Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Mar. 05, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | INFINERA CORP | ||
Entity Central Index Key | 0001138639 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Trading Symbol | INFN | ||
Entity Common Stock, Shares Outstanding | 177,415,495 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float (in shares) | $ 921,230,011 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 202,954 | $ 116,345 |
Short-term investments | 26,511 | 147,596 |
Short-term restricted cash | 13,229 | 544 |
Accounts receivable, net of allowance for doubtful accounts of $5,084 in 2018 and $892 in 2017 | 317,115 | 126,152 |
Inventory | 311,888 | 214,704 |
Prepaid expenses and other current assets | 85,400 | 42,596 |
Total current assets | 957,097 | 647,937 |
Property, plant and equipment, net | 342,820 | 135,942 |
Intangible assets | 233,119 | 92,188 |
Goodwill | 227,231 | 195,615 |
Long-term investments | 0 | 36,129 |
Long-term restricted cash | 26,154 | 4,597 |
Other non-current assets | 14,849 | 5,262 |
Total assets | 1,801,270 | 1,117,670 |
Current liabilities: | ||
Accounts payable | 191,187 | 58,124 |
Accrued expenses | 131,891 | 39,782 |
Accrued compensation and related benefits | 71,152 | 45,751 |
Short-term debt | 0 | 144,928 |
Accrued warranty | 20,103 | 13,670 |
Deferred revenue | 88,534 | 72,421 |
Total current liabilities | 502,867 | 374,676 |
Long-term debt, net | 266,929 | 0 |
Long-term financing lease obligation | 0 | |
Accrued warranty, non-current | 20,918 | 17,239 |
Deferred revenue, non-current | 31,768 | 22,502 |
Deferred tax liability, non-current | 13,347 | 21,609 |
Other long-term liabilities | 68,082 | 16,279 |
Commitments and contingencies (Note 13) | ||
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 in 2018 and 2017 Issued and outstanding shares—175,452 in 2018 and 149,471 in 2017 | 175 | 149 |
Additional paid-in capital | 1,685,916 | 1,417,043 |
Accumulated other comprehensive income (loss) | (25,300) | 6,254 |
Accumulated deficit | (956,970) | (758,081) |
Total stockholders' equity | 703,821 | 665,365 |
Total liabilities and stockholders’ equity | $ 1,801,270 | $ 1,117,670 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Net of Allowance for doubtful accounts | $ 5,084 | $ 892 |
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) | 175,452,000 | 149,471,000 |
Common stock, shares outstanding (in shares) | 175,452,000 | 149,471,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Total revenue | $ 943,379 | $ 740,739 | $ 870,135 |
Cost of revenue: | |||
Amortization of intangible assets | 23,475 | 20,474 | 19,715 |
Restructuring and related | 2,630 | 19,141 | 0 |
Total cost of revenue | 622,223 | 496,739 | 476,417 |
Gross profit | 321,156 | 244,000 | 393,718 |
Operating expenses: | |||
Research and development | 244,302 | 224,368 | 232,143 |
Sales and marketing | 124,238 | 109,511 | 111,678 |
General and administrative | 80,957 | 70,620 | 67,612 |
Amortization of intangible assets | 29,296 | 6,160 | 6,189 |
Acquisition and integration costs | 15,530 | 322 | 1,870 |
Restructuring and related | 12,512 | 16,106 | 0 |
Total operating expenses | 506,835 | 427,087 | 419,492 |
Loss from operations | (185,679) | (183,087) | (25,774) |
Other income (expense), net: | |||
Interest income | 2,428 | 3,328 | 2,478 |
Interest expense | (22,049) | (14,017) | (12,887) |
Other gain (loss), net | (9,650) | (2,160) | 7,002 |
Total other income (expense), net | (29,271) | (12,849) | (3,407) |
Loss before income taxes | (214,950) | (195,936) | (29,181) |
Benefit from income taxes | (655) | (1,430) | (4,751) |
Net loss | (214,295) | (194,506) | (24,430) |
Less: Loss attributable to noncontrolling interest | 0 | 0 | (503) |
Net loss attributable to Infinera Corporation | $ (214,295) | $ (194,506) | $ (23,927) |
Net loss per common share attributable to Infinera Corporation: | |||
Basic (in usd per share) | $ (1.36) | $ (1.32) | $ (0.17) |
Diluted (in usd per share) | $ (1.36) | $ (1.32) | $ (0.17) |
Weighted average shares used in computing net loss per common share: | |||
Basic (in shares) | 157,748 | 147,878 | 142,989 |
Diluted (in shares) | 157,748 | 147,878 | 142,989 |
Product | |||
Revenue: | |||
Revenue | $ 763,555 | $ 610,535 | $ 751,167 |
Cost of revenue: | |||
Cost of revenue | 517,765 | 406,644 | 413,551 |
Services | |||
Revenue: | |||
Revenue | 179,824 | 130,204 | 118,968 |
Cost of revenue: | |||
Cost of revenue | $ 78,353 | $ 50,480 | $ 43,151 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (214,295) | $ (194,506) | $ (24,430) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on available-for-sale investments | 327 | (209) | 297 |
Foreign currency translation adjustment | (26,483) | 34,787 | (29,625) |
Tax effect on items related to available-for-sale investments | (85) | 0 | (119) |
Actuarial loss on pension liabilities | (5,313) | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (31,554) | 34,578 | (29,447) |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | (503) |
Comprehensive loss attributable to Infinera Corporation | $ (245,849) | $ (159,928) | $ (53,374) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity | Noncontrolling Interest |
Balance (in shares) at Dec. 26, 2015 | 140,197 | ||||||
Beginning balance at Dec. 26, 2015 | $ 777,061 | $ 140 | $ 1,300,301 | $ 1,123 | $ (539,413) | $ 762,151 | $ 14,910 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock options exercised (in shares) | 825 | ||||||
Stock options exercised | 4,095 | $ 1 | 4,094 | 4,095 | |||
ESPP shares issued (in shares) | 1,369 | ||||||
ESPP shares issued | 13,608 | $ 1 | 13,607 | 13,608 | |||
Shares withheld for tax obligations (in shares) | (287) | ||||||
Shares withheld for tax obligations | (3,657) | (3,657) | (3,657) | ||||
Restricted stock units released (in shares) | 2,917 | ||||||
Restricted stock units released | $ 3 | (3) | |||||
Issuance of common stock related to acquisition (in shares) | 0 | ||||||
Issuance of common stock related to acquisition | 0 | $ 0 | 0 | 0 | |||
Stock-based compensation | 42,552 | 42,552 | 42,552 | ||||
Noncontrolling interest investment | (14,407) | (14,407) | |||||
Squeeze-out Proceedings | (2,812) | (2,812) | (2,812) | ||||
Other comprehensive income (loss) | (29,447) | (29,447) | (29,447) | ||||
Net loss | (24,430) | (23,927) | (23,927) | (503) | |||
Balance (in shares) at Dec. 31, 2016 | 145,021 | ||||||
Ending balance at Dec. 31, 2016 | 762,328 | $ 145 | 1,354,082 | (28,324) | (563,575) | 762,328 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment from adoption of ASU | (235) | (235) | (235) | ||||
Stock options exercised (in shares) | 196 | ||||||
Stock options exercised | 1,525 | 1,525 | 1,525 | ||||
ESPP shares issued (in shares) | 2,140 | ||||||
ESPP shares issued | 16,411 | $ 2 | 16,409 | 16,411 | |||
Shares withheld for tax obligations (in shares) | (110) | ||||||
Shares withheld for tax obligations | (1,034) | (1,034) | (1,034) | ||||
Restricted stock units released (in shares) | 2,224 | ||||||
Restricted stock units released | $ 2 | (2) | |||||
Issuance of common stock related to acquisition | 0 | ||||||
Stock-based compensation | 46,063 | 46,063 | 46,063 | ||||
Other comprehensive income (loss) | 34,578 | 34,578 | 34,578 | ||||
Net loss | (194,506) | (194,506) | (194,506) | ||||
Balance (in shares) at Dec. 30, 2017 | 149,471 | ||||||
Ending balance at Dec. 30, 2017 | 665,365 | $ 149 | 1,417,043 | 6,254 | (758,081) | 665,365 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock options exercised (in shares) | 229 | ||||||
Stock options exercised | 1,701 | 1,701 | 1,701 | ||||
ESPP shares issued (in shares) | 2,189 | ||||||
ESPP shares issued | 15,992 | $ 2 | 15,990 | 15,992 | |||
Shares withheld for tax obligations (in shares) | (109) | ||||||
Shares withheld for tax obligations | (1,144) | (1,144) | (1,144) | ||||
Restricted stock units released (in shares) | 2,697 | ||||||
Restricted stock units released | $ 3 | (3) | |||||
Issuance of common stock related to acquisition (in shares) | 20,975 | ||||||
Issuance of common stock related to acquisition | 129,628 | $ 21 | 129,607 | 129,628 | |||
Stock-based compensation | 42,905 | 42,905 | 42,905 | ||||
Conversion option related to convertible senior notes, net of allocated costs | 128,726 | 128,726 | 128,726 | ||||
Purchase of capped call transactions | (48,909) | (48,909) | (48,909) | ||||
Other comprehensive income (loss) | (31,554) | (31,554) | (31,554) | ||||
Net loss | (214,295) | (214,295) | (214,295) | ||||
Balance (in shares) at Dec. 29, 2018 | 175,452 | ||||||
Ending balance at Dec. 29, 2018 | 703,821 | $ 175 | $ 1,685,916 | $ (25,300) | (956,970) | 703,821 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment from adoption of ASU | $ 15,406 | $ 15,406 | $ 15,406 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||||
Cash Flows from Operating Activities: | ||||||
Net loss | $ (214,295) | $ (194,506) | $ (24,430) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 100,494 | 65,997 | 61,489 | |||
Non-cash restructuring and other related credits | 7,291 | 29,237 | 0 | |||
Amortization of debt discount and issuance costs | 11,161 | 11,342 | 10,260 | |||
Interest accretion related to financing lease obligation | 4,694 | 0 | 0 | |||
Impairment of intangible assets | 0 | 252 | 11,295 | |||
Realized gain on sale of non-marketable equity investments | (1,050) | 0 | (8,983) | |||
Impairment of non-marketable equity investment | 5,110 | 1,890 | 0 | |||
Stock-based compensation expense | 43,410 | 45,720 | 40,533 | |||
Other loss | 1,304 | 503 | 1,741 | |||
Changes in assets and liabilities: | ||||||
Accounts receivable | (21,111) | 25,849 | 33,895 | |||
Inventory | (8,617) | 2,727 | (64,095) | |||
Prepaid expenses and other assets | (13,458) | (8,194) | (5,501) | |||
Accounts payable | (520) | (4,763) | (28,254) | |||
Accrued liabilities and other expenses | (21,490) | (14,395) | (11,012) | |||
Deferred revenue | 7,994 | 16,416 | 21,439 | |||
Net cash provided by (used in) operating activities | (99,083) | (21,925) | 38,377 | |||
Cash Flows from Investing Activities: | ||||||
Purchase of available-for-sale investments | (2,986) | (160,215) | (124,077) | |||
Proceeds from sales of available-for-sale investments | 53,039 | 10,531 | 0 | |||
Proceeds from maturities and calls of investments | 102,112 | 152,876 | 142,898 | |||
Acquisition of business, net of cash acquired | (102,899) | 0 | 0 | |||
Purchase of non-marketable equity investments | 0 | 0 | (7,000) | |||
Proceeds from sale of non-marketable equity investments | 1,050 | 0 | 23,483 | |||
Purchase of property and equipment | (37,692) | (58,041) | (43,335) | |||
Net cash provided by (used in) investing activities | 12,624 | (54,849) | (8,031) | |||
Cash Flows from Financing Activities: | ||||||
Proceeds from issuance of debt, net | 391,431 | 0 | ||||
Purchase of capped call transactions | (48,880) | 0 | 0 | |||
Repayment of debt | (150,000) | 0 | 0 | |||
Principal payments on financing lease obligations | (1,211) | 0 | 0 | |||
Acquisition of noncontrolling interest | 0 | (471) | (16,771) | |||
Proceeds from issuance of common stock | 17,693 | 17,991 | 17,648 | |||
Minimum tax withholding paid on behalf of employees for net share settlement | (1,144) | (1,034) | (3,657) | |||
Net cash provided by (used in) financing activities | 207,889 | 16,486 | (2,780) | |||
Effect of exchange rate changes on cash | (579) | 4,194 | (4,397) | |||
Net change in cash and cash equivalents | 120,851 | (56,094) | 23,169 | |||
Cash, cash equivalents and restricted cash at beginning of period | 121,486 | [1] | 177,580 | [1] | 154,411 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 242,337 | 121,486 | 177,580 | ||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for income taxes, net of refunds | 6,692 | 5,690 | 6,625 | |||
Cash paid for interest | 3,554 | 2,639 | 2,776 | |||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Transfer of inventory to fixed assets | 3,787 | 4,950 | 5,597 | |||
Common stock issued in connection with acquisition | $ 129,628 | $ 0 | $ 0 | |||
[1] | (1) Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: December 29, 2018 December 30, 2017 December 31, 2016 (In thousands)Cash and cash equivalents$202,954 $116,345 $162,641Short-term restricted cash13,229 544 8,490Long-term restricted cash26,154 4,597 6,449Total cash, cash equivalents and restricted cash$242,337 $121,486 $177,580 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Information - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |||
Statement of Cash Flows [Abstract] | |||||||
Cash and cash equivalents | $ 202,954 | $ 116,345 | $ 162,641 | ||||
Short-term restricted cash | 13,229 | 544 | 8,490 | ||||
Long-term restricted cash | 26,154 | 4,597 | 6,449 | ||||
Total cash, cash equivalents and restricted cash | $ 242,337 | [1] | $ 121,486 | [1] | $ 177,580 | [1] | $ 154,411 |
[1] | (1) Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: December 29, 2018 December 30, 2017 December 31, 2016 (In thousands)Cash and cash equivalents$202,954 $116,345 $162,641Short-term restricted cash13,229 544 8,490Long-term restricted cash26,154 4,597 6,449Total cash, cash equivalents and restricted cash$242,337 $121,486 $177,580 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Infinera Corporation (“Infinera” or the “Company”), headquartered in Sunnyvale, California, was founded in December 2000 and incorporated in the State of Delaware. Infinera is a global supplier of networking solutions comprised of networking equipment, software and services. The Company's portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems and disaggregated router platforms, as well as software-defined networking, network management and routing software. During the fourth quarter of 2018, the Company completed the acquisition of all the outstanding limited liability company interests (the “Units”) of Telecom Holding Parent LLC (“Coriant”), a Delaware limited liability company and wholly-owned subsidiary of Coriant Investor LLC, a Delaware limited liability company (“Seller”), pursuant to the Unit Purchase Agreement (the “Purchase Agreement”) by and among the Company, Seller and Oaktree Optical Holdings, L.P., a Delaware limited partnership (“Lender”) (the “Acquisition”). The Acquisition was accounted for as a business combination, and accordingly, the Company has consolidated the financial results of Coriant with its financial results for the period from October 1, 2018, the date the acquisition closed (the “Acquisition Date”) through December 31, 2018. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the last Saturday of December in each year. Accordingly, fiscal years 2018 and 2017 were 52-week years that ended on December 29, 2018 and December 30, 2017, respectively. Fiscal year 2016 was a 53-week year that ended on December 31, 2016. The next 53-week year will end on December 31, 2022. The 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. Effective in the fourth quarter of 2018, the Company elected to present amortization of intangible assets as separate line items within cost of revenue and operating expenses. Additionally, the Company elected to present acquisition and integration costs as a separate line item within operating expenses. As a result, the costs previously reflected in cost of revenue and operating expenses were reclassified to “Amortization of intangible assets” and “Acquisition and integration costs” within total cost of revenue and total operating expenses. Prior period amounts have been revised to conform to the current period presentation. This change in presentation does not affect the Company's total cost of revenue or total operating expenses. The following table shows reclassified amounts to conform to the current period's presentation: Years Ended December 30, 2017 December 31, 2016 Previously Reported Change in Presentation Reclassification Current Presentation Previously Reported Change in Presentation Reclassification Current Presentation Cost of revenue: Cost of product $ 427,118 $ (20,474 ) $ 406,644 $ 433,266 $ (19,715 ) $ 413,551 Cost of services 50,480 — 50,480 43,151 — 43,151 Amortization of intangible assets (1) N/A 20,474 20,474 N/A 19,715 19,715 Restructuring and related 19,141 — 19,141 — — — Total $ 496,739 $ — $ 496,739 $ 476,417 $ — $ 476,417 Operating expenses: Research and development $ 224,299 $ 69 $ 224,368 $ 232,291 $ (148 ) $ 232,143 Sales and marketing 116,057 (6,546 ) 109,511 118,858 (7,180 ) 111,678 General and administrative 70,625 (5 ) 70,620 68,343 (731 ) 67,612 Amortization of intangible assets (1) N/A 6,160 6,160 N/A 6,189 6,189 Acquisition and integration costs (1) N/A 322 322 N/A 1,870 1,870 Restructuring and related 16,106 — 16,106 — — — Total $ 427,087 $ — $ 427,087 $ 419,492 $ — $ 419,492 (1) These lines were not previously reported in the consolidated statements of operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These accounting principles require the Company to make 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 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 and accounting for income taxes. Other estimates, assumptions and judgments made by management include restructuring and other related costs, allowances for sales returns, allowances for doubtful accounts, pension, useful life of acquired intangibles and recoverability of property, plant and equipment, fair value measurement of the liability component of the convertible senior notes, non-marketable equity investments and derivative instruments. Management believes that the estimates, assumptions 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 consolidated financial statements will be affected. Revenue Recognition Effective December 31, 2017, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), using the modified retrospective method applied to those contracts that were not completed as of December 31, 2017. Results for the reporting periods after December 31, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition” (“Topic 605”). The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition by applying the following five-step approach: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Many of the Company's product sales are sold in combination with installation and deployment services along with initial hardware and software support. The Company's product sales are also sold at times with spares management, on-site hardware replacement services, network operations management, software subscription services, extended hardware warranty and training. Initial software and hardware support services are generally delivered over a one-year period in connection with the initial purchase. Software warranty provides customers with maintenance releases during the warranty support period and hardware warranty provides replacement or repair of equipment that fails to perform in line with specifications. Software subscription services include software warranty and additionally provides customers with rights to receive unspecified software product upgrades released during the support period. Spares management and on-site hardware replacement services include the replacement of defective units at customer sites in accordance with specified service level agreements. Network operations management includes the day-to-day operation of a customer's network. These services are generally delivered on an annual basis. The Company evaluates each promised good and service in a contract to determine whether it represents a distinct performance obligation or should be accounted for as a combined performance obligation. Services revenue includes software subscription services, installation and deployment services, spares management, on-site hardware replacement services, network operations management, extended hardware warranty and training. Revenue from software subscription services, spares management, on-site hardware replacement services, network operations management and extended hardware warranty contracts is deferred and is recognized ratably over the contractual support period, which is generally one year, as services are provided over the course of the entire period. Revenue related to training and installation and deployment services is recognized upon completion of the services. Contracts and customer purchase orders are generally used to determine the existence of an arrangement. In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of title. The Company typically satisfies its performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. The Company assesses its ability to collect from its customers based primarily on the creditworthiness and past payment history of the customer. Customer product returns are generally approved on a case by case basis. Specific reserve provisions are made based upon a specific review of all the approved product returns where the customer has yet to return the products to generate the related sales return credit at the end of a period. Estimated sales returns are recorded as a reduction to revenue. For sales to resellers, the same revenue recognition criteria apply. It is the Company’s practice to identify an end-user prior to shipment to a reseller. The Company does not offer rights of return or price protection to its resellers. The Company reports revenue net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Customer Purchase Commitments The Company sells software licenses that provide customers the ability to purchase incremental bandwidth capacity on an already-deployed piece of hardware. Infinera Instant Bandwidth (“IB”) enabled systems generally include a specific initial capacity and incremental capacity can be added by the purchase of IB licenses. IB licenses are considered distinct performance obligations because customers can provision additional transmission capacity on demand without the deployment of any incremental equipment. Some contracts commit the customer to purchase incremental IB licenses within a specified time frame from the initial shipment of the IB enabled hardware. The time frame varies by customer and generally ranges between 12 to 24 months. If the customer does not purchase the additional capacity within the time frame as stated in the contract, the Company has the right to deliver and invoice such IB licenses to the customer. Under ASC 605, the additional incremental licenses were not included as an element of the initial arrangement because fees for the future purchases were not fixed. Under Topic 606, future committed licenses are considered to be additional performance obligations when a minimum purchase obligation is present, as evidenced by enforceable rights and obligations. As such, the Company is required to estimate the variable consideration for future IB licenses as part of determining the contract transaction price. Contract Termination Rights The contract term is determined on the basis of the period over which the parties to the contract have present enforceable rights and obligations. Certain customer contracts include a termination for convenience clause that allows the customer to terminate services without penalty, upon advance notification. For such contracts, the service duration is limited to the non-cancellable portion of the contract. Variable Consideration The consideration associated with customer contracts is generally fixed. Variable consideration includes discounts, rebates, refunds, credits, incentives, penalties, or other similar items. The amount of consideration that can vary is not a substantial portion of total consideration . Variable consideration estimates are re-assessed at each reporting period until a final outcome is determined. The changes to the original transaction price due to a change in estimated variable consideration will be applied on a retrospective basis, with the adjustment recorded in the period in which the change occurs. Stand-alone Selling Price Stand-alone selling price is the price at which an entity would sell a good or service on a stand-alone (or separate) basis at contract inception. Under this model, the observable price of a good or service sold separately provides the best evidence of stand-alone selling price. However, in certain situations, stand-alone selling prices will not be readily observable and the entity must estimate the stand-alone selling price. When allocating on a relative stand-alone selling price basis, any discount provided in the contract is generally allocated proportionately to all of the performance obligations in the contract. The majority of products and services offered by the Company have readily observable selling prices. For products and services that do not, the Company generally estimates stand-alone selling price using the market assessment approach based on expected selling price and adjust those prices as necessary to reflect the Company’s costs and margins. As part of its stand-alone selling price policy, the Company reviews product pricing on a periodic basis to identify any significant changes and revise its expected stand-alone selling price assumptions as appropriate. Shipping and Handling The Company treats shipping and handling activities as costs to fulfill the Company's promise to transfer products. Shipping and handling fees billed to customers are recorded as a reduction to cost of product. Capitalization of Costs to Obtain a Contract The Company has assessed the treatment of costs to obtain or fulfill a contract with a customer. Sales commissions have historically been expensed as incurred. Under Topic 606, the Company capitalizes sales commissions related to multi-year service contracts, which are paid for upfront, and amortizes the asset over the period of benefit, which is the service period. Sales commissions paid on service contract renewals, are commensurate with the sales commissions paid on the initial contracts. Transaction Price Allocated to the Remaining Performance Obligation The Company’s remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially satisfied as of period end, consisting of deferred revenue and backlog. The Company’s backlog represents purchase orders received from customers for future product shipments and services that are unsatisfied or partially satisfied as of period end. The Company’s backlog is subject to future events that could cause the amount or timing of the related revenue to change, and, in certain cases, may be canceled without penalty. Orders in backlog may be fulfilled several quarters following receipt or may relate to multi-year support service obligations. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (generally the vesting period) under the straight-line amortization method. The expected forfeiture rate is estimated based on the Company's historical forfeiture data and compensation costs are recognized only for those equity awards expected to vest. The estimation of the forfeiture rate required judgment, and to the extent actual forfeitures differed from expectations, changes in estimate are recorded as an adjustment in the period when such estimates are revised. The Company historically recorded stock-based compensation expense by applying the forfeiture rates and adjusted estimated forfeiture rates to actual. During the third fiscal quarter beginning on June 26, 2016, the Company elected to early adopt ASU 2016-09 and elected to change its accounting policy to account for forfeitures when they occur on a modified retrospective basis. The Company makes a number of estimates and assumptions in determining stock-based compensation related to stock options including the following: • The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The expected term is estimated based on the Company’s historical data on employee exercise patterns and post vesting termination behavior to estimate expected exercises over the contractual term of grants. • Expected volatility of the Company’s stock is based on the weighted-average implied and historical volatility of the Company. The Company estimates the fair value of the rights to acquire stock under its 2007 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP. The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants, RSUs typically vest ratably on an annual basis over four years . For annual refresh grants, RSUs typically vest ratably on an annual basis over three or four years. The Company granted performance stock units (“PSUs”) to its executive officers and senior management in 2016, 2017 and 2018 as part of the Company's annual refresh grant process. These PSUs entitle the Company's executive officers and senior management to receive a number of shares of the Company's common stock based on its stock price performance compared to a specified target composite index for the same period. These PSUs vest over the span of one year , two years and three years , and the number of shares to be issued upon vesting ranges from zero to two times the number of PSUs granted depending on the relative performance of the Company's common stock price compared to the targeted composite index. This performance metric is classified as a market condition. The Company uses a Monte Carlo simulation model to determine the fair value of PSUs on the date of grant. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company's stock and the target composite index. The use of the Monte Carlo simulation model requires the input of a number of assumptions including expected volatility of the Company's stock price, expected volatility of target composite index, correlation between changes in the Company's stock price and changes in the target composite index, risk-free interest rate, and expected dividends as applicable. Expected volatility of the Company's stock is based on the weighted-average historical volatility of its stock. Expected volatility of target composite index is based on the historical and implied data. Correlation is based on the historical relationship between the Company's stock price and the target composite index average. The risk-free interest rate is based upon the treasury zero-coupon yield appropriate for the term of the PSU as of the grant date. The expected dividend yield is zero for the Company as it does not expect to pay dividends in the future. The expected dividend yield for the target composite index is the annual dividend yield expressed as a percentage of the composite average of the target composite index on the grant date. In addition, the Company has granted other PSUs to certain employees that only vest upon the achievement of specific operational performance criteria. The Company assesses the achievement status of these PSUs on a quarterly basis and records the related stock-based compensation expenses based on the estimated achievement payout. Employee Benefit and Pension Plans The Company operates a number of post-employment plans in Germany, as well as smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. Benefit cost and obligations pertaining to these plans are based on assumptions for the discount rate, expected return on plan assets, mortality rates, expected salary increases, health care cost trend rates and attrition rates. The discount rate assumption is based on current investment yields of high-quality fixed-income securities with maturities similar to the expected benefits payment period. Mortality rates help predict the expected life of plan participants. The expected increase in the compensation levels assumption reflects the Company's actual experience and future expectations. The expected long-term return on plan assets is determined based on asset allocations, historical portfolio results, historical asset correlations and management’s expected returns for each asset class. The Company evaluates its expected return assumptions annually including reviewing current capital market assumptions to assess the reasonableness of the expected long-term return on plan assets. The Company updates the expected long-term return on assets when the Company observes a sufficient level of evidence that would suggest the long-term expected return has changed. Research and Development All costs to develop the Company’s hardware products are expensed as incurred. Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Generally, the Company’s software products are released soon after technological feasibility has been established. As a result, costs subsequent to achieving technological feasibility have not been significant and all software development costs have been expensed as incurred. Advertising All advertising costs are expensed as incurred. Advertising expenses in 2018, 2017 and 2016 were $0.9 million , $1.8 million and $1.9 million , respectively. Accounting for Income Taxes On December 22, 2017, the Securities and Exchange Commission (the “SEC”) staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Act”). The Company determined an adjustment to deferred tax assets, along with a corresponding adjustment to valuation allowance, was needed. The adjustment resulted in no tax expense impact in connection with the re-measurement of certain deferred tax assets and liabilities from 35% to 21%. Additionally, the Company provisionally recorded no tax expense in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, based upon an aggregate tax loss of its foreign subsidiaries for the year ended December 30, 2017. The Company finalized its accounting for the re-measurement of deferred tax balances and transition tax with no adjustment to income tax expense for the year ended December 29, 2018. As part of the process of preparing the Company's consolidated financial statements, it is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax expense together with assessing temporary differences resulting from different treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included in its consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in its consolidated statements of operations become deductible expenses under applicable income tax laws or loss, or credit carryforwards are utilized. Accordingly, realization of the Company's deferred tax assets is dependent on future taxable income within the respective jurisdictions against which these deductions, losses and credits can be utilized within the applicable future periods. 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, and to the extent the Company believes that recovery does not meet the “more-likely-than-not” standard, it must establish a valuation allowance. 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 in determining its provision for income taxes, its deferred tax assets and liabilities and any valuation allowance recorded against its net deferred tax assets. In evaluating the need for a full or partial valuation allowance, all positive and negative evidence must be considered, including the Company's forecasts of taxable income over the applicable carryforward periods, its current financial performance, its market environment, and other factors. Based on the available objective evidence, at December 29, 2018, management believes it is not more likely than not that the domestic net deferred tax assets will be realizable in the foreseeable future. Accordingly, the domestic net deferred tax assets are subject to a full valuation allowance. To the extent that the Company determines that deferred tax assets are realizable on a more likely than not basis, and an adjustment is needed, that adjustment will be recorded in the period that the determination is made. Foreign Currency Translation and Transactions The Company considers the functional currencies of its foreign subsidiaries to be the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate as of the balance sheet date, and costs and expenses are translated at average exchange rates in effect during the period. Equity transactions are translated using historical exchange rates. The effects of foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange transaction gain or loss, which is recorded to other gain (loss), net, in the same period that the re-measurement occurred. Aggregate foreign exchange transactions recorded in 2018, 2017 and 2016 were losses of $2.5 million , $0.3 million and $1.8 million , respectively. The Company enters into foreign currency exchange forward contracts to reduce the impact of foreign exchange fluctuations on earnings from accounts receivable balances denominated in euros and British pounds, and restricted cash denominated in euros. 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 pounds and Swedish kronor (“SEK”). The contracts are generally settled for U.S. dollars, euros and British pounds at maturity under an average rate method 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. Cash, Cash Equivalents and Short-term and Long-term Investments The Company considers all highly liquid instruments with an original maturity at the date of purchase of 90 days or less to be cash equivalents. These instruments may include cash, money market funds, commercial paper and U.S. treasuries. The Company also maintains a portion of its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Cash, cash equivalents and short-term investments consist of highly-liquid investments in certificates of deposits, money market funds, commercial paper, U.S. agency notes, corporate bonds and U.S. treasuries. Long-term investments primarily consist of certificates of deposits, commercial paper, U.S. agency notes, corporate bonds and U.S. treasuries. The Company considers all debt instruments with original maturities at the date of purchase greater than 90 days and remaining time to maturity of one year or less to be short-term investments. The Company classifies debt instruments with remaining maturities greater than one year as long-term investments, unless the Company intends to settle its holdings within one year or less and in such case it is considered to be short-term investments. The Company determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Available-for-sale investments are stated at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The Company evaluates its available-for-sale marketable debt securities for other-than-temporary impairments and records any credit loss portion in other income (expense), net, in the Company’s consolidated statements of operations. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and for any credit losses incurred on these securities. Gains and losses are recognized when realized in the Company’s consolidated statements of operations under the specific identification method. Fair Value Measurement 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 debt securities at fair value and classifies its securities in accordance with the fair value hierarchy on a recurring basis. 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 the following assets 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 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. Pension As a result of the Acquisition, the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal, and economic requirements. The Company classifies the following assets and liabilities within Level 3 of the fair value hierarchy and applies fair value accounting on a non-recurring basis, only if impairment is indicated: Facilities- |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Topic 606 Adoption The Company recorded a net reduction to the opening balance of its accumulated deficit of $15.4 million as of December 31, 2017 due to the cumulative impact of adopting Topic 606, with the impact primarily related to its services revenue. The impact to revenue for the year ended December 29, 2018 was an increase of $6.7 million as a result of applying Topic 606. The details of the significant changes and quantitative impact of the Company’s adoption of Topic 606 are set out below. Capitalization of Costs to Obtain a Contract As of December 29, 2018, the ending balance of the Company’s capitalized costs to obtain a contract was $0.4 million . The Company's amortization expense was not material for the year ended December 29, 2018. Disaggregation of Revenue The following table presents the Company's revenue disaggregated by revenue source (in thousands): Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) Product $ 763,555 $ 610,535 $ 751,167 Services 179,824 130,204 118,968 Total revenue $ 943,379 $ 740,739 $ 870,135 (1) Prior period amounts have not been adjusted under the modified retrospective method of adopting Topic 606. The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf. The following tables present the Company's revenue disaggregated by geography, based on the shipping address of the customer and by sales channel (in thousands): Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) United States $ 476,784 $ 428,592 $ 541,889 Other Americas 44,581 20,070 40,036 Europe, Middle East and Africa 309,989 234,972 243,783 Asia Pacific 112,025 57,105 44,427 Total revenue $ 943,379 $ 740,739 $ 870,135 Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) Direct $ 838,931 $ 693,472 $ 809,681 Indirect 104,448 47,267 60,454 Total revenue $ 943,379 $ 740,739 $ 870,135 (1) Prior period amounts have not been adjusted under the modified retrospective method of adopting Topic 606. Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 29, 2018 At Adoption Accounts receivable, net $ 317,115 $ 135,245 Contract assets $ 24,981 $ 2,825 Deferred revenue $ 120,302 $ 75,458 Revenue recognized for the year ended December 29, 2018 that was included in the deferred revenue balance at the beginning of the reporting period was $44.4 million . Changes in the contract asset and liability balances during the year ended December 29, 2018 were primarily impacted by the Acquisition during the fourth quarter of 2018. Transaction Price Allocated to the Remaining Performance Obligation The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) at the end of the reporting period (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Revenue expected to be recognized in the future as of December 29, 2018 $ 375,707 $ 53,258 $ 18,904 $ 6,434 $ 2,716 $ 1,193 $ 458,212 Impacts on Financial Statements The following tables summarize the impact of adopting Topic 606 on the Company's consolidated statement of operations for the year ended December 29, 2018 and the Company's consolidated balance sheet as of December 31, 2017 (in thousands): Year Ended December 29, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Income Statement Revenue Product $ 763,555 $ (10,680 ) $ 752,875 Services 179,824 3,946 183,770 $ 943,379 $ (6,734 ) $ 936,645 Costs and expenses Cost of revenue $ 622,223 $ 1,687 $ 623,910 Net loss $ (214,295 ) $ (8,421 ) $ (222,716 ) Net loss per share - basic and diluted $ (1.36 ) $ (0.05 ) $ (1.41 ) The increase in revenue from the adoption of Topic 606 was primarily related to an increase in product revenue for certain customers as a result of recognition upon transfer of control in advance of milestone invoicing. The adoption of Topic 606 did not have a material impact to the Company's consolidated financial statements for the year ended December 29, 2018. Balance at December 30, 2017 Adjustments due to Topic 606 As Adjusted Balance at December 31, 2017 Balance Sheet Assets Accounts receivable, net $ 126,152 $ 9,093 $ 135,245 Inventory $ 214,704 $ (239 ) $ 214,465 Prepaid expenses and other assets $ 43,339 $ 2,731 $ 46,070 Liabilities Accrued expenses $ 39,782 $ 15,645 $ 55,427 Deferred revenue $ 94,923 $ (19,465 ) $ 75,458 Equity Accumulated deficit $ (758,081 ) $ 15,406 $ (742,675 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables represent the Company’s fair value hierarchy for its marketable securities measured at fair value on a recurring basis (in thousands): As of December 29, 2018 As of December 30, 2017 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 10,347 $ — $ 10,347 $ 20,371 $ — $ 20,371 Certificates of deposit — — — — 240 240 Commercial paper — — — — 26,912 26,912 Corporate bonds — 23,512 23,512 — 118,558 118,558 U.S. agency notes — 2,999 2,999 — 5,480 5,480 U.S. treasuries 23,987 — 23,987 35,408 — 35,408 Total assets $ 34,334 $ 26,511 $ 60,845 $ 55,779 $ 151,190 $ 206,969 Liabilities Foreign currency exchange forward contracts $ — $ (91 ) $ (91 ) $ — $ (204 ) $ (204 ) During 2018 and 2017, there were no transfers of assets or liabilities between Level 1 and Level 2. As of December 29, 2018 and December 30, 2017, none of the Company’s existing securities were classified as Level 3 securities. The Company classifies its equity investments and certain facilities-related charges within Level 3 of the fair value hierarchy and applies fair value accounting on a nonrecurring basis when impairment indicators exist or upon the existence of observable fair values. The fair values are classified as Level 3 measurements due to the significance of unobservable inputs. These analyses require management to make assumptions and estimates regarding industry and economic factors, future operating results and discount rates. Equity Investments In 2016, the Company invested $7.0 million in a privately-held company. As of December 29, 2018 and December 30, 2017, the Company's equity investment balance was zero and $5.1 million , respectively. During 2017, the Company recorded impairment charges of $1.9 million to adjust the carrying value of its investment to estimated fair value. During the fourth quarter of 2018, this privately-held company had ceased operations and was undergoing liquidation as of December 29, 2018. As a result, the Company determined that the fair value of its investment was zero and wrote off the remaining carrying value of $5.1 million in 2018. In addition, in 2016, the Company recognized a gain of $9.0 million from the sale of an existing non-marketable equity investment. The Company used the guideline public company method and the guideline transaction method of the market approach to determine the implied total equity value on a minority interest basis. Facilities-related Charges In connection with the 2017 Restructuring Plan, the Company calculated the fair value of the $7.3 million in facilities-related charges based on estimated future discounted cash flows and classified the fair value as a Level 3 measurement due to the significance of unobservable inputs, which included the amount and timing of estimated sublease rental receipts that the Company could reasonably obtain over the remaining lease term and the discount rate. See Note 9, “Restructuring and Other Related Costs” to the Notes to Consolidated Financial Statements for more information on the 2017 Restructuring Plan. Cash and Cash Equivalents Cash, cash equivalents and investments were as follows (in thousands): December 29, 2018 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 168,620 $ — $ — $ 168,620 Money market funds 10,347 — — 10,347 U.S. treasuries 23,986 1 — 23,987 Total cash and cash equivalents $ 202,953 $ 1 $ — $ 202,954 U.S. agency notes 3,000 — (1 ) 2,999 Corporate bonds 23,603 — (91 ) 23,512 Total short-term investments $ 26,603 $ — $ (92 ) $ 26,511 Total cash, cash equivalents and investments $ 229,556 $ 1 $ (92 ) $ 229,465 December 30, 2017 Adjusted Gross Gross Fair Value Cash $ 87,991 $ — $ — $ 87,991 Money market funds 20,371 — — 20,371 U.S. treasuries 7,984 — (1 ) 7,983 Total cash and cash equivalents $ 116,346 $ — $ (1 ) $ 116,345 Certificates of deposit 240 — — 240 Commercial paper 26,924 — (12 ) 26,912 Corporate bonds 90,685 — (155 ) 90,530 U.S. agency notes 2,500 — (11 ) 2,489 U.S. treasuries 27,495 — (70 ) 27,425 Total short-term investments $ 147,844 $ — $ (248 ) $ 147,596 Corporate bonds 28,186 — (158 ) 28,028 U.S. agency notes 3,002 — (11 ) 2,991 Total long-term investments $ 31,188 $ — $ (169 ) $ 31,019 Total cash, cash equivalents and investments $ 295,378 $ — $ (418 ) $ 294,960 As of December 29, 2018, the Company’s available-for-sale investments have a contractual maturity term of up to 9 months . Gross realized gains and losses on short-term and long-term investments were insignificant for all periods. The specific identification method is used to account for gains and losses on available-for-sale investments. As of December 29, 2018, the Company had $229.5 million of cash, cash equivalents and short-term investments, including $89.8 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. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 29, 2018 | |
