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SUPPLEMENTAL BALANCE SHEET DETAILS (Tables) | 9 Months Ended
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Sep. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Accounts Receivable | Accounts Receivable
In millions | September 29, 2024 |  | December 31, 2023
Trade accounts receivable, gross | $ | 710 |  |  | $ | 741 |
Allowance for credit losses | (11) |  |  | (7) |
Total accounts receivable, net | $ | 699 |  |  | $ | 734 |
Schedule of Inventory | Inventory
In millions | September 29, 2024 |  | December 31, 2023
Raw materials | $ | 238 |  |  | $ | 276 |
Work in process | 419 |  |  | 402 |
Finished goods | 37 |  |  | 30 |
Inventory, gross | 694 |  |  | 708 |
Inventory reserve | (120) |  |  | (121) |
Total inventory, net | $ | 574 |  |  | $ | 587 |
Schedule of Accrued Liabilities | Accrued Liabilities
In millions | September 29, 2024 |  | December 31, 2023
Legal contingencies(1) | $ | 1 |  |  | $ | 484 |
Contract liabilities, current portion | 235 |  |  | 252 |
Accrued compensation expenses | 237 |  |  | 223 |
Accrued taxes payable | 127 |  |  | 79 |
Operating lease liabilities, current portion | 73 |  |  | 86 |
Liability-classified equity incentive awards | — |  |  | 55 |
Other, including warranties(2) | 111 |  |  | 146 |
Total accrued liabilities | $ | 784 |  |  | $ | 1,325 |
_____________ (1)See note 8. Legal Proceedings for additional details. (2)See table below for changes in the reserve for product warranties.
Schedule of Changes in Reserve for Product Warranties | Changes in the reserve for product warranties were as follows:
In millions | Q3 2024 |  | Q3 2023 |  | YTD 2024 |  | YTD 2023
Balance at beginning of period | $ | 17 |  |  | $ | 20 |  |  | $ | 21 |  |  | $ | 18 |
Additions charged to cost of product revenue | 8 |  |  | 10 |  |  | 30 |  |  | 30 |
Repairs and replacements | (9) |  |  | (11) |  |  | (35) |  |  | (29) |
Balance at end of period | $ | 16 |  |  | $ | 19 |  |  | $ | 16 |  |  | $ | 19 |
Schedule Of Restructuring and Related Costs | A summary of the pre-tax restructuring charges are as follows:
In millions | Q3 2024 |  | Q3 2023 |  | YTD 2024 |  | YTD 2023 |  | Cumulative charges recorded since inception
Employee separation costs | $ | 6 |  |  | $ | 7 |  |  | $ | 13 |  |  | $ | 33 |  |  | $ | 61 |
Asset impairment charges(1) | — |  |  | 49 |  |  | 32 |  |  | 56 |  |  | 132 |
Other costs | — |  |  | 2 |  |  | 1 |  |  | 2 |  |  | 5 |
Total restructuring charges(2) | $ | 6 |  |  | $ | 58 |  |  | $ | 46 |  |  | $ | 91 |  |  | $ | 198 |
_____________ (1)For YTD 2024, charges primarily relate to impairment of right-of-use assets and leasehold improvements for our Foster City campus. For YTD 2023, charges primarily relate to impairment of right-of-use assets and leasehold improvements for our i3 campus. (2)For Q3 2024, $5 million was recorded in SG&A expense and $1 million in R&D expense. For YTD 2024, $43 million was recorded in SG&A expense, $2 million in R&D expense, and remainder in cost of revenue. For Q3 2023, $55 million was recorded in SG&A expense, $2 million in R&D expense, and remainder in cost of revenue. For YTD 2023, $74 million was recorded in SG&A expense, $13 million in R&D expense, and remainder in cost of revenue. A summary of the restructuring liability is as follows:
In millions | Employee Separation Costs(1) |  |  |  | Other Costs |  | Total
Amount recorded in accrued liabilities as of December 31, 2023 | $ | 17 |  |  |  |  | $ | 1 |  |  | $ | 18 |
Additional expense recorded | 13 |  |  |  |  | 1 |  |  | 14 |
Cash payments | (22) |  |  |  |  | (2) |  |  | (24) |
Adjustments to accrual | (2) |  |  |  |  | — |  |  | (2) |
Amount recorded in accrued liabilities as of September 29, 2024 | $ | 6 |  |  |  |  | $ | — |  |  | $ | 6 |
_____________ (1)It is expected that substantially all of the employee separation related charges will be paid by the end of Q4 2024.
