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Legal Proceedings
3 Months Ended
Apr. 01, 2012
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings
Legal Proceedings

On February 28, 2012, a federal jury in Wilmington, Delaware, found that certain of the Company's sample preparation and cluster generation kits and products sold in the United States infringe U.S. Patent No. 6,107,023, owned by LadaTech LLC, a patent holding company. The case will now proceed to its next phase in which the Company will have the opportunity to demonstrate that the jury's verdict should not stand because the patent is unenforceable. In addition, the damages phase of the case has not been scheduled and will not proceed, if at all, until at least the second half of 2013, after all appropriate appeals of the jury verdict have been taken.

As a result of the Roche tender offer, the Company is involved in three stockholder class action lawsuits, with one case pending in the U.S. District Court for the Southern District of California, one case pending in the California Superior Court (County of San Diego), and one consolidated case pending in the Court of Chancery for the State of Delaware. The plaintiffs in each of these cases contend that our directors breached their fiduciary duties to our stockholders by taking defensive measures in response to Roche's tender offer, by failing to negotiate with Roche, and by not giving adequate consideration to its offer. We believe that fees and expenses we incur in connection with these stockholder class action lawsuits are covered under our directors and officers insurance policy, after the retention has been met.

The Company is also involved in various other lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

During the three months ended April 1, 2012, the Company recorded incremental legal contingency loss accrual of $2.2 million in aggregate within cost of product revenue. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. However, the amount of ultimate loss may differ from these estimates. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, management is currently unable to predict their ultimate outcome, to determine whether a liability has been incurred, or, other than with respect to amounts already recorded, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. The Company believes, however, that the liability, if any, resulting from the aggregate amount of losses for any outstanding litigation or claim will not have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations.