Infinera (INFN) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2017	Aug. 02, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	INFN
Entity Registrant Name	INFINERA CORP
Entity Central Index Key	1,138,639
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		148,204,671

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 119,820	$ 162,641
Short-term investments	137,929	141,697
Short-term restricted cash	1,423	8,490
Accounts receivable, net of allowance for doubtful accounts of $918 in 2017 and $772 in 2016	123,903	150,370
Inventory	245,976	232,955
Prepaid expenses and other current assets	42,885	34,270
Total current assets	671,936	730,423
Property, plant and equipment, net	142,424	124,800
Intangible assets	102,933	108,475
Goodwill	189,989	176,760
Long-term investments	69,105	40,779
Cost-method investment	7,000	7,000
Long-term restricted cash	5,030	6,449
Other non-current assets	4,201	3,897
Total assets	1,192,618	1,198,583
Current liabilities:
Accounts payable	80,684	62,486
Accrued expenses	32,018	31,580
Accrued compensation and related benefits	43,625	46,637
Short-term debt, net	139,115	0
Accrued warranty	14,078	16,930
Deferred revenue	64,723	58,900
Total current liabilities	374,243	216,533
Long-term debt, net	0	133,586
Accrued warranty, non-current	18,322	23,412
Deferred revenue, non-current	23,723	19,362
Deferred tax liability	24,185	25,327
Other long-term liabilities	14,558	18,035
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, $0.001 par value Authorized shares – 25,000 and no shares issued and outstanding	0	0
Common stock, $0.001 par value; Authorized shares – 500,000 as of July 01, 2017 and December 31, 2016; Issued and outstanding shares – 148,189 as of July 01, 2017 and 145,021 as of December 31, 2016	148	145
Additional paid-in capital	1,388,045	1,354,082
Accumulated other comprehensive loss	(3,741)	(28,324)
Accumulated deficit	(646,865)	(563,575)
Total stockholders' equity	737,587	762,328
Total liabilities and stockholders’ equity	$ 1,192,618	$ 1,198,583

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Net of allowance for doubtful accounts	$ 918	$ 772
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, authorized shares (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	148,189,000	145,021,000
Common stock, shares outstanding (in shares)	148,189,000	145,021,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Revenue:
Product	$ 143,360	$ 227,532	$ 290,413	$ 443,614
Services	33,461	31,290	61,930	60,026
Total revenue	176,821	258,822	352,343	503,640
Cost of revenue:
Cost of product	100,302	122,438	199,634	240,500
Cost of services	11,687	12,638	23,821	23,056
Total cost of revenue	111,989	135,076	223,455	263,556
Gross profit	64,832	123,746	128,888	240,084
Operating expenses:
Research and development	57,377	59,541	112,460	113,686
Sales and marketing	29,397	30,465	58,838	60,474
General and administrative	18,563	17,658	35,922	34,971
Total operating expenses	105,337	107,664	207,220	209,131
Income (loss) from operations	(40,505)	16,082	(78,332)	30,953
Other income (expense), net:
Interest income	862	595	1,613	1,117
Interest expense	(3,456)	(3,176)	(6,859)	(6,331)
Other gain (loss), net	(252)	(714)	(382)	(928)
Total other income (expense), net	(2,846)	(3,295)	(5,628)	(6,142)
Income (loss) before income taxes	(43,351)	12,787	(83,960)	24,811
Provision for (benefit from) income taxes	(512)	1,475	(670)	1,691
Net income (loss)	(42,839)	11,312	(83,290)	23,120
Less: Loss attributable to noncontrolling interest	0	(171)	0	(378)
Net income (loss) attributable to Infinera Corporation	$ (42,839)	$ 11,483	$ (83,290)	$ 23,498
Net income (loss) per common share attributable to Infinera Corporation:
Basic (in usd per share)	$ (0.29)	$ 0.08	$ (0.57)	$ 0.17
Diluted (in usd per share)	$ (0.29)	$ 0.08	$ (0.57)	$ 0.16
Weighted average shares used in computing net income (loss) per common share:
Basic (in shares)	147,538	142,396	146,662	141,600
Diluted (in shares)	147,538	145,891	146,662	146,385

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (42,839)	$ 11,312	$ (83,290)	$ 23,120
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available-for-sale investments	22	258	(60)	639
Foreign currency translation adjustment	18,426	(6,769)	24,643	(3,499)
Net change in accumulated other comprehensive income (loss)	18,448	(6,511)	24,583	(2,860)
Less: Comprehensive loss attributable to noncontrolling interest	0	(171)	0	(378)
Comprehensive income (loss) attributable to Infinera Corporation	$ (24,391)	$ 4,972	$ (58,707)	$ 20,638

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016
Cash Flows from Operating Activities:
Net income (loss)	$ (83,290)	$ 23,120
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	32,623	29,891
Amortization of debt discount and issuance costs	5,529	5,001
Amortization of premium on investments	234	733
Impairment of intangible assets	252	0
Stock-based compensation expense	23,257	18,980
Other loss	86	84
Changes in assets and liabilities:
Accounts receivable	27,629	(7,404)
Inventory	(12,700)	(31,304)
Prepaid expenses and other assets	(8,127)	(328)
Accounts payable	16,927	(7,339)
Accrued liabilities and other expenses	(4,392)	(5,528)
Deferred revenue	10,065	10,129
Accrued warranty	(8,111)	2,165
Net cash provided by (used in) operating activities	(18)	38,200
Cash Flows from Investing Activities:
Purchase of available-for-sale investments	(107,854)	(97,051)
Proceeds from sales of available-for-sale investments	3,998	0
Proceeds from maturities of investments	79,003	91,714
Purchase of property and equipment	(39,200)	(23,278)
Change in restricted cash	2,974	(60)
Net cash used in investing activities	(61,079)	(28,675)
Cash Flows from Financing Activities:
Security pledge to acquire noncontrolling interest	5,596	(24,942)
Acquisition of noncontrolling interest	(471)	0
Proceeds from issuance of common stock	11,115	8,586
Minimum tax withholding paid on behalf of employees for net share settlement	(823)	(3,082)
Net cash provided by (used in) financing activities	15,417	(19,438)
Effect of exchange rate changes on cash	2,859	(808)
Net change in cash and cash equivalents	(42,821)	(10,721)
Cash and cash equivalents at beginning of period	162,641	149,101
Cash and cash equivalents at end of period	119,820	138,380
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds	2,683	3,237
Cash paid for interest	1,316	1,410
Supplemental schedule of non-cash investing activities:
Transfer of inventory to fixed assets	$ 2,087	$ 4,009

