Business Context and Reporting Period
Company: ILLUMINA, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: December 30, 2014
Event: Entry into a Material Definitive Agreement (Lease)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It discloses a specific contractual obligation:
- Aggregate Rent (Initial Term): Approximately $204 million (excluding the Expansion Building).
- Lease Term: 16 years (Initial Term).
- Target Commencement: July 1, 2017.
- Property Size: Approximately 360,000 rentable square feet.
- Location: 200-800 Lincoln Centre Drive, Foster City, California.
Material Changes
The Company entered into a new long-term lease agreement with an affiliate of BioMed Realty Trust, Inc. for office buildings to be constructed. This represents a new material commitment rather than a change in historical financial performance.
Outlook, Risks, and Contingencies
- Expansion Rights: The Company retains the right to lease an additional "Expansion Building" at the facility.
- Extension Options: The lease includes three five-year options to extend the term beyond the initial 16 years.
- Additional Costs: Beyond rent, the Company is obligated to pay certain taxes, insurance, and operating costs related to the leased buildings.
- Documentation: The full text of the lease will be filed as an exhibit to the Annual Report on Form 10-K for the fiscal year ending December 28, 2014.
Investor Verification Checklist
- Verify the full text of the Lease agreement in the upcoming Form 10-K exhibit.
- Confirm the construction timeline and the July 1, 2017 target commencement date.
- Assess the impact of the $204 million rent obligation on future cash flow projections.
- Review the specific terms regarding the "Expansion Building" and the three five-year extension options.