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 forward contracts, primarily short term in nature. Historically, 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 pounds and SEK. The contracts are generally settled for U.S. dollars, euros and British pounds at maturity under an average rate method 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. As of December 29, 2018, the Company posted $0.9 million of collateral on its derivative instruments to cover potential credit risk exposure. This amount is classified as other long-term restricted cash on the accompanying consolidated balance sheets. The before-tax effect of foreign currency exchange forward contracts was a gain of $0.7 million for 2018 , a loss of $3.5 million for 2017 and a loss of $0.9 million in 2016 , included in other gain (loss), net, in the consolidated statements of operations. 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 December 29, 2018, 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 consolidated statements of operations. These contracts were with one high-quality institution 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 consolidated balance sheets was as follows (in thousands): As of December 29, 2018 As of December 30, 2017 Gross Notional (1) Prepaid Expenses and Other Assets Other Accrued Liabilities Gross Notional (1) Prepaid Expenses and Other Assets Other Accrued Liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ 40,068 $ — $ (52 ) $ 24,794 $ — $ (202 ) Related to British pound denominated receivables 6,412 — (38 ) — — — Related to euro denominated restricted cash $ 240 $ — $ (1 ) $ 252 $ — $ (2 ) Total $ — $ (91 ) $ — $ (204 ) (1) Represents the face amounts of forward contracts that were outstanding as of the period noted. Accounts Receivable Factoring The Company sells certain designated trade account receivables based on factoring arrangements to a large international banking institution. Pursuant to the terms of the arrangements, the Company accounts for these transactions in accordance with ASC 860. The Company's factor purchases trade accounts receivables on a non-recourse basis and without any further obligations. Trade accounts receivables balances sold are removed from the consolidated balance sheets and cash received are reflected as cash provided by operating activities in the consolidated statements of cash flow. The difference between the fair value of the Company's trade receivables and the proceeds received is recorded as interest expense in the Company's consolidated statements of operations, and for the year ended December 29, 2018, the Company's recognized factoring related interest expense was approximately $0.1 million . The gross amount of trade accounts receivables sold for the year ended December 29, 2018 totaled approximately $12.6 million . Prior to the Acquisition, the Company had not entered into any factoring arrangements. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On the Acquisition Date, the Company acquired 100% ownership of Coriant. The Acquisition positions the Company as one of the largest providers of vertically integrated transport networking solutions in the world, enhances the Company's ability to serve a global customer base and accelerates delivery of the innovative solutions its customers demand. This Acquisition also positions the Company to expand the breadth of customer applications it can address, including metro aggregation and switching, disaggregated transport and routing, and software-enabled multi-layer network management and control. The Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations” and consisted of the following (in thousands, except shares): Cash $ 154,192 Equity consideration (1) 129,628 Total $ 283,820 (1) Based on the closing price of the Company's common stock of $6.18 on October 1, 2018, the $129.6 million equity consideration represents the fair value of 21 million shares of the Company's common stock issued to Coriant shareholders in accordance with the Purchase Agreement. The Company financed the cash portion of the purchase price of the Acquisition with the net proceeds from its offering of the $402.5 million of 2.125% convertible senior notes due September 1, 2024 (the “2024 Notes”). See Note 12, “Debt and Financing Lease Obligations” to the Notes to Consolidated Financial Statements for more information. In 2018, the Company expensed acquisition-related costs in the amount of $8.3 million in operating expenses. The Company allocated the fair value of the purchase price of the acquisition to the tangible and intangible assets acquired as well as liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities was recorded as goodwill. The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Acquisition Date (in thousands): Cash and cash equivalents $ 15,549 Restricted cash 25,743 Accounts receivable 170,466 Inventory 96,067 Property, plant and equipment, net 217,991 Other assets 39,145 Intangible assets, net 200,700 Goodwill 48,235 Financing lease obligation (194,700 ) Deferred revenue (43,502 ) Other liabilities (291,874 ) Total net assets $ 283,820 The Company expects to finalize the allocation of the purchase consideration as soon as practicable, pending finalization of income taxes and any other adjustments related to acquired assets or liabilities, but no later than 12 months from the Acquisition Date. The following table presents details of the identifiable assets acquired at the Acquisition Date (in thousands): Fair Value Estimated Useful Life (Years) Customer relationships and backlog $ 111,400 8 Developed technology 70,550 5 In-process technology 17,750 n/a Trade name 1,000 1 Total $ 200,700 Goodwill generated from this business combination is primarily attributable to the synergies from combining the operations of Coriant with that of the Company, which resulted in strengthening the Company's ability to serve a global customer base and accelerate delivery of product solutions. The goodwill recorded in the Acquisition is not expected to be deductible for income tax purposes. The amounts of revenue and net loss of Coriant included in the Company's consolidated statement of operations from the Acquisition Date to December 29, 2018 was $139.6 million and $71.8 million , respectively. The following table presents the unaudited pro forma financial information for the years ended December 29, 2018 and December 30, 2017 as though the companies were combined as of January 1, 2017 (in millions): Years Ended December 29, 2018 December 30, 2017 Revenue $ 1,441 $ 1,488 Net loss $ (421 ) $ (370 ) The pro forma financial information for the years ended December 29, 2018 and December 30, 2017 has been calculated after applying the Company's accounting policies and adjusting the results of Coriant to reflect the acquisition costs incurred and the additional amortization that would have been charged assuming the fair value adjustments to tangible and intangible assets had been applied on January 1, 2017, together with the consequential tax effects. The pro forma financial information is for informational purposes only and is not indicative of the results of the operations that would have been achieved if the Acquisition had taken place at the beginning of the Company's fiscal year 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
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 for the year ended December 29, 2018 (in thousands): Balance as of December 30, 2017 $ 195,615 Goodwill acquired 48,235 Foreign currency translation adjustments (16,619 ) Accumulated impairment loss — Balance as of December 29, 2018 $ 227,231 The gross carrying amount of goodwill may change due to the effects of foreign currency fluctuations as a portion of these assets are denominated in foreign currency. Intangible Assets The following table presents details of the Company’s intangible assets as of December 29, 2018 and December 30, 2017 (in thousands): December 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (250 ) $ 750 NMF* Customer relationships and backlog 158,110 (42,478 ) 115,632 3.5 Developed technology 166,355 (67,368 ) 98,987 1.7 Total intangible assets with finite lives $ 325,465 $ (110,096 ) $ 215,369 5.2 Acquired in-process technology 17,750 — 17,750 Total intangible assets $ 343,215 $ (110,096 ) $ 233,119 *NMF = Not meaningful December 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships $ 51,050 $ (15,007 ) $ 36,043 5.6 Developed technology 104,708 (48,563 ) 56,145 2.7 Total intangible assets with finite lives $ 155,758 $ (63,570 ) $ 92,188 3.9 In connection with the Acquisition, the Company acquired intangible assets for a total of $200.7 million , which is included in the gross carrying amount of intangible assets as of December 29, 2018. See Note 6, "Business Combination" to the Notes to Consolidated Financial Statements for more information. 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 a portion of these assets are denominated in foreign currency. Amortization expense was $52.8 million and $26.6 million for the years ended December 29, 2018 and December 30, 2017, respectively. Intangible assets are carried at cost less accumulated amortization. Amortization expenses are recorded to the appropriate cost and expense categories. During 2017, the Company recorded an impairment charge to research and development expenses 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 December 29, 2018 (in thousands): Fiscal Years Total 2019 2020 2021 2022 2023 and Thereafter Total future amortization expense $ 215,369 $ 60,512 $ 44,979 $ 32,044 $ 29,497 $ 48,337 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Details | Balance Sheet Details Restricted Cash The Company’s restricted cash balance is primarily comprised of certificates of deposit and money market funds, of which the majority is not insured by the Federal Deposit Insurance Corporation. These amounts primarily collateralize the Company’s issuances of standby letters of credit and bank guarantees. Additionally, the Company held $10.0 million in escrow related to the cash consideration associated with the Acquisition. The following table provides details of selected balance sheet items (in thousands): December 29, 2018 December 30, Inventory: Raw materials $ 74,435 $ 27,568 Work in process 57,232 59,662 Finished goods 180,221 127,474 Total $ 311,888 $ 214,704 Property, plant and equipment, net: Computer hardware $ 15,633 $ 13,881 Computer software (1) 40,923 32,521 Laboratory and manufacturing equipment 304,889 246,380 Land and building 187,184 12,347 Furniture and fixtures 2,587 2,474 Leasehold and building improvements 46,038 43,475 Construction in progress 32,997 34,816 Subtotal $ 630,251 $ 385,894 Less accumulated depreciation and amortization (2) (287,431 ) (249,952 ) Total $ 342,820 $ 135,942 Accrued expenses: Loss contingency related to non-cancelable purchase commitments $ 26,042 $ 6,379 Professional and other consulting fees 10,442 5,305 Taxes payable 23,249 3,707 Accrued rebate and customer prepay liability 14,301 3,406 Restructuring accrual 13,097 5,490 Acquisition-related funds in escrow 10,000 — Short-term financing lease obligation 4,718 — Other accrued expenses 30,042 15,495 Total $ 131,891 $ 39,782 (1) Included in computer software at December 29, 2018 and December 30, 2017 were $13.1 million and $11.4 million , respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at December 29, 2018 and December 30, 2017 were $3.9 million and $4.7 million , respectively. (2) Depreciation expense was $47.7 million , $39.4 million and $35.5 million (which includes depreciation of capitalized ERP costs of $2.2 million , $1.7 million and $1.2 million , respectively) for 2018, 2017 and 2016, respectively. |
Restructuring and Other Related
Restructuring and Other Related Costs | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Costs | Restructuring and Other Related Costs In December of 2018, the Company implemented a restructuring initiative (the “2018 Restructuring Plan”) as part of a comprehensive review of the Company's operations and ongoing integration activities in order to optimize resources for future growth, improve efficiencies and address redundancies following the Acquisition. As part of the 2018 Restructuring Plan, the Company hopes to reduce expenses, streamline the organization, and eliminate fixed costs to align more closely with its needs going forward. The Company expects to be complete with activities related to the 2018 Restructuring Plan by the end of 2019. In the fourth quarter of 2017, the Company implemented a plan to restructure its worldwide operations (the “2017 Restructuring Plan”) in order to reduce expenses and establish a more cost-effective structure that better aligns the Company's operations with its long-term strategies. As part of the 2017 Restructuring Plan, the Company is making several changes it believes will help its research and development efficiency, with consolidation of its development sites, including closure of its Beijing, China design center, process changes to more broadly leverage the Company's engineering resources across regions and product line development, and prioritization of research and development initiatives. Outside of engineering, the Company has also made changes to allow it to operate more efficiently as it scales the business, including reducing the Company's facilities footprint and writing off certain equipment that will not be utilized in the future. Finally, the Company realigned its inventory levels to match its new technology cadence and go to market strategies. As of December 30, 2017, the 2017 Restructuring Plan had been substantially completed, with some remaining payments in the first half of 2018. In connection with the Acquisition, the Company assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans consisting of termination benefits primarily comprised of severance payments. These costs are recorded at estimated fair value. The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the 2017 Restructuring Plan (in thousands): Year Ended December 29, 2018 Cost of Revenue Operating Expenses Severance and related expenses $ 2,630 $ 10,413 Facilities — (544 ) Asset impairment — 2,643 Total $ 2,630 $ 12,512 Year Ended December 30, 2017 Cost of Revenue Operating Expenses Severance and related expenses $ 1,510 $ 7,931 Facilities — 7,300 Asset impairment 4,004 875 Inventory write-downs 13,627 — Total $ 19,141 $ 16,106 Restructuring liabilities are reported within accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets (in thousands): December 30, 2017 Assumed Liabilities from the Acquisition Charges Cash Non-cash Settlements and Other December 29, 2018 Severance and related expenses $ 3,672 14,748 $ 13,043 $ (11,172 ) $ (449 ) $ 19,842 Facilities 6,947 — (544 ) (2,062 ) (75 ) 4,266 Asset