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Illumina 8-K/A Report, Exit or Disposal Costs (Jun 27, 2024)

Reports
Financial Events
Filing Date
Filed June 27, 2024
Period End
June 3, 2024
Security
ILMN
In the record · 2016–202610-K1110-Q338-K167

ILMN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Nov ’17Nov ’17
  2. Material agreement8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K/A filed June 27, 2024. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. filed this Current Report on June 27, 2024 to disclose its determination of certain estimates related to impairment charges it may incur in connection with the Spin-Off, which was described in the company's earlier Current Report filed June 3, 2024 on costs associated with exit or disposal activities.

The filing states that the Company's impairment testing of goodwill and non-amortizing in-process research and development (IPR&D) led it to estimate a second-quarter 2024 goodwill impairment charge of $1,466 milliona, which is the full remaining carrying value of goodwill related to GRAIL as of March 31, 2024. The Company also estimates a second-quarter 2024 impairment charge of $420 million for the GRAIL IPR&D intangible asset.

According to the filing, Illumina does not expect any material future cash expenditures related to these impairments. Both charges will be excluded from the Company's non-GAAP financial metrics, so investors reviewing adjusted results should expect them to affect GAAP results in the second quarter of 2024 without changing the non-GAAP presentation.

02—Key points

Key Highlights

  1. Estimated goodwill impairment charge of $1,466 million in the second quarter of 2024, equal to the full remaining carrying value of GRAIL-related goodwill as of March 31, 2024.
  2. Estimated impairment charge of $420 million for the GRAIL IPR&D intangible asset in the second quarter of 2024.
  3. Impairment estimates were determined through the Company's impairment test for goodwill and non-amortizing IPR&D.
  4. The charges are connected to the Spin-Off described in the Company's June 3, 2024 Current Report on costs associated with exit or disposal activities.
  5. Illumina does not expect any material future cash expenditures related to these impairments.
  6. Both charges will be excluded from non-GAAP financial metrics.

03—Questions

Frequently Asked Questions

  1. How large are the expected impairment charges?

    The Company estimates a goodwill impairment charge of $1,466 million and an impairment charge of $420 million for the GRAIL IPR&D intangible asset, both to be recognized in the second quarter of 2024.

  2. What goodwill is being written down?

    The goodwill impairment equals the full remaining carrying value of goodwill related to GRAIL as of March 31, 2024.

  3. Will these charges require future cash outlays?

    The Company states that it does not expect any material future cash expenditures related to these impairments.

  4. How will these charges affect non-GAAP results?

    The Company states that these charges will be excluded from its non-GAAP financial metrics.

  5. What event is connected to these impairment charges?

    The impairment charges are related to the Spin-Off, which the Company described in its Current Report filed June 3, 2024 on costs associated with exit or disposal activities.

04—Continue

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