Analysis of Reportable Segments
Illumina Inc. operates in 2 segments: Core Illumina and Helix.
Segment Profit Margin
Illumina Inc., profit margin by reportable segment
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 17.91% | 28.45% | 29.09% | 25.27% | 28.16% |
| Helix | — | -2,400.00% | -900.00% | -1,533.33% | — |
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).
The segment profit margin analysis for the period between 2016 and 2020 reveals distinct operational trajectories between the Core Illumina and Helix business units. While the core business maintained a relative level of stability for several years, the Helix segment exhibited extreme volatility and consistent negative returns.
- Core Illumina Profitability Trends
- The core segment demonstrated consistent profitability from 2016 to 2019, with margins fluctuating within a range of 25.27% to 29.09%. This stability was interrupted in 2020, when the profit margin experienced a sharp decline to 17.91%, indicating a significant contraction in operating efficiency or a substantial increase in costs during that fiscal year.
- Helix Segment Financial Performance
- The Helix segment was characterized by substantial operating losses throughout its reported duration. A significant negative margin was recorded in 2017 at -1,533.33%, followed by a moderate recovery to -900.00% in 2018, and a further deterioration to -2,400.00% in 2019. The absence of reported figures for 2016 and 2020 indicates a limited reporting window or a shift in the organizational structure regarding this specific unit.
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Segment Profit Margin: Core Illumina
Illumina Inc.; Core Illumina; segment profit margin calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | 580) | 1,008) | 970) | 696) | 684) |
| Revenue | 3,239) | 3,543) | 3,334) | 2,754) | 2,428) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 17.91% | 28.45% | 29.09% | 25.27% | 28.16% |
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).
1 2020 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × 580 ÷ 3,239 = 17.91%
The financial performance of the Core Illumina segment from 2016 to 2020 is characterized by a period of steady expansion followed by a significant operational contraction in the final year of the observed timeframe.
- Revenue and Operating Income Trends
- Revenue demonstrated consistent growth over a four-year period, increasing from US$ 2,428 million in 2016 to a peak of US$ 3,543 million in 2019. Operating income followed a similar trajectory, rising from US$ 684 million in 2016 to US$ 1,008 million in 2019. However, 2020 saw a reversal of this trend, with revenue declining to US$ 3,239 million and operating income falling sharply to US$ 580 million, representing the lowest operating income level within the five-year sequence.
- Segment Profit Margin Analysis
- Between 2016 and 2019, the segment profit margin remained relatively stable, fluctuating between a low of 25.27% in 2017 and a peak of 29.09% in 2018. This stability indicates a consistent ability to manage operating costs relative to revenue growth. In 2020, the profit margin experienced a severe compression, dropping to 17.91%, marking a significant departure from the historical average of the preceding years.
- Operational Efficiency Insights
- The data reveals a disproportionate decline in operating income relative to revenue in 2020. While revenue decreased by approximately 8.6% from 2019 to 2020, operating income plummeted by approximately 42.5%. This divergence suggests that operating expenses did not scale down in tandem with revenue, or that there were one-time costs that heavily impacted the bottom line, resulting in the sharp reduction of the segment profit margin.
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Segment Profit Margin: Helix
Illumina Inc.; Helix; segment profit margin calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | —) | (24) | (90) | (92) | (81) |
| Revenue | —) | 1) | 10) | 6) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | — | -2,400.00% | -900.00% | -1,533.33% | — |
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).
1 2020 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × 0 ÷ 0 = —
The Helix segment exhibited persistent operational losses and minimal revenue generation between 2016 and 2019, indicating a period of significant investment or structural inefficiency relative to its scale of operations.
- Operating Loss Trajectory
- Operating losses remained substantial throughout the period, beginning at 81 million US dollars in 2016 and peaking at 92 million US dollars in 2017. A period of relative stability followed in 2018 with a loss of 90 million US dollars, before a notable reduction to 24 million US dollars was recorded by December 31, 2019.
- Revenue Volatility
- Revenue generation was negligible during the analyzed timeframe. After recording no reportable revenue in 2016, the segment saw a modest increase to 6 million US dollars in 2017 and a peak of 10 million US dollars in 2018. However, revenue declined sharply to 1 million US dollars in 2019, representing a near-total loss of revenue momentum.