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation Infinera Corporation (the “Company”) prepared its interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The Company has made certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates, assumptions and judgments made by management include revenue recognition, stock-based compensation, inventory valuation, accrued warranty, business combinations, fair value measurement of investments and accounting for income taxes. Other estimates, assumptions and judgments made by management include allowances for sales returns, allowances for doubtful accounts, useful life of intangible assets, property, plant and equipment, and fair value measurement of the liability component of the Company's $150.0 million in aggregate principal amount of 1.75% convertible senior notes due June 1, 2018 (the “Notes”). Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent there are material differences between these estimates and actual results, the Company’s condensed consolidated financial statements will be affected. The interim financial information is unaudited, but reflects all adjustments that are, in management’s opinion, necessary to provide a fair presentation of results for the interim periods presented. All adjustments are of a normal recurring nature. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company reclassified certain amounts reported in previous periods to conform to the current presentation. This interim information should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. To date, a few of the Company’s customers have accounted for a significant portion of its revenue. For the three months ended July 1, 2017 , three customers individually accounted for 17% , 10% and 10% of the Company's total revenue and for the corresponding period in 2016, two customers individually accounted for 15% and 11% of the Company's total revenue, respectively. For the six months ended July 1, 2017 , one customer individually accounted for 18% of the Company's total revenue and for the corresponding period in 2016, three customers individually accounted for 16% , 13% and 12% of the Company's total revenue, respectively. There have been no material changes in the Company’s significant accounting policies for the six months ended July 1, 2017 as compare d to those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements, and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This guidance is effective for the Company in its first quarter of fiscal 2018, with early adoption permitted. The Company does not expect the new guidance to have any material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The guidance eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU 2017-04 will be effective for the Company's annual or any interim goodwill impairment tests in its first quarter of fiscal 2020. The Company is currently evaluating the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and ending-of-period total amounts shown on the statement of cash flows. The Company is required to adopt ASU 2016-18 on a retrospective basis for fiscal years, and for interim periods within those fiscal years, beginning with its first quarter of fiscal 2018. Early adoption is permitted, including adoption in an interim period. Subsequent to the adoption of ASU 2016-18, the change in restricted cash would be excluded from the change in cash flows from investing and financing activities and included in the change in total cash, restricted cash and cash equivalents as reported in the statement of cash flows. The Company is currently evaluating the impact the adoption of ASU 2016-18 will have on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, “Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. This guidance is effective for the Company in its first quarter of fiscal 2018 and will be applied on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for the Company in its first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In May 2016, the FASB issued Accounting Standards Update 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update)” (“ASU 2016-11”), which rescinds various standards codified as part of Topic 605, Revenue Recognition in relation to the future adoption of Topic 606. These rescissions include changes to topics pertaining to revenue and expense recognition for freight services in process, accounting for shipping and handling fees and costs, and accounting for consideration given by a vendor to a customer. This guidance is effective for the Company in its first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-11 will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This guidance is effective for the Company in its first quarter of fiscal 2019 and early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements and expects to have increases in the assets and liabilities of its consolidated balance sheets. In July 2015, the FASB issued Accounting Standards Update 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”), to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first-out or the retail inventory method. Under ASU 2015-11, inventory should be at the lower of cost and net realizable value. The Company adopted ASU 2015-11 during the first quarter of fiscal 2017. The Company's adoption of 2015-11 had no impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts from Customers (Topic 606)” (“ASU 2014-09”), which creates a single, joint revenue standard that is consistent across all industries and markets for companies that prepare their financial statements in accordance with U.S. GAAP. Under ASU 2014-09, an entity is required to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. In April 2016, the FASB issued Accounting Standards Update 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying performance obligations and licensing. In May 2016, the FASB issued Accounting Standards Update 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends the guidance on collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued Accounting Standards Update 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” to increase stakeholders' awareness of the proposals and to expedite improvements to ASU 2014-09. These standards will be effective for the Company's first quarter of 2018. The Company currently anticipates adopting the standard using the modified retrospective method as an adjustment to its opening balance of retained earnings. Prior periods will not be retrospectively adjusted. The Company continues to evaluate the impact of the new accounting standards on our accounting policies, processes and system requirements, and has assigned internal resources in addition to the engagement of third party service providers to assist in this evaluation. In addition, the Company has made and will continue to make investments in systems and processes to enable timely and accurate reporting under the new standard. The Company is in the process of evaluating whether or not there will be a material impact on its consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 01, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Valuation techniques used by the Company are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about market participant assumptions based on the best information available. Observable inputs are the preferred source of values. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. The Company measures its cash equivalents, foreign currency exchange forward contracts and marketable debt securities at fair value and classifies its investments in accordance with the fair value hierarchy. The Company’s money market funds and U.S. treasuries are classified within Level 1 of the fair value hierarchy and are valued based on quoted prices in active markets for identical securities. The Company classifies its certificates of deposit, commercial paper, U.S. agency notes, corporate bonds and foreign currency exchange forward contracts within Level 2 of the fair value hierarchy as follows: Certificates of Deposit The Company reviews market pricing and other observable market inputs for the same or similar securities obtained from a number of industry standard data providers. In the event that a transaction is observed for the same or similar security in the marketplace, the price on that transaction reflects the market price and fair value on that day. In the absence of any observable market transactions for a particular security, the fair market value at period end would be equal to the par value. These inputs represent quoted prices for similar assets or these inputs have been derived from observable market data. Commercial Paper The Company reviews market pricing and other observable market inputs for the same or similar securities obtained from a number of industry standard data providers. In the event that a transaction is observed for the same or similar security in the marketplace, the price on that transaction reflects the market price and fair value on that day and then follows a revised accretion schedule to determine the fair market value at period end. In the absence of any observable market transactions for a particular security, the fair market value at period end is derived by accreting from the last observable market price. These inputs represent quoted prices for similar assets or these inputs have been derived from observable market data accreted mathematically to par. U.S. Agency Notes The Company reviews trading activity and pricing for its U.S. agency notes as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from a number of industry standard data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. Corporate Bonds The Company reviews trading activity and pricing for each of the corporate bond securities in its portfolio as of the measurement date and determines if pricing data of sufficient frequency and volume in an active market exists in order to support Level 1 classification of these securities. If sufficient quoted pricing for identical securities is not available, the Company obtains market pricing and other observable market inputs for similar securities from a number of industry standard data providers. In instances where multiple prices exist for similar securities, these prices are used as inputs into a distribution-curve to determine the fair market value at period end. Foreign Currency Exchange Forward Contracts As discussed in Note 5, “Derivative Instruments” to the Notes to Condensed Consolidated Financial Statements, the Company mainly holds non-speculative foreign exchange forward contracts to hedge certain foreign currency exchange exposures. The Company estimates the fair values of derivatives based on quoted market prices or pricing models using current market rates. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands): As of July 1, 2017 As of December 31, 2016 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 34,179 $ — $ 34,179 $ 41,773 $ — $ 41,773 Certificates of deposit — 240 240 — 1,881 1,881 Commercial paper — 20,931 20,931 — 39,310 39,310 Corporate bonds — 137,135 137,135 — 88,324 88,324 U.S. agency notes — 12,780 12,780 — 11,759 11,759 U.S. treasuries 40,941 — 40,941 52,092 — 52,092 Foreign currency exchange forward contracts 11 11 — 187 187 Total assets $ 75,120 $ 171,097 $ 246,217 $ 93,865 $ 141,461 $ 235,326 Liabilities Foreign currency exchange forward contracts $ — $ — $ — $ — $ (71 ) $ (71 ) During the three and six months ended July 1, 2017 , there were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy. As of July 1, 2017 and December 31, 2016, none of the Company’s existing securities were classified as Level 3 securities. Cash, cash equivalents and investments were as follows (in thousands): July 1, 2017 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 80,648 $ — $ — $ 80,648 Money market funds 34,179 — — 34,179 Commercial paper 4,993 — — 4,993 Total cash and cash equivalents $ 119,820 $ — $ — $ 119,820 Commercial paper 15,945 — (7 ) 15,938 Corporate bonds 84,814 — (100 ) 84,714 U.S. agency notes 7,288 — (7 ) 7,281 U.S. treasuries 30,050 — (54 ) 29,996 Total short-term investments $ 138,097 $ — $ (168 ) $ 137,929 Certificates of deposit 240 — — 240 Corporate bonds 52,483 7 (69 ) 52,421 U.S. agency notes 5,510 — (11 ) 5,499 U.S. treasuries 10,973 — (28 ) 10,945 Total long-term investments $ 69,206 $ 7 $ (108 ) $ 69,105 Total cash, cash equivalents and investments $ 327,123 $ 7 $ (276 ) $ 326,854 December 31, 2016 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 109,978 $ — $ — $ 109,978 Money market funds 41,773 — — 41,773 Commercial paper 8,892 — (1 ) 8,891 U.S. agency notes 1,999 — — 1,999 Total cash and cash equivalents $ 162,642 $ — $ (1 ) $ 162,641 Certificates of deposit 1,881 — — 1,881 Commercial paper 30,425 — (6 ) 30,419 Corporate bonds 63,097 1 (59 ) 63,039 U.S. agency notes 7,285 — (8 ) 7,277 U.S. treasuries 39,093 9 (21 ) 39,081 Total short-term investments $ 141,781 $ 10 $ (94 ) $ 141,697 Corporate bonds 25,374 — (89 ) 25,285 U.S. agency notes 2,499 — (16 ) 2,483 U.S. treasuries 13,032 2 (23 ) 13,011 Total long-term investments $ 40,905 $ 2 $ (128 ) $ 40,779 Total cash, cash equivalents and investments $ 345,328 $ 12 $ (223 ) $ 345,117 As of July 1, 2017 , the Company’s available-for-sale investments have a contractual maturity term of up to 23 months . Gross realized gains and losses on short-term and long-term investments were insignificant in all periods. The specific identification method is used to account for gains and losses on available-for-sale investments. As of July 1, 2017 , the Company had $257.7 million of cash, cash equivalents and short-term investments, including $49.6 million of cash and cash equivalents held by its foreign subsidiaries. The Company's cash in foreign locations is used for operational and investing activities in those locations, and the Company does not currently have the need or the intent to repatriate those funds to the United States.

Cost-method Investment

Cost-method Investment	6 Months Ended
	Jul. 01, 2017
Investments, All Other Investments [Abstract]
Cost-method Investment	Cost-method Investment In 2016, the Company invested $7.0 million in a privately-held company. In addition to the $7.0 million investment, the transaction included a customer supply agreement and warrants to purchase up to $10.0 million of additional shares of preferred stock. The warrants vest and become exercisable upon certain conditions being met. As of July 1, 2017 and December 31, 2016, the Company's cost-method investment balance was $7.0 million in both periods. This investment is accounted for as a cost-method investment as the Company owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of the entity. The Company's investment is carried at historical cost in its consolidated financial statements. The Company regularly evaluates the carrying value of its cost-method investment for impairment. If the Company believes that the carrying value of the cost basis investment is in excess of estimated fair value, the Company’s policy is to record an impairment charge in other income (expense), net, in the accompanying condensed consolidated statements of operations to adjust the carrying value to estimated fair value, when the impairment is deemed other-than-temporary. As of July 1, 2017 and December 31, 2016, no event had occurred that would adversely affect the carrying value of this investment and thus no impairment charges have been recorded.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jul. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments Foreign Currency Exchange Forward Contracts The Company transacts business in various foreign currencies and has international sales, cost of sales, and expenses denominated in foreign currencies, and carries foreign-currency-denominated monetary assets and liabilities, subjecting the Company to foreign currency risk. The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows and minimize the volatility of reported earnings. The Company utilizes foreign currency exchange forward contracts, primarily short term in nature. The Company enters into foreign currency exchange forward contracts to manage its exposure to fluctuation in foreign exchange rates that arise from its euro and British pound denominated receivables and restricted cash balances. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate fluctuations on the underlying foreign currency denominated accounts receivables and restricted cash, and therefore, do not subject the Company to material balance sheet risk. The Company also enters into foreign currency exchange contracts to reduce the volatility of cash flows primarily related to forecasted revenues and expenses denominated in euros, British pound and Swedish kronor (“SEK”). The contracts are settled at maturity and at rates agreed to at inception of the contracts. The gains and losses on these foreign currency derivatives are recorded to the consolidated statement of operations line item, in the current period, to which the item that is being economically hedged is recorded. For the three months ended July 1, 2017 and June 25, 2016, the before-tax effect of the foreign currency exchange forward contracts were a loss of $1.5 million and a loss of $0.1 million , respectively, and for the six months ended July 1, 2017 and June 25, 2016, the before-tax effect of the foreign currency exchange forward contracts were a loss of $1.8 million and a loss of $0.6 million , respectively. In each of these periods, the impact of the gross gains and losses were offset by foreign exchange rate fluctuations on the underlying foreign currency denominated amounts. As of July 1, 2017 , the Company did not designate foreign currency exchange forward contracts as hedges for accounting purposes and accordingly, changes in the fair value are recorded in the accompanying condensed consolidated statements of operations. These contracts were with one high-quality institutions and the Company consistently monitors the creditworthiness of the counterparties. The fair value of derivative instruments not designated as hedging instruments in the Company’s condensed consolidated balance sheets was as follows (in thousands): As of July 1, 2017 As of December 31, 2016 Gross Notional (1) Prepaid Expense and Other Assets Gross Notional (1) Prepaid Expense and Other Assets Other Accrued Liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ 16,559 $ 11 $ 23,887 $ 137 $ (71 ) Related to British pound denominated receivables $ — — $ 6,353 48 — Related to euro denominated restricted cash $ 240 — $ 242 2 — $ 11 $ 187 $ (71 ) (1) Represents the face amounts of forward contracts that were outstanding as of the period noted.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jul. 01, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. The following table presents details of the Company’s goodwill during the six months ended July 1, 2017 (in thousands): Balance as of December 31, 2016 $ 176,760 Foreign currency translation adjustments 13,229 Accumulated impairment loss — Balance as of July 1, 2017 $ 189,989 The gross carrying amount of goodwill may change due to the effects of foreign currency fluctuations as these assets are denominated in SEK. Intangible Assets The following tables present details of the Company’s intangible assets as of July 1, 2017 and December 31, 2016 (in thousands, except for weighted-average): July 1, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships $ 49,581 $ (11,476 ) $ 38,105 6.1 Developed technology 101,693 (36,865 ) 64,828 3.6 Total intangible assets $ 151,274 $ (48,341 ) $ 102,933 4.6 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 220 $ (220 ) $ — 0.0 Customer relationships 46,125 (7,793 ) 38,332 6.6 Developed technology 94,320 (24,715 ) 69,605 3.7 Other intangible assets 819 (567 ) 252 4.6 Total intangible assets with finite lives $ 141,484 $ (33,295 ) $ 108,189 4.7 In-process technology 286 — 286 Total intangible assets $ 141,770 $ (33,295 ) $ 108,475 The gross carrying amount of intangible assets and the related amortization expense of intangible assets may change due to the effects of foreign currency fluctuations as these assets are denominated in SEK. Amortization expense was $6.6 million and $12.9 million for the three and six months ended July 1, 2017 , respectively, and was $6.6 million and $13.1 million for the three and six months ended, respectively, for the corresponding periods in 2016. Intangible assets are carried at cost less accumulated amortization. Amortization expenses are recorded to the appropriate cost and expense categories. During the six months ended July 1, 2017 , the Company recorded an impairment charge of $0.3 million related to other intangible assets, which the Company has determined that the carrying value will not be recoverable. During the first quarter of 2017, the Company transferred $0.3 million of its in-process technology to developed technology, which is being amortized over a useful life of five years. The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of July 1, 2017 (in thousands): Fiscal Years Total Remainder of 2017 2018 2019 2020 2021 2022 and Thereafter Total future amortization expense $ 102,933 $ 13,399 $ 26,797 $ 26,192 $ 19,114 $ 6,986 $ 10,445

