Business Combinations (Tables)

9 Months Ended

Oct. 03, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Total Purchase Price

The total purchase price consisted of the following:

in millions
Cash	$	2,862
Fair value of common stock issued	4,975
Fair value of contingent consideration	762
Fair value of previously held investment	1,150
Settlement of preexisting relationships	2
Total purchase price	$	9,751

Schedule of Preliminary Fair Value of Assets Acquired and Liabilities Assumed

The preliminary fair values of assets acquired and liabilities assumed as of the acquisition date were:

in millions
Cash and cash equivalents	$	571
Property and equipment	89
Operating lease right-of-use assets	121
Goodwill	6,082
Intangible assets	3,180
Other current and noncurrent assets	35
Deferred tax liability	(82)
Long-term lease liabilities	(97)
Other current and noncurrent liabilities	(148)
Total net assets acquired	$	9,751

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The preliminary fair values assigned to identifiable intangible assets acquired were as follows:

in millions, except years	Fair Value		Estimated Useful Life
Developed technology	$	2,470	18
Trade name	40		9
In-process research and development (IPR&D)	670		Indefinite
Total intangible assets	$	3,180

Schedule of Unaudited Pro Forma Information

The following unaudited pro forma financial information summarizes the combined results of operations of Illumina and GRAIL as if the companies had been combined as of the beginning of our fiscal year 2020.

in millions	Q3 2021		Q3 2020		YTD 2021		YTD 2020
Revenue	$	1,109	$	794	$	3,330	$	2,286
Net income	$	194	$	95	$	548	$	148

Schedule of Finite-Lived Intangible Assets

	October 3, 2021						January 3, 2021
In millions	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Core technologies	$	2,850	$	(251)	$	2,599	$	352	$	(221)	$	131
Licensed technologies	95		(92)		3		95		(91)		4
Customer relationships	31		(28)		3		31		(27)		4
License agreements	14		(12)		2		14		(11)		3
Trade name	44		(5)		39		4		(4)		—
Total finite-lived intangible assets, net	3,034		(388)		2,646		496		(354)		142
In-process research and development (IPR&D)	705		—		705		—		—		—
Total intangible assets, net	$	3,739	$	(388)	$	3,351	$	496	$	(354)	$	142

Schedule of Indefinite-Lived Intangible Assets

	October 3, 2021						January 3, 2021
In millions	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Core technologies	$	2,850	$	(251)	$	2,599	$	352	$	(221)	$	131
Licensed technologies	95		(92)		3		95		(91)		4
Customer relationships	31		(28)		3		31		(27)		4
License agreements	14		(12)		2		14		(11)		3
Trade name	44		(5)		39		4		(4)		—
Total finite-lived intangible assets, net	3,034		(388)		2,646		496		(354)		142
In-process research and development (IPR&D)	705		—		705		—		—		—
Total intangible assets, net	$	3,739	$	(388)	$	3,351	$	496	$	(354)	$	142

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated annual amortization of finite-lived 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
2021 (balance of year)	$	42
2022	166
2023	165
2024	163
2025	163
Thereafter	1,947
Total	$	2,646

Schedule of Goodwill

Changes to goodwill during YTD 2021 were as follows:

In millions	Goodwill
Balance as of January 3, 2021	$	897
Acquisitions	6,201
Balance as of October 3, 2021	$	7,098