- Segment Profit Margin Analysis
- The segment profit margin was characterized by extreme negative values and high volatility due to the disparity between operating costs and revenue. The margin improved from -1,533.33% in 2017 to -900.00% in 2018 as revenue increased. Despite the decrease in absolute operating losses in 2019, the collapse in revenue caused the profit margin to deteriorate sharply to -2,400.00%.
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Segment Return on Assets (Segment ROA)
Illumina Inc., ROA by reportable segment
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 7.65% | 13.78% | 14.03% | 13.33% | 16.41% |
| Helix | — | — | -58.44% | -204.44% | -45.13% |
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).
The segment return on assets (ROA) reveals a significant divergence in financial performance and stability between the Core Illumina and Helix segments from 2016 through 2020. While the core business consistently generated positive returns, the Helix segment was characterized by substantial negative returns and high volatility before data reporting ceased.
- Core Illumina
- This segment demonstrated relative stability between 2016 and 2019, with ROA figures ranging from 13.33% to 16.41%. A notable downward shift occurred in 2020, where the ROA dropped to 7.65%, marking the lowest point in the observed period and indicating a significant decrease in asset efficiency during that fiscal year.
- Helix
- The Helix segment reported persistent negative returns throughout its recorded period. A severe deterioration in asset performance was observed in 2017, with the ROA falling to -204.44%. Although a partial recovery occurred in 2018, with the ratio improving to -58.44%, the segment remained deeply unprofitable. No data is available for 2019 and 2020, indicating a cessation of reportable activity for this segment.
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Segment ROA: Core Illumina
Illumina Inc.; Core Illumina; segment ROA calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | 580) | 1,008) | 970) | 696) | 684) |
| Total assets | 7,585) | 7,316) | 6,912) | 5,223) | 4,167) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 7.65% | 13.78% | 14.03% | 13.33% | 16.41% |
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).
1 2020 Calculation
Segment ROA = 100 × Income (loss) from operations ÷ Total assets
= 100 × 580 ÷ 7,585 = 7.65%
The financial performance of the Core Illumina segment between 2016 and 2020 is characterized by a consistent expansion of the asset base contrasted with volatile operating income, resulting in a significant overall decline in the Return on Assets (ROA).
- Operating Income Trends
- Income from operations exhibited a growth phase from 2016 through 2019, rising from US$ 684 million to a peak of US$ 1,008 million. However, this trajectory reversed sharply in 2020, with income falling to US$ 580 million, representing a level lower than the initial 2016 figures.
- Asset Base Expansion
- Total assets demonstrated a steady and uninterrupted upward trend throughout the analyzed period. Assets grew from US$ 4,167 million in 2016 to US$ 7,585 million by December 31, 2020, indicating a substantial and continuous increase in the segment's total investment.
- Segment ROA and Asset Efficiency
- The Segment ROA experienced an overall downward trend, decreasing from 16.41% in 2016 to 7.65% in 2020. While the ratio remained relatively stable between 13.33% and 14.03% from 2017 to 2019, a precipitous decline occurred in 2020. This suggests that the growth in assets did not yield proportional increases in operating income, ultimately leading to a marked reduction in the efficiency of asset utilization by the end of the period.
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Segment ROA: Helix
Illumina Inc.; Helix; segment ROA calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | —) | (24) | (90) | (92) | (81) |
| Total assets | —) | —) | 154) | 45) | 180) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | — | — | -58.44% | -204.44% | -45.13% |
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).
1 2020 Calculation
Segment ROA = 100 × Income (loss) from operations ÷ Total assets
= 100 × 0 ÷ 0 = —
The Helix segment demonstrated persistent operational losses and significant asset volatility between 2016 and 2020. While the segment remained unprofitable throughout the period, there was a notable reduction in operational losses by the end of 2019.
- Operational Performance
- Operating losses remained substantial from 2016 to 2018, ranging between -81 million and -92 million US dollars. A significant improvement occurred in 2019, where the loss narrowed to -24 million US dollars, indicating a positive trend in cost management or revenue growth within the segment.
