 
(65
)
 
$
225.48

 
$
181.79

Outstanding at December 29, 2019
 
1,700

 
271

 
$
271.49

 
$
258.66

______________________________________
(1)
The number of units reflect the estimated number of shares to be issued at the end of the performance period.
Summary of Restricted Stock Activity and Related Information, Performance Units
Restricted stock activity was as follows:
 
 
Restricted
Stock Units
(RSU)
 
Performance
Stock Units
(PSU)(1)
 
Weighted-Average Grant-
Date Fair Value per Share
Units in thousands
 
 
 
RSU
 
PSU
Outstanding at January 1, 2017
 
2,293

 
460

 
$
141.80

 
$
158.66

Awarded
 
879

 
238

 
$
207.38

 
$
191.53

Vested
 
(861
)
 
(92
)
 
$
131.62

 
$
189.09

Cancelled
 
(226
)
 
(64
)
 
$
149.03

 
$
173.83

Outstanding at December 31, 2017
 
2,085

 
542

 
$
172.92

 
$
166.15

Awarded
 
655

 
336

 
$
322.04

 
$
232.08

Vested
 
(731
)
 
(188
)
 
$
170.50

 
$
176.15

Cancelled
 
(169
)
 
(30
)
 
$
172.30

 
$
162.54

Outstanding at December 30, 2018
 
1,840

 
660

 
$
227.00

 
$
196.99

Awarded
 
698

 
(41
)
 
$
313.70

 
$
254.52

Vested
 
(694
)
 
(283
)
 
$
205.51

 
$
133.11

Cancelled
 
(144
)
 
(65
)
 
$
225.48

 
$
181.79

Outstanding at December 29, 2019
 
1,700

 
271

 
$
271.49

 
$
258.66

______________________________________
(1)
The number of units reflect the estimated number of shares to be issued at the end of the performance period.
Summary of Pre-tax Intrinsic Values of Vested Restricted Stock
Pre-tax intrinsic values and fair value of vested restricted stock was as follows:
In millions
2019
 
2018
 
2017
Pre-tax intrinsic value of outstanding restricted stock:
 
 
 
 
 
RSU
$
565

 
$
549

 
$
456

PSU
$
90

 
$
197

 
$
118

 
 
 
 
 
 
Fair value of restricted stock vested:
 
 
 
 
 
RSU
$
210

 
$
125

 
$
113

PSU
$
38

 
$
33

 
$
17
Summary of Total Fair Value of Vested Restricted Stock
Pre-tax intrinsic values and fair value of vested restricted stock was as follows:
In millions
2019
 
2018
 
2017
Pre-tax intrinsic value of outstanding restricted stock:
 
 
 
 
 
RSU
$
565

 
$
549

 
$
456

PSU
$
90

 
$
197

 
$
118

 
 
 
 
 
 
Fair value of restricted stock vested:
 
 
 
 
 
RSU
$
210

 
$
125

 
$
113

PSU
$
38

 
$
33

 
$
17
Summary of Stock Option Activity Under all Stock Option Plans
Stock option activity was as follows:
 
Options
(in thousands)
 
Weighted-
Average
Exercise Price
Outstanding at January 1, 2017
1,045

 
$
48.56

Exercised
(723
)
 
$
49.31

Outstanding at December 31, 2017
322

 
$
46.93

Exercised
(130
)
 
$
35.68

Outstanding at December 30, 2018
192

 
$
54.52

Exercised
(134
)
 
$
53.61

Outstanding and exercisable at December 29, 2019
58

 
$
56.65
Summary of Share-based Compensation Expense for all Stock Awards
Share-based compensation expense reported in our consolidated statements of income was as follows:
In millions
2019
 
2018
 
2017
Cost of product revenue
$
19

 
$
16

 
$
12

Cost of service and other revenue
4

 
3

 
2

Research and development
66

 
60

 
51

Selling, general and administrative
105

 
114

 
99

Share-based compensation expense, before taxes
194

 
193

 
164

Related income tax benefits
(41
)
 
(39
)
 
(48
)
Share-based compensation expense, net of taxes
$
153

 
$
154

 
$
116
Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP were as follows:
 
2019
 
2018
 
2017
Risk-free interest rate
1.88% - 2.56%

 
 1.22% - 2.45%

 
0.50% - 1.22%

Expected volatility
30% - 38%

 
 29% - 39%

 
29% - 44%

Expected term
0.5 - 1.0 year

 
 0.5 - 1.0 year

 
0.5 - 1.0 year

Expected dividends
0
%
 
0
%
 
0
%
Weighted-average grant-date fair value per share
$
75.47

 
$
61.59

 
$
46.81
v3.19.3.a.u2
Supplemental Balance Sheet Details (Tables)
 12 Months Ended
Dec. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Accounts Receivable
in millions
December 29,
2019
 
December 30,
2018
Trade accounts receivable, gross
$
575

 
$
516

Allowance for doubtful accounts
(2
)
 
(2
)
Total accounts receivable, net
$
573

 
$
514
Summary of Inventory
in millions
December 29,
2019
 
December 30,
2018
Raw materials
$
108

 
$
117

Work in process
225

 
218

Finished goods
26

 
51

Total inventory
$
359

 
$
386
Summary of Property and Equipment
The estimated useful lives of the major classes of property and equipment are generally as follows:
 
Estimated Useful Lives
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years


in millions
December 29,
2019
 
December 30,
2018
Leasehold improvements
$
622

 
$
567

Machinery and equipment
401

 
382

Computer hardware and software
272

 
217

Furniture and fixtures
45

 
45

Buildings
44

 
285

Construction in progress
73

 
100

Total property and equipment, gross
1,457

 
1,596

Accumulated depreciation
(568
)
 
(521
)
Total property and equipment, net
$
889

 
$
1,075
Summary of Accrued Liabilities
in millions
December 29,
2019
 
December 30,
2018
Contract liabilities, current portion
$
167

 
$
175

Accrued compensation expenses
154

 
193

Accrued taxes payable
86

 
82

Operating lease liabilities, current portion
45

 
—

Other, including warranties (a)
64

 
63

Total accrued liabilities
$
516

 
$
513



(a) Changes in the reserve for product warranties were as follows:
in millions
 
Balance as of January 1, 2017
$
13

Additions charged to cost of revenue
26

Repairs and replacements
(22
)
Balance as of December 31, 2017
17

Additions charged to cost of revenue
27

Repairs and replacements
(25
)
Balance as of December 30, 2018
19

Additions charged to cost of revenue
20

Repairs and replacements
(25
)
Balance as of December 29, 2019
$
14
Summary of Changes in Reserve for Product Warranties Changes in the reserve for product warranties were as follows:
in millions
 
Balance as of January 1, 2017
$
13

Additions charged to cost of revenue
26

Repairs and replacements
(22
)
Balance as of December 31, 2017
17

Additions charged to cost of revenue
27

Repairs and replacements
(25
)
Balance as of December 30, 2018
19

Additions charged to cost of revenue
20

Repairs and replacements
(25
)
Balance as of December 29, 2019
$
14
Summary of Activity of Redeemable Noncontrolling Interests
Changes in the redeemable noncontrolling interest were as follows:
in millions
 
