Stock Analysis on Net
Stock Analysis on Net

Illumina Inc. (NASDAQ:ILMN)

This company has been moved to the archive! The financial data has not been updated since November 5, 2021.

Analysis of Income Taxes

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Income Tax Expense (Benefit)

Illumina Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Federal 25 32 47 259 71
State 13 7 15 21 10
Foreign 45 84 68 51 45
Current provision 83 123 130 331 126
Federal 30 1 — 36 16
State 94 (1) (16) — (5)
Foreign (7) 5 (2) (2) (4)
Deferred expense (benefit) 117 5 (18) 34 7
Provision for income taxes 200 128 112 365 133

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Current provision Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Illumina Inc. current provision decreased from 2018 to 2019 and from 2019 to 2020.
Deferred expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Illumina Inc. deferred expense (benefit) increased from 2018 to 2019 and from 2019 to 2020.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Illumina Inc. provision for income taxes increased from 2018 to 2019 and from 2019 to 2020.

Effective Income Tax Rate (EITR)

Illumina Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 35.00% 35.00%
Effective income tax rate, before impact of U.S. Tax Reform 23.36% 11.45% 11.30% 20.61% 23.72%
Effective income tax rate 23.36% 11.45% 12.53% 35.00% 23.72%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Effective income tax rate, before impact of U.S. Tax Reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Illumina Inc. effective income tax rate, before impact of U.S. Tax Reform increased from 2018 to 2019 and from 2019 to 2020.

Components of Deferred Tax Assets and Liabilities

Illumina Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Net operating losses 26 21 26 18 20
Tax credits 70 63 63 57 43
Other accruals and reserves 21 12 28 25 24
Stock compensation 17 20 20 19 38
Deferred rent — — 30 28 38
Cost sharing adjustment — 21 21 21 32
Other amortization 17 16 13 12 16
Obligations under financing leases — — 70 27 —
Operating lease liabilities 156 158 — — —
Investments — 2 1 13 —
Other 53 45 28 26 38
Gross deferred tax assets 360 358 300 246 249
Valuation allowance on deferred tax assets (81) (13) (15) (25) (18)
Deferred tax assets 279 345 285 221 231
Purchased intangible amortization (27) (27) (32) (26) (53)
Convertible debt (20) (30) (41) (18) (37)
Property and equipment (34) (47) (94) (44) (17)
Operating lease right-of-use assets (108) (111) — — —
Investments (137) (62) (45) (40) —
Other (6) (5) (3) (5) —
Deferred tax liabilities (332) (282) (215) (133) (108)
Deferred tax assets (liabilities), net (53) 63 70 88 122

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Illumina Inc. gross deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Illumina Inc. deferred tax assets increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Deferred tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Illumina Inc. deferred tax assets (liabilities), net decreased from 2018 to 2019 and from 2019 to 2020.

Deferred Tax Assets and Liabilities, Classification

Illumina Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Deferred tax assets, net 20 64 70 88 123
Deferred tax liabilities 73 1 — — 1

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Deferred tax assets, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Illumina Inc. deferred tax assets, net decreased from 2018 to 2019 and from 2019 to 2020.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Illumina Inc. deferred tax liabilities increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Deferred Taxes

Illumina Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 7,585 7,316 6,959 5,257 4,281
Less: Noncurrent deferred tax assets, net 20 64 70 88 123
Total assets (adjusted) 7,565 7,252 6,889 5,169 4,157
Adjustment to Total Liabilities
Total liabilities (as reported) 2,891 2,703 3,053 2,288 1,966
Less: Noncurrent deferred tax liabilities, net 73 1 — — 1
Total liabilities (adjusted) 2,818 2,702 3,053 2,288 1,966
Adjustment to Total Illumina Stockholders’ Equity
Total Illumina stockholders’ equity (as reported) 4,694 4,613 3,758 2,749 2,197
Less: Net deferred tax assets (liabilities) (53) 63 70 88 122
Total Illumina stockholders’ equity (adjusted) 4,747 4,550 3,688 2,661 2,075
Adjustment to Net Income Attributable To Illumina Stockholders
Net income attributable to Illumina stockholders (as reported) 656 1,002 826 726 463
Add: Deferred income tax expense (benefit) 117 5 (18) 34 7
Net income attributable to Illumina stockholders (adjusted) 773 1,007 808 760 469

