01—Abstract
Summary
Summary of the 8-K/A filed January 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. filed this Form 8-K/A to disclose the company's determination regarding certain estimates related to a further reduction in its real estate footprint.
The filing amends the company's June 26, 2023 Form 8-K, which reported costs associated with certain exit activities, and it supplements Amendments No. 1, 2 and 3 filed in November 2023, January 2024 and May 2024. Under Item 2.05 of Form 8-K, the company reports the exit-related charges and states that no other modifications were made to the earlier filings. The filing states that in the first quarter of 2024 Illumina exited a portion of its Foster City, California campus and another property in San Diego, California, and recorded right-of-use asset and leasehold improvement impairment charges of $32 milliona.
In the fourth quarter of 2024, the company recorded an additional right-of-use asset impairment of $14 millionb related to the San Diego property, which was recognized in selling, general and administrative expense. The company states it has no remaining assets related to that San Diego property and continues to evaluate its options for the rest of the Foster City campus.
The company states that these charges will be excluded from its non-GAAP financial metrics. The filing's forward-looking statements caution that results could differ materially, citing the company's ability to implement cost reduction plans on time and the possibility that related costs exceed expectations.
02—Key points
Key Highlights
- Illumina reported a $32 million right-of-use asset and leasehold improvement impairment charge in Q1 2024 tied to exiting part of its Foster City campus and another San Diego property.
- An additional $14 million right-of-use asset impairment was recorded in Q4 2024 for the San Diego property, recognized in selling, general and administrative expense.
- The company has no remaining assets related to the San Diego property that was exited.
- Illumina continues to evaluate its options for the remainder of its Foster City, California campus.
- The charges will be excluded from the company's non-GAAP financial metrics.
- This 8-K/A was filed under Item 2.05 to disclose the company's determination on estimates tied to a further reduction in its real estate footprint.
- The filing amends the June 26, 2023 Form 8-K and builds on Amendments No. 1, 2 and 3 filed in November 2023, January 2024 and May 2024.
03—Questions
Frequently Asked Questions
What real estate actions did Illumina take that led to these charges?
The filing states that during Q1 2024 Illumina exited a portion of its Foster City campus and another property in San Diego, California. The related right-of-use asset and leasehold improvement impairment charges totaled $32 million in the first fiscal quarter of 2024.
Why was an additional charge recorded in Q4 2024?
The company recorded a further $14 million right-of-use asset impairment in Q4 2024 for the San Diego property. The filing describes this as a further reduction in the company's real estate footprint and says it is recognized in selling, general and administrative expense.
Will these charges affect Illumina's non-GAAP results?
No. The company states that the charge noted in the filing will be excluded from its non-GAAP financial metrics.
Is Illumina finished with its Foster City campus restructuring?
Not necessarily. The filing states that the company has no remaining assets related to the San Diego property and continues to evaluate its options with respect to the rest of its Foster City campus.
04—Continue