Balance as of January 1, 2017
$
44

Amount released from escrow
79

Vesting of redeemable equity awards
13

Net loss attributable to noncontrolling interests
(41
)
Adjustment up to the redemption value
136

Deconsolidation of GRAIL
(11
)
Balance as of December 31, 2017
$
220

Vesting of redeemable equity awards
2

Net loss attributable to noncontrolling interests
(34
)
Adjustment down to the redemption value
(127
)
Balance as of December 30, 2018
61

Vesting of redeemable equity awards
1

Net loss attributable to noncontrolling interests
(9
)
Adjustment down to the redemption value
(16
)
Release of potential obligation to noncontrolling interests
(37
)
Balance as of December 29, 2019
$
—
Summary of Accumulated Other Comprehensive (Income) Loss
Accumulated Other Comprehensive Income (Loss)
in millions
December 29,
2019
 
December 30,
2018
Foreign currency translation adjustments
$
1

 
$
1

Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax
4

 
(2
)
Total accumulated other comprehensive income (loss)
$
5

 
$
(1
)
v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 29, 2019
Income Tax Disclosure [Abstract]  
Summary of Income before Income Taxes by Region
Income before income taxes summarized by region was as follows:
In millions
2019
 
2018
 
2017
United States
$
242

 
$
54

 
$
458

Foreign
876

 
840

 
585

Total income before income taxes
$
1,118

 
$
894

 
$
1,043
Summary of Provision for Income Taxes
The provision for income taxes consisted of the following:
In millions
2019
 
2018
 
2017
Current:
 

 
 

 
 

Federal
$
32

 
$
47

 
$
259

State
7

 
15

 
21

Foreign
84

 
68

 
51

Total current provision
123

 
130

 
331

Deferred:
 

 
 

 
 

Federal
1

 
—

 
36

State
(1
)
 
(16
)
 
—

Foreign
5

 
(2
)
 
(2
)
Total deferred expense (benefit)
5

 
(18
)
 
34

Total tax provision
$
128

 
$
112

 
$
365
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 millions
2019
 
2018
 
2017
Tax at federal statutory rate
$
235

 
$
188

 
$
365

State, net of federal benefit
18

 
13

 
19

Research and other credits
(37
)
 
(23
)
 
(12
)
Change in valuation allowance
(2
)
 
(12
)
 
12

Impact of foreign operations
(57
)
 
(59
)
 
(130
)
Investments in consolidated variable interest entities
(5
)
 
9

 
(3
)
Impact of U.S. Tax Reform
—

 
11

 
150

Stock compensation
(20
)
 
(24
)
 
(41
)
Other
(4
)
 
9

 
5

Total tax provision
$
128

 
$
112

 
$
365
Summary of Significant Components of Deferred Tax Assets and Liabilities
Significant components of deferred tax assets and liabilities were as follows:
In millions
December 29,
2019
 
December 30,
2018
Deferred tax assets:
 

 
 

Net operating losses
$
21

 
$
26

Tax credits
63

 
63

Other accruals and reserves
12

 
28

Stock compensation
20

 
20

Deferred rent
—

 
30

Cost sharing adjustment
21

 
21

Other amortization
16

 
13

Obligations under financing leases
—

 
70

Operating lease liabilities
158

 
—

Investments
2

 
1

Other
45

 
28

Total gross deferred tax assets
358

 
300

Valuation allowance on deferred tax assets
(13
)
 
(15
)
Total deferred tax assets
345

 
285

Deferred tax liabilities:
 

 
 

Purchased intangible amortization
(27
)
 
(32
)
Convertible debt
(30
)
 
(41
)
Property and equipment
(47
)
 
(94
)
Operating lease right-of-use assets
(111
)
 
—

Investments
(62
)
 
(45
)
Other
(5
)
 
(3
)
Total deferred tax liabilities
(282
)
 
(215
)
Deferred tax assets, net
$
63

 
$
70
Summary of the Gross Amount of Uncertain Tax Positions
The following table summarizes the gross amount of our uncertain tax positions:
In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Balance at beginning of year
$
88

 
$
79

 
$
65

Increases related to prior year tax positions
1

 
1

 
2

Decreases related to prior year tax positions
—

 
(1
)
 
—

Increases related to current year tax positions
12

 
12

 
14

Decreases related to lapse of statute of limitations
(22
)
 
(3
)
 
(2
)
Balance at end of year
$
79

 
$
88

 
$
79
v3.19.3.a.u2
Segments and Geographic Data (Tables)
 12 Months Ended
Dec. 29, 2019
Segment Reporting [Abstract]  
Summary of Operating Performance and Assets by Segment
 In millions
2019
 
2018
 
2017
Revenue:
 
 
 
 
 
Core Illumina
$
3,543

 
$
3,334

 
$
2,754

Consolidated VIEs
1

 
10

 
6

Eliminations
(1
)
 
(11
)
 
(8
)
Consolidated revenue
$
3,543

 
$
3,333

 
$
2,752

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
Core Illumina
$
186

 
$
175

 
$
153

Consolidated VIEs
3

 
6

 
6

Eliminations
(1
)
 
(2
)
 
(3
)
Consolidated depreciation and amortization
$
188

 
$
179

 
$
156

 
 
 
 
 
 
Income (loss) from operations:
 
 
 
 
 
Core Illumina
$
1,008

 
$
970

 
$
696

Consolidated VIEs
(24
)
 
(90
)
 
(92
)
Eliminations
1

 
3

 
2

Consolidated income from operations
$
985

 
$
883

 
$
606

In millions
December 29,
2019
 
December 30,
2018
 
December 31,
2017
Total assets:
 
 
 
 
 
Core Illumina
$
7,316

 
$
6,912

 
$
5,223

Consolidated VIEs
—

 
154

 
45

Eliminations
—

 
(107
)
 
(11
)
Consolidated total assets
$
7,316

 
$
6,959

 
$
5,257

 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
Core Illumina
$
209

 
$
294

 
$
306

Consolidated VIEs
—

 
2

 
4

Consolidated capital expenditures
$
209

 
$
296

 
$
310
Summary of Net Long-lived Assets Consisting of Property and Equipment by Region
Net long-lived assets, consisting of property and equipment, by region was as follows:
In millions
December 29,
2019
 
December 30,
2018
United States
$
696

 
$
907

Singapore
112

 
96

United Kingdom
62

 
62

Other countries
19

 
10

Total
$
889

 
$
1,075
v3.19.3.a.u2
Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 29, 2019
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Data
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 2019 and 2018, were 13 weeks.
In millions (except per share amounts)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
2019
 

 
 

 
 

 
 

Total revenue
$
846

 
$
838

 
$
907

 
$
953

Gross profit
$
584

 
$
573

 
$
648

 
$
662

Consolidated net income
$
224

 
$
293

 
$
234

 
$
239

Net income attributable to Illumina stockholders
$
233

 
$
296

 
$
234

 
$
239

Earnings per share attributable to Illumina stockholders:
 
 
 
 
 
 
 