Balance Sheet Details

Balance Sheet Details	6 Months Ended
	Jul. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Details	Balance Sheet Details The following table provides details of selected balance sheet items (in thousands): July 1, 2017 December 31, 2016 Inventory: Raw materials $ 36,709 $ 33,158 Work in process 91,620 74,533 Finished goods 117,647 125,264 Total inventory $ 245,976 $ 232,955 Property, plant and equipment, net: Computer hardware $ 13,548 $ 12,775 Computer software (1) 31,928 26,779 Laboratory and manufacturing equipment 236,275 222,311 Land and building 12,347 — Furniture and fixtures 2,228 2,075 Leasehold improvements 38,235 42,267 Construction in progress 37,794 33,633 Subtotal $ 372,355 $ 339,840 Less accumulated depreciation and amortization (229,931 ) (215,040 ) Total property, plant and equipment, net $ 142,424 $ 124,800 Accrued expenses: Loss contingency related to non-cancelable purchase commitments $ 7,290 $ 5,555 Professional and other consulting fees 4,189 4,955 Taxes payable 2,925 2,384 Royalties 5,501 5,375 Other accrued expenses 12,113 13,311 Total accrued expenses $ 32,018 $ 31,580 (1) Included in computer software at July 1, 2017 and December 31, 2016 were $11.4 million and $9.1 million , respectively, related to enterprise resource planning ( “ ERP ” ) systems that the Company implemented. The unamortized ERP costs at July 1, 2017 and December 31, 2016 were $5.5 million and $4.0 million , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 01, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes certain changes in equity that are excluded from net income. The following table sets forth the changes in accumulated other comprehensive loss by component for the six months ended July 1, 2017 (in thousands): Unrealized Gain (Loss) on Other Available-for-Sale Securities Foreign Currency Translation Accumulated Tax Effect Total Balance at December 31, 2016 $ (209 ) $ (27,236 ) $ (879 ) $ (28,324 ) Net current-period other comprehensive income (loss) (60 ) 24,643 — 24,583 Balance at July 1, 2017 $ (269 ) $ (2,593 ) $ (879 ) $ (3,741 )

Basic and Diluted Net Income (L

Basic and Diluted Net Income (Loss) Per Common Share	6 Months Ended
	Jul. 01, 2017
Earnings Per Share [Abstract]
Basic and Diluted Net Income (Loss) Per Common Share	Basic and Diluted Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) attributable to Infinera Corporation by the weighted average number of common shares outstanding during the period. Diluted net income (loss) attributable to Infinera Corporation per common share is computed using net income (loss) attributable to Infinera Corporation and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding stock options, assumed release of outstanding restricted stock units (“RSUs”) and performance stock units (“PSUs”), and assumed issuance of common stock under the Company's 2007 Employee Stock Purchase Plan (“ESPP”) using the treasury stock method. Potentially dilutive common shares also include the assumed conversion of the Notes from the conversion spread (as discussed in Note 10, “Convertible Senior Notes”). The Company includes the common shares underlying PSUs in the calculation of diluted net income per share only when they become contingently issuable. In net loss periods, these potentially diluted common shares have been excluded from the diluted net loss calculation. The dilutive impact of the Notes (as defined in Note 10, “Convertible Senior Notes”) was based on the difference between the Company's average stock price during the period and the conversion price of the Notes. Upon conversion of the Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes being converted, therefore, only the conversion spread relating to the Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. The following table sets forth the computation of net income (loss) per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Numerator: Net income (loss) attributable to Infinera Corporation $ (42,839 ) $ 11,483 $ (83,290 ) $ 23,498 Denominator: Basic weighted average common shares outstanding 147,538 142,396 146,662 141,600 Effect of dilutive securities: Employee equity plans — 2,775 — 3,299 Assumed conversion of convertible senior notes from conversion spread — 720 — 1,486 Diluted weighted average common shares outstanding 147,538 145,891 146,662 146,385 Net income (loss) per common share attributable to Infinera Corporation Basic $ (0.29 ) $ 0.08 (0.57 ) $ 0.17 Diluted $ (0.29 ) $ 0.08 (0.57 ) $ 0.16 The Company incurred net losses during the three and six months ended July 1, 2017, and as a result, potential common shares from stock options, RSUs, PSUs, assumed release of outstanding stock under the ESPP and assumed conversion of the Notes from the conversion spread were not included in the diluted shares used to calculate net loss per share, as their inclusion would have been anti-dilutive. During the three and six months ended June 25, 2016, the Company included the dilutive effects of the Notes in the calculation of diluted net income per common share as the applicable average market price was above the conversion price of the Notes. The effects of certain potentially outstanding shares were not included in the calculation of diluted net income per share for the three and six months ended June 25, 2016 because their effect were anti-dilutive under the treasury stock method or the performance condition of the award had not been met. The following sets forth the potentially dilutive shares excluded from the computation of the diluted net income (loss) per share because their effect was anti-dilutive (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Stock options 1,407 13 1,521 11 RSUs 6,500 2,663 7,137 1,721 PSUs 1,464 846 1,439 594 ESPP shares 892 — 923 291 Total 10,263 3,522 11,020 2,617

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jul. 01, 2017
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes In May 2013, the Company issued the Notes, which will mature on June 1, 2018, unless earlier purchased by the Company or converted. Interest is payable semi-annually in arrears on June 1 and December 1 of each year, commencing December 1, 2013. The net proceeds to the Company were approximately $144.5 million . As a result of the Notes maturing on June 1, 2018, the net carrying amount of $139.1 million was reclassified from long-term debt to short-term debt in the Company's condensed consolidated balance sheets during the three months ended July 1, 2017. The Notes are governed by an indenture dated as of May 30, 2013 (the “Indenture”), between the Company, as issuer, and U.S. Bank National Association, as trustee. The Notes are unsecured and do not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of securities by the Company. Upon conversion, it is the Company's intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes. For any remaining conversion obligation, the Company intends to pay cash, shares of common stock or a combination of cash and shares of common stock, at its election. The initial conversion rate is 79.4834 shares of common stock per $1,000 principal amount of Notes, subject to anti-dilution adjustments. The initial conversion price is approximately $12.58 per share of common stock. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events, including for any cash dividends. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Holders may convert their Notes under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ended on March 28, 2013 (and only during such fiscal quarter) if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • upon the occurrence of specified corporate events described under the Indenture, such as a consolidation, merger or binding share exchange; or • at any time on or after December 1, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change as defined in the Indenture governing the Notes, holders may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, upon the occurrence of a “make-whole fundamental change” (as defined in the Indenture), the Company may, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change. The net carrying amounts of the debt obligation were as follows (in thousands): July 1, 2017 December 31, 2016 Principal $ 150,000 $ 150,000 Unamortized discount (1) (10,023 ) (15,114 ) Unamortized issuance cost (1) (862 ) (1,300 ) Net carrying amount $ 139,115 $ 133,586 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately 11 months . As of July 1, 2017 and December 31, 2016, the carrying amount of the equity component of the Notes was $43.3 million . In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes. In accounting for the issuance costs of $5.5 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component were initially recorded as other non-current assets and will be amortized to interest expense over the term of the Notes. Accounting Standards Update 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”) requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. The Company adopted ASU 2015-03 during the first quarter of 2016. The December 31, 2016 balance sheet was retrospectively adjusted to reclassify $2.1 million from other non-current assets to a reduction of the Notes payable liability. The issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Additionally, the Company initially recorded a deferred tax liability of $17.0 million in connection with the issuance of the Notes, and a corresponding reduction in valuation allowance. The impact of both was recorded to stockholders’ equity. The Company determined that the embedded conversion option in the Notes does not require separate accounting treatment as a derivative instrument because it is both indexed to the Company’s own stock and would be classified in stockholder’s equity if freestanding. The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Contractual interest expense $ 656 $ 656 $ 1,313 $ 1,313 Amortization of debt issuance costs 222 201 437 396 Amortization of debt discount 2,577 2,331 5,091 4,605 Total interest expense $ 3,455 $ 3,188 $ 6,841 $ 6,314 The coupon rate is 1.75% . For the three and six months ended July 1, 2017 and June 25, 2016 , the debt discount and debt issuance costs are amortized, using an annual effective interest rate of 10.23% , to interest expense over the term of the Notes. As of July 1, 2017 , the fair value of the Notes was $160.9 million . The fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on June 30, 2017. The Notes are classified as Level 2 of the fair value hierarchy. During the three months ended July 1, 2017 , the closing price of the Company's common stock did not meet the conversion criteria; therefore, holders of the Notes may not convert their Notes during the third quarter of 2017. Should the closing price conditions be met during the 30 consecutive trading days prior to the end of the third quarter of 2017 or a future quarter, the Notes will be convertible at their holders’ option during the immediately following quarter. Based on the closing price of the Company’s common stock of $10.67 on June 30, 2017 (the last trading day of the fiscal quarter), the if-converted value of the Notes did not exceed their principal amount.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jul. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock-based Compensation Plans The Company has stock-based compensation plans pursuant to which the Company has granted stock options, RSUs and PSUs. The Company also has an ESPP for all eligible employees. In February 2016, the Company's board of directors adopted the 2016 Equity Incentive Plan (“2016 Plan”) and the Company's stockholders approved the 2016 Plan in May 2016. In May 2017, the Company's stockholders approved an amendment to the 2016 Plan to increase the number of shares authorized for issuance under the 2016 Plan by 6.4 million shares. As of July 1, 2017, the Company has reserved a total of 13.9 million shares of common stock for issuance of stock options, RSUs and PSUs to employees, non-employees, consultants and members of the Company's board of directors, pursuant to the 2016 Plan, plus any shares subject to awards granted under the Company’s 2007 Equity Incentive Plan (the “2007 Plan”) that, after the effective date of the 2016 Plan, expire, are forfeited or otherwise terminate without having been exercised in full to the extent such awards were exercisable, and shares issued pursuant to awards granted under the 2007 Plan that, after the effective date of the 2016 Plan, are forfeited to or repurchased by the Company due to failure to vest. The 2016 Plan has a maximum term of 10 years from the date of adoption, or it can be earlier terminated by the Company's board of directors. The 2007 Plan was canceled; however, it continues to govern outstanding grants under the 2007 Plan. The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Stock Options Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 1,655 $ 8.30 $ 965 Stock options granted — $ — Stock options exercised (196 ) $ 7.78 $ 373 Stock options canceled (52 ) $ 12.87 Outstanding at July 1, 2017 1,407 $ 8.20 $ 3,620 Exercisable at July 1, 2017 1,403 $ 8.20 $ 3,614 Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 5,293 $ 14.10 $ 44,939 RSUs granted 3,191 $ 10.51 RSUs released (1,860 ) $ 13.66 $ 17,848 RSUs canceled (124 ) $ 14.96 Outstanding at July 1, 2017 6,500 $ 12.45 $ 69,359 Number of Performance Stock Units Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 904 $ 14.13 $ 7,672 PSUs granted 916 $ 16.36 PSUs released — $ — $ — PSUs canceled (356 ) $ 11.55 Outstanding at July 1, 2017 1,464 $ 16.16 $ 15,618 Expected to vest at July 1, 2017 997 $ 10,642 The aggregate intrinsic value of unexercised stock options is calculated as the difference between the closing price of the Company’s common stock of $10.67 at June 30, 2017 (the last trading day of the fiscal quarter) and the exercise prices of the underlying stock options. The aggregate intrinsic value of the stock options that have been exercised is calculated as the difference between the fair market value of the common stock at the date of exercise and the exercise price of the underlying stock options. The aggregate intrinsic value of unreleased RSUs and unreleased PSUs is calculated using the closing price of the Company's common stock of $10.67 at June 30, 2017 (the last trading day of the fiscal quarter). The aggregate intrinsic value of RSUs and PSUs released is calculated using the fair market value of the common stock at the date of release. The following table presents total stock-based compensation cost for instruments granted but not yet amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of July 1, 2017 . These costs are expected to be amortized on a straight-line basis over the following weighted-average periods (in thousands, except for weighted-average period): Unrecognized Compensation Expense, Net Weighted- Average Period (in years) Stock options $ 12 0.5 RSUs $ 68,948 2.8 PSUs $ 15,643 1.8 Employee Stock Options The Company did not grant any stock options during the three and six months ended July 1, 2017. Amortization of stock-based compensation related to stock options in the three and six months ended July 1, 2017 and June 25, 2016 was insignificant in both periods. Employee Stock Purchase Plan The fair value of the shares was estimated at the date of grant using the following assumptions (expense amounts in thousands): Three Months Ended Six Months Ended Employee Stock Purchase Plan July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Volatility 51% 56% 51% 56% Risk-free interest rate 0.81% 0.52% 0.81% 0.52% Expected life 0.5 years 0.5 years 0.5 years 0.5 years Estimated fair value $3.46 $4.53 $3.46 $4.53 Total stock-based compensation expense $1,392 $1,247 $3,073 $2,489 Restricted Stock Units During the three and six months ended July 1, 2017, the Company granted RSUs to employees to receive 0.3 million shares and 3.2 million shares of the Company’s common stock. All RSUs awarded are subject to each individual's continued service to the Company through each applicable vesting date. The Company accounted for the fair value of the RSUs using the closing market price of the Company’s common stock on the date of grant. Amortization of stock-based compensation related to RSUs in the three and six months ended July 1, 2017 was approximately $8.4 million and $16.0 million , respectively, and was $7.7 million and $13.8 million in the three and six months ended June 25, 2016, respectively. Performance Stock Units Pursuant to the 2007 Plan and the 2016 Plan, the Company has granted PSUs to certain of the Company’s executive officers, senior management and employees. All PSUs awarded are subject to each individual's continued service to the Company through each applicable vesting date and if the performance metrics are not met within the time limits specified in the award agreements, the PSUs will be canceled. PSUs granted to the Company’s executive officers and senior management under the 2007 Plan during the first quarter of 2015 and 2016 are based on the total stockholder return (“TSR”) of the Company's common stock price as compared to the TSR of the S&P North American Technology Multimedia Networking Index (“SPGIIPTR”) over the span of one year , two years and three years . The number of shares to be issued upon vesting of these PSUs range from zero to two times the target number of PSUs granted depending on the Company’s performance against the SPGIIPTR. PSUs granted to the Company’s executive officers and senior management under the 2016 Plan during the first quarter of 2017 are based on the TSR of the Company's common stock price relative to the TSR of the individual companies listed in the SPGIIPTR over the span of one year, two years and three years. The number of shares to be issued upon vesting of these PSUs range from zero to two times the target number of PSUs granted depending on the Company’s performance against the individual companies listed in the SPGIIPTR. The ranges of estimated values of the PSUs granted that are compared to the index, as well as the assumptions used in calculating these values were based on estimates as follows: 2017 2016 2015 Index SPGIIPTR SPGIIPTR SPGIIPTR Index volatility 33% - 34% 18% 18% - 19% Infinera volatility 55% - 56% 55% 48% Risk-free interest rate 1.41% - 1.63% 0.95% - 1.07% 0.97% - 1.10% Correlation with index/index component 0.10 - 0.49 0.58 - 0.59 0.52 Estimated fair value $15.23 - $17.35 $10.31 - $16.62 $18.08 - $19.29 In addition, certain other PSUs granted to the Company’s executive officers, senior management and certain employees will only vest upon the achievement of specific financial or operational performance criteria. The following table summarizes by grant year, the Company’s PSU activity for the six months ended July 1, 2017 (in thousands): Grant Year Total Number of Performance Stock Units 2014 2015 2016 2017 Outstanding at December 31, 2016 904 123 148 633 — PSUs granted 916 — — — 916 PSUs released — — — — — PSUs canceled (356 ) (102 ) (60 ) (194 ) — Outstanding at July 1, 2017 1,464 21 88 439 916 Amortization of stock-based compensation related to PSUs in the three and six months ended July 1, 2017 was approximately $2.8 million and $4.6 million , respectively, and was $2.3 million and $3.2 million in the three and six months ended June 25, 2016, respectively. Stock-Based Compensation The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): July 1, 2017 December 31, 2016 Stock-based compensation effects in inventory $ 5,383 $ 4,911 Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Stock-based compensation effects included in net income (loss) before income taxes Cost of revenue $ 834 $ 746 $ 1,558 $ 1,419 Research and development 4,184 3,904 7,964 6,225 Sales and marketing 3,273 2,945 5,999 5,180 General and administration 2,852 2,486 5,392 4,385 $ 11,143 $ 10,081 $ 20,913 $ 17,209 Cost of revenue – amortization from balance sheet (1) 1,237 912 2,344 1,771 Total stock-based compensation expense $ 12,380 $ 10,993 $ 23,257 $ 18,980 (1) Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods and recognized in the current period.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Benefit from income taxes for the three and six months ended July 1, 2017 was $0.5 million and $0.7 million , respectively, on pre-tax loss of $43.4 million and $84.0 million , respectively. This compared to a tax provision of $1.5 million and $1.7 million , respectively, on pre-tax income of $12.8 million and $24.8 million for the three and six months ended June 25, 2016, respectively. The results for the three and six months ended July 1, 2017 include approximately $6.6 million and $13.3 million , respectively, of purchase accounting amortization and other charges related to the acquisition of Transmode AB, which occurred in 2015, with a corresponding tax benefit of approximately $1.5 million and $2.9 million , respectively. Exclusive of this tax benefit, provision for income taxes otherwise decreased by approximately $2.1 million and $2.6 million , respectively, during the three and six months ended July 1, 2017 compared to June 25, 2016, as a result of an operating loss in the United States and lower foreign income tax of our Swedish operations, offset by higher foreign taxes related to an increase in spending in certain of the Company's cost-plus foreign subsidiaries. In all periods, the tax expense and benefit projected in the Company's effective tax rate assumptions primarily represents foreign taxes of the Company's overseas subsidiaries compensated on a cost-plus basis, as well as the results of our Swedish operations, inclusive of purchase accounting amortization and other charges for the three and six months ended July 1, 2017. The Company must assess the likelihood that some portion or all of its deferred tax assets will be recovered from future taxable income within the respective jurisdictions. In the past, the Company established a valuation allowance against its deferred tax assets as it determined that its ability to recover the value of these assets did not meet the “more-likely-than-not” standard. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management judgment is required on an on-going basis to determine whether it needs to maintain the valuation allowance recorded against its net deferred tax assets. The Company must consider all positive and negative evidence, including its forecasts of taxable income over the applicable carryforward periods, its current financial performance, its market environment and other factors in evaluating the need for a valuation allowance against its net U.S. deferred tax assets. At July 1, 2017, the Company does not believe that it is more-likely-than-not that it would be able to utilize its deferred tax assets in the foreseeable future. Accordingly, the domestic net deferred tax assets continued to be fully reserved with a valuation allowance. To the extent that the Company determines that deferred tax assets are realizable on a more-likely-than-not basis, and adjustment is needed, that adjustment will be recorded in the period that the determination is made and would generally decrease the valuation allowance and record a corresponding benefit to earnings.