impairment — — 2,643 — (2,400 ) 243 Total $ 10,619 $ 14,748 $ 15,142 $ (13,234 ) $ (2,924 ) $ 24,351 As of December 29, 2018, the Company's restructuring liability was comprised of $19.8 million of severance and related expenses, of which $13.9 million is related to assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans and is expected to be paid by 2022. The remaining $5.9 million is primarily related to the 2018 Restructuring Plan and is expected to be substantially paid by the end of 2019. The Company's restructuring liability as of December 29, 2018 also comprised of $4.3 million related to facility closures, with leases through January 2022, and $0.2 million related term license agreements that were determined to have no future use. The Company expects the payments related to these term license agreements to be fully paid by the third quarter of 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes certain changes in equity that are excluded from net income (loss). The following table sets forth the changes by component for the periods presented (in thousands): Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Tax Effect Actuarial Gain (Loss) on Pension Total Balance at December 26, 2015 $ (506 ) $ 2,389 $ (760 ) $ — $ 1,123 Other comprehensive income (loss) before reclassifications 297 (29,625 ) (119 ) — (29,447 ) Amounts reclassified from accumulated other comprehensive loss — — — — — Net current-period other comprehensive income (loss) 297 (29,625 ) (119 ) — (29,447 ) Balance at December 31, 2016 $ (209 ) $ (27,236 ) $ (879 ) $ — $ (28,324 ) Other comprehensive income (loss) before reclassifications (209 ) 34,787 — — 34,578 Amounts reclassified from accumulated other comprehensive loss — — — — — Net current-period other comprehensive income (loss) (209 ) 34,787 — — 34,578 Balance at December 30, 2017 $ (418 ) $ 7,551 $ (879 ) $ — $ 6,254 Other comprehensive income (loss) before reclassifications 327 (26,483 ) (85 ) (5,547 ) (31,788 ) Amounts reclassified from accumulated other comprehensive loss — — — 234 234 Net current-period other comprehensive income (loss) 327 (26,483 ) (85 ) (5,313 ) (31,554 ) Balance at December 29, 2018 $ (91 ) $ (18,932 ) $ (964 ) $ (5,313 ) $ (25,300 ) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using net loss 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 RSUs and PSUs, and assumed issuance of common stock under the ESPP using the treasury stock method. Potentially dilutive common shares also include the assumed conversion of the 2024 Notes from the conversion spread (as further discussed in Note 12, “Debt and Financing Lease Obligations” to the Notes to Consolidated Financial Statements), and $150.0 million in aggregate principal amount of its 1.75% convertible senior notes due June 1, 2018 (the “2018 Notes”) from the conversion spread (as further discussed in Note 11, “Convertible Senior Notes” to the Notes to Consolidated Financial Statements disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017). The Company would include the dilutive effects of the 2024 Notes in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the 2024 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 2024 Notes being converted, therefore, only the conversion spread relating to the 2024 Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. The Company includes the common shares underlying PSUs in the calculation of diluted net income per common share only when they become contingently issuable. The following table sets forth the computation of net loss per common share (in thousands, except per share amounts): Years Ended December 29, 2018 December 30, December 31, Net loss $ (214,295 ) $ (194,506 ) $ (23,927 ) Weighted average common shares outstanding - basic and diluted 157,748 147,878 142,989 Net loss per common share - basic and diluted $ (1.36 ) $ (1.32 ) $ (0.17 ) The Company incurred net losses during 2018, 2017 and 2016, and as a result, potential common shares from stock options, RSUs, PSUs and the assumed release of outstanding shares under the ESPP were not included in the diluted shares used to calculate net loss per share, as their inclusion would have been anti-dilutive. Additionally, due to the net loss position during these periods, the Company excluded the potential shares issuable upon conversion of the 2024 Notes and the 2018 Notes in the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive. The following table sets forth the potentially dilutive shares excluded from the computation of the diluted net loss per share because their effect was anti-dilutive (in thousands): As of December 29, 2018 December 30, December 31, Stock options outstanding 1,134 1,461 2,042 Restricted stock units 7,792 6,856 5,302 Performance stock units 1,284 1,420 896 Employee stock purchase plan shares 940 810 1,010 Total 11,150 10,547 9,250 |
Debt and Financing Lease Obliga
Debt and Financing Lease Obligations | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Lease Obligations | and Financing Lease Obligations 2.125% Convertible Senior Notes due September 1, 2024 In September 2018, the Company issued the 2024 Notes due on September 1, 2024, unless earlier repurchased, redeemed or converted. The 2024 Notes are governed by a base indenture dated as of September 11, 2018 and a first supplemental indenture dated as of September 11, 2018 (together, the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2024 Notes are unsecured, and the Indenture does 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 the Company's other securities by the Company. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing March 1, 2019. The net proceeds to the Company were approximately $391.4 million , of which approximately $48.9 million was used to pay the cost of the capped call transactions with certain financial institutions (“Capped Calls”). The Company also used a portion of the remaining net proceeds to fund the cash portion of the purchase price of the Acquisition (as discussed in Note 6, “Business Combination” to the Notes to Consolidated Financial Statements), including fees and expenses relating thereto, and intends to use the remaining net proceeds for general corporate purposes. The Capped Calls have an initial strike price of $9.87 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2024 Notes. The Capped Calls have initial cap prices of $15.19 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 40.8 million shares of common stock. The capped call transactions are expected generally to reduce or offset potential dilution to the Company's common stock upon any conversion of the 2024 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2024 Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls expire on various dates between July 5, 2024 and August 29, 2024. The Capped Calls were recorded as a reduction of the Company’s stockholders' equity in the accompanying consolidated balance sheets. 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 2024 Notes. For any remaining conversion obligation, the Company intends to pay or deliver, as the case may be, either cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election. The initial conversion rate is 101.2812 shares of common stock per $1,000 principal amount of 2024 Notes, subject to anti-dilution adjustments, which is equivalent to a conversion price of approximately $9.87 per share of common stock. Throughout the term of the 2024 Notes, the conversion rate may be adjusted upon the occurrence of certain events, including for any cash dividends. Holders of the 2024 Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a 2024 Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Prior to June 1, 2024, holders may convert their 2024 Notes under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ended on December 29, 2018 (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 2024 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; • if the Company calls the 2024 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; • 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 June 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2024 Notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change as defined in the Indenture governing the 2024 Notes, holders may require the Company to repurchase for cash all or any portion of their 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 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, be required to increase the conversion rate by a number of additional shares for a holder that elects to convert its 2024 Notes in connection with such make-whole fundamental change. The net carrying amounts of the debt obligation were as follows (in thousands): December 29, 2018 Principal $ 402,500 Unamortized discount (1) (127,264 ) Unamortized issuance cost (1) (8,307 ) Net carrying amount $ 266,929 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2024 Notes, which is approximately 69 months . As of December 29, 2018, the carrying amount of the equity component of the 2024 Notes was $128.7 million . In accounting for the issuance of the 2024 Notes, the Company separated the 2024 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 2024 Notes. The equity component is not re-measured 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 2024 Notes. The Company allocated the total issuance costs incurred to the liability and equity components of the 2024 Notes based on their relative values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the Notes and will be amortized as interest expense over the term of the 2024 Notes. The issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The Company recorded a deferred tax liability of $30.9 million in connection with the issuance of the 2024 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 2024 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 2024 Notes (in thousands): Year Ended December 29, 2018 Contractual interest expense $ 2,613 Amortization of debt issuance costs 5,716 Amortization of debt discount 373 Total interest expense $ 8,702 For the year ended December 29, 2018, the debt discount and debt issuance costs were amortized, using an annual effective interest rate of 10.07% , to interest expense over the term of the 2024 Notes. As of December 29, 2018, the fair value of the 2024 Notes was $289.0 million . The fair value was determined based on the quoted bid price of the 2024 Notes in an over-the-counter market on December 28, 2018. The 2024 Notes are classified as Level 2 of the fair value hierarchy. Based on the closing price of the Company’s common stock of $3.92 on December 28, 2018, the if-converted value of the Notes did not exceed their principal amount. 1.75% Convertible Senior Notes due June 1, 2018 In May 2013, the Company issued the 2018 Notes, which matured on June 1, 2018. Upon maturity of the 2018 Notes, the Company repaid in full all $150.0 million in aggregate principal amount and the final coupon interest of $1.3 million . The net carrying amount of the debt obligation as of December 30, 2017 was as follows (in thousands): Principal $ 150,000 Unamortized discount (4,670 ) Unamortized issuance cost (402 ) Net carrying amount $ 144,928 As of December 30, 2017, the carrying amount of the equity component of the 2018 Notes was $43.3 million . The following table sets forth total interest expense recognized related to the 2018 Notes (in thousands): Years Ended December 29, 2018 December 30, 2017 Contractual interest expense $ 1,094 $ 2,625 Amortization of debt issuance costs 402 898 Amortization of debt discount 4,671 10,444 Total interest expense $ 6,167 $ 13,967 The coupon rate was 1.75% . For the year ended December 29, 2018 and the year ended December 30, 2017, the debt discount and debt issuance costs were amortized, using an annual effective interest rate of 10.23% , to interest expense over the term of the 2018 Notes. Financing Lease Obligations The Company evaluated two sale-leaseback transactions that were executed by Coriant in the past and assumed by Infinera in the Acquisition. It was determined that these transactions did not qualify for sale-leaseback accounting under ASC 840-40, “Leases - Sale-Leaseback Transactions.” The Company leases a facility (land and all attached real property) in Naperville, Illinois that was sold to a third party and subsequently leased back. This was determined to be a failed sale-leaseback due to a $31.5 million imposition reimbursement payment to be made over 10 years, which was linked to the total building income generated each year. As a result of purchase accounting, the financing lease obligation was recorded at the present value of the remaining lease payments and expected value of the facility at the end of the occupancy period. The financing lease obligation will continue to be amortized over the remaining period of the lease term. The assets will continue to be depreciated over their remaining useful lives. Additionally, the Company leases a facility (land and all attached real property) in Finland, which was sold to a third party and subsequently leased back. The lease was determined to be a failed sale-leaseback due to the deposit being considered a form of collateral. The amount of the deposit was equal to one year of rental payments, whereas typical deposits are approximately two to three months of rental payments. As a result of purchase accounting, the financing lease obligation was recorded at the present value of the remaining lease payments and expected value of the facility at the end of the occupancy period. The financing lease obligation will continue to be amortized over the remaining period of the lease term. The assets will continue to be depreciated over their remaining useful lives. The amount recognized for interest and depreciation expense going forward will substantially exceed the Company's periodic rental payments. The average discount rate for the year ended December 29, 2018 was 7.0% . During the year ended December 29, 2018, depreciation expense and interest expense related to these failed sale-leaseback transactions were $1.0 million and $6.5 million , respectively. The Company's rental payments during the year ended December 29, 2018 were $2.3 million . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 10 years, and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to five years . The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $5.4 million and $3.5 million as of December 29, 2018 and December 30, 2017, respectively. These obligations are classified as other long-term liabilities on the accompanying consolidated balance sheets. The Company recognizes rent expense on a straight-line basis over the lease period factoring in leasehold improvement incentives, rent holidays and escalation clauses. Rent expense for all leases was $12.1 million , $12.0 million and $11.0 million for 2018, 2017 and 2016, respectively. The Company recorded sublease rental income of $0.9 million in 2018. The Company did not have any sublease rental income for 2017 and 2016. Future annual minimum operating lease payments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Operating lease payments $ 18,352 $ 14,047 $ 7,888 $ 5,926 $ 4,905 $ 18,303 $ 69,421 In the fourth quarter of 2017, the Company implemented the 2017 Restructuring Plan, which included vacating certain leased facilities. See Note 9, "Restructuring and Other Related Costs" to the Notes to Consolidated Financial Statements for more information. Financing Lease Obligations The Company leases two facilities that were assumed with the Acquisition. As a result of purchase accounting, these financing lease obligations were recorded at the present value of the remaining lease payments and expected value of the facility at the end of the occupancy period. The financing lease obligations will continue to be amortized over the remaining period of the lease terms, which range from seven to 10 years. See Note 12, "Debt and Financing Lease Obligations" to the Notes to Consolidated Financial Statements for more information. Future annual minimum financing lease payments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Financing lease obligations $ 9,346 $ 9,454 $ 6,666 $ 5,728 $ 4,465 $ 15,750 $ 51,409 Purchase Commitments The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 29, 2018, December 30, 2017 and December 31, 2016, these non-cancelable purchase commitments were $203.5 million , $96.1 million and $111.9 million , respectively. The significant increase of purchase commitments in 2018 was due to the Acquisition. Future purchase commitments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Purchase obligations $ 200,939 $ 751 $ 599 $ 500 $ 757 $ — $ 203,546 The contractual obligation tables above exclude tax liabilities of $3.4 million related to uncertain tax positions because the Company cannot reliably estimate the timing and amount of future payments, if any. 