Basic
$
1.58

 
$
2.01

 
$
1.59

 
$
1.63

Diluted
$
1.57

 
$
1.99

 
$
1.58

 
$
1.61

2018
 
 
 
 
 
 
 
Total revenue
$
782

 
$
830

 
$
853

 
$
867

Gross profit
$
538

 
$
575

 
$
597

 
$
590

Consolidated net income
$
197

 
$
200

 
$
188

 
$
198

Net income attributable to Illumina stockholders
$
208

 
$
209

 
$
199

 
$
210

Earnings per share attributable to Illumina stockholders:
 
 
 
 
 
 
 
Basic
$
1.42

 
$
1.42

 
$
1.35

 
$
1.43

Diluted
$
1.41

 
$
1.41

 
$
1.33

 
$
1.41
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Concentrations of Risk (Details)
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Credit Concentration Risk | Investment Portfolio      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 5.00%    
Credit Concentration Risk | Issue Size      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 5.00%    
Industry Credit Concentration Risk | Investment Portfolio      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 30.00%    
Outside the United States | Geographic Concentration Risk | Sales Revenue, Net      
Concentration Risk [Line Items]      
Concentration percent 48.00% 47.00% 45.00%
Outside the United States | Geographic Concentration Risk | Accounts Receivable      
Concentration Risk [Line Items]      
Concentration percent 53.00% 44.00%  
v3.19.3.a.u2
Organization and Significant Accounting Policies - Summary of Impact of Topic 842 (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 30, 2018
ASSETS        
Prepaid expenses and other current assets $ 105 $ 70 $ 78 $ 78
Property and equipment, net 889 834 1,075 1,075
Operating lease right-of-use assets 555 579    
Deferred tax assets, net 64 76 70 70
Total assets   1,559 1,223  
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Accrued liabilities 516 549 513 513
Operating lease liabilities 740 722    
Long-term debt, current portion 0 838 1,107 1,107
Other long-term liabilities 202 224 359 359
Retained earnings $ 4,067 3,065 3,083 $ 3,083
Total liabilities and stockholders’ equity   5,398 $ 5,062  
Adoption Impact        
ASSETS        
Prepaid expenses and other current assets   (8)    
Property and equipment, net   (241)    
Operating lease right-of-use assets   579    
Deferred tax assets, net   6    
Total assets   336    
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Accrued liabilities   36    
Operating lease liabilities   722    
Long-term debt, current portion   (269)    
Other long-term liabilities   (135)    
Retained earnings   (18)    
Total liabilities and stockholders’ equity   $ 336    
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Recently Adopted Accounting Policies (Details) - USD ($)
$ in Millions
Dec. 31, 2018
Jan. 01, 2018
Jan. 02, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative-effect adjustment from adoption of ASU $ (18) $ 1 $ 48
Retained Earnings      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative-effect adjustment from adoption of ASU $ (18) $ 1 45
ASU 2016-09 | Retained Earnings      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative-effect adjustment from adoption of ASU     $ 45
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Revenue Recognition (Details)
 12 Months Ended
Dec. 29, 2019
Product revenue  
Revenue from External Customer [Line Items]  
Payment period from invoice 60 days
v3.19.3.a.u2
Organization and Significant Accounting Policies - Summary of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share (Details) - shares
shares in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Weighted average shares used to calculate basic and diluted net income per share [Line Items]      
Weighted average shares outstanding 147 147 146
Effect of potentially dilutive common shares from:      
Equity awards 1 1 2
Convertible senior notes 1 1 0
Weighted average shares used in calculating diluted net income per share 149 149 148
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Equity Securities and Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Investee      
Schedule of Investments [Line Items]      
Revenue from transactions with strategic investees $ 71 $ 143 $ 127
v3.19.3.a.u2
Organization and Significant Accounting Policies - Summary of Estimated Useful Lives of Major Classes of Property and Equipment (Details)
 12 Months Ended
Dec. 29, 2019
Building and leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 4 years
Building and leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 20 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Computer hardware and software | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Computer hardware and software | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 9 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life 7 years
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Leases (Details)
ft² in Millions
 12 Months Ended
Dec. 29, 2019
ft²
Property, Plant and Equipment [Line Items]  
Lessee operating lease, area 2.5
Minimum  
Property, Plant and Equipment [Line Items]  
Lessee, operating lease, remaining lease term 1 year
Lessee, operating lease, renewal term 6 months
Maximum  
Property, Plant and Equipment [Line Items]  
Lessee, operating lease, remaining lease term 19 years
Lessee, operating lease, renewal term 20 years
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Derivatives (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Foreign Exchange Forward | Not Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Notional amount of outstanding forward contracts $ 252 $ 122
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Warranties (Details)
 12 Months Ended
Dec. 29, 2019
Instruments  
Product Warranty Liability [Line Items]  
Warranty period 1 year
Consumables | Minimum  
Product Warranty Liability [Line Items]  
Warranty period 6 months
Consumables | Maximum  
Product Warranty Liability [Line Items]  
Warranty period 12 months
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Share-Based Compensation (Details)
 12 Months Ended
Dec. 29, 2019
Accounting Policies [Abstract]  
Expected dividend yield 0.00%
v3.19.3.a.u2
Organization and Significant Accounting Policies - Narrative - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Accounting Policies [Abstract]      
Advertising costs $ 28 $ 38 $ 30
v3.19.3.a.u2
Revenue - Summary of Disaggregated Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 29, 2019
Sep. 29, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 30, 2018
Sep. 30, 2018
Jul. 01, 2018
Apr. 01, 2018
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Revenue from External Customer [Line Items]                      
Revenue $ 953 $ 907 $ 838 $ 846 $ 867 $ 853 $ 830 $ 782 $ 3,543 $ 3,333 $ 2,752
Americas                      
Revenue from External Customer [Line Items]                      
Revenue                 1,970 1,864 1,585
Europe, Middle East, and Africa                      
Revenue from External Customer [Line Items]                      
Revenue                 933 851 653
Greater China                      
Revenue from External Customer [Line Items]                      
Revenue                 372 365 292
Asia-Pacific                      
Revenue from External Customer [Line Items]                      
Revenue                 268 253 222
United States                      
Revenue from External Customer [Line Items]                      
Revenue                 1,859 1,779 1,511
Total product revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 2,929 2,749 2,289
Consumables                      
Revenue from External Customer [Line Items]                      
Revenue                 2,392 2,177 1,771
Instruments                      
Revenue from External Customer [Line Items]                      
Revenue                 537 572 518
Service and other revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 614 584 463
Sequencing                      
Revenue from External Customer [Line Items]                      
Revenue                 3,068 2,775 2,293