Segment Information

Segment Information	6 Months Ended
	Jul. 01, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer (“CEO”). The Company’s CEO reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity as a provider of optical transport networking equipment, software and services. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. Revenue by geographic region is based on the shipping address of the customer. The following tables set forth revenue and long-lived assets by geographic region (in thousands): Revenue Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 United States $ 112,196 $ 166,710 $ 211,976 $ 341,225 Other Americas 2,971 11,267 9,006 14,526 Europe, Middle East and Africa 47,910 64,570 105,323 124,446 Asia Pacific 13,744 16,275 26,038 23,443 Total revenue $ 176,821 $ 258,822 $ 352,343 $ 503,640 Property, plant and equipment, net July 1, 2017 December 31, 2016 United States $ 134,920 $ 117,715 Other Americas 307 218 Europe, Middle East and Africa 3,795 3,822 Asia Pacific 3,402 3,045 Total property, plant and equipment, net $ 142,424 $ 124,800

Guarantees

Guarantees	6 Months Ended
	Jul. 01, 2017
Guarantees [Abstract]
Guarantees	Guarantees Product Warranties Activity related to product warranty was as follows (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Beginning balance $ 35,980 $ 39,999 $ 40,342 $ 38,844 Charges to operations 5,022 7,308 9,681 14,062 Utilization (3,901 ) (3,702 ) (7,289 ) (8,689 ) Change in estimate (1) (4,701 ) (2,616 ) (10,334 ) (3,228 ) Balance at the end of the period $ 32,400 $ 40,989 $ 32,400 $ 40,989 (1) The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair. As the Company's products mature over time, failure rates and repair costs generally decline leading to favorable changes in warranty reserves. In addition, during the first quarter of 2017, due to product quality improvements, the Company revised certain estimates used in calculating its product warranties that resulted in a one-time reduction to the warranty accrual of $2.2 million . Letters of Credit and Bank Guarantees The Company had $5.8 million of standby letters of credit and bank guarantees outstanding as of July 1, 2017 that consisted of $2.7 million related to customer performance guarantees, $1.9 million related to property leases, and $1.2 million related to value added tax and customs' licenses. The Company had $8.7 million of standby letters of credit and bank guarantees outstanding as of December 31, 2016 that consisted of $4.5 million related to property leases, $3.1 million related to customer performance guarantees and $1.1 million related to a value added tax license. As of July 1, 2017 and December 31, 2016, the Company had a line of credit for approximately $1.6 million and $1.1 million , respectively, to support the issuance of letters of credit, of which zero and $0.3 million had been issued and outstanding, respectively. The Company has pledged approximately $4.9 million and $4.5 million of assets of a subsidiary to secure this line of credit and other obligations as of July 1, 2017 and December 31, 2016, respectively.

Litigation and Contingencies

Litigation and Contingencies	6 Months Ended
	Jul. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Litigation and Contingencies	Litigation and Contingencies Legal Matters On November 23, 2016, Oyster Optics, LLC (“Oyster Optics”) filed a complaint against the Company in the United States District Court for the Eastern District of Texas. The complaint asserts U.S. Patent Nos. 6,469,816, 6,476,952, 6,594,055, 7,099,592, 7,620,327, 8,374,511 and 8,913,898 (collectively, the “Oyster Optics patents in suit”). The complaint seeks unspecified damages and a permanent injunction. The Company believes that it does not infringe any valid and enforceable claim of the Oyster Optics patents in suit, and intends to defend this action vigorously. The Company filed its answer to Oyster Optics on February 3, 2017. The Court has set a trial date for June 2018. The Company is currently unable to predict the outcome of this litigation and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. On March 24, 2017, Core Optical Technologies, LLC (“Core Optical”) filed a complaint against the Company in the United States District Court for the Central District of California. The complaint asserts U.S. Patent No. 6,782,211 (the “Core Optical patent in suit”). The complaint seeks unspecified damages and a permanent injunction. The Company believes that it does not infringe any valid and enforceable claim of the Core Optical patent in suit, and intends to defend this action vigorously. Because this action is in the early stages, the Company is unable to predict the outcome of this litigation at this time and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. In addition to the matters described above, the Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material effect on its consolidated financial position, results of operations or cash flows. Loss Contingencies The Company is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. In the preparation of its quarterly and annual financial statements, the Company considers the likelihood of loss or the incurrence of a liability, including whether it is probable, reasonably possible or remote that a liability has been incurred, as well as the Company’s ability to reasonably estimate the amount of loss, in determining loss contingencies. In accordance with U.S. GAAP, an estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. As of July 1, 2017, the Company has accrued the estimated liabilities associated with certain loss contingencies. Intellectual Property Indemnification The Company has agreed to indemnify certain customers for claims made against the Company’s products, where such claims allege infringement of third party intellectual property rights, including, but not limited to, patents, registered trademarks and/or copyrights. Under the aforementioned indemnification clauses, the Company may be obligated to defend the customer and pay for the damages awarded against the customer under an infringement claim as well as the customer’s attorneys’ fees and costs. The Company’s indemnification obligations generally do not expire after termination or expiration of the agreement containing the indemnification obligation. In certain cases, there are limits on and exceptions to the Company’s potential liability for indemnification. Although historically the Company has not made significant payments under these indemnification obligations, the Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. The maximum potential amount of any future payments that the Company could be required to make under these indemnification obligations could be significant.