- Asset Base Volatility
- The asset base exhibited extreme fluctuations. Assets decreased sharply from 180 million US dollars in 2016 to 45 million US dollars in 2017, before rebounding to 154 million US dollars in 2018. This volatility suggests significant changes in the segment's capital structure or asset allocation during this timeframe.
- Return on Assets (ROA) Trends
- The Segment ROA remained negative throughout the reported period, reflecting the inability to generate positive returns from the asset base. The most acute decline occurred in 2017, where the ROA dropped to -204.44%, a result of the operational loss increasing while the total asset base contracted significantly. By 2018, the ROA improved to -58.44% as the asset base expanded, though it remained deeply negative.
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Segment Asset Turnover
Illumina Inc., asset turnover by reportable segment
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 0.43 | 0.48 | 0.48 | 0.53 | 0.58 |
| Helix | — | — | 0.06 | 0.13 | 0.00 |
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).
An analysis of segment asset turnover from 2016 to 2020 reveals a general decline in asset utilization efficiency across the reported business units.
- Core Illumina Asset Turnover
- A consistent downward trend is observed within the Core Illumina segment. The asset turnover ratio decreased from 0.58 in 2016 to 0.43 by December 31, 2020. Although the ratio remained stable at 0.48 between 2018 and 2019, the overall progression indicates a diminishing capacity to generate revenue relative to the asset base over the five-year period.
- Helix Asset Turnover
- The Helix segment demonstrated significantly lower efficiency and a short-lived reporting presence. After an initial recorded ratio of 0.13 in 2017, the turnover dropped to 0.06 in 2018. The lack of reported values for 2019 and 2020 suggests a structural change in reporting or the discontinuation of the segment.
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Segment Asset Turnover: Core Illumina
Illumina Inc.; Core Illumina; segment asset turnover calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 3,239) | 3,543) | 3,334) | 2,754) | 2,428) |
| Total assets | 7,585) | 7,316) | 6,912) | 5,223) | 4,167) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.43 | 0.48 | 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).
1 2020 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 3,239 ÷ 7,585 = 0.43
The Core Illumina segment experienced a consistent decline in asset efficiency between 2016 and 2020, as evidenced by a steady decrease in the segment asset turnover ratio from 0.58 to 0.43.
- Revenue Trajectory
- Revenue demonstrated an upward trend from 2016 through 2019, growing from US$ 2,428 million to a peak of US$ 3,543 million. This growth phase was followed by a decline in 2020, where revenue decreased to US$ 3,239 million.
- Asset Growth
- Total assets increased monotonically throughout the entire period. Assets rose from US$ 4,167 million in 2016 to US$ 7,585 million by the end of 2020, indicating a significant and continuous expansion of the segment's resource base.
- Asset Turnover Performance
- The segment asset turnover ratio fell from 0.58 in 2016 to 0.43 in 2020. This downward trend suggests that the growth in total assets outpaced the growth in revenue. Although the ratio remained stagnant at 0.48 between 2018 and 2019, the combination of declining revenue and increasing assets in 2020 resulted in a further reduction in the efficiency of asset utilization.
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Segment Asset Turnover: Helix
Illumina Inc.; Helix; segment asset turnover calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | —) | 1) | 10) | 6) | —) |
| Total assets | —) | —) | 154) | 45) | 180) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | — | — | 0.06 | 0.13 | 0.00 |
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).
1 2020 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 0 ÷ 0 = —
The financial performance of the Helix segment between 2016 and 2020 is characterized by significant volatility in asset allocation and a lack of sustained revenue growth, leading to a decline in operational efficiency.
- Segment Asset Turnover
- A downward trend in asset productivity is observed between 2017 and 2018, with the asset turnover ratio decreasing from 0.13 to 0.06. This decline indicates that the segment became less efficient at generating revenue from its asset base during this period.
- Revenue Trends
- Revenue exhibited inconsistent growth, increasing from 6 million US dollars in 2017 to 10 million US dollars in 2018, before experiencing a sharp contraction to 1 million US dollars in 2019. The substantial drop in 2019 suggests a significant reduction in the segment's commercial activity or a shift in its operational focus.
