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SUPPLEMENTAL BALANCE SHEET DETAILS | 12 Months Ended
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Dec. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
SUPPLEMENTAL BALANCE SHEET DETAILS |
8. SUPPLEMENTAL BALANCE SHEET DETAILS
Accounts Receivable
In millions | December 29, 2024 |  | December 31, 2023
Trade accounts receivable, gross | $ | 744 |  |  | $ | 741 |
Allowance for credit losses | (9) |  |  | (7) |
Total accounts receivable, net | $ | 735 |  |  | $ | 734 |
Inventory
In millions | December 29, 2024 |  | December 31, 2023
Raw materials | $ | 225 |  |  | $ | 276 |
Work in process | 404 |  |  | 402 |
Finished goods | 31 |  |  | 30 |
Inventory, gross | 660 |  |  | 708 |
Inventory reserve | (113) |  |  | (121) |
Total inventory, net | $ | 547 |  |  | $ | 587 |
Property and Equipment
In millions | December 29, 2024 |  | December 31, 2023
Leasehold improvements | $ | 772 |  |  | $ | 803 |
Machinery and equipment | 683 |  |  | 684 |
Computer hardware and software | 478 |  |  | 463 |
Furniture and fixtures | 53 |  |  | 55 |
Buildings | 44 |  |  | 44 |
Construction in progress | 39 |  |  | 96 |
Total property and equipment, gross | 2,069 |  |  | 2,145 |
Accumulated depreciation | (1,254) |  |  | (1,138) |
Total property and equipment, net | $ | 815 |  |  | $ | 1,007 |
Accrued Liabilities
In millions | December 29, 2024 |  | December 31, 2023
Legal contingencies(1) | $ | 26 |  |  | $ | 484 |
Contract liabilities, current portion | 260 |  |  | 252 |
Accrued compensation expenses | 252 |  |  | 223 |
Accrued taxes payable | 101 |  |  | 79 |
Operating lease liabilities, current portion | 79 |  |  | 86 |
Liability-classified equity incentive awards | — |  |  | 55 |
Other, including warranties(2) | 109 |  |  | 146 |
Total accrued liabilities | $ | 827 |  |  | $ | 1,325 |
_____________ (1)See note 9. Legal Proceedings for additional details. (2)See table below for changes in the reserve for product warranties. Changes in the reserve for product warranties were as follows:
In millions |
Balance as of January 2, 2022 | $ | 22 |
Additions charged to cost of product revenue | 23 |
Repairs and replacements | (27) |
Balance as of January 1, 2023 | 18 |
Additions charged to cost of product revenue | 42 |
Repairs and replacements | (39) |
Balance as of December 31, 2023 | 21 |
Additions charged to cost of product revenue | 42 |
Repairs and replacements | (45) |
Balance as of December 29, 2024 | $ | 18 |
Restructuring In Q2 2023, we implemented a cost reduction initiative that included workforce reductions, the consolidation of certain facilities and other actions to reduce expenses, all as part of a plan to realign operating expenses while maintaining focus on our innovation roadmap and sustainable long-term growth. In both 2024 and 2023, we recorded restructuring charges primarily consisting of asset impairments related to exit activities at certain of our leased facilities. A summary of the pre-tax restructuring charges is as follows:
In millions | 2024 |  | 2023 |  | Cumulative charges recorded since inception
Employee separation costs | $ | 12 |  |  | $ | 48 |  |  | $ | 60 |
Asset impairment charges(1) | 46 |  |  | 100 |  |  | 146 |
Other costs | 4 |  |  | 4 |  |  | 8 |
Total restructuring charges(2) | $ | 62 |  |  | $ | 152 |  |  | $ | 214 |
_____________ (1)For 2024, relates to impairment of right-of-use assets and leasehold improvements for Foster City campus and other property in San Diego. For 2023, primarily relates to impairment of right-of-use assets and leasehold improvements for our i3 and Foster City campuses. (2)For 2024, $59 million was recorded in SG&A expense, $2 million in R&D expense, and remainder in cost of revenue. For 2023, $122 million was recorded in SG&A expense, $24 million in R&D expense, and remainder in cost of revenue. Total restructuring charges primarily relate to our Core Illumina segment. In 2024, we recorded right-of-use asset impairments of $12 million and $19 million related to our campus in Foster City, California and another property in San Diego, California, respectively. In 2023, we recorded right-of-use asset impairments of $38 million and $21 million related to our i3 campus in San Diego and our campus in Foster City, respectively. The impairments were determined by comparing the fair values of the impacted right-of-use assets to the carrying values of the assets as of the impairment measurement date. The fair values of the right-of-use assets were estimated using the discounted future cash flows method, which includes estimates and assumptions for future sublease rental rates that reflect current sublease market conditions, as well as discount rates. The estimates and assumptions used in our assessments represent Level 3 measurements because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. In 2024, we recorded $14 million of leasehold improvement impairments related to our Foster City campus and, in 2023, we recorded $16 million and $22 million of leasehold improvement impairments related to our i3 and Foster City campuses, respectively. The right-of-use asset and leasehold improvement impairments were recognized in selling, general and administrative expense. We continue to evaluate our options for the rest of our Foster City campus, for which, as of December 29, 2024, we had remaining assets, consisting primarily of right-of-use assets and leasehold improvements, of $100 million. A summary of the restructuring liability is as follows:
In millions | Employee Separation Costs |  | Other Costs |  | Total
Amount recorded in accrued liabilities as of January 1, 2023 | $ | — |  |  | $ | — |  |  | $ | — |
Expense recorded | 48 |  |  | 4 |  |  | 52 |
Cash payments | (31) |  |  | (3) |  |  | (34) |
Amount recorded in accrued liabilities as of December 31, 2023 | 17 |  |  | 1 |  |  | 18 |
Expense recorded | 12 |  |  | 4 |  |  | 16 |
Cash payments | (24) |  |  | (2) |  |  | (26) |
Adjustments to accrual | (3) |  |  | (1) |  |  | (4) |
Amount recorded in accrued liabilities as of December 29, 2024 | $ | 2 |  |  | $ | 2 |  |  | $ | 4 |

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