Recent Accounting Pronounceme22

Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements, and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This guidance is effective for the Company in its first quarter of fiscal 2018, with early adoption permitted. The Company does not expect the new guidance to have any material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The guidance eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU 2017-04 will be effective for the Company's annual or any interim goodwill impairment tests in its first quarter of fiscal 2020. The Company is currently evaluating the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and ending-of-period total amounts shown on the statement of cash flows. The Company is required to adopt ASU 2016-18 on a retrospective basis for fiscal years, and for interim periods within those fiscal years, beginning with its first quarter of fiscal 2018. Early adoption is permitted, including adoption in an interim period. Subsequent to the adoption of ASU 2016-18, the change in restricted cash would be excluded from the change in cash flows from investing and financing activities and included in the change in total cash, restricted cash and cash equivalents as reported in the statement of cash flows. The Company is currently evaluating the impact the adoption of ASU 2016-18 will have on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, “Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. This guidance is effective for the Company in its first quarter of fiscal 2018 and will be applied on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for the Company in its first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In May 2016, the FASB issued Accounting Standards Update 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update)” (“ASU 2016-11”), which rescinds various standards codified as part of Topic 605, Revenue Recognition in relation to the future adoption of Topic 606. These rescissions include changes to topics pertaining to revenue and expense recognition for freight services in process, accounting for shipping and handling fees and costs, and accounting for consideration given by a vendor to a customer. This guidance is effective for the Company in its first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-11 will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This guidance is effective for the Company in its first quarter of fiscal 2019 and early adoption is permitted. ASU 2016-02 is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements and expects to have increases in the assets and liabilities of its consolidated balance sheets. In July 2015, the FASB issued Accounting Standards Update 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”), to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first-out or the retail inventory method. Under ASU 2015-11, inventory should be at the lower of cost and net realizable value. The Company adopted ASU 2015-11 during the first quarter of fiscal 2017. The Company's adoption of 2015-11 had no impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts from Customers (Topic 606)” (“ASU 2014-09”), which creates a single, joint revenue standard that is consistent across all industries and markets for companies that prepare their financial statements in accordance with U.S. GAAP. Under ASU 2014-09, an entity is required to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. In April 2016, the FASB issued Accounting Standards Update 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying performance obligations and licensing. In May 2016, the FASB issued Accounting Standards Update 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends the guidance on collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued Accounting Standards Update 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” to increase stakeholders' awareness of the proposals and to expedite improvements to ASU 2014-09. These standards will be effective for the Company's first quarter of 2018.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 01, 2017
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands): As of July 1, 2017 As of December 31, 2016 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 34,179 $ — $ 34,179 $ 41,773 $ — $ 41,773 Certificates of deposit — 240 240 — 1,881 1,881 Commercial paper — 20,931 20,931 — 39,310 39,310 Corporate bonds — 137,135 137,135 — 88,324 88,324 U.S. agency notes — 12,780 12,780 — 11,759 11,759 U.S. treasuries 40,941 — 40,941 52,092 — 52,092 Foreign currency exchange forward contracts 11 11 — 187 187 Total assets $ 75,120 $ 171,097 $ 246,217 $ 93,865 $ 141,461 $ 235,326 Liabilities Foreign currency exchange forward contracts $ — $ — $ — $ — $ (71 ) $ (71 )
Investments at Fair Value	Cash, cash equivalents and investments were as follows (in thousands): July 1, 2017 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 80,648 $ — $ — $ 80,648 Money market funds 34,179 — — 34,179 Commercial paper 4,993 — — 4,993 Total cash and cash equivalents $ 119,820 $ — $ — $ 119,820 Commercial paper 15,945 — (7 ) 15,938 Corporate bonds 84,814 — (100 ) 84,714 U.S. agency notes 7,288 — (7 ) 7,281 U.S. treasuries 30,050 — (54 ) 29,996 Total short-term investments $ 138,097 $ — $ (168 ) $ 137,929 Certificates of deposit 240 — — 240 Corporate bonds 52,483 7 (69 ) 52,421 U.S. agency notes 5,510 — (11 ) 5,499 U.S. treasuries 10,973 — (28 ) 10,945 Total long-term investments $ 69,206 $ 7 $ (108 ) $ 69,105 Total cash, cash equivalents and investments $ 327,123 $ 7 $ (276 ) $ 326,854 December 31, 2016 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 109,978 $ — $ — $ 109,978 Money market funds 41,773 — — 41,773 Commercial paper 8,892 — (1 ) 8,891 U.S. agency notes 1,999 — — 1,999 Total cash and cash equivalents $ 162,642 $ — $ (1 ) $ 162,641 Certificates of deposit 1,881 — — 1,881 Commercial paper 30,425 — (6 ) 30,419 Corporate bonds 63,097 1 (59 ) 63,039 U.S. agency notes 7,285 — (8 ) 7,277 U.S. treasuries 39,093 9 (21 ) 39,081 Total short-term investments $ 141,781 $ 10 $ (94 ) $ 141,697 Corporate bonds 25,374 — (89 ) 25,285 U.S. agency notes 2,499 — (16 ) 2,483 U.S. treasuries 13,032 2 (23 ) 13,011 Total long-term investments $ 40,905 $ 2 $ (128 ) $ 40,779 Total cash, cash equivalents and investments $ 345,328 $ 12 $ (223 ) $ 345,117

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jul. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Instruments not Designated as Hedging Instruments	The fair value of derivative instruments not designated as hedging instruments in the Company’s condensed consolidated balance sheets was as follows (in thousands): As of July 1, 2017 As of December 31, 2016 Gross Notional (1) Prepaid Expense and Other Assets Gross Notional (1) Prepaid Expense and Other Assets Other Accrued Liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ 16,559 $ 11 $ 23,887 $ 137 $ (71 ) Related to British pound denominated receivables $ — — $ 6,353 48 — Related to euro denominated restricted cash $ 240 — $ 242 2 — $ 11 $ 187 $ (71 ) (1) Represents the face amounts of forward contracts that were outstanding as of the period noted.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 01, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table presents details of the Company’s goodwill during the six months ended July 1, 2017 (in thousands): Balance as of December 31, 2016 $ 176,760 Foreign currency translation adjustments 13,229 Accumulated impairment loss — Balance as of July 1, 2017 $ 189,989
Schedule of Indefinite-Lived Intangible Assets	December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 220 $ (220 ) $ — 0.0 Customer relationships 46,125 (7,793 ) 38,332 6.6 Developed technology 94,320 (24,715 ) 69,605 3.7 Other intangible assets 819 (567 ) 252 4.6 Total intangible assets with finite lives $ 141,484 $ (33,295 ) $ 108,189 4.7 In-process technology 286 — 286 Total intangible assets $ 141,770 $ (33,295 ) $ 108,475
Schedule of Finite-Lived Intangible Assets	The following tables present details of the Company’s intangible assets as of July 1, 2017 and December 31, 2016 (in thousands, except for weighted-average): July 1, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships $ 49,581 $ (11,476 ) $ 38,105 6.1 Developed technology 101,693 (36,865 ) 64,828 3.6 Total intangible assets $ 151,274 $ (48,341 ) $ 102,933 4.6 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 220 $ (220 ) $ — 0.0 Customer relationships 46,125 (7,793 ) 38,332 6.6 Developed technology 94,320 (24,715 ) 69,605 3.7 Other intangible assets 819 (567 ) 252 4.6 Total intangible assets with finite lives $ 141,484 $ (33,295 ) $ 108,189 4.7 In-process technology 286 — 286 Total intangible assets $ 141,770 $ (33,295 ) $ 108,475
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of July 1, 2017 (in thousands): Fiscal Years Total Remainder of 2017 2018 2019 2020 2021 2022 and Thereafter Total future amortization expense $ 102,933 $ 13,399 $ 26,797 $ 26,192 $ 19,114 $ 6,986 $ 10,445

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	6 Months Ended
	Jul. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Details of Selected Balance Sheet Items	The following table provides details of selected balance sheet items (in thousands): July 1, 2017 December 31, 2016 Inventory: Raw materials $ 36,709 $ 33,158 Work in process 91,620 74,533 Finished goods 117,647 125,264 Total inventory $ 245,976 $ 232,955 Property, plant and equipment, net: Computer hardware $ 13,548 $ 12,775 Computer software (1) 31,928 26,779 Laboratory and manufacturing equipment 236,275 222,311 Land and building 12,347 — Furniture and fixtures 2,228 2,075 Leasehold improvements 38,235 42,267 Construction in progress 37,794 33,633 Subtotal $ 372,355 $ 339,840 Less accumulated depreciation and amortization (229,931 ) (215,040 ) Total property, plant and equipment, net $ 142,424 $ 124,800 Accrued expenses: Loss contingency related to non-cancelable purchase commitments $ 7,290 $ 5,555 Professional and other consulting fees 4,189 4,955 Taxes payable 2,925 2,384 Royalties 5,501 5,375 Other accrued expenses 12,113 13,311 Total accrued expenses $ 32,018 $ 31,580 (1) Included in computer software at July 1, 2017 and December 31, 2016 were $11.4 million and $9.1 million , respectively, related to enterprise resource planning ( “ ERP ” ) systems that the Company implemented. The unamortized ERP costs at July 1, 2017 and December 31, 2016 were $5.5 million and $4.0 million , respectively

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 01, 2017
Equity [Abstract]
Summary of Changes in Accumulated Other Comprehensive Income (Loss)	The following table sets forth the changes in accumulated other comprehensive loss by component for the six months ended July 1, 2017 (in thousands): Unrealized Gain (Loss) on Other Available-for-Sale Securities Foreign Currency Translation Accumulated Tax Effect Total Balance at December 31, 2016 $ (209 ) $ (27,236 ) $ (879 ) $ (28,324 ) Net current-period other comprehensive income (loss) (60 ) 24,643 — 24,583 Balance at July 1, 2017 $ (269 ) $ (2,593 ) $ (879 ) $ (3,741 )

Basic and Diluted Net Income 28

Basic and Diluted Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jul. 01, 2017
Earnings Per Share [Abstract]
Computation of Net Income (Loss) Per Common Share Basic and Diluted	The following table sets forth the computation of net income (loss) per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Numerator: Net income (loss) attributable to Infinera Corporation $ (42,839 ) $ 11,483 $ (83,290 ) $ 23,498 Denominator: Basic weighted average common shares outstanding 147,538 142,396 146,662 141,600 Effect of dilutive securities: Employee equity plans — 2,775 — 3,299 Assumed conversion of convertible senior notes from conversion spread — 720 — 1,486 Diluted weighted average common shares outstanding 147,538 145,891 146,662 146,385 Net income (loss) per common share attributable to Infinera Corporation Basic $ (0.29 ) $ 0.08 (0.57 ) $ 0.17 Diluted $ (0.29 ) $ 0.08 (0.57 ) $ 0.16
Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share	The following sets forth the potentially dilutive shares excluded from the computation of the diluted net income (loss) per share because their effect was anti-dilutive (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Stock options 1,407 13 1,521 11 RSUs 6,500 2,663 7,137 1,721 PSUs 1,464 846 1,439 594 ESPP shares 892 — 923 291 Total 10,263 3,522 11,020 2,617