- Asset Utilization
- Total assets fluctuated dramatically, falling from 180 million US dollars in 2016 to 45 million US dollars in 2017, followed by a substantial increase to 154 million US dollars in 2018. The decrease in the asset turnover ratio in 2018 was primarily driven by this surge in asset holdings, which grew at a rate far exceeding the modest increase in revenue.
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Segment Capital Expenditures to Depreciation
Illumina Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 1.01 | 1.12 | 1.68 | 2.00 | 1.73 |
| Helix | — | 0.00 | 0.33 | 0.67 | 5.15 |
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).
An analysis of the capital expenditures to depreciation ratios reveals a general contraction in investment intensity relative to asset aging across the reportable segments between 2016 and 2020.
- Core Illumina
- The ratio for this segment exhibited an initial increase, peaking at 2.00 in 2017. Following this peak, a consistent downward trend is observed, with the ratio declining to 1.68 in 2018, 1.12 in 2019, and reaching 1.01 by the end of 2020. This trajectory indicates a transition from a period of aggressive asset expansion toward a state where capital expenditures nearly equal depreciation, suggesting a shift toward maintaining existing capacity rather than increasing the asset base.
- Helix
- This segment demonstrated extreme volatility and a subsequent cessation of reportable activity. A high initial ratio of 5.15 in 2016 suggests a period of intense capital investment. This was followed by a precipitous decline to 0.67 in 2017 and a further reduction to 0.33 in 2018. The lack of data for 2019 and 2020 suggests that the segment no longer maintained a reportable capital expenditure structure relative to depreciation, potentially indicating a strategic pivot, divestiture, or integration into other business units.
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Segment Capital Expenditures to Depreciation: Core Illumina
Illumina Inc.; Core Illumina; segment capital expenditures to depreciation calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 189) | 209) | 294) | 306) | 238) |
| Depreciation and amortization | 187) | 186) | 175) | 153) | 138) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.01 | 1.12 | 1.68 | 2.00 | 1.73 |
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).
1 2020 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 189 ÷ 187 = 1.01
An analysis of the Core Illumina segment reveals a transition from aggressive capital expansion to a maintenance-oriented investment strategy between 2016 and 2020. While capital expenditures initially rose, they subsequently declined even as depreciation costs steadily increased.
- Capital Expenditure Trends
- Investment levels reached a peak of US$ 306 million in 2017 before entering a multi-year period of contraction. By December 31, 2020, capital expenditures had decreased to US$ 189 million, reflecting a significant reduction in new asset investment compared to the 2017 high.
- Depreciation and Amortization Growth
- A consistent upward trajectory is observed in depreciation and amortization expenses, which rose every year from US$ 138 million in 2016 to US$ 187 million in 2020. This steady climb indicates a growing base of depreciable assets, likely resulting from the heavy capital spending incurred in earlier periods.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation peaked at 2.00 in 2017, signaling that the segment was investing twice as much in new assets as it was consuming through depreciation. Following this peak, the ratio declined steadily to 1.68 in 2018, 1.12 in 2019, and finally 1.01 in 2020. This convergence toward a ratio of 1.0 indicates that the segment has shifted from an expansionary phase to a replacement phase, where capital spending is now primarily utilized to maintain the existing asset base rather than grow it.
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Segment Capital Expenditures to Depreciation: Helix
Illumina Inc.; Helix; segment capital expenditures to depreciation calculation
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | —) | —) | 2) | 4) | 22) |
| Depreciation and amortization | —) | 3) | 6) | 6) | 4) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | — | 0.00 | 0.33 | 0.67 | 5.15 |
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).
1 2020 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 0 ÷ 0 = —
The Helix segment exhibited a significant contraction in capital investment between 2016 and 2018, transitioning from a phase of aggressive asset acquisition to one of minimal reinvestment. This shift is characterized by a sharp decline in capital expenditures while depreciation and amortization expenses remained relatively stable.
- Capital Expenditure Trends
- A substantial reduction in capital spending is observed, with expenditures falling from 22 million USD in 2016 to 4 million USD in 2017, and further decreasing to 2 million USD by 2018. This represents a rapid deceleration in the acquisition of new long-term assets within the segment.