Schedule of Goodwill | Changes to goodwill during YTD 2024 were as follows:
In millions |
Balance as of December 31, 2023(1) | $ | 2,545 |
Acquisition | 34 |
Impairment | (1,466) |
Balance as of September 29, 2024 | $ | 1,113 |
_____________ (1)The balance as of December 31, 2023 includes accumulated impairment of $4,626 million related to our GRAIL reporting unit.
Schedule of Finite-Lived Intangible Assets | The following is a summary of our identifiable intangible assets:
| September 29, 2024 |  | December 31, 2023
In millions | Gross Carrying Amount |  | Accumulated Amortization |  |  |  | Intangible Assets, Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Impairment |  | Intangible Assets, Net
Developed technologies | $ | 465 |  |  | $ | (296) |  |  |  |  | $ | 169 |  |  | $ | 2,807 |  |  | $ | (585) |  |  | $ | — |  |  | $ | 2,222 |
Licensed technologies | 227 |  |  | (107) |  |  |  |  | 120 |  |  | 274 |  |  | (133) |  |  | — |  |  | 141 |
Trade name | 2 |  |  | (2) |  |  |  |  | — |  |  | 43 |  |  | (14) |  |  | — |  |  | 29 |
Customer relationships | 16 |  |  | (14) |  |  |  |  | 2 |  |  | 14 |  |  | (13) |  |  | — |  |  | 1 |
License agreements | 19 |  |  | (13) |  |  |  |  | 6 |  |  | 14 |  |  | (13) |  |  | — |  |  | 1 |
Database | 12 |  |  | (4) |  |  |  |  | 8 |  |  | 12 |  |  | (3) |  |  | — |  |  | 9 |
Total finite-lived intangible assets, net | 741 |  |  | (436) |  |  |  |  | 305 |  |  | 3,164 |  |  | (761) |  |  | — |  |  | 2,403 |
In-process research and development (IPR&D) | — |  |  | — |  |  |  |  | — |  |  | 705 |  |  | — |  |  | (115) |  |  | 590 |
Total intangible assets, net | $ | 741 |  |  | $ | (436) |  |  |  |  | $ | 305 |  |  | $ | 3,869 |  |  | $ | (761) |  |  | $ | (115) |  |  | $ | 2,993 |
Schedule of Indefinite-Lived Intangible Assets | The following is a summary of our identifiable intangible assets:
| September 29, 2024 |  | December 31, 2023
In millions | Gross Carrying Amount |  | Accumulated Amortization |  |  |  | Intangible Assets, Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Impairment |  | Intangible Assets, Net
Developed technologies | $ | 465 |  |  | $ | (296) |  |  |  |  | $ | 169 |  |  | $ | 2,807 |  |  | $ | (585) |  |  | $ | — |  |  | $ | 2,222 |
Licensed technologies | 227 |  |  | (107) |  |  |  |  | 120 |  |  | 274 |  |  | (133) |  |  | — |  |  | 141 |
Trade name | 2 |  |  | (2) |  |  |  |  | — |  |  | 43 |  |  | (14) |  |  | — |  |  | 29 |
Customer relationships | 16 |  |  | (14) |  |  |  |  | 2 |  |  | 14 |  |  | (13) |  |  | — |  |  | 1 |
License agreements | 19 |  |  | (13) |  |  |  |  | 6 |  |  | 14 |  |  | (13) |  |  | — |  |  | 1 |
Database | 12 |  |  | (4) |  |  |  |  | 8 |  |  | 12 |  |  | (3) |  |  | — |  |  | 9 |
Total finite-lived intangible assets, net | 741 |  |  | (436) |  |  |  |  | 305 |  |  | 3,164 |  |  | (761) |  |  | — |  |  | 2,403 |
In-process research and development (IPR&D) | — |  |  | — |  |  |  |  | — |  |  | 705 |  |  | — |  |  | (115) |  |  | 590 |
Total intangible assets, net | $ | 741 |  |  | $ | (436) |  |  |  |  | $ | 305 |  |  | $ | 3,869 |  |  | $ | (761) |  |  | $ | (115) |  |  | $ | 2,993 |
Schedule of Estimated Annual Amortization of Finite-lived Intangible Assets | The estimated future annual amortization of finite-lived intangible assets 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
2024 (remainder of year) | $ | 17 |
2025 | 68 |
2026 | 56 |
2027 | 54 |
2028 | 52 |
Thereafter | 58 |
Total | $ | 305 |

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