Segment Information

9 Months Ended

Oct. 03, 2021

Segment Reporting [Abstract]

Segment Information

10. SEGMENT INFORMATION

We have two reportable segments, Core Illumina and GRAIL, as described below. We report segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. We do not allocate expenses between segments.

On August 18, 2021, we acquired GRAIL in a business combination and it operates as a separate reportable segment. We have included the results of operations of GRAIL in our condensed consolidated statements of operations from the date of acquisition. See note “4. Business Combinations” for further details. Core Illumina sells products and provides services to GRAIL, and vice versa, in accordance with contractual agreements between the entities.

Core Illumina:

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

GRAIL:

GRAIL is a healthcare company focused on early detection of multiple cancers.

The following table presents the operating performance of each reportable segment:

In millions	Q3 2021		Q3 2020		YTD 2021		YTD 2020
Revenue:
Core Illumina	$	1,106	$	794	$	3,325	$	2,286
GRAIL	2		—		2		—
Consolidated revenue	$	1,108	$	794	$	3,327	$	2,286
Depreciation and amortization:
Core Illumina	$	51	$	46	$	148	$	137
GRAIL	14		—		14		—
Consolidated depreciation and amortization	$	65	$	46	$	162	$	137
Income (loss) from operations:
Core Illumina	$	205	$	162	$	586	$	447
GRAIL	(750)		—		(750)		—
Consolidated (loss) income from operations	$	(545)	$	162	$	(164)	$	447

Other income, net relates to Core Illumina and we do not allocate income taxes to our segments.

The following table presents the total assets of each reportable segment:

In millions	October 3, 2021		January 3, 2021
Core Illumina	$	5,794	$	7,585
GRAIL	9,270		—
Elimination of intersegment assets	(1)		—
Consolidated total assets	$	15,063	$	7,585

The following table presents net long-lived assets, consisting of property and equipment and operating lease right-of-use assets, by region:

In millions	October 3, 2021		January 3, 2021
United States	$	1,300	$	1,134
Singapore	204		150
United Kingdom	138		141
Other countries	43		29
Total net long-lived assets	$	1,685	$	1,454