Sequencing | Total product revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 2,592 2,359 1,971
Sequencing | Consumables                      
Revenue from External Customer [Line Items]                      
Revenue                 2,075 1,824 1,484
Sequencing | Instruments                      
Revenue from External Customer [Line Items]                      
Revenue                 517 535 487
Sequencing | Service and other revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 476 416 322
Microarray                      
Revenue from External Customer [Line Items]                      
Revenue                 475 558 459
Microarray | Total product revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 337 390 318
Microarray | Consumables                      
Revenue from External Customer [Line Items]                      
Revenue                 317 353 287
Microarray | Instruments                      
Revenue from External Customer [Line Items]                      
Revenue                 20 37 31
Microarray | Service and other revenue                      
Revenue from External Customer [Line Items]                      
Revenue                 $ 138 $ 168 $ 141
v3.19.3.a.u2
Revenue - Performance Obligations (Details)
$ in Millions
Dec. 29, 2019
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 980
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Percent of remaining performance obligation 66.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-04  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Percent of remaining performance obligation 14.00%
Expected timing of remaining performance obligation 12 months
v3.19.3.a.u2
Revenue - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Revenue from External Customer [Line Items]    
Contract liability $ 209 $ 206
Contract liabilities, current portion 167 $ 175
Revenue recognized, previously deferred $ 150  
Minimum    
Revenue from External Customer [Line Items]    
Product or service delivery period 3 months  
Maximum    
Revenue from External Customer [Line Items]    
Product or service delivery period 6 months  
v3.19.3.a.u2
Investments and Fair Value Measurements - Summary of Short-term Investments (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 1,261 $ 2,331
Gross Unrealized Gains 5 1
Gross Unrealized Losses   (3)
Estimated Fair Value 1,266 2,329
Debt securities in government-sponsored entities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 18 21
Gross Unrealized Gains 0 0
Gross Unrealized Losses   0
Estimated Fair Value 18 21
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 627 1,060
Gross Unrealized Gains 3 0
Gross Unrealized Losses   (2)
Estimated Fair Value 630 1,058
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 616 1,250
Gross Unrealized Gains 2 1
Gross Unrealized Losses   (1)
Estimated Fair Value $ 618 $ 1,250
v3.19.3.a.u2
Investments and Fair Value Measurements - Summary of Contractual Maturities of Available-for-sale Debt Securities (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Fair Value Disclosures [Abstract]    
Due within one year $ 512  
After one but within five years 754  
Total $ 1,266 $ 2,329
v3.19.3.a.u2
Investments and Fair Value Measurements - Narrative (Details)
$ in Millions
 12 Months Ended
Apr. 25, 2019
USD ($)
Feb. 28, 2017
USD ($)
Dec. 29, 2019
USD ($)
venture
Dec. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jul. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Marketable equity securities     $ 106 $ 39    
Marketable equity securities unrealized losses and gains     53 21    
Strategic equity investments, without readily determinable fair values     220 231    
Carrying value of investment     190 189    
Equity method investments     53 29    
Gains on deconsolidation     54 0 $ 453  
Fair Value, Measurements, Recurring            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Marketable equity securities     106 39    
Contingent value right     29 0    
Helix Holdings I, LLC            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Contingent value right, terms 7 years          
Gains on deconsolidation $ 39          
Contingent value right $ 30   29      
Unrealized loss from contingent value right     $ 1      
Helix Holdings I, LLC | Variable Interest Entity, Primary Beneficiary            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Additonal investment amount       $ 100    
Equity ownership interest percentage       50.00%   50.00%
Cash       $ 127    
Venture Capital Investment Fund (the Fund)            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Number of venture capital investment funds | venture     2      
Commitment in new venture capital investment fund     $ 100      
Remaining capital commitment     51      
Second Venture Capital Investment Fund            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Commitment in new venture capital investment fund     160      
Remaining capital commitment     $ 160      
GRAIL, Inc.            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Gains on deconsolidation   $ 453        
Ownership percentage   19.00%        
Investment voting interest percentage   13.00%        
GRAIL, Inc. | Variable Interest Entity, Primary Beneficiary            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Equity ownership interest percentage   52.00%        
v3.19.3.a.u2
Investments and Fair Value Measurements - Summary of Hierarchy for Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Assets:    
Available-for-sale securities $ 1,266 $ 2,329
Marketable equity securities 106 39
Debt securities in government-sponsored entities    
Assets:    
Available-for-sale securities 18 21
Corporate debt securities    
Assets:    
Available-for-sale securities 630 1,058
U.S. Treasury securities    
Assets:    
Available-for-sale securities 618 1,250
Fair value, Measurements, Recurring    
Assets:    
Marketable equity securities 106 39
Continent value right 29 0
Continuation Advances 10 0
Deferred compensation plan assets 48 34
Total assets measured at fair value 3,191 3,234
Liabilities:    
Deferred compensation plan liability 46 33
Fair value, Measurements, Recurring | Money market funds (cash equivalents)    
Assets:    
Money market funds (cash equivalents) 1,732 832
Fair value, Measurements, Recurring | Debt securities in government-sponsored entities    
Assets:    
Available-for-sale securities 18 21
Fair value, Measurements, Recurring | Corporate debt securities    
Assets:    
Available-for-sale securities 630 1,058
Fair value, Measurements, Recurring | U.S. Treasury securities    
Assets:    
Available-for-sale securities 618 1,250
Fair value, Measurements, Recurring | Level 1    
Assets:    
Marketable equity securities 106 39
Continent value right 0 0
Continuation Advances 0 0
Deferred compensation plan assets 0 0
Total assets measured at fair value 2,456 2,121
Liabilities:    
Deferred compensation plan liability 0 0
Fair value, Measurements, Recurring | Level 1 | Money market funds (cash equivalents)    
Assets:    
Money market funds (cash equivalents) 1,732 832
Fair value, Measurements, Recurring | Level 1 | Debt securities in government-sponsored entities    
Assets:    
Available-for-sale securities 0 0
Fair value, Measurements, Recurring | Level 1 | Corporate debt securities    
Assets:    
Available-for-sale securities 0 0
Fair value, Measurements, Recurring | Level 1 | U.S. Treasury securities    
Assets:    
Available-for-sale securities 618 1,250
Fair value, Measurements, Recurring | Level 2    
Assets:    
Marketable equity securities 0 0
Continent value right 0 0
Continuation Advances 0 0
Deferred compensation plan assets 48 34
Total assets measured at fair value 696 1,113
Liabilities:    
Deferred compensation plan liability 46 33
Fair value, Measurements, Recurring | Level 2 | Money market funds (cash equivalents)    
Assets:    
Money market funds (cash equivalents) 0 0
Fair value, Measurements, Recurring | Level 2 | Debt securities in government-sponsored entities    
Assets:    
Available-for-sale securities 18 21
Fair value, Measurements, Recurring | Level 2 | Corporate debt securities    
Assets:    
Available-for-sale securities 630 1,058
Fair value, Measurements, Recurring | Level 2 | U.S. Treasury securities    
Assets:    
Available-for-sale securities 0 0
Fair value, Measurements, Recurring | Level 3    
Assets:    
Marketable equity securities 0 0
Continent value right 29 0
Continuation Advances 10 0
Deferred compensation plan assets 0 0
Total assets measured at fair value 39 0
Liabilities:    
Deferred compensation plan liability 0 0
Fair value, Measurements, Recurring | Level 3 | Money market funds (cash equivalents)    
Assets:    
Money market funds (cash equivalents) 0 0
Fair value, Measurements, Recurring | Level 3 | Debt securities in government-sponsored entities    
Assets:    
Available-for-sale securities 0 0
Fair value, Measurements, Recurring | Level 3 | Corporate debt securities    
Assets:    
Available-for-sale securities 0 0
Fair value, Measurements, Recurring | Level 3 | U.S. Treasury securities    
Assets:    
Available-for-sale securities $ 0 $ 0
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions - Summary of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 469 $ 481
Accumulated Amortization (324) (296)
Intangibles, Net 145 185
Licensed technologies    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 95 95
Accumulated Amortization (89) (83)
Intangibles, Net 6 12
Core technologies    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 325 331
Accumulated Amortization (195) (172)
Intangibles, Net 130 159
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 31 32
Accumulated Amortization (27) (27)
Intangibles, Net 4 5
License agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 14 14
Accumulated Amortization (10) (9)
Intangibles, Net 4 5
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 4 9
Accumulated Amortization (3) (5)
Intangibles, Net $ 1 $ 4
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions - Summary of Estimated Annual Amortization of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Estimated Annual Amortization    
2020 $ 29  
2021 25  
2022 21  
2023 20  
2024 19  
Thereafter 31  
Intangibles, Net $ 145 $ 185
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions - Narrative (Details) - USD ($)
 1 Months Ended 2 Months Ended 3 Months Ended 12 Months Ended
Feb. 03, 2020
Jan. 02, 2020
Dec. 18, 2019
Nov. 01, 2018
May 14, 2018
Mar. 02, 2020
Mar. 02, 2020
Dec. 02, 2019
Dec. 29, 2019
Jun. 30, 2019
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Goodwill [Line Items]                          
Impairment charge                         $ 18,000,000
Goodwill impairment                   $ 0      
Goodwill, acquired                       $ 60,000,000  
Continuation advances paid and fair value derivative asset                     $ 8,000,000 $ 0 0
In Process Research and Development                          
Goodwill [Line Items]                          
Impairment charge                         $ 5,000,000
Edico Genome                          
Goodwill [Line Items]                          
Business acquisition total consideration         $ 100,000,000                
Goodwill, acquired         56,000,000                
Edico Genome | Developed Technology                          
Goodwill [Line Items]                          
Value of intangible assets acquired         $ 45,000,000                
Weighted-average useful lives (in years)         10 years                
Edico Genome | Trade Name                          
Goodwill [Line Items]                          
Value of intangible assets acquired         $ 1,000,000                
Weighted-average useful lives (in years)         3 years                
PacBio                          
Goodwill [Line Items]                          
Cash payments to PacBio     $ 34,000,000 $ 1,200,000,000       $ 6,000,000 $ 18,000,000        
Share price (in dollars per share)       $ 8.00                  
Continuation advances                 $ 10,000,000   10,000,000    
PacBio | Subsequent Event                          
Goodwill [Line Items]                          
Cash payments to PacBio $ 22,000,000 $ 6,000,000       $ 6,000,000              
PacBio a termination fee   98,000,000                      
PacBio will pay cash termination fee   $ 52,000,000                      
Business acquisition termination term   2 years                      
Equity or debt financing to be raised   $ 100,000,000                      
PacBio | Subsequent Event | Forecast                          
Goodwill [Line Items]                          
Cash payments to PacBio             $ 34,000,000            
PacBio | Selling, General and Administrative Expenses                          
Goodwill [Line Items]                          
Continuation advances paid and fair value derivative asset                     $ 8,000,000    
v3.19.3.a.u2
Intangible Assets, Goodwill, and Acquisitions - Summary of Changes in Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Goodwill [Roll Forward]    
Balance at beginning of period $ 831 $ 771
Acquisitions   60
Helix deconsolidation (7)  
Balance at end of period $ 824 $ 831
v3.19.3.a.u2
Debt and Other Commitments - Summary of Debt Obligations (Details) - USD ($)
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Jan. 01, 2019
Dec. 31, 2018
Aug. 21, 2018
Jun. 29, 2014
Debt Instrument [Line Items]            
Obligations under financing leases $ 0          
Obligations under financing leases   $ 269,000,000        
Other 0 3,000,000        
Less: current portion 0 (1,107,000,000) $ (838,000,000) $ (1,107,000,000)    
Long-term debt 1,141,000,000 890,000,000        
Convertible Senior Notes            
Debt Instrument [Line Items]            
Unamortized discount of liability component of convertible senior notes (126,000,000) (175,000,000)        
Net carrying amount of liability component of convertible senior notes 1,141,000,000 1,725,000,000        
Carrying value of equity component of convertible senior notes, net of debt issuance costs $ 213,000,000 $ 287,000,000        
Weighted average remaining amortization period of discount on the liability component of convertible senior notes 3 years 2 months 12 days 3 years 10 months 24 days        
Convertible Senior Notes | Level 2            
Debt Instrument [Line Items]            
Fair value of convertible senior notes outstanding (Level 2) $ 1,549,000,000 $ 2,222,000,000        
Convertible Senior Notes | 2023 Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 750,000,000 750,000,000     $ 750,000,000  
Convertible Senior Notes | 2021 Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 517,000,000 517,000,000       $ 517,000,000
Carrying value of equity component of convertible senior notes, net of debt issuance costs           87,000,000
Convertible Senior Notes | 2019 Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding $ 0 $ 633,000,000       633,000,000
Carrying value of equity component of convertible senior notes, net of debt issuance costs           $ 74,000,000
v3.19.3.a.u2
Debt and Other Commitments - Narrative (Details)
 1 Months Ended 12 Months Ended
Aug. 21, 2018
USD ($)
day
$ / shares
Jun. 29, 2014
USD ($)
day
$ / shares
Dec. 29, 2019
USD ($)
Dec. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Debt Instrument [Line Items]          
Additional paid in capital, net of tax     $ 3,560,000,000 $ 3,290,000,000  
Rent expense       55,000,000 $ 46,000,000
Interest portion of lease expense       13,000,000  
Obligations Under Financing Leases       269,000,000  
Obligations under financing leases     0    
Deferred rent       123,000,000  
Long-term portion, deferred rent       119,000,000  
Convertible Senior Notes          
Debt Instrument [Line Items]          
Carrying value of equity component of convertible senior notes, net of debt issuance costs     213,000,000 287,000,000  