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Illumina Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Illumina Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 20.25% 28.28% 24.78% 26.38% 19.29%
Adjusted net profit margin 23.87% 28.42% 24.24% 27.62% 19.57%
Total Asset Turnover
Reported total asset turnover 0.43 0.48 0.48 0.52 0.56
Adjusted total asset turnover 0.43 0.49 0.48 0.53 0.58
Financial Leverage
Reported financial leverage 1.62 1.59 1.85 1.91 1.95
Adjusted financial leverage 1.59 1.59 1.87 1.94 2.00
Return on Equity (ROE)
Reported ROE 13.98% 21.72% 21.98% 26.41% 21.06%
Adjusted ROE 16.28% 22.13% 21.91% 28.56% 22.62%
Return on Assets (ROA)
Reported ROA 8.65% 13.70% 11.87% 13.81% 10.81%
Adjusted ROA 10.22% 13.89% 11.73% 14.70% 11.29%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illumina Inc. adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illumina Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Illumina Inc. adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Illumina Inc. adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illumina Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Illumina Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 656 1,002 826 726 463
Revenue 3,239 3,543 3,333 2,752 2,398
Profitability Ratio
Net profit margin1 20.25% 28.28% 24.78% 26.38% 19.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Illumina stockholders 773 1,007 808 760 469
Revenue 3,239 3,543 3,333 2,752 2,398
Profitability Ratio
Adjusted net profit margin2 23.87% 28.42% 24.24% 27.62% 19.57%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Net profit margin = 100 × Net income attributable to Illumina stockholders ÷ Revenue
= 100 × 656 ÷ 3,239 = 20.25%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Illumina stockholders ÷ Revenue
= 100 × 773 ÷ 3,239 = 23.87%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illumina Inc. adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Revenue 3,239 3,543 3,333 2,752 2,398
Total assets 7,585 7,316 6,959 5,257 4,281
Activity Ratio
Total asset turnover1 0.43 0.48 0.48 0.52 0.56
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 3,239 3,543 3,333 2,752 2,398
Adjusted total assets 7,565 7,252 6,889 5,169 4,157
Activity Ratio
Adjusted total asset turnover2 0.43 0.49 0.48 0.53 0.58

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 3,239 ÷ 7,585 = 0.43

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 3,239 ÷ 7,565 = 0.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illumina Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 7,585 7,316 6,959 5,257 4,281
Total Illumina stockholders’ equity 4,694 4,613 3,758 2,749 2,197
Solvency Ratio
Financial leverage1 1.62 1.59 1.85 1.91 1.95
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 7,565 7,252 6,889 5,169 4,157
Adjusted total Illumina stockholders’ equity 4,747 4,550 3,688 2,661 2,075
Solvency Ratio
Adjusted financial leverage2 1.59 1.59 1.87 1.94 2.00

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Financial leverage = Total assets ÷ Total Illumina stockholders’ equity
= 7,585 ÷ 4,694 = 1.62

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Illumina stockholders’ equity
= 7,565 ÷ 4,747 = 1.59

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Illumina Inc. adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 656 1,002 826 726 463
Total Illumina stockholders’ equity 4,694 4,613 3,758 2,749 2,197
Profitability Ratio
ROE1 13.98% 21.72% 21.98% 26.41% 21.06%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Illumina stockholders 773 1,007 808 760 469
Adjusted total Illumina stockholders’ equity 4,747 4,550 3,688 2,661 2,075
Profitability Ratio
Adjusted ROE2 16.28% 22.13% 21.91% 28.56% 22.62%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROE = 100 × Net income attributable to Illumina stockholders ÷ Total Illumina stockholders’ equity
= 100 × 656 ÷ 4,694 = 13.98%

2 Adjusted ROE = 100 × Adjusted net income attributable to Illumina stockholders ÷ Adjusted total Illumina stockholders’ equity
= 100 × 773 ÷ 4,747 = 16.28%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Illumina Inc. adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 656 1,002 826 726 463
Total assets 7,585 7,316 6,959 5,257 4,281
Profitability Ratio
ROA1 8.65% 13.70% 11.87% 13.81% 10.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Illumina stockholders 773 1,007 808 760 469
Adjusted total assets 7,565 7,252 6,889 5,169 4,157
Profitability Ratio
Adjusted ROA2 10.22% 13.89% 11.73% 14.70% 11.29%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROA = 100 × Net income attributable to Illumina stockholders ÷ Total assets
= 100 × 656 ÷ 7,585 = 8.65%

2 Adjusted ROA = 100 × Adjusted net income attributable to Illumina stockholders ÷ Adjusted total assets
= 100 × 773 ÷ 7,565 = 10.22%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illumina Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.