01—Abstract
Summary
Summary of the 8-K/A filed January 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. filed this Form 8-K/A to amend its Original 8-K of June 26, 2023 and Amendment No. 1 of November 13, 2023, which reported costs tied to exit activities.
The sole purpose of this amendment is to disclose, under Item 2.05(d) of Form 8-K, the company's determination on certain estimates related to a further reduction in its real estate footprint. As of October 1, 2023, the company had assets, primarily right-of-use assets and leasehold improvements, related to its Foster City campus of approximately $182 milliona. During the fourth quarter of 2023, Illumina exited a portion of the Foster City campus and now estimates it will incur right-of-use asset and leasehold improvement impairment charges of approximately $43 million in the fourth fiscal quarter of 2023 related to this exit.
The company continues to evaluate its options for the rest of the Foster City campus and may incur additional charges if it exits further, but it cannot yet estimate the timing, amount, or potential cash outlay of such costs. The company will file a further amendment if such costs become material and estimable.
The charges will be excluded from non-GAAP financial metrics. The filing ties these actions to the company's cost reduction plans and notes that results could differ if those plans are not implemented on time or cost more than expected.
02—Key points
Key Highlights
- Illumina amended its prior 8-K disclosures on costs associated with exit activities to report its real estate footprint determination under Item 2.05(d).
- Foster City campus assets (primarily right-of-use assets and leasehold improvements) totaled approximately $182 million as of October 1, 2023.
- Illumina exited a portion of the Foster City campus in Q4 2023 and estimates approximately $43 million in right-of-use asset and leasehold improvement impairment charges in fiscal Q4 2023.
- Additional charges may arise from any further exit from the remaining Foster City campus, but the timing and amount are not yet estimable.
- Charges associated with the exit will be excluded from non-GAAP financial metrics.
- The company will file another amendment if further costs become material and estimable.
03—Questions
Frequently Asked Questions
What triggered this amended 8-K filing?
The filing discloses, as required by Item 2.05(d) of Form 8-K, the company's determination regarding certain estimates related to a further reduction in its real estate footprint. It amends the Original 8-K filed June 26, 2023 and Amendment No. 1 filed November 13, 2023.
How large are the charges Illumina expects from the Foster City exit?
Illumina estimates right-of-use asset and leasehold improvement impairment charges of approximately $43 million in the fourth fiscal quarter of 2023 related to exiting a portion of the Foster City campus.
What assets are associated with the Foster City campus?
As of October 1, 2023, the company had assets, consisting primarily of right-of-use assets and leasehold improvements, related to the Foster City campus of approximately $182 million.
Could there be additional charges related to Foster City?
Yes. The company continues to evaluate options for the rest of its Foster City campus and may incur additional charges if it exits further. It currently cannot estimate the timing, amount, or potential cash outlay, and will file an amendment if such costs are material and estimable.
How will these charges be treated in non-GAAP results?
The charges will be excluded from non-GAAP financial metrics.
04—Continue