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 (the “’327 patent”), 8,374,511 (the “‘511 patent”) and 8,913,898 (the “’898 patent”) (collectively, the “Oyster Optics patents in suit”). The complaint seeks unspecified damages and a permanent injunction. The Company filed its answer to Oyster Optics' complaint on February 3, 2017. The Company filed two petitions for Inter Partes Review (“IPR”) of the '898 patent with the U.S Patent and Trademark Office ("USPTO"). Other defendants have filed IPR petitions in connection with the remaining Oyster Optics patents in suit. The USPTO instituted two IPRs of the ‘511 patent and two IPRs of ‘898 patent but denied IPR petitions in connection with the ‘327 patent. A Markman decision was issued on December 5, 2017 and fact discovery closed on December 22, 2017. Oyster Optics dropped the ‘511 and ‘898 patents, leaving only a few claims in the ‘327 patent at issue in the case. On May 15, 2018, Oyster Optics filed a new patent infringement complaint in the United States District Court for the Eastern District of Texas, naming the Company as a defendant. In its new complaint, Oyster Optics alleges infringement of the ‘327 patent, U.S. Patent No. 9,749,040 and the ‘898 patent. On June 8, 2018, the court granted the parties’ joint motion to sever and consolidate the first-filed lawsuit with the later filed case. The Company filed its answer to the new complaint on July 16, 2018. A case management conference was held on September 11, 2018, and the court set a trial date for November 4, 2019. On October 26, 2018, the Company filed an amended answer to include a license defense. On November 29, 2018, the Company filed a motion for summary judgment based on the license defense. 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. The Company filed its answer to Core Optical's complaint on September 25, 2017. A Markman hearing was held on May 9, 2018 and the court has set a trial for March 2019. On June 14, 2018, the Company filed a petition for IPR of the Core Optical patent in suit in the USPTO. Core Optical contacted the Company on July 19, 2018 to propose that the case be stayed pending the IPR. The Company agreed to Core Optical’s proposal, and the parties filed a joint motion to stay, which the court granted on July 31, 2018. On October 17, 2018, Core Optical filed a response to the Company's IPR petition. On January 14, 2019, the USPTO denied the Company's IPR petition, and on February 13, 2019, the Company filed a request for rehearing in the USPTO requesting reconsideration of the dismissal of the Company's IPR petition. 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. On June 8, 2017, a Civil Investigative Demand was issued to Coriant pursuant to a False Claims Act investigation by the U.S. government as to whether there has been any violation of 31 U.S.C. §3729. Coriant provided documents and other responses to the U.S. government, and the Company will continue to cooperate in the ongoing investigation. 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 December 29, 2018 and December 30, 2017, the Company has accrued the estimated liabilities associated with certain loss contingencies. Indemnification Obligations From time to time, the Company enters into certain types of contracts that contingently require it to indemnify parties against third party claims. The terms of such indemnification obligations vary. These contracts may relate to: (i) certain real estate leases under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; and (ii) certain agreements with the Company’s officers, directors and certain key employees, under which the Company may be required to indemnify such persons for liabilities. In addition, 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 intellectual property 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. These 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. 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. As permitted under Delaware law and the Company’s charter and bylaws, the Company has agreements whereby it indemnifies certain of its officers and each of its directors. The term of the indemnification period is for the officer’s or director’s lifetime for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements could be significant; however, the Company has a director and officer insurance policy that may reduce its exposure and enable it to recover all or a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Product Warranties Activity related to product warranty was as follows (in thousands): December 29, 2018 December 30, Beginning balance $ 30,909 $ 40,342 Charges to operations 28,685 18,283 Utilization (18,028 ) (14,985 ) Change in estimate (1) (545 ) (12,731 ) Balance at the end of the period $ 41,021 $ 30,909 (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 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 $30.0 million of standby letters of credit and bank guarantees outstanding as of December 29, 2018. These consisted of $23.4 million related to customer performance guarantees, $1.4 million of value-added tax and customs' licenses, $2.9 million related to property leases, $1.8 million related to Coriant pre-acquisition restructuring plans and $0.5 million related to credit cards. Of the aforementioned standby letters of credit and bank guarantees outstanding, $13.4 million was backed by cash collateral from a third-party institution, and the Company accrues 5% annual servicing fee on the outstanding cash collateral. The Company had $4.2 million of standby letters of credit and bank guarantees outstanding as of December 30, 2017. These consisted of $0.7 million related to property leases, $2.2 million related to customer performance guarantees, and $1.3 million related to a value added tax and customs authorities' licenses. As of December 29, 2018 and December 30, 2017, the Company has a line of credit for approximately $1.6 million to support the issuance of letters of credit, of which zero had been issued and outstanding, for both periods. The Company has pledged approximately $4.9 million and $5.2 million of assets of a subsidiary to secure this line of credit and other obligations as of December 29, 2018 and December 30, 2017, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity | Stockholders’ Equity 2007 Equity Incentive Plan, 2016 Equity Incentive Plan and Employee Stock Purchase Plan In February 2007, the Company’s board of directors adopted the 2007 Equity Incentive Plan (the “2007 Plan”) and the Company’s stockholders approved the 2007 Plan in May 2007. The Company reserved a total of 46.8 million shares of common stock for issuance under the 2007 Plan. Upon stockholder approval of the 2016 Equity Incentive Plan (the “2016 Plan”), the Company has ceased granting equity awards under the 2007 Plan, however the 2007 Plan will continue to govern the terms and conditions of the outstanding options and awards previously granted under the 2007 Plan. As of December 29, 2018, options to purchase 1.1 million shares of the Company's common stock were outstanding and 1 million RSUs were outstanding under the 2007 Plan. In February 2016, the Company's board of directors adopted the 2016 Plan and the Company's stockholders approved the 2016 Plan in May 2016. In May 2018, 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 1.5 million shares. As of December 29, 2018, the Company reserved a total of 15.4 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 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 ESPP was adopted by the board of directors in February 2007 and approved by the stockholders in May 2007. The ESPP was last amended by the stockholders in May 2018 to increase the shares authorized under the ESPP to a total of approximately 21.1 million shares of common stock. The ESPP has a 20 -year term. Eligible employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six -month offering periods. An employee’s payroll deductions under the ESPP are limited to 15% of the employee’s compensation and employees may not purchase more than $25,000 of stock during any calendar year. Shares Reserved for Future Issuances Common stock reserved for future issuance was as follows (in thousands): December 29, 2018 Outstanding stock options and awards 8,990 Reserved for future option and award grants 8,728 Reserved for future ESPP 4,835 Total common stock reserved for stock options and awards 22,553 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. The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Options Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 26, 2015 2,511 $ 7.26 $ 28,288 Options granted — $ — Options exercised (825 ) $ 4.97 $ 4,433 Options canceled (31 ) $ 12.46 Outstanding at December 31, 2016 1,655 $ 8.30 $ 965 Options granted — $ — Options exercised (196 ) $ 7.78 $ 373 Options canceled (62 ) $ 14.11 Outstanding at December 30, 2017 1,397 $ 8.11 $ 1 Options granted — $ — Options exercised (229 ) $ 7.43 $ 496 Options canceled (53 ) $ 11.57 Outstanding at December 29, 2018 1,115 $ 8.09 $ — Exercisable at December 29, 2018 1,115 $ 8.09 $ — Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 26, 2015 4,932 $ 12.76 $ 91,285 RSUs granted 2,992 $ 13.94 RSUs released (2,303 ) $ 11.06 $ 26,407 RSUs canceled (328 ) $ 13.90 Outstanding at December 31, 2016 5,293 $ 14.10 $ 44,939 RSUs granted 4,281 $ 9.66 RSUs released (2,198 ) $ 13.56 $ 20,791 RSUs canceled (585 ) $ 13.24 Outstanding at December 30, 2017 6,791 $ 11.55 $ 42,988 RSUs granted 3,756 $ 10.52 RSUs released (2,642 ) $ 12.12 $ 26,457 RSUs canceled (1,159 ) $ 11.12 Outstanding at December 29, 2018 6,746 $ 10.83 $ 26,446 Number of Performance Stock Units Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 26, 2015 731 $ 12.35 $ 13,540 PSUs granted 647 $ 15.28 PSU performance earned (1) 234 $ 12.28 PSUs released (614 ) $ 11.34 $ 8,077 PSUs canceled (94 ) $ 15.18 Outstanding at December 31, 2016 904 $ 14.13 $ 7,672 PSUs granted 916 $ 10.88 PSUs released (26 ) $ 11.83 $ 225 PSUs canceled (427 ) $ 12.20 Outstanding at December 30, 2017 1,367 $ 16.28 $ 8,651 PSUs granted 521 $ 9.79 PSUs released (55 ) $ 15.93 $ 411 PSUs canceled (704 ) $ 16.01 Outstanding at December 29, 2018 1,129 $ 16.10 $ 4,425 Expected to vest as of December 29, 2018 17 $ 65 (1) Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant. The aggregate intrinsic value of unexercised options is calculated as the difference between the closing price of the Company’s common stock of $3.92 at December 28, 2018 and the exercise prices of the underlying stock options. The aggregate intrinsic value of the options which 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 $3.92 at December 28, 2018. 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 December 29, 2018. 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) RSUs $ 54,006 2.48 PSUs $ 6,649 1.41 The following table summarizes information about options outstanding at December 29, 2018. Options Outstanding Vested and Exercisable Options Exercise Price Number of Shares Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price (In thousands) (In years) (In thousands) $6.71 - $ 7.25 183 0.72 $ 7.01 183 $ 7.01 $7.45 - $ 7.53 185 0.94 $ 7.47 185 $ 7.47 $7.68 - $ 8.19 192 1.48 $ 8.08 192 $ 8.08 $ 8.58 485 2.12 $ 8.58 485 $ 8.58 $9.02 - $9.28 70 1.60 $ 9.19 70 $ 9.19 1,115 1.55 $ 8.09 1,115 $ 8.09 Employee Stock Options The Company did not grant any stock options during 2018, 2017 or 2016. Stock option exercises are settled with newly issued shares of common stock approved by stockholders for inclusion under the 2007 Plan. Amortization of stock-based compensation expense related to stock options in 2018, 2017 and 2016 was insignificant. Employee Stock Purchase Plan The fair value of the ESPP shares was estimated at the date of grant using the following assumptions: Years Ended December 29, 2018 December 30, December 31, Volatility 48% - 62% 47% - 51% 56% - 67% Risk-free interest rate 1.90% - 2.31% 0.81% - 1.16% 0.51% - 0.52% Expected life 0.5 years 0.5 years 0.5 years Estimated fair value $2.47 - $3.13 $2.44 - $3.46 $3.16 - $4.53 The Company’s ESPP activity for the following periods was as follows (in thousands): Years Ended December 29, 2018 December 30, December 31, Stock-based compensation expense $ 5,478 $ 6,049 $ 6,094 Employee contributions $ 15,992 $ 16,410 $ 13,609 Shares purchased 2,189 2,140 1,369 Restricted Stock Units The Company granted RSUs to employees and members of the Company’s board of directors to receive 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 expense related to RSUs in 2018, 2017 and 2016 was approximately $29.2 million , $30.5 million and $29.6 million , respectively. Performance Stock Units Pursuant to the 2007 Plan, the Company has granted PSUs to certain of the Company’s executive officers, senior management and certain 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. A number of PSUs granted to the Company’s executive officers and senior management are based on the total shareholder return of the Company's common stock price as compared to the total shareholder return 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. The ranges of estimated values of the PSUs granted that are compared to the SPGIIPTR, as well as the assumptions used in calculating these values were based on estimates as follows: 2018 2017 2016 Index volatility 33% 33% - 34% 18% Infinera volatility 58% - 59% 55% - 56% 55% Risk-free interest rate 2.37% - 2.40% 1.41% - 1.63% 0.95% - 1.07% Correlation with index 0.04 - 0.48 0.10 - 0.49 0.58 - 0.59 Estimated fair value $14.99 - $19.46 $15.23 - $17.35 $10.31 - $16.62 In addition, the Company has granted other PSUs to certain employees that only vest upon the achievement of specific operational performance criteria. The following table summarizes by grant year, the Company’s PSU activity for the year ended December 29, 2018 (in thousands): Grant Year Total Number of Performance Stock Units 2015 2016 2017 2018 Outstanding at December 30, 2017 1,367 77 420 869 — PSUs granted 521 — — — 521 PSUs released (55 ) — — — (55 ) PSUs canceled (704 ) (77 ) (210 ) (388 ) (29 ) Outstanding at December 29, 2018 1,129 — 210 481 437 (1) Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant since the original grants were at 100% of target amounts. Amortization of stock-based compensation expense related to PSUs in 2018, 2017 and 2016 was approximately $8.2 million , $9.5 million and $6.6 million , respectively. Stock-based Compensation Expense The following tables summarize the effects of stock-based compensation on the Company’s consolidated balance sheets and statements of operations for the periods presented (in thousands): Years Ended December 29, 2018 December 