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jul. 01, 2017
Debt Disclosure [Abstract]
Components of Convertible Senior Notes	The net carrying amounts of the debt obligation were as follows (in thousands): July 1, 2017 December 31, 2016 Principal $ 150,000 $ 150,000 Unamortized discount (1) (10,023 ) (15,114 ) Unamortized issuance cost (1) (862 ) (1,300 ) Net carrying amount $ 139,115 $ 133,586 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately 11 months .
Interest expense recognized related to Notes	The following table sets forth total interest expense recognized related to the Notes (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Contractual interest expense $ 656 $ 656 $ 1,313 $ 1,313 Amortization of debt issuance costs 222 201 437 396 Amortization of debt discount 2,577 2,331 5,091 4,605 Total interest expense $ 3,455 $ 3,188 $ 6,841 $ 6,314

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Company's Equity Award Activity - Options	The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Stock Options Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 1,655 $ 8.30 $ 965 Stock options granted — $ — Stock options exercised (196 ) $ 7.78 $ 373 Stock options canceled (52 ) $ 12.87 Outstanding at July 1, 2017 1,407 $ 8.20 $ 3,620 Exercisable at July 1, 2017 1,403 $ 8.20 $ 3,614
Summary of Company's Equity Award Activity - RSUs	Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 5,293 $ 14.10 $ 44,939 RSUs granted 3,191 $ 10.51 RSUs released (1,860 ) $ 13.66 $ 17,848 RSUs canceled (124 ) $ 14.96 Outstanding at July 1, 2017 6,500 $ 12.45 $ 69,359
Summary of Company's Equity Award Activity - PSUs	Number of Performance Stock Units Weighted- Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 31, 2016 904 $ 14.13 $ 7,672 PSUs granted 916 $ 16.36 PSUs released — $ — $ — PSUs canceled (356 ) $ 11.55 Outstanding at July 1, 2017 1,464 $ 16.16 $ 15,618 Expected to vest at July 1, 2017 997 $ 10,642
Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized	The following table presents total stock-based compensation cost for instruments granted but not yet amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of July 1, 2017 . These costs are expected to be amortized on a straight-line basis over the following weighted-average periods (in thousands, except for weighted-average period): Unrecognized Compensation Expense, Net Weighted- Average Period (in years) Stock options $ 12 0.5 RSUs $ 68,948 2.8 PSUs $ 15,643 1.8
Estimated Fair Value of ESPP Shares	The fair value of the shares was estimated at the date of grant using the following assumptions (expense amounts in thousands): Three Months Ended Six Months Ended Employee Stock Purchase Plan July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Volatility 51% 56% 51% 56% Risk-free interest rate 0.81% 0.52% 0.81% 0.52% Expected life 0.5 years 0.5 years 0.5 years 0.5 years Estimated fair value $3.46 $4.53 $3.46 $4.53 Total stock-based compensation expense $1,392 $1,247 $3,073 $2,489
Schedule of Share-based Payment Award, Valuation Assumptions	The ranges of estimated values of the PSUs granted that are compared to the index, as well as the assumptions used in calculating these values were based on estimates as follows: 2017 2016 2015 Index SPGIIPTR SPGIIPTR SPGIIPTR Index volatility 33% - 34% 18% 18% - 19% Infinera volatility 55% - 56% 55% 48% Risk-free interest rate 1.41% - 1.63% 0.95% - 1.07% 0.97% - 1.10% Correlation with index/index component 0.10 - 0.49 0.58 - 0.59 0.52 Estimated fair value $15.23 - $17.35 $10.31 - $16.62 $18.08 - $19.29
Schedule Of Nonvested Performance Based Units Activity By Grant Year	The following table summarizes by grant year, the Company’s PSU activity for the six months ended July 1, 2017 (in thousands): Grant Year Total Number of Performance Stock Units 2014 2015 2016 2017 Outstanding at December 31, 2016 904 123 148 633 — PSUs granted 916 — — — 916 PSUs released — — — — — PSUs canceled (356 ) (102 ) (60 ) (194 ) — Outstanding at July 1, 2017 1,464 21 88 439 916
Summary of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations	The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): July 1, 2017 December 31, 2016 Stock-based compensation effects in inventory $ 5,383 $ 4,911 Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Stock-based compensation effects included in net income (loss) before income taxes Cost of revenue $ 834 $ 746 $ 1,558 $ 1,419 Research and development 4,184 3,904 7,964 6,225 Sales and marketing 3,273 2,945 5,999 5,180 General and administration 2,852 2,486 5,392 4,385 $ 11,143 $ 10,081 $ 20,913 $ 17,209 Cost of revenue – amortization from balance sheet (1) 1,237 912 2,344 1,771 Total stock-based compensation expense $ 12,380 $ 10,993 $ 23,257 $ 18,980 (1) Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods and recognized in the current period.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 01, 2017
Segment Reporting [Abstract]
Revenue and Long-Lived Assets by Geographic Region	Revenue by geographic region is based on the shipping address of the customer. The following tables set forth revenue and long-lived assets by geographic region (in thousands): Revenue Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 United States $ 112,196 $ 166,710 $ 211,976 $ 341,225 Other Americas 2,971 11,267 9,006 14,526 Europe, Middle East and Africa 47,910 64,570 105,323 124,446 Asia Pacific 13,744 16,275 26,038 23,443 Total revenue $ 176,821 $ 258,822 $ 352,343 $ 503,640
Property, Plant and Equipment, Net	Property, plant and equipment, net July 1, 2017 December 31, 2016 United States $ 134,920 $ 117,715 Other Americas 307 218 Europe, Middle East and Africa 3,795 3,822 Asia Pacific 3,402 3,045 Total property, plant and equipment, net $ 142,424 $ 124,800

Guarantees (Tables)

Guarantees (Tables)	6 Months Ended
	Jul. 01, 2017
Guarantees [Abstract]
Activity Related to Product Warranty	Activity related to product warranty was as follows (in thousands): Three Months Ended Six Months Ended July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016 Beginning balance $ 35,980 $ 39,999 $ 40,342 $ 38,844 Charges to operations 5,022 7,308 9,681 14,062 Utilization (3,901 ) (3,702 ) (7,289 ) (8,689 ) Change in estimate (1) (4,701 ) (2,616 ) (10,334 ) (3,228 ) Balance at the end of the period $ 32,400 $ 40,989 $ 32,400 $ 40,989 (1) The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair. As the Company's products mature over time, failure rates and repair costs generally decline leading to favorable changes in warranty reserves. In addition, during the first quarter of 2017, due to product quality improvements, the Company revised certain estimates used in calculating its product warranties that resulted in a one-time reduction to the warranty accrual of $2.2 million .

Basis of Presentation and Sig33

Basis of Presentation and Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016	Dec. 31, 2016
Sales revenue, net | Customer concentration risk | Customer One
Concentration Risk [Line Items]
Concentration risk	17.00%	15.00%	18.00%	16.00%
Sales revenue, net | Customer concentration risk | Customer Two
Concentration Risk [Line Items]
Concentration risk	10.00%	11.00%		13.00%
Sales revenue, net | Customer concentration risk | Customer Three
Concentration Risk [Line Items]
Concentration risk	10.00%			12.00%
1.75% Convertible Senior Notes Due June 1, 2018
Concentration Risk [Line Items]
Principal amount	$ 150,000,000		$ 150,000,000		$ 150,000,000
Debt instrument interest percentage	1.75%		1.75%

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Assets
Total assets	$ 246,217	$ 235,326
Foreign currency exchange forward contracts
Assets
Total assets	11	187
Liabilities
Foreign currency exchange forward contracts	0	(71)
Money market funds
Assets
Total assets	34,179	41,773
Certificates of deposit
Assets
Total assets	240	1,881
Commercial paper
Assets
Total assets	20,931	39,310
Corporate bonds
Assets
Total assets	137,135	88,324
U.S. agency notes
Assets
Total assets	12,780	11,759
U.S. treasuries
Assets
Total assets	40,941	52,092
Level 1
Assets
Total assets	75,120	93,865
Level 1 | Foreign currency exchange forward contracts
Assets
Total assets		0
Liabilities
Foreign currency exchange forward contracts	0	0
Level 1 | Money market funds
Assets
Total assets	34,179	41,773
Level 1 | Certificates of deposit
Assets
Total assets	0	0
Level 1 | Commercial paper
Assets
Total assets	0	0
Level 1 | Corporate bonds
Assets
Total assets	0	0
Level 1 | U.S. agency notes
Assets
Total assets	0	0
Level 1 | U.S. treasuries
Assets
Total assets	40,941	52,092
Level 2
Assets
Total assets	171,097	141,461
Level 2 | Foreign currency exchange forward contracts
Assets
Total assets	11	187
Liabilities
Foreign currency exchange forward contracts	0	(71)
Level 2 | Money market funds
Assets
Total assets	0	0
Level 2 | Certificates of deposit
Assets
Total assets	240	1,881
Level 2 | Commercial paper
Assets
Total assets	20,931	39,310
Level 2 | Corporate bonds
Assets
Total assets	137,135	88,324
Level 2 | U.S. agency notes
Assets
Total assets	12,780	11,759
Level 2 | U.S. treasuries
Assets
Total assets	$ 0	$ 0

Fair Value Measurements - Inves

Fair Value Measurements - Investments at Fair Value (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash	$ 80,648	$ 109,978
Adjusted Amortized Cost	327,123	345,328
Gross Unrealized Gains	7	12
Gross Unrealized Losses	(276)	(223)
Fair Value	326,854	345,117
Cash and Cash Equivalents
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	119,820	162,642
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(1)
Fair Value	119,820	162,641
Cash and Cash Equivalents | Money market funds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	34,179	41,773
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	34,179	41,773
Cash and Cash Equivalents | Commercial paper
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	4,993	8,892
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(1)
Fair Value	4,993	8,891
Cash and Cash Equivalents | U.S. agency notes
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost		1,999
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		1,999
Short-term Investments
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	138,097	141,781
Gross Unrealized Gains	0	10
Gross Unrealized Losses	(168)	(94)
Fair Value	137,929	141,697
Short-term Investments | Commercial paper
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	15,945	30,425
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(7)	(6)
Fair Value	15,938	30,419
Short-term Investments | Certificates of deposit
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost		1,881
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		1,881
Short-term Investments | Corporate bonds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	84,814	63,097
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(100)	(59)
Fair Value	84,714	63,039
Short-term Investments | U.S. agency notes
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	7,288	7,285
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(7)	(8)
Fair Value	7,281	7,277
Short-term Investments | U.S. treasuries
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	30,050	39,093
Gross Unrealized Gains	0	9
Gross Unrealized Losses	(54)	(21)
Fair Value	29,996	39,081
Other Long-term Investments
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	69,206	40,905
Gross Unrealized Gains	7	2
Gross Unrealized Losses	(108)	(128)
Fair Value	69,105	40,779
Other Long-term Investments | Certificates of deposit
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	240
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	240
Other Long-term Investments | Corporate bonds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	52,483	25,374
Gross Unrealized Gains	7	0
Gross Unrealized Losses	(69)	(89)
Fair Value	52,421	25,285
Other Long-term Investments | U.S. agency notes
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	5,510	2,499
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(11)	(16)
Fair Value	5,499	2,483
Other Long-term Investments | U.S. treasuries
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Adjusted Amortized Cost	10,973	13,032
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(28)	(23)
Fair Value	$ 10,945	$ 13,011