Convertible Senior Notes | 2023 Notes          
Debt Instrument [Line Items]          
Interest rate on convertible senior notes 0.00%        
Principal amount $ 750,000,000   750,000,000 750,000,000  
Net proceeds from issuance, after deducting offering expenses payable $ 735,000,000        
Conversion rate 0.0021845        
Conversion price (in dollars per share) | $ / shares $ 457.77        
Threshold common stock trading days | day 20        
Threshold consecutive common stock trading days | day 30        
Threshold percentage of common stock price trigger 130.00%        
Threshold note trading days | day 5        
Threshold consecutive note trading days | day 10        
Threshold percentage of note price trigger 98.00%        
Observation period 20 days        
Effective conversion rate divided period 20 days        
Convertible stock price trigger (in dollars per share) | $ / shares $ 595.10        
Redemption price, percentage 100.00%        
Effective interest rate used to measure fair value of convertible senior note 3.70%        
Debt, fair value $ 624,000,000        
Additional paid in capital, before tax 126,000,000        
Additional paid in capital, net of tax $ 93,000,000        
Convertible Senior Notes | 2021 Notes          
Debt Instrument [Line Items]          
Interest rate on convertible senior notes   0.50%      
Principal amount   $ 517,000,000 517,000,000 517,000,000  
Net proceeds from issuance, after deducting offering expenses payable   $ 509,000,000      
Conversion rate   0.0039318      
Conversion price (in dollars per share) | $ / shares   $ 254.34      
Threshold common stock trading days | day   20      
Threshold consecutive common stock trading days | day   30      
Threshold percentage of common stock price trigger   130.00%      
Threshold note trading days | day   5      
Threshold consecutive note trading days | day   10      
Threshold percentage of note price trigger   98.00%      
Observation period   20 days      
Effective conversion rate divided period   20 days      
Effective interest rate used to measure fair value of convertible senior note   3.50%      
Fair value of liability component, upon issuance   $ 423,000,000      
Carrying value of equity component of convertible senior notes, net of debt issuance costs   87,000,000      
Cash proceeds   $ 510,000,000      
If-converted value in excess of principal     146,000,000    
Convertible Senior Notes | 2019 Notes          
Debt Instrument [Line Items]          
Interest rate on convertible senior notes   0.00%      
Principal amount   $ 633,000,000 $ 0 $ 633,000,000  
Net proceeds from issuance, after deducting offering expenses payable   $ 623,000,000      
Threshold common stock trading days | day   20      
Threshold consecutive common stock trading days | day   30      
Threshold percentage of common stock price trigger   130.00%      
Threshold note trading days | day   5      
Threshold consecutive note trading days | day   10      
Threshold percentage of note price trigger   98.00%      
Effective interest rate used to measure fair value of convertible senior note   2.90%      
Fair value of liability component, upon issuance   $ 549,000,000      
Carrying value of equity component of convertible senior notes, net of debt issuance costs   $ 74,000,000      
v3.19.3.a.u2
Debt and Other Commitments - Summary of Debt Conversions (Details) - 2019 Notes
shares in Millions, $ in Millions
 12 Months Ended
Dec. 29, 2019
USD ($)
shares
Short-term Debt [Line Items]  
Cash paid for principal of notes converted $ 633
Conversion value over principal amount, paid in shares of common stock $ 153
Number of shares of common stock issued upon conversion | shares 0.4
v3.19.3.a.u2
Debt and Other Commitments - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Jan. 01, 2019
Debt Disclosure [Abstract]    
2020 $ 77  
2021 83  
2022 85  
2023 86  
2024 85  
Thereafter 554  
Total remaining lease payments 970  
Less: imputed interest (230)  
Total operating lease liabilities 740 $ 722
Less: current portion (45)  
Long-term operating lease liabilities $ 695  
Weighted-average remaining lease term 11 years 4 months 24 days  
Weighted-average discount rate 4.60%  
Lease payments for leases not yet commenced $ 44  
v3.19.3.a.u2
Debt and Other Commitments - Future Minimum Payments Prior to Adoption (Details)
$ in Millions
Dec. 30, 2018
USD ($)
Operating Leases  
2019 $ 59
2020 64
2021 61
2022 61
2023 61
Thereafter 439
Total minimum lease payments 745
Sublease Income  
2019 (11)
2020 (11)
2021 (11)
2022 (12)
2023 (11)
Thereafter (12)
Total minimum lease payments (68)
Net Operating Leases  
2019 48
2020 53
2021 50
2022 49
2023 50
Thereafter 427
Total minimum lease payments 677
Build-to-suit Leases  
2019 18
2020 21
2021 21
2022 22
2023 22
Thereafter 179
Total minimum lease payments $ 283
v3.19.3.a.u2
Debt and Other Commitments - Summary of Lease Costs (Details)
$ in Millions
 12 Months Ended
Dec. 29, 2019
USD ($)
Debt Disclosure [Abstract]  
Operating lease costs $ 84
Sublease income (12)
Total lease costs $ 72
v3.19.3.a.u2
Stockholders' Equity - Narrative (Details)
shares in Millions
Dec. 29, 2019
shares
2015 Stock Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares available for issuance 4.3
v3.19.3.a.u2
Stockholders' Equity - Narrative - Restricted Stock (Details)
 12 Months Ended
Dec. 29, 2019
RSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 4 years
PSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
PSU | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percent 150.00%
v3.19.3.a.u2
Stockholders' Equity - Summary of Restricted Stock Activity and Related Information (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Restricted Stock Units (RSU)      
Stock Units      
Outstanding at period start (in shares) 1,840 2,085 2,293
Awarded (in shares) 698 655 879
Vested (in shares) (694) (731) (861)
Cancelled (in shares) (144) (169) (226)
Outstanding at period end (in shares) 1,700 1,840 2,085
Weighted-Average Grant Date Fair Value per Share      
Outstanding at period start (in dollars per share) $ 227.00 $ 172.92 $ 141.80
Awarded (in dollars per share) 313.70 322.04 207.38
Vested (in dollars per share) 205.51 170.50 131.62
Cancelled (in dollars per share) 225.48 172.30 149.03
Outstanding at period end (in dollars per share) $ 271.49 $ 227.00 $ 172.92
Performance Stock Units (PSU)      
Stock Units      
Outstanding at period start (in shares) 660 542 460
Awarded (in shares) (41) 336 238
Vested (in shares) (283) (188) (92)
Cancelled (in shares) (65) (30) (64)
Outstanding at period end (in shares) 271 660 542
Weighted-Average Grant Date Fair Value per Share      
Outstanding at period start (in dollars per share) $ 196.99 $ 166.15 $ 158.66
Awarded (in dollars per share) 254.52 232.08 191.53
Vested (in dollars per share) 133.11 176.15 189.09
Cancelled (in dollars per share) 181.79 162.54 173.83
Outstanding at period end (in dollars per share) $ 258.66 $ 196.99 $ 166.15
v3.19.3.a.u2
Stockholders' Equity - Summary of Pre-tax Intrinsic Values and Total Fair Value of Vested Restricted Stock (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Restricted Stock Units (RSU)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax intrinsic value of outstanding restricted stock $ 565 $ 549 $ 456
Fair value of restricted stock vested 210 125 113
Performance Stock Units (PSU)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax intrinsic value of outstanding restricted stock 90 197 118
Fair value of restricted stock vested $ 38 $ 33 $ 17
v3.19.3.a.u2
Stockholders' Equity - Summary of Stock Option Activity Under all Stock Option Plans (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Options      
Outstanding at period start (in shares) 192 322 1,045
Exercised (in shares) (134) (130) (723)
Outstanding at period end (in shares) 58 192 322
Exercisable (in shares) 58    
Weighted- Average Exercise Price      