30, December 31, Stock-based compensation effects in inventory $ 4,750 $ 5,255 $ 4,911 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 1,635 $ 3,065 $ 2,966 Research and development 16,270 15,845 13,732 Sales and marketing 10,869 11,288 11,043 General and administrative 9,649 10,776 9,295 $ 38,423 $ 40,974 $ 37,036 Cost of revenue—amortization from balance sheet (1) 4,986 4,746 3,497 Total stock-based compensation expense $ 43,409 $ 45,720 $ 40,533 (1) Represents stock-based compensation expense deferred to inventory in prior periods and recognized in the current period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a geographic breakdown of the benefit from income taxes (in thousands): Years Ended December 29, 2018 December 30, December 31, Current: Federal $ — $ — $ 32 State 186 69 861 Foreign 6,832 4,679 2,288 Total current $ 7,018 $ 4,748 $ 3,181 Deferred: Federal $ (546 ) $ — $ — State — — — Foreign (7,127 ) (6,178 ) (7,932 ) Total deferred $ (7,673 ) $ (6,178 ) $ (7,932 ) Total benefit from income taxes $ (655 ) $ (1,430 ) $ (4,751 ) Loss before provision for income taxes from international operations was $135.5 million , $22.6 million and $23.1 million for the years ended December 29, 2018, December 30, 2017 and December 31, 2016, respectively. The provisions for (benefit from) income taxes differ from the amount computed by applying the statutory federal income tax rates as follows: Years Ended December 29, December 30, December 31, Expected tax (benefit) at federal statutory rate (21.0 )% (35.0 )% (35.0 )% State taxes, net of federal benefit 0.1 % — % 2.2 % Research credits (1.8 )% (1.8 )% (8.9 )% Stock-based compensation 0.8 % 6.0 % 22.3 % Change in valuation allowance 18.1 % 26.8 % (5.9 )% Foreign rate differential 2.9 % 3.3 % 9.4 % Other 0.6 % — % (0.4 )% Effective tax rate (0.3 )% (0.7 )% (16.3 )% The Company recognized an income tax benefit of $0.7 million on a loss before income taxes of $215.0 million , an income tax benefit of $1.4 million on a loss before income taxes of $195.9 million and an income tax benefit of $4.8 million on a loss before income taxes of $29.2 million in fiscal years 2018, 2017 and 2016, respectively. The resulting effective tax rates were (0.3)% , (0.7)% and (16.3)% for 2018, 2017 and 2016, respectively. The 2018 and 2017 effective tax rates differ from the expected statutory rate of 21% based on the Company's ability to benefit U.S. loss carryforwards, offset by state income taxes, non-deductible stock-based compensation expenses and foreign taxes provided on foreign subsidiary earnings. The lower 2018 income tax benefit compared to 2017 primarily relates to lower corporate income tax rate due to the Tax Act and lower stock-based compensation as a result of the Acquisition of Coriant. The lower 2017 income tax benefit compared to 2016 primarily relates to lower acquisition related amortization expenses and lower state income taxes offset by an increase in tax reserves, and an increase in taxable foreign profits in certain jurisdictions. Because of the Company's U.S. operating loss in 2018, significant loss carryforward position, and corresponding valuation allowance in all years, the Company has not been subject to federal or state tax on the Company's U.S. income because of the availability of loss carryforwards. If these losses and other tax attributes become fully utilized, the Company's taxes will increase significantly to a more normalized, expected rate on U.S. earnings. The release of transfer pricing reserves in the future will have a beneficial impact to tax expense, but the timing of the impact depends on factors such as expiration of the statute of limitations or settlements with tax authorities. On December 22, 2017, the Tax Act was signed into law. The Tax Act significantly revises the U.S. corporate income tax regime by, among other things, lowering the federal corporate income tax rate from 35% to 21% effective January 1, 2018, while also imposing a repatriation tax on deemed repatriated earnings of the Company's foreign subsidiaries in 2017, and implementing a quasi-territorial tax system on future foreign earnings. The Tax Act created the global intangible low-taxed income (“GILTI”) provision, beginning in 2018. The GILTI provision requires that certain income earned by foreign subsidiaries must be included currently in the gross income of the foreign subsidiaries U.S. shareholder. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company has elected to account for the tax using the period cost method. The Company had no GILTI impacts for 2018 given the foreign subsidiaries' losses. On December 22, 2017, SAB 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company determined an adjustment to deferred tax assets, along with a corresponding adjustment to valuation allowance, was needed. The adjustment resulted in no tax expense impact in connection with the re-measurement of certain deferred tax assets and liabilities from 35% to 21% . Additionally, the Company provisionally recorded no tax expense in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, based upon an aggregate tax loss of its foreign subsidiaries for the year ended December 30, 2017. The Company finalized its accounting for the re-measurement of deferred tax balances and transition tax with no adjustment to income tax expense for the year ended December 29, 2018. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows, reduced by the effects of the change in the U.S. corporate tax rate from 35% to 21%, as applicable (in thousands): Years Ended December 29, 2018 December 30, Deferred tax assets: Net operating losses $ 257,928 $ 66,122 Research and foreign tax credits 221,943 74,434 Nondeductible accruals 50,312 28,801 Inventory valuation 39,430 29,197 Property, plant and equipment 2,591 1,919 Intangible assets — 3 Stock-based compensation 4,825 6,325 Total deferred tax assets $ 577,029 $ 206,801 Valuation allowance (493,157 ) (205,241 ) Net deferred tax assets $ 83,872 $ 1,560 Deferred tax liabilities: Accrual and reverse - lease (16,802 ) — Depreciation (199 ) (67 ) Accruals, reserves and prepaid expenses (784 ) (1,154 ) Acquired intangible assets (49,406 ) (20,348 ) Convertible senior notes (29,419 ) (1,191 ) Total deferred tax liabilities $ (96,610 ) $ (22,760 ) Net deferred tax liabilities $ (12,738 ) $ (21,200 ) 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. The Company must consider all positive and negative evidence, including the Company's 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 full or partial valuation allowance against its net U.S. deferred tax assets. Based on the available objective evidence, management believes it is not more likely than not that the domestic net deferred tax assets will be realizable in the foreseeable future. Accordingly, the Company has provided a full valuation allowance against its domestic deferred tax assets, net of deferred tax liabilities, as of December 29, 2018 and December 30, 2017. To the extent that the Company determines that deferred tax assets are realizable on a more likely than not basis, and an 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. As of December 29, 2018, the Company has net operating loss carryforwards of approximately $592.7 million for federal tax purposes, $356.0 million for Luxembourg tax purposes, $57.4 million for Finland tax purposes, $495.0 million for other state tax purposes, with material state net operating loss carryforwards being $111.6 million for California tax purposes and $55.6 million for Illinois. The carryforward balance reflects expected generation of both federal and state net operating losses for the year ended December 29, 2018. Federal net operating loss carryforwards generated before 2018 will begin to expire in 2027 while certain unutilized California losses have expired in 2017. Additionally, the Company has federal research and development, foreign tax credits, and federal low income housing credit, and California research and development credits available to reduce future income taxes payable of approximately $179.6 million and $60.3 million , respectively, as of December 29, 2018. Infinera Canada Inc., an indirect wholly owned subsidiary, has Scientific Research and Experimental Development Expenditures (“SRED”) credits available of $2.3 million to offset future Canadian income tax payable as of December 29, 2018. Coriant Portugal has research and investment tax credits so-called, SIFIDE, of $5.3 million to offset future Portugal's income tax payable as of December 29, 2018. Federal credits will begin to expire in the year 2022 if not utilized and California research credits have no expiration date. Canadian SRED credits will begin to expire in the year 2032 if not fully utilized. Portugal SIFIDE credits will begin to expire in the year 2021. Under the Tax Reform Act of 1986, the amount of benefit from net operating loss and tax credit carryforwards may be impaired or limited in certain circumstances. Events which cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership change of more than 50 percent as defined over a three-year testing period. As of December 29, 2018, the Company had determined that while ownership changes had occurred in the past, the resulting limitations were not significant enough to impact the utilization of the tax attributes against its taxable profits earned to date. Prior to the enactment of the Tax Act, the Company’s policy with respect to undistributed foreign subsidiaries’ earnings was to consider those earnings to be indefinitely reinvested. Under the Tax Act, undistributed earnings of foreign subsidiaries are deemed to be repatriated for U.S. corporate tax purposes and a one-time toll tax at a reduced U.S. corporate tax rate was applicable in 2017. However, because of the aggregated net tax loss of the Company's foreign subsidiaries, no tax was accruable in 2017. If and when funds are actually distributed in the form of dividends or otherwise, foreign withholding taxes may be applicable in some jurisdictions. The Company's policy with respect to certain undistributed foreign subsidiaries’ earnings is to continue to consider those earnings to be indefinitely reinvested and therefore the Company has not accrued such withholding taxes. The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): December 29, 2018 December 30, December 31, Beginning balance $ 19,786 $ 22,282 $ 19,130 Tax position related to current year Additions 2,296 2,234 2,548 Tax positions related to prior years Additions 2,981 — 1,292 Reductions (40 ) (4,728 ) — Lapses of statute of limitations (406 ) (2 ) (688 ) Ending balance $ 24,617 $ 19,786 $ 22,282 As of December 29, 2018, the cumulative unrecognized tax benefit was $24.6 million , of which $21.3 million was netted against deferred tax assets that would have otherwise been subjected with a full valuation allowance. Of the total unrecognized tax benefit as of December 29, 2018, approximately $3.3 million , if recognized, would impact the Company’s effective tax rate. As of December 29, 2018, December 30, 2017 and December 31, 2016, the Company had $1.2 million , $0.7 million and $0.5 million , respectively, of accrued interest or penalties related to unrecognized tax benefits, of which less than $0.2 million was included in the Company’s provision for income taxes in each of the years ended December 29, 2018, December 30, 2017 and December 31, 2016, respectively. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Company’s provision for income taxes. The Company is potentially subject to examination by the Internal Revenue Service and the relevant state income taxing authorities under the statute of limitations for years 2002 and forward. The Company has received assessments of tax resulting from transfer pricing examinations in India for most years in the range of fiscal years ending March 2005 through March 2015. While some of the assessment years have been settled with no change from the original tax return position, the Company intends to appeal all remaining assessment years, and does not expect a significant adjustment to unrecognized tax benefits as a result of these inquiries. The Company believes that the resolution of these disputed issues will not have a material impact on its financial statements. Included in the balance of income tax liabilities, accrued interest and penalties at December 28, 2018 is $0.2 million related to tax positions for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2018 | |
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 long-lived assets by geographic region (in thousands): Property, plant and equipment, net December 29, 2018 December 30, United States $ 288,614 $ 128,582 Other Americas 2,370 661 Europe, Middle East and Africa 38,273 3,527 Asia Pacific and Japan 13,563 3,172 Total property, plant and equipment, net $ 342,820 $ 135,942 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit and Pension Plans Defined Contribution Plans The Company has established a savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). As allowed under Section 401(k) of the Internal Revenue Code, the 401(k) Plan provides tax-deferred salary contributions for eligible U.S. employees. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. The Company made voluntary cash contributions and matched a portion of employee contributions of $2.3 million , $2.2 million and $2.1 million for 2018, 2017 and 2016, respectively. Expenses related to the 401(k) Plan were insignificant for each of the years 2018, 2017 and 2016. In connection with the Company's acquisition of Transmode during the third quarter of 2015, the Company has an ITP pension plan covering its Swedish employees. Commitments for old-age and survivors' pension for salaried employees in Sweden are vested through an insurance policy. Expenses related to the ITP pension plan were $2.8 million for 2018, $3.3 million for 2017 and $2.6 million for 2016. The Company also provides defined contribution plans in certain foreign countries where required by local statute or at the Company's discretion. For the year ended December 29, 2018, the Company had $2.5 million related to post-retirement costs. Pension Plans Pension and Post-Retirement Benefit Plans As a result of the Acquisition during the fourth quarter of 2018, the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as, investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal, and economic requirements. Obligations and Funded Status The following table sets forth the changes in benefits obligations and the fair value of plan assets of the Company's benefit plans (in thousands): December 29, 2018 Benefit obligation as of Acquisition Date $ 106,474 Service cost 466 Interest cost 512 Benefits paid (194 ) Actuarial loss 236 Foreign currency exchange rate changes (2,870 ) Benefit obligation at December 29, 2018 (1) $ 104,624 Fair value of plan assets as of Acquisition Date $ 69,614 Actual return on plan assets 653 Actuarial loss (5,319 ) Foreign currency exchange rate changes (1,884 ) Fair value of plan assets at December 29, 2018 $ 63,064 Net liability recognized $ 41,560 (1) The Company's accumulated benefit obligation was $100.2 million at December 29, 2018. The net liability is included in the line item other long-term liabilities in the Company's consolidated balance sheets. The following table presents net amounts of non-current assets and current and non-current liabilities for the Company's pension and other post-retirement benefit plans recognized on its consolidated balance sheet (in thousands): December 29, 2018 Other non-current assets $ 63,064 Current liabilities (901 ) Other long-term liabilities (103,723 ) Net liability recognized $ (41,560 ) Components of Net Periodic Benefit Cost Net periodic benefit cost for the Company's pension and other