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Dec. 31, 2016	Jun. 25, 2016	Dec. 26, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	23 months
Cash, cash equivalents and short-term investments	$ 257,700
Cash and cash equivalents held by foreign subsidiaries	119,820	$ 162,641	$ 138,380	$ 149,101
Foreign Subsidiary
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents held by foreign subsidiaries	$ 49,600

Cost-method Investment (Details

Cost-method Investment (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Gain (Loss) on Investments [Line Items]
Cost-method investment, total	$ 7,000,000	$ 7,000,000
Cost-method Investments
Gain (Loss) on Investments [Line Items]
Purchase of cost-method investment		7,000,000
Cost-method investment, preferred stock warrant issued		10,000,000
Cost-method investment, total	$ 7,000,000	7,000,000
Less than percent of voting securities (less than)	20.00%
Impairment charge on cost-method investments	$ 0	$ 0

Derivative Instruments - Narrat

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Before-tax effect of foreign currency exchange forward contracts not designated as hedging instruments, gain (loss)	$ (1.5)	$ (0.1)	$ (1.8)	$ (0.6)

Derivative Instruments - Fair V

Derivative Instruments - Fair Value of Derivative Instruments Not Designated as Hedging Activities (Details) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
Derivative [Line Items]
Prepaid expenses and other current assets	$ 42,885,000	$ 34,270,000
Not designated as hedging instrument
Derivative [Line Items]
Prepaid expenses and other current assets	11,000	187,000
Other Accrued Liabilities		(71,000)
Not designated as hedging instrument | Related to euro denominated receivables
Derivative [Line Items]
Forward contract notional amount	16,559,000	23,887,000
Prepaid expenses and other current assets	11,000	137,000
Other Accrued Liabilities		(71,000)
Not designated as hedging instrument | Related to British pound denominated receivables
Derivative [Line Items]
Forward contract notional amount	0	6,353,000
Prepaid expenses and other current assets	0	48,000
Other Accrued Liabilities		0
Not designated as hedging instrument | Related to euro denominated restricted cash
Derivative [Line Items]
Forward contract notional amount	240,000	242,000
Prepaid expenses and other current assets	$ 0	2,000
Other Accrued Liabilities		$ 0

Goodwill and Intangible Asset40

Goodwill and Intangible Assets - Goodwill Roll Forward (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2016	$ 176,760
Foreign currency translation adjustments	13,229
Accumulated impairment loss	0
Balance as of July 1, 2017	$ 189,989

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Intangible assets with finite lives:
Gross Carrying Amount		$ 141,484
Accumulated Amortization	$ (48,341)	(33,295)
Net Carrying Amount	$ 102,933	$ 108,189
Weighted average remaining useful life (in years)	4 years 6 months 25 days	4 years 8 months 12 days
Gross Carrying Amount	$ 151,274	$ 141,770
Net Carrying Amount	102,933	108,475
In-process technology
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets		286
Customer relationships
Intangible assets with finite lives:
Gross Carrying Amount	49,581	46,125
Accumulated Amortization	(11,476)	(7,793)
Net Carrying Amount	$ 38,105	$ 38,332
Weighted average remaining useful life (in years)	6 years 1 month 20 days	6 years 7 months 6 days
Developed technology
Intangible assets with finite lives:
Gross Carrying Amount	$ 101,693	$ 94,320
Accumulated Amortization	(36,865)	(24,715)
Net Carrying Amount	$ 64,828	$ 69,605
Weighted average remaining useful life (in years)	3 years 7 months 20 days	3 years 8 months 12 days
Trade names
Intangible assets with finite lives:
Gross Carrying Amount		$ 220
Accumulated Amortization		(220)
Net Carrying Amount		$ 0
Weighted average remaining useful life (in years)		0 days
Other intangible assets
Intangible assets with finite lives:
Gross Carrying Amount		$ 819
Accumulated Amortization		(567)
Net Carrying Amount		$ 252
Weighted average remaining useful life (in years)		4 years 7 months 6 days

Goodwill and Intangible Asset42

Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Net Carrying Amount	$ 102,933	$ 108,189
Remainder of 2017	13,399
2,018	26,797
2,019	26,192
2,020	19,114
2,021	6,986
2022 and Thereafter	$ 10,445

Goodwill and Intangible Asset43

Goodwill and Intangible Assets - Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2017	Apr. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Intangible assets with finite lives:
Amortization expense	$ 6,600		$ 6,600	$ 12,900	$ 13,100
Impairment charge				252	$ 0
Other intangible assets
Intangible assets with finite lives:
Impairment charge				$ 300
Developed technology
Intangible assets with finite lives:
Finite-lived intangible assets, period increase (decrease)		$ 300
Finite-lived intangible asset, useful life		5 years

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Inventory:
Raw materials	$ 36,709	$ 33,158
Work in process	91,620	74,533
Finished goods	117,647	125,264
Total inventory	245,976	232,955
Property, plant and equipment, net:
Property, plant and equipment, gross	372,355	339,840
Less accumulated depreciation and amortization	(229,931)	(215,040)
Total property, plant and equipment, net	142,424	124,800
Accrued expenses:
Loss contingency related to non-cancelable purchase commitments	7,290	5,555
Professional and other consulting fees	4,189	4,955
Taxes payable	2,925	2,384
Royalties	5,501	5,375
Other accrued expenses	12,113	13,311
Total accrued expenses	32,018	31,580
Computer hardware
Property, plant and equipment, net:
Property, plant and equipment, gross	13,548	12,775
Computer software
Property, plant and equipment, net:
Property, plant and equipment, gross	31,928	26,779
Laboratory and manufacturing equipment
Property, plant and equipment, net:
Property, plant and equipment, gross	236,275	222,311
Land and building
Property, plant and equipment, net:
Property, plant and equipment, gross	12,347	0
Furniture and fixtures
Property, plant and equipment, net:
Property, plant and equipment, gross	2,228	2,075
Leasehold improvements
Property, plant and equipment, net:
Property, plant and equipment, gross	38,235	42,267
Construction in progress
Property, plant and equipment, net:
Property, plant and equipment, gross	37,794	33,633
Enterprise Resource Planning Systems
Property, plant and equipment, net:
Property, plant and equipment, gross	11,400	9,100
Total property, plant and equipment, net	$ 5,500	$ 4,000

Accumulated Other Comprehensi45

Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (879)
Beginning balance	(28,324)
Net current-period other comprehensive income (loss)	0
Net current-period other comprehensive income (loss)	24,583
Ending balance	(879)
Ending balance	(3,741)
Unrealized Gain (Loss) on Other Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(209)
Net current-period other comprehensive income (loss)	(60)
Ending balance	(269)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(27,236)
Net current-period other comprehensive income (loss)	24,643
Ending balance	$ (2,593)

Basic and Diluted Net Income 46

Basic and Diluted Net Income (Loss) Per Common Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Numerator:
Net income (loss) attributable to Infinera Corporation	$ (42,839)	$ 11,483	$ (83,290)	$ 23,498
Denominator:
Basic weighted average common shares outstanding (in shares)	147,538	142,396	146,662	141,600
Effect of dilutive securities:
Employee equity plans (in shares)	0	2,775	0	3,299
Assumed conversion of convertible senior notes from conversion spread (in shares)	0	720	0	1,486
Diluted weighted average common shares outstanding (in shares)	147,538	145,891	146,662	146,385
Net income (loss) per common share attributable to Infinera Corporation
Basic (in usd per share)	$ (0.29)	$ 0.08	$ (0.57)	$ 0.17
Diluted (in usd per share)	$ (0.29)	$ 0.08	$ (0.57)	$ 0.16

Basic and Diluted Net Income 47

Basic and Diluted Net Income (Loss) Per Common Share - Antidilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation (in shares)	10,263	3,522	11,020	2,617
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation (in shares)	1,407	13	1,521	11
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation (in shares)	6,500	2,663	7,137	1,721
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation (in shares)	1,464	846	1,439	594
ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation (in shares)	892	0	923	291

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)	May 30, 2013USD ($)$ / shares	May 30, 2013USD ($)$ / shares	Jul. 01, 2017USD ($)d	Jul. 01, 2017USD ($)d	Jun. 30, 2017$ / shares	Dec. 31, 2016USD ($)	Jun. 25, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change				100.00%
Debt issuance costs, gross	$ 5,500,000	$ 5,500,000
Total estimated fair value of the notes			$ 160,900,000	$ 160,900,000
Closing price of common stock (in usd per share) | $ / shares					$ 10.67
Long-term debt | Accounting Standards Update 2015-03
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt issuance cost increase (decrease)						$ 2,100,000
Other noncurrent assets | Accounting Standards Update 2015-03
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt issuance cost increase (decrease)						(2,100,000)
1.75% Convertible Senior Notes Due June 1, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from issuance of debt, net		$ 144,500,000
Outstanding principal amount			139,100,000	139,100,000
Initial conversion rate per $1,000 principal amount of Notes	0.0794834
Initial conversion price (in usd per share) | $ / shares	$ 12.58	$ 12.58
Net equity component carrying amount			43,300,000	43,300,000		$ 43,300,000
Deferred tax liability			$ 17,000,000	$ 17,000,000
Debt instrument interest percentage			1.75%	1.75%
Additional effective rate of interest to be used on amortized carrying value			10.23%	10.23%			10.23%
Convertible senior notes, conversion circumstance one
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold trading days for debt instrument conversion | d				20
Convertible threshold consecutive trading days | d			30	30
Convertible threshold minimum percentage				130.00%
Convertible senior notes, conversion circumstance two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Convertible threshold consecutive trading days | d				5
Convertible threshold business days | d				5
Debt instrument, convertible, if-converted value in excess of principal				$ 1,000
Convertible, threshold maximum percentage				98.00%

Convertible Senior Notes - Comp

Convertible Senior Notes - Components of Convertible Senior Notes (Details)	3 Months Ended	6 Months Ended
	Jul. 01, 2017USD ($)d	Jul. 01, 2017USD ($)d	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Remaining life		11 months
1.75% Convertible Senior Notes Due June 1, 2018
Debt Instrument [Line Items]
Principal amount	$ 150,000,000	$ 150,000,000	$ 150,000,000
Unamortized discount	(10,023,000)	(10,023,000)	(15,114,000)
Unamortized issuance cost	(862,000)	(862,000)	(1,300,000)
Net carrying amount	$ 139,115,000	$ 139,115,000	$ 133,586,000
Convertible senior notes, conversion circumstance one
Debt Instrument [Line Items]
Convertible threshold consecutive trading days | d	30	30

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Jul. 01, 2017USD ($)d	Jun. 25, 2016USD ($)	Jul. 01, 2017USD ($)d	Sep. 26, 2015USD ($)
Contractual interest expense	$ 656	$ 656	$ 1,313	$ 1,313
Amortization of debt issuance costs	222	201	437	396
Amortization of debt discount	2,577	2,331	5,091	4,605
Total interest expense	$ 3,455	$ 3,188	$ 6,841	$ 6,314
Convertible senior notes, conversion circumstance one
Convertible threshold consecutive trading days | d	30		30