- Depreciation and Amortization Patterns
- Depreciation and amortization expenses showed lower volatility compared to capital spending, increasing slightly from 4 million USD in 2016 to 6 million USD in 2017 and 2018, before declining to 3 million USD in 2019. The relative stability of these figures suggests a consistent consumption of the existing asset base.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation experienced a precipitous decline, dropping from 5.15 in 2016 to 0.67 in 2017, and reaching 0.33 by 2018. The initial ratio of 5.15 indicates a period of heavy investment exceeding the rate of asset depreciation. The subsequent drop below 1.0 suggests that the segment ceased replacing its assets at a rate equal to their depreciation, signaling a shift toward a maintenance or divestment posture rather than growth.
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Revenue
Illumina Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 3,239) | 3,543) | 3,334) | 2,754) | 2,428) |
| Helix | —) | 1) | 10) | 6) | —) |
| Eliminations | —) | (1) | (11) | (8) | (30) |
| Consolidated | 3,239) | 3,543) | 3,333) | 2,752) | 2,398) |
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).
Consolidated revenue exhibited a consistent growth trajectory from 2016 through 2019, increasing from $2,398 million to a peak of $3,543 million, before experiencing a contraction to $3,239 million in 2020.
- Core Illumina Revenue Trends
- The Core Illumina segment serves as the primary driver of total revenue, closely mirroring the consolidated performance. A steady upward trend is observed from 2016 ($2,428 million) through 2019 ($3,543 million). This growth period was followed by a decline in 2020, where revenue fell to $3,239 million, marking the first decrease in the analyzed period.
- Helix Segment Contribution
- Revenue from the Helix segment was negligible relative to the total corporate portfolio. Contribution peaked in 2018 at $10 million after reporting $6 million in 2017. A sharp decline occurred in 2019, with revenue falling to $1 million, and no revenue was recorded for this segment in 2020.
- Analysis of Eliminations
- Intersegment eliminations were most prominent in 2016 at -$30 million. A general downward trend in the magnitude of these eliminations is observed over the subsequent years, reducing to -$1 million by 2019 and reaching zero or becoming non-reportable by 2020, suggesting a decrease in internal transactions requiring consolidation offsets.
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Depreciation and amortization
Illumina Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 187) | 186) | 175) | 153) | 138) |
| Helix | —) | 3) | 6) | 6) | 4) |
| Eliminations | —) | (1) | (2) | (3) | —) |
| Consolidated | 187) | 188) | 179) | 156) | 142) |
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).
Consolidated depreciation and amortization expenses experienced a sustained increase from 2016 to 2019, transitioning from 142 million US dollars to 188 million US dollars, before remaining nearly flat in 2020 at 187 million US dollars. This growth indicates a general expansion of the company's depreciable asset base over the five-year period.
- Core Illumina Performance
- The Core Illumina segment represents the vast majority of the total expenses. Costs grew from 138 million US dollars in 2016 to 187 million US dollars in 2020. The most pronounced increase occurred between 2017 and 2018, reflecting a significant rise in capital intensity or the integration of new assets during that window.
- Helix Segment Dynamics
- The Helix segment's contribution to depreciation and amortization was minimal and volatile, peaking at 6 million US dollars in 2017 and 2018. A decline to 3 million US dollars in 2019 and the absence of reported costs in 2020 suggest a contraction of the segment's operations or a strategic reallocation of its assets.
- Consolidated Adjustments and Eliminations
- Eliminations were recorded as negative values from 2017 through 2019, ranging from negative 3 million to negative 1 million US dollars. These adjustments were immaterial relative to the consolidated totals and trended toward zero over the period they were reported.
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Income (loss) from operations
Illumina Inc., income (loss) from operations by reportable segment
US$ in millions
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 580) | 1,008) | 970) | 696) | 684) |
| Helix | —) | (24) | (90) | (92) | (81) |
| Eliminations | —) | 1) | 3) | 2) | (16) |
| Consolidated | 580) | 985) | 883) | 606) | 587) |
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).
Consolidated income from operations exhibited a general upward trajectory from 2016 through 2019, peaking at US$ 985 million, followed by a significant contraction in 2020. The overall operational performance is heavily influenced by the Core Illumina segment, which served as the primary driver of profitability throughout the period.