Outstanding at period start (in dollars per share) $ 54.52 $ 46.93 $ 48.56
Exercised (in dollars per share) 53.61 35.68 49.31
Outstanding at period end (in dollars per share) 56.65 $ 54.52 $ 46.93
Exercisable (in dollars per share) $ 56.65    
v3.19.3.a.u2
Stockholders' Equity - Narrative - Stock Options (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Dec. 27, 2019
Equity [Abstract]        
Weighted average remaining life in years of options outstanding 1 year 2 months 12 days      
Weighted average remaining life in years of options exercisable 1 year 2 months      
Aggregate intrinsic value of options outstanding $ 16      
Aggregate intrinsic value of options exercisable 16      
Share price (in dollars per share)       $ 332.29
Total intrinsic value of options exercised $ 34 $ 33 $ 101  
v3.19.3.a.u2
Stockholders' Equity - Narrative - Employee Stock Purchase Plan (Details) - ESPP - Employee Stock - shares
shares in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
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 0.3
Shares available for issuance 13.5 13.7  
v3.19.3.a.u2
Stockholders' Equity - Narrative - Share Repurchases (Details) - USD ($)
shares in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Feb. 05, 2020
Feb. 06, 2019
Class of Stock [Line Items]          
Common stock repurchases $ 324,000,000 $ 201,000,000 $ 251,000,000    
Common Stock          
Class of Stock [Line Items]          
Repurchase of common shares (in shares) 1.1 0.6 1.4    
Common stock repurchases $ 324,000,000 $ 201,000,000 $ 251,000,000    
Dollar amount remaining in authorized stock repurchase program $ 226,000,000        
Stock repurchase program authorized amount         $ 550,000,000
Common Stock | Subsequent Event          
Class of Stock [Line Items]          
Stock repurchase program authorized amount       $ 750,000,000  
2023 Notes | Common Stock          
Class of Stock [Line Items]          
Repurchase of common shares (in shares)   0.3      
Common stock repurchases   $ 103,000,000      
v3.19.3.a.u2
Stockholders' Equity - Summary of Share-based Compensation Expense for all Stock Awards (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes $ 194 $ 193 $ 164
Related income tax benefits (41) (39) (48)
Share-based compensation expense, net of taxes 153 154 116
Cost of product revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 19 16 12
Cost of service and other revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 4 3 2
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 66 60 51
Selling, general and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes $ 105 $ 114 $ 99
v3.19.3.a.u2
Stockholders' Equity - Summary of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividends 0.00%    
Unrecognized compensation cost related to restricted stock units and ESPP shares issued to date $ 463    
Weighted-average period of unrecognized compensation cost related to restricted stock and ESPP shares issued to date 2 years 7 months 6 days    
Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate, minimum 1.88% 1.22% 0.50%
Risk-free interest rate, maximum 2.56% 2.45% 1.22%
Expected volatility, minimum 30.00% 29.00% 29.00%
Expected volatility, maximum 38.00% 39.00% 44.00%
Expected dividends 0.00% 0.00% 0.00%
Weighted-average grant-date fair value per share (in dollars per share) $ 75.47 $ 61.59 $ 46.81
Employee Stock | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 6 months 6 months 6 months
Employee Stock | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 1 year 1 year 1 year
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Accounts Receivable (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Trade accounts receivable, gross $ 575 $ 516
Allowance for doubtful accounts (2) (2)
Total accounts receivable, net $ 573 $ 514
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Inventory (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 108 $ 117
Work in process 225 218
Finished goods 26 51
Total inventory $ 359 $ 386
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 30, 2018
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross $ 1,457     $ 1,596
Accumulated depreciation (568)     (521)
Total property and equipment, net 889 $ 834 $ 1,075 1,075
Leasehold improvements        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross 622     567
Machinery and equipment        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross 401     382
Computer hardware and software        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross 272     217
Furniture and fixtures        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross 45     45
Buildings        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross 44     285
Construction in progress        
Property, Plant and Equipment [Line Items]        
Total property and equipment, gross $ 73     $ 100
v3.19.3.a.u2
Supplemental Balance Sheet Details - Narrative - Property and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Jan. 01, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]          
Non-cash expenditures included in property and equipment, net $ 20 $ 35 $ 117    
Property and equipment, net $ (889) (1,075)   $ (834) $ (1,075)
ASU 2016-02          
Property, Plant and Equipment [Line Items]          
Property and equipment, net       $ 241  
Construction in Progress and Build to Suit Lease Liability          
Property, Plant and Equipment [Line Items]          
Non-cash expenditures included in property and equipment, net   $ 18 $ 79    
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Contract liabilities, current portion $ 167     $ 175
Accrued compensation expenses 154     193
Accrued taxes payable 86     82
Operating lease liabilities, current portion 45      
Other, including warranties 64     63
Total accrued liabilities $ 516 $ 549 $ 513 $ 513
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Changes in Reserve for Product Warranties (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]      
Balance as of beginning of period $ 19 $ 17 $ 13
Additions charged to cost of revenue 20 27 26
Repairs and replacements (25) (25) (22)
Balance as of end of period $ 14 $ 19 $ 17
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward]      
Beginning balance $ 61 $ 220 $ 44
Amount released from escrow     79
Vesting of redeemable equity awards 1 2 13
Net loss attributable to noncontrolling interests (9) (34) (41)
Adjustment up to the redemption value     136
Adjustment down to the redemption value (16) (127)  
Deconsolidation of GRAIL     (11)
Release of potential obligation to noncontrolling interests (37)    
Ending balance $ 0 $ 61 $ 220
v3.19.3.a.u2
Supplemental Balance Sheet Details - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Jan. 01, 2017
Accumulated Other Comprehensive Income [Line Items]        
Total accumulated other comprehensive income (loss) $ 4,613 $ 3,845 $ 2,749 $ 2,270
Foreign currency translation adjustments        
Accumulated Other Comprehensive Income [Line Items]        
Total accumulated other comprehensive income (loss) 1 1    
Unrealized gain (loss) on available-for-sale debt securities, net of deferred tax        
Accumulated Other Comprehensive Income [Line Items]        
Total accumulated other comprehensive income (loss) 4 (2)    
Total accumulated other comprehensive income (loss)        
Accumulated Other Comprehensive Income [Line Items]        
Total accumulated other comprehensive income (loss) $ 5 $ (1) $ (1) $ (1)
v3.19.3.a.u2
Income Taxes - Summary of Income Before Income Taxes by Region (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
United States $ 242 $ 54 $ 458
Foreign 876 840 585
Income before income taxes $ 1,118 $ 894 $ 1,043
v3.19.3.a.u2
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Current:      
Federal $ 32 $ 47 $ 259
State 7 15 21
Foreign 84 68 51
Total current provision 123 130 331
Deferred:      
Federal 1 0 36
State (1) (16) 0
Foreign 5 (2) (2)
Total deferred expense (benefit) 5 (18) 34
