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

US$ in millions

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Leasehold improvements	645)	622)	567)	331)	270)
Machinery and equipment	461)	401)	382)	316)	274)
Computer hardware and software	305)	272)	217)	185)	156)
Furniture and fixtures	46)	45)	45)	34)	24)
Buildings	44)	44)	285)	155)	9)
Construction in progress	99)	73)	100)	326)	307)
Property and equipment, gross	1,600)	1,457)	1,596)	1,347)	1,040)
Accumulated depreciation	(678)	(568)	(521)	(416)	(327)
Property and equipment, net	922)	889)	1,075)	931)	713)

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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. property and equipment, gross decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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. property and equipment, net decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Illumina Inc., asset age ratios

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Average age ratio	42.38%	38.98%	32.64%	30.88%	31.42%
Estimated total useful life (years)	10	10	11	12	12
Estimated age, time elapsed since purchase (years)	4	4	4	4	4
Estimated remaining life (years)	6	6	8	8	8

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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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Illumina Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Illumina Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Illumina Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated remaining life		Illumina Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation	678)	568)	521)	416)	327)
Property and equipment, gross	1,600)	1,457)	1,596)	1,347)	1,040)
Asset Age Ratio
Average age¹	42.38%	38.98%	32.64%	30.88%	31.42%

2020 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × 678 ÷ 1,600 = 42.38%

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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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Illumina Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Property and equipment, gross	1,600)	1,457)	1,596)	1,347)	1,040)
Depreciation expense	156)	151)	140)	110)	90)
Asset Age Ratio (Years)
Estimated total useful life¹	10	10	11	12	12

2020 Calculations

¹ Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= 1,600 ÷ 156 = 10

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Illumina Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation	678)	568)	521)	416)	327)
Depreciation expense	156)	151)	140)	110)	90)
Asset Age Ratio (Years)
Time elapsed since purchase¹	4	4	4	4	4

2020 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 678 ÷ 156 = 4

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Illumina Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Property and equipment, net	922)	889)	1,075)	931)	713)
Depreciation expense	156)	151)	140)	110)	90)
Asset Age Ratio (Years)
Estimated remaining life¹	6	6	8	8	8

2020 Calculations

¹ Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= 922 ÷ 156 = 6

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Asset age ratio	Description	The company
Estimated remaining life		Illumina Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Illumina Inc. (NASDAQ:ILMN)

Analysis of Property, Plant and Equipment