Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Illumina Inc. (NASDAQ:ILMN)

Analysis of Property, Plant and Equipment

Advanced level


Property, Plant and Equipment Disclosure

Illumina Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Leasehold improvements 622  567  331  270  178 
Machinery and equipment 401  382  316  274  224 
Computer hardware and software 272  217  185  156  137 
Furniture and fixtures 45  45  34  24  19 
Buildings 44  285  155 
Construction in progress 73  100  326  307  45 
Property and equipment, gross 1,457  1,596  1,347  1,040  609 
Accumulated depreciation (568) (521) (416) (327) (267)
Property and equipment, net 889  1,075  931  713  343 

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

Item Description The company
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Illumina Inc.’s property and equipment, gross increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Illumina Inc.’s property and equipment, net increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Asset Age Ratios (Summary)

Illumina Inc., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Average age ratio 38.98% 32.64% 30.88% 31.42% 43.77%
Estimated total useful life (years) 10 11 12 12 8
Estimated age, time elapsed since purchase (years) 4 4 4 4 4
Estimated remaining life (years) 6 8 8 8 5

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Illumina Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Illumina Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Illumina Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Estimated remaining life Illumina Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Average Age

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation 568  521  416  327  267 
Property and equipment, gross 1,457  1,596  1,347  1,040  609 
Asset Age Ratio
Average age1 38.98% 32.64% 30.88% 31.42% 43.77%

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × 568 ÷ 1,457 = 38.98%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Illumina Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Selected Financial Data (US$ in millions)
Property and equipment, gross 1,457  1,596  1,347  1,040  609 
Depreciation expense 151  140  110  90  73 
Asset Age Ratio (Years)
Estimated total useful life1 10 11 12 12 8

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

2019 Calculations

1 Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= 1,457 ÷ 151 = 10

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Illumina Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation 568  521  416  327  267 
Depreciation expense 151  140  110  90  73 
Asset Age Ratio (Years)
Time elapsed since purchase1 4 4 4 4 4

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 568 ÷ 151 = 4

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Illumina Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Selected Financial Data (US$ in millions)
Property and equipment, net 889  1,075  931  713  343 
Depreciation expense 151  140  110  90  73 
Asset Age Ratio (Years)
Estimated remaining life1 6 8 8 8 5

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

2019 Calculations

1 Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= 889 ÷ 151 = 6

Asset age ratio Description The company
Estimated remaining life Illumina Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.