Total tax provision $ 128 $ 112 $ 365
v3.19.3.a.u2
Income Taxes - Summary of Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Federal Statutory Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
Tax at federal statutory rate $ 235 $ 188 $ 365
State, net of federal benefit 18 13 19
Research and other credits (37) (23) (12)
Change in valuation allowance (2) (12) 12
Impact of foreign operations (57) (59) (130)
Investments in consolidated variable interest entities (5) 9 (3)
Impact of U.S. Tax Reform 0 11 150
Stock compensation (20) (24) (41)
Other (4) 9 5
Total tax provision $ 128 $ 112 $ 365
v3.19.3.a.u2
Income Taxes - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Tax Credit Carryforward [Line Items]      
Valuation allowance on deferred tax assets $ 13 $ 15  
Undistributed earnings of foreign subsidiaries 889    
Deferred tax liability 5 3  
Uncertain tax positions that would reduce annual effective tax rate, if recognized 68 78  
Potential interest penalties on uncertain tax positions (3) 3 $ 1
Liability recorded for potential interest and penalties 7 11  
State      
Tax Credit Carryforward [Line Items]      
Net operating loss carryforwards 115    
Tax credit carryforwards 106    
Tax Year 2017      
Tax Credit Carryforward [Line Items]      
Undistributed earnings of foreign subsidiaries $ 331    
Singapore | Foreign      
Tax Credit Carryforward [Line Items]      
Statutory tax rate 17.00%    
Decrease to the provision for income taxes $ 33 $ 36 $ 49
Increase to net income per diluted share $ 0.22 $ 0.24 $ 0.33
United Kingdom | Foreign      
Tax Credit Carryforward [Line Items]      
Statutory tax rate 19.00%    
IRS | Federal      
Tax Credit Carryforward [Line Items]      
Net operating loss carryforwards $ 29    
Tax credit carryforwards $ 1    
v3.19.3.a.u2
Income Taxes - Summary of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Dec. 30, 2018
Deferred tax assets:    
Net operating losses $ 21 $ 26
Tax credits 63 63
Other accruals and reserves 12 28
Stock compensation 20 20
Deferred rent 0 30
Cost sharing adjustment 21 21
Other amortization 16 13
Obligations under financing leases 0 70
Operating lease liabilities 158  
Investments 2 1
Other 45 28
Total gross deferred tax assets 358 300
Valuation allowance on deferred tax assets (13) (15)
Total deferred tax assets 345 285
Deferred tax liabilities:    
Purchased intangible amortization (27) (32)
Convertible debt (30) (41)
Property and equipment (47) (94)
Operating lease right-of-use assets (111)  
Investments (62) (45)
Other (5) (3)
Total deferred tax liabilities (282) (215)
Deferred tax assets, net $ 63 $ 70
v3.19.3.a.u2
Income Taxes - Summary of the Gross Amount of Uncertain Tax Positions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of year $ 88 $ 79 $ 65
Increases related to prior year tax positions 1 1 2
Decreases related to prior year tax positions   (1)  
Increases related to current year tax positions 12 12 14
Decreases related to lapse of statute of limitations (22) (3) (2)
Balance at end of year $ 79 $ 88 $ 79
v3.19.3.a.u2
Employee Benefit Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Matching contributions $ 20 $ 20 $ 17
Deferred Compensation Plan      
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Employer contribution vesting percent upon the occurrence of participant's disability, death or retirement or change in control of the Company 100.00%    
Deferred compensation plan assets $ 48 34  
Deferred compensation liability $ 46 $ 33  
Deferred Compensation Plan | Senior Level Employee      
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Percent of base salary available for contribution to the deferred compensation plan 60.00%    
Percent of all other forms of compensation available for contribution to the deferred compensation plan 100.00%    
Deferred Compensation Plan | Director      
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Percent of all other forms of compensation available for contribution to the deferred compensation plan 100.00%    
v3.19.3.a.u2
Segments and Geographic Data - Narrative (Details)
 12 Months Ended
Dec. 29, 2019
segments
Segment Reporting [Abstract]  
Number of reportable segment 1
v3.19.3.a.u2
Segments and Geographic Data - Summary of Operating Performance and Assets by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 29, 2019
Sep. 29, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 30, 2018
Sep. 30, 2018
Jul. 01, 2018
Apr. 01, 2018
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]                      
Consolidated revenue $ 953 $ 907 $ 838 $ 846 $ 867 $ 853 $ 830 $ 782 $ 3,543 $ 3,333 $ 2,752
Consolidated depreciation and amortization                 188 179 156
Consolidated income from operations                 985 883 606
Consolidated total assets 7,316       6,959       7,316 6,959 5,257
Consolidated capital expenditures                 209 296 310
Core Illumina                      
Segment Reporting Information [Line Items]                      
Consolidated capital expenditures                 209 294 306
Consolidated VIEs                      
Segment Reporting Information [Line Items]                      
Consolidated capital expenditures                 0 2 4
Operating Segments | Core Illumina                      
Segment Reporting Information [Line Items]                      
Consolidated revenue                 3,543 3,334 2,754
Consolidated depreciation and amortization                 186 175 153
Consolidated income from operations                 1,008 970 696
Consolidated total assets 7,316       6,912       7,316 6,912 5,223
Operating Segments | Consolidated VIEs                      
Segment Reporting Information [Line Items]                      
Consolidated revenue                 1 10 6
Consolidated depreciation and amortization                 3 6 6
Consolidated income from operations                 (24) (90) (92)
Consolidated total assets 0       154       0 154 45
Eliminations                      
Segment Reporting Information [Line Items]                      
Consolidated revenue                 (1) (11) (8)
Consolidated depreciation and amortization                 (1) (2) (3)
Consolidated income from operations                 1 3 2
Consolidated total assets $ 0       $ (107)       $ 0 $ (107) $ (11)
v3.19.3.a.u2
Segments and Geographic Data - Summary of Net Long-lived Assets Consisting of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 29, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]        
Long-lived assets $ 889 $ 834 $ 1,075 $ 1,075
United States        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Long-lived assets 696     907
Singapore        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Long-lived assets 112     96
United Kingdom        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Long-lived assets 62     62
Other countries        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Long-lived assets $ 19     $ 10
v3.19.3.a.u2
Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 29, 2019
Sep. 29, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 30, 2018
Sep. 30, 2018
Jul. 01, 2018
Apr. 01, 2018
Dec. 29, 2019
Dec. 30, 2018
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]                      
Total revenue $ 953 $ 907 $ 838 $ 846 $ 867 $ 853 $ 830 $ 782 $ 3,543 $ 3,333 $ 2,752
Gross profit 662 648 573 584 590 597 575 538 2,467 2,300 1,826
Consolidated net income 239 234 293 224 198 188 200 197 990 782 678
Net income attributable to Illumina stockholders $ 239 $ 234 $ 296 $ 233 $ 210 $ 199 $ 209 $ 208 $ 1,002 $ 826 $ 726
Earnings per share attributable to Illumina stockholders:                      
Basic (in dollars per share) $ 1.63 $ 1.59 $ 2.01 $ 1.58 $ 1.43 $ 1.35 $ 1.42 $ 1.42 $ 6.81 $ 5.63 $ 4.96
Diluted (in dollars per share) $ 1.61 $ 1.58 $ 1.99 $ 1.57 $ 1.41 $ 1.33 $ 1.41 $ 1.41 $ 6.74 $ 5.56 $ 4.92
v3.19.3.a.u2
Label Element Value
Additional Paid-in Capital [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 3,000,000