- Core Illumina Performance
- Income from the Core Illumina segment grew steadily from US$ 684 million in 2016 to a peak of US$ 1,008 million in 2019. This growth phase was followed by a sharp decline in 2020, where income dropped to US$ 580 million, representing a decrease of approximately 42.4% from the previous year's peak.
- Helix Segment Analysis
- The Helix segment operated at a loss for all reported years between 2016 and 2019. Operational losses remained relatively consistent from 2016 to 2018, fluctuating between US$ 81 million and US$ 92 million. A significant recovery in operational efficiency was observed in 2019, as losses narrowed to US$ 24 million.
- Consolidated Operational Trends
- Consolidated results reflect the combined impact of the profitable Core Illumina segment and the losses incurred by Helix. Total operational income rose from US$ 587 million in 2016 to US$ 985 million in 2019. However, the 2020 results show a return to 2016 levels, with consolidated income falling to US$ 580 million, aligning exactly with the performance of the Core Illumina segment for that year.
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Total assets
Illumina Inc., total assets by reportable segment
US$ in millions
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 7,585) | 7,316) | 6,912) | 5,223) | 4,167) |
| Helix | —) | —) | 154) | 45) | 180) |
| Eliminations | —) | —) | (107) | (11) | (66) |
| Consolidated | 7,585) | 7,316) | 6,959) | 5,257) | 4,281) |
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).
Consolidated total assets exhibited a consistent upward trajectory between 2016 and 2020, increasing from 4,281 million USD to 7,585 million USD. The most significant expansion occurred between 2017 and 2018, characterized by a growth of approximately 32.4%, followed by a period of more moderate growth through 2020.
- Core Illumina Asset Expansion
- The Core Illumina segment served as the primary driver of overall growth, with assets rising from 4,167 million USD in 2016 to 7,585 million USD in 2020. By 2019, Core Illumina assets aligned exactly with consolidated total assets, indicating a structural shift in reporting or the full integration of ancillary segments into the core operations.
- Helix Segment Volatility
- The Helix segment demonstrated significant instability and a diminishing footprint. Assets decreased sharply from 180 million USD in 2016 to 45 million USD in 2017, followed by a recovery to 154 million USD in 2018. The absence of reported values for this segment in 2019 and 2020 suggests a divestiture or a reclassification of these assets.
- Intersegment Eliminations
- Eliminations fluctuated between 2016 and 2018, reaching a peak negative value of 107 million USD in 2018. Similar to the Helix segment, elimination figures ceased to be reported starting in 2019, coinciding with the transition to a single reported segment for consolidated assets.
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Capital expenditures
Illumina Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Core Illumina | 189) | 209) | 294) | 306) | 238) |
| Helix | —) | —) | 2) | 4) | 22) |
| Consolidated | 189) | 209) | 296) | 310) | 261) |
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).
Consolidated capital expenditures exhibited a peak in 2017, followed by a sustained downward trend through the end of 2020. The overall investment trajectory indicates a significant contraction in capital allocation across the organization over the observed five-year period.
- Consolidated Capital Expenditures
- Total expenditures increased by 18.8% between 2016 and 2017, reaching a maximum of 310 million USD. Following this peak, a consistent decline was observed, with expenditures falling to 209 million USD in 2019 and further to 189 million USD in 2020. This represents a cumulative reduction of approximately 39% from the 2017 high.
- Core Illumina Segment
- As the primary driver of capital spending, the Core Illumina segment closely mirrored the consolidated trend. Expenditures rose from 238 million USD in 2016 to a peak of 306 million USD in 2017. A steady downward trajectory followed, ending at 189 million USD in 2020, indicating that the Core Illumina segment accounted for 100% of the consolidated capital expenditures by the final two years of the period.
- Helix Segment
- The Helix segment experienced a rapid phase-out of capital allocation. Spending decreased sharply from 22 million USD in 2016 to 4 million USD in 2017, and further to 2 million USD in 2018. No reportable capital expenditures were recorded for this segment in 2019 and 2020, suggesting a cessation of investment or a structural change in the segment's operations.
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