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jul. 01, 2017USD ($)shares	Apr. 01, 2017	Jun. 25, 2016USD ($)	Jul. 01, 2017USD ($)shares	Jun. 25, 2016USD ($)	Jun. 30, 2017$ / shares	May 31, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price of common stock (in usd per share) | $ / shares						$ 10.67
Stock options, granted (in shares)	0			0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	300,000			3,191,000
Amortization of stock-based compensation | $	$ 8.4		$ 7.7	$ 16	$ 13.8
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)				916,000
Performance stock unit grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amortization of stock-based compensation | $	$ 2.8		$ 2.3	$ 4.6	$ 3.2
2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares authorized (in shares)							6,400,000
Reserved Common stock for issuance of options (in shares)	13,900,000			13,900,000
2016 Plan maximum term				10 years
2016 Equity Incentive Plan | PSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges of number of shares issued on vesting of PSUs		0
2016 Equity Incentive Plan | PSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges of number of shares issued on vesting of PSUs		2
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index		1 year
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index		2 years
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index		3 years
Two Thousand And Seven Equity Incentive Plan | PSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges of number of shares issued on vesting of PSUs				0
Two Thousand And Seven Equity Incentive Plan | PSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ranges of number of shares issued on vesting of PSUs				2
Two Thousand And Seven Equity Incentive Plan | PSUs | Existing employees | Vesting 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index				1 year
Two Thousand And Seven Equity Incentive Plan | PSUs | Existing employees | Vesting 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index				2 years
Two Thousand And Seven Equity Incentive Plan | PSUs | Existing employees | Vesting 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Duration of grants based on shareholder return of common stock price versus designated index				3 years

Stockholders' Equity - Equity A

Stockholders' Equity - Equity Award Activity - Options (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 01, 2017USD ($)$ / sharesshares	Jul. 01, 2017USD ($)$ / sharesshares
Number of Stock Options
Stock options, granted (in shares)	0	0
Stock options
Number of Stock Options
Stock options, beginning balance (in shares)		1,655,000
Stock options, granted (in shares)		0
Stock options, exercised (in shares)		(196,000)
Stock options, canceled (in shares)		(52,000)
Stock options, ending balance (in shares)	1,407,000	1,407,000
Stock options, exercisable (in shares)	1,403,000	1,403,000
Weighted-Average Exercise Price Per Share
Weighted-average exercise price per share, beginning balance (in usd per share) | $ / shares		$ 8.30
Weighted-average exercise per share, options granted (in usd per share) | $ / shares		0
Weighted-average exercise price per share, options exercised (in usd per share) | $ / shares		7.78
Weighted-average exercise price per share, options canceled (in usd per share) | $ / shares		12.87
Weighted-average exercise price per share, ending balance (in usd per share) | $ / shares	$ 8.20	8.20
Average exercise price per share, exercisable (in usd per share) | $ / shares	$ 8.20	$ 8.20
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance | $		$ 965
Aggregate intrinsic value, options exercised | $		373
Aggregate intrinsic value, ending balance | $	$ 3,620	3,620
Aggregate intrinsic value, exercisable | $	$ 3,614	$ 3,614

Stockholders' Equity - Equity53

Stockholders' Equity - Equity Award Activity - RSUs (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 01, 2017	Jul. 01, 2017
Number of Restricted Stock Units
Number of units, beginning balance (in shares)		5,293
Number of units granted (in shares)	300	3,191
Number of units released (in shares)		(1,860)
Number units canceled (in shares)		(124)
Number of units, ending balance (in shares)	6,500	6,500
Weighted- Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, beginning balance (in usd per share)		$ 14.10
Weighted-average grant date fair value per share, granted (in usd per share)		10.51
Weighted-average grant date fair value per share, released (in usd per share)		13.66
Weighted-average grant date fair value per share, canceled (in usd per share)		14.96
Weighted-average grant date fair value per share, ending balance (in usd per share)	$ 12.45	$ 12.45
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance		$ 44,939
Aggregate intrinsic value, RSUs released		17,848
Aggregate intrinsic value, ending balance	$ 69,359	$ 69,359

Stockholders' Equity - Equity54

Stockholders' Equity - Equity Award Activity - PSUs (Details) - PSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jun. 27, 2015
Number of Performance Stock Units
Number of units, beginning balance (in shares)	904
Number of units granted (in shares)	916
Number of units released (in shares)	0
Number units canceled (in shares)	(356)
Number of units, ending balance (in shares)	1,464
Number of restricted stock units, expected to vest (in shares)	997
Weighted- Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, beginning balance (in usd per share)	$ 14.13
Weighted-average grant date fair value per share, granted (in usd per share)	16.36	$ 10.31	$ 18.08
Weighted-average grant date fair value per share, released (in usd per share)	0
Weighted-average grant date fair value per share, canceled (in usd per share)	11.55
Weighted-average grant date fair value per share, ending balance (in usd per share)	$ 16.16
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance	$ 7,672
Aggregate Intrinsic Value, PSUs released	0
Aggregate intrinsic value, ending balance	15,618
Aggregate intrinsic value, expected to vest	$ 10,642

Stockholders' Equity - Total St

Stockholders' Equity - Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, unrecognized compensation expense, net	$ 12
Stock options, weighted-average period	6 months
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, net	$ 68,948
Weighted-average period	2 years 9 months 18 days
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, net	$ 15,643
Weighted-average period	1 year 9 months 18 days

Stockholders' Equity - Estimate

Stockholders' Equity - Estimated Fair Value of ESPP, Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 12,380	$ 10,993	$ 23,257	$ 18,980
Employee Stock Purchase Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	51.00%	56.00%	51.00%	56.00%
Risk-free interest rate	0.81%	0.52%	0.81%	0.52%
Expected life	6 months	6 months	6 months	6 months
Estimated fair value (in usd per share)	$ 3.46	$ 4.53	$ 3.46	$ 4.53
Stock-based compensation expense	$ 1,392	$ 1,247	$ 3,073	$ 2,489

Stockholders' Equity - Valuatio

Stockholders' Equity - Valuation Assumptions (Details) - PSUs	6 Months Ended			12 Months Ended
	Jul. 01, 2017$ / shares	Jun. 25, 2016$ / shares	Jun. 27, 2015$ / shares	Dec. 31, 2016	Dec. 26, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Index volatility	33.00%		18.00%	18.00%
Infinera volatility	55.00%			55.00%	48.00%
Risk-free interest rate	1.41%	0.95%	0.97%
Correlation with index/index component	0.10	0.58			0.52
Estimated fair value (in dollars per share)	$ 16.36	$ 10.31	$ 18.08
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated fair value (in dollars per share)	$ 15.23
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Index volatility	34.00%		19.00%
Infinera volatility	56.00%
Risk-free interest rate	1.63%	1.07%	1.10%
Correlation with index/index component	0.49	0.59
Estimated fair value (in dollars per share)	$ 17.35	$ 16.62	$ 19.29

Stockholders' Equity - Nonveste

Stockholders' Equity - Nonvested Performance Based Units Activity By Grant Year (Details) - PSUs shares in Thousands	6 Months Ended
	Jul. 01, 2017shares
Number of Performance Stock Units
Number of units, beginning balance (in shares)	904
Number of units granted (in shares)	916
Number of units released (in shares)	0
Number units canceled (in shares)	(356)
Number of units, ending balance (in shares)	1,464
2,014
Number of Performance Stock Units
Number of units, beginning balance (in shares)	123
Number of units granted (in shares)	0
Number of units released (in shares)	0
Number units canceled (in shares)	(102)
Number of units, ending balance (in shares)	21
2,015
Number of Performance Stock Units
Number of units, beginning balance (in shares)	148
Number of units granted (in shares)	0
Number of units released (in shares)	0
Number units canceled (in shares)	(60)
Number of units, ending balance (in shares)	88
2,016
Number of Performance Stock Units
Number of units, beginning balance (in shares)	633
Number of units granted (in shares)	0
Number of units released (in shares)	0
Number units canceled (in shares)	(194)
Number of units, ending balance (in shares)	439
2,017
Number of Performance Stock Units
Number of units, beginning balance (in shares)	0
Number of units granted (in shares)	916
Number of units released (in shares)	0
Number units canceled (in shares)	0
Number of units, ending balance (in shares)	916

Stockholders' Equity - Balance

Stockholders' Equity - Balance Sheet and Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016	Dec. 31, 2016
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects included in net income (loss) before income taxes	$ 11,143	$ 10,081	$ 20,913	$ 17,209
Cost of revenue - amortization from balance sheet	1,237	912	2,344	1,771
Total stock-based compensation expense	12,380	10,993	23,257	18,980
Cost of revenue
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects included in net income (loss) before income taxes	834	746	1,558	1,419
Research and development
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects included in net income (loss) before income taxes	4,184	3,904	7,964	6,225
Sales and marketing
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects included in net income (loss) before income taxes	3,273	2,945	5,999	5,180
General and administration
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects included in net income (loss) before income taxes	2,852	$ 2,486	5,392	$ 4,385
Stock-based compensation effects in inventory
Effects Of Stock Based Compensation [Line Items]
Stock-based compensation effects in inventory	$ 5,383		$ 5,383		$ 4,911

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Business Acquisition [Line Items]
Provision (benefit) for income taxes	$ (512)	$ 1,475	$ (670)	$ 1,691
Pre-tax income (loss)	(43,351)	$ 12,787	(83,960)	$ 24,811
Income tax benefit decrease	2,100		2,600
Transmode
Business Acquisition [Line Items]
Provision (benefit) for income taxes	(1,500)		(2,900)
Purchase accounting amortization expense	$ 6,600		$ 13,300

Segment Information - Revenue a

Segment Information - Revenue and Long-Lived Assets (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017USD ($)	Jun. 25, 2016USD ($)	Jul. 01, 2017USD ($)segment	Jun. 25, 2016USD ($)
Segment Reporting [Abstract]
Number of reporting segments | segment			1
Number of operating segments | segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 176,821	$ 258,822	$ 352,343	$ 503,640
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	112,196	166,710	211,976	341,225
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	2,971	11,267	9,006	14,526
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	47,910	64,570	105,323	124,446
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 13,744	$ 16,275	$ 26,038	$ 23,443

Segment Information - Property,

Segment Information - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Geographic Information For Property Plant And Equipment [Line Items]
Total property, plant and equipment, net	$ 142,424	$ 124,800
United States
Geographic Information For Property Plant And Equipment [Line Items]
Total property, plant and equipment, net	134,920	117,715
Other Americas
Geographic Information For Property Plant And Equipment [Line Items]
Total property, plant and equipment, net	307	218
Europe, Middle East and Africa
Geographic Information For Property Plant And Equipment [Line Items]
Total property, plant and equipment, net	3,795	3,822
Asia Pacific
Geographic Information For Property Plant And Equipment [Line Items]
Total property, plant and equipment, net	$ 3,402	$ 3,045

Guarantees - Activity Related t

Guarantees - Activity Related to Warranty (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2017	Apr. 01, 2017	Jun. 25, 2016	Jul. 01, 2017	Jun. 25, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 35,980	$ 40,342	$ 39,999	$ 40,342	$ 38,844
Charges to operations	5,022		7,308	9,681	14,062
Utilization	(3,901)		(3,702)	(7,289)	(8,689)
Change in estimate	(4,701)		(2,616)	(10,334)	(3,228)
Balance at the end of the period	$ 32,400	35,980	$ 40,989	$ 32,400	$ 40,989
Product Quality Improvements
Movement in Standard Product Warranty Accrual [Roll Forward]
Change in estimate		$ (2,200)

Guarantees - Narrative (Details

Guarantees - Narrative (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Guarantor Obligations [Line Items]
Outstanding standby letters of credit	$ 5.8	$ 8.7
Debt instrument, collateral amount	4.9	4.5
Banker's guarantees or performance bonds
Guarantor Obligations [Line Items]
Line of credit facility, remaining borrowing capacity	1.6	1.1
Proceeds from lines of credit	0	0.3
Letter of credit
Guarantor Obligations [Line Items]
Property leases	1.9	4.5
Customer performance guarantee	2.7	3.1
Value added tax license	$ 1.2	$ 1.1