post-retirement benefit plans for the Acquisition Date through December 29, 2018 consisted of the following (in thousands): Service cost $ 466 Interest cost 512 Expected return on plan assets (653 ) Amortization of actuarial loss 234 Total net periodic benefit cost $ 559 Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the pension benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the pension plan participants. All components of net periodic benefit cost are recorded in operating expense of the Company's consolidated statements of operations. The following table sets forth the changes in accumulated other comprehensive income for the Company's benefit plans (pre-tax) (in thousands): December 29, 2018 Beginning balance as of Acquisition Date $ — Net actuarial loss arising in current year (5,562 ) Amortization of net actuarial loss (1) 234 Foreign currency translation gain 15 Ending balance $ (5,313 ) (1) The actuarial loss in for the year ended December 29, 2018 was caused primarily by the change in the discount rate. Amounts in accumulated other comprehensive income expected to be recognized as components of net periodic pension cost during fiscal year 2019 is $1.7 million (pre-tax). Assumptions Certain weighted-average assumptions used in computing the benefit obligations are as follows: December 29, 2018 Discount rate 2.07 % Salary growth rate 2.25 % Pension growth rate 2.00 % Assumptions regarding future mortality are set based on actuarial advice in accordance with published German statistics and experience. These assumptions translate into an average remaining life expectancy in years for a pensioner retiring at age 65: 2019 Life Expectancy Retiring at the end of the reporting period 20.5 Male 20.0 Female 23.6 Investment Policy The financial position of the Company’s funded status is the difference between the fair value of plan assets and projected benefit obligations. Volatility in funded status occurs when asset values change differently from liability values and can result in fluctuations in costs in financial reporting. The Company’s investment policies and strategies are designed to increase the rate of assets to plan liabilities at an appropriate level of funded status volatility. Asset allocation decisions are recommended by the trustees for the specific plan and agreed to by the Company's management. Investment objectives are designed to generate returns that will enable the plan to meet its future obligations. The Company's management reviews the investment strategy and performance semi-annually and discuss alternatives to manage volatility. Basis for Expected Long-Term Rate of Return on Plan Assets The expected long-term rate of return on plan assets reflects the expected returns for each major asset class in which the plan invests and the weight of each asset class in the target mix. Expected asset returns reflect the current yield on government bonds, risk premiums for each asset class and expected real returns which considers each country’s specific inflation outlook. The expected return is set using a low to medium risk profile and to meet the market expectations over a longer period of time to meet the obligations in the future. Fair Value of Plan Assets The following tables present the fair value of plan assets for pension and other benefit plans by major asset category as of December 29, 2018 (in thousands). As of December 29, 2018 Fair Value Measured Using Level 1 Level 2 Total Cash $ 686 $ — $ 686 Equity fund — 32,513 32,513 Insurance contracts — 24,852 24,852 Mixed fund — 4,114 4,114 Pension fund — 899 899 Total plan assets at fair value $ 686 $ 62,378 $ 63,064 Valuation Techniques The following describes the valuation techniques used to measure the fair value of the assets shown in the table above. Equity funds are invested in traded securities and are recorded at market value as of the balance sheet date. Insurance contracts are recorded at cash surrender value of the policies. Mixed fund and pension fund are valued at the amounts as provided by the insurance companies who manage the funds and represent fair market value at the date of the balance sheet. Transfers Between Levels Any transfers between levels in the fair value hierarchy are recognized as of the end of the reporting period. No material transfers between levels occurred from the Acquisition Date through December 29, 2018. Future Contributions In fiscal year 2019, the Company does not expect to make any contributions to its pension and post-retirement benefit plans. Cash Flows Estimated future benefit payments under the Company's pension plans as of December 29, 2018 are as follows (in thousands): 2019 $ 2,660 2020 $ 2,579 2021 $ 3,911 2022 $ 4,284 2023 $ 3,667 2024 to 2027 $ 20,954 |
Financial Information by Quarte
Financial Information by Quarter (Unaudited) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Financial Information by Quarter (Unaudited) | Financial Information by Quarter (Unaudited) The following table sets forth the Company’s unaudited quarterly consolidated statements of operations data for 2018 and 2017. The data has been prepared on the same basis as the audited consolidated financial statements and related notes included in this report. The table includes all necessary adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair presentation of this data. For the Three Months Ended (Unaudited) 2018 2017 Dec. 29 Sep. 29 Jun. 30 Mar. 31 Dec. 30 Sep. 30 Jul. 1 Apr. 1 (In thousands, except per share data) Revenue: Product $ 249,608 $ 167,030 $ 175,288 $ 171,629 $ 160,543 $ 159,579 $ 143,360 $ 147,053 Services 82,450 33,383 32,939 31,052 35,273 33,001 33,461 28,469 Total revenue 332,058 200,413 208,227 202,681 195,816 192,580 176,821 175,522 Cost of revenue: Cost of product (1) 197,251 112,276 105,914 102,324 110,512 106,413 95,267 94,452 Cost of services 39,409 13,075 13,039 12,831 13,708 12,951 11,687 12,134 Amortization of intangible assets (1) 8,315 4,876 4,943 5,341 5,169 5,390 5,035 4,880 Restructuring and related 2,580 7 26 17 19,141 — — — Total cost of revenue 247,555 130,234 123,922 120,513 148,530 124,754 111,989 111,466 Gross profit 84,503 70,179 84,305 82,168 47,286 67,826 64,832 64,056 Operating expenses 198,728 95,337 105,924 106,846 117,793 102,074 105,337 101,883 Loss from operations (114,225 ) (25,158 ) (21,619 ) (24,678 ) (70,507 ) (34,248 ) (40,505 ) (37,827 ) Other income (expense), net (19,231 ) (7,317 ) (443 ) (2,280 ) (4,449 ) (2,772 ) (2,846 ) (2,782 ) Loss before income taxes (133,456 ) (32,475 ) (22,062 ) (26,958 ) (74,956 ) (37,020 ) (43,351 ) (40,609 ) Provision for (benefit from) income taxes 12 135 (124 ) (678 ) (971 ) 211 (512 ) (158 ) Net loss $ (133,468 ) $ (32,610 ) $ (21,938 ) $ (26,280 ) $ (73,985 ) $ (37,231 ) $ (42,839 ) $ (40,451 ) Net loss per common share Basic $ (0.76 ) $ (0.21 ) $ (0.14 ) $ (0.17 ) $ (0.50 ) $ (0.25 ) $ (0.29 ) $ (0.28 ) Diluted $ (0.76 ) $ (0.21 ) $ (0.14 ) $ (0.17 ) $ (0.50 ) $ (0.25 ) $ (0.29 ) $ (0.28 ) (1) Prior periods have been adjusted to conform with the current period's presentation. See Note 1, “Organization and Basis of Presentation” to the Notes to Consolidated Financial Statements for additional information. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the last Saturday of December in each year. Accordingly, fiscal years 2018 and 2017 were 52-week years that ended on December 29, 2018 and December 30, 2017, respectively. Fiscal year 2016 was a 53-week year that ended on December 31, 2016. The quarters for fiscal years 2018 and 2017 were 13-week quarters, and the quarters for fiscal year 2016 were 13-week quarters, except the last quarter was a 14-week quarter. Effective December 31, 2017, the Company adopted Topic 606, using the modified retrospective method applied to those contracts that were not completed as of December 31, 2017. Results for the reporting periods after December 31, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under Topic 605. As a result of the 2017 Restructuring Plan implemented during the fourth quarter of 2017, the Company incurred charges of $19.1 million within cost of revenue, including inventory write-downs of $13.6 million , manufacturing equipment impairments of $4.0 million , and severance related charges of $1.5 million . Within operating expenses, the Company recorded charges of $16.1 million , including $7.9 million of severance related costs, $7.3 million of facilities impairment costs and test equipment impairments of $0.9 million . During the fourth quarter of 2017, the carrying amount of the Company's non-marketable equity securities exceeded its fair value and the decline in value was determined to be other-than-temporary. As a result, the Company recorded an impairment charge of $1.9 million during this period. During the third and fourth quarters of 2018, the Company determined that its non-marketable equity securities were impaired, resulting in impairment charges of $4.3 million and $0.8 million , respectively, to adjust the carrying value to estimated fair value. During the fourth quarter of 2018, the Company completed the Acquisition, which was accounted for as a business combination, and accordingly, the Company has consolidated the financial results of Coriant with its financial results for the period from the Acquisition Date through December 31, 2018. For more information, see Note 6, “Business Combination” to the Notes to Consolidated Financial Statements. As a result of the 2018 Restructuring Plan implemented during the fourth quarter of 2018, the Company incurred charges of $1.6 million within cost of revenue associated with severance-related costs. Within operating expenses, the Company recorded restructuring charges of $10.8 million , including $8.6 million of severance-related costs, $1.9 million of asset impairment costs and $0.3 million of facilities-related costs. For more information on the Company's restructuring plans, see Note 9, “Restructuring and Other Related Costs” to the Notes to Consolidated Financial Statements. Additionally, during the fourth quarter of 2018, the Company incurred charges of $1.0 million within cost of revenue associated with severance-related costs related to Coriant's previous restructuring and reorganization plans, which the Company assumed with the Acquisition. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts Years Ended December 29, 2018 December 30, December 31, (In thousands) Deferred tax asset, valuation allowance Beginning balance $ 205,241 $ 200,476 $ 169,240 Additions 355,166 31,759 31,913 Reductions (67,250 ) (26,994 ) (677 ) Ending balance $ 493,157 $ 205,241 $ 200,476 Allowance for doubtful accounts Beginning balance $ 892 $ 772 $ 630 Additions 929 138 772 Additions due to the Acquisition 3,263 — — Reductions — (18 ) (630 ) Ending balance $ 5,084 $ 892 $ 772 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These accounting principles require the Company to make 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 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 and accounting for income taxes. Other estimates, assumptions and judgments made by management include restructuring and other related costs, allowances for sales returns, allowances for doubtful accounts, pension, useful life of acquired intangibles and recoverability of property, plant and equipment, fair value measurement of the liability component of the convertible senior notes, non-marketable equity investments and derivative instruments. Management believes that the estimates, assumptions 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 consolidated financial statements will be affected. |
Revenue Recognition | Revenue Recognition Effective December 31, 2017, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), using the modified retrospective method applied to those contracts that were not completed as of December 31, 2017. Results for the reporting periods after December 31, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition” (“Topic 605”). The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition by applying the following five-step approach: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Many of the Company's product sales are sold in combination with installation and deployment services along with initial hardware and software support. The Company's product sales are also sold at times with spares management, on-site hardware replacement services, network operations management, software subscription services, extended hardware warranty and training. Initial software and hardware support services are generally delivered over a one-year period in connection with the initial purchase. Software warranty provides customers with maintenance releases during the warranty support period and hardware warranty provides replacement or repair of equipment that fails to perform in line with specifications. Software subscription services include software warranty and additionally provides customers with rights to receive unspecified software product upgrades released during the support period. Spares management and on-site hardware replacement services include the replacement of defective units at customer sites in accordance with specified service level agreements. Network operations management includes the day-to-day operation of a customer's network. These services are generally delivered on an annual basis. The Company evaluates each promised good and service in a contract to determine whether it represents a distinct performance obligation or should be accounted for as a combined performance obligation. Services revenue includes software subscription services, installation and deployment services, spares management, on-site hardware replacement services, network operations management, extended hardware warranty and training. Revenue from software subscription services, spares management, on-site hardware replacement services, network operations management and extended hardware warranty contracts is deferred and is recognized ratably over the contractual support period, which is generally one year, as services are provided over the course of the entire period. Revenue related to training and installation and deployment services is recognized upon completion of the services. Contracts and customer purchase orders are generally used to determine the existence of an arrangement. In addition, shipping documents and customer acceptances, when applicable, are used to verify delivery and transfer of title. The Company typically satisfies its performance obligations upon shipment or delivery of product depending on the contractual terms. Payment terms to customers generally range from net 30 to 120 days from invoice, which are considered to be standard payment terms. The Company assesses its ability to collect from its customers based primarily on the creditworthiness and past payment history of the customer. Customer product returns are generally approved on a case by case basis. Specific reserve provisions are made based upon a specific review of all the approved product returns where the customer has yet to return the products to generate the related sales return credit at the end of a period. Estimated sales returns are recorded as a reduction to revenue. For sales to resellers, the same revenue recognition criteria apply. It is the Company’s practice to identify an end-user prior to shipment to a reseller. The Company does not offer rights of return or price protection to its resellers. The Company reports revenue net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Customer Purchase Commitments The Company sells software licenses that provide customers the ability to purchase incremental bandwidth capacity on an already-deployed piece of hardware. Infinera Instant Bandwidth (“IB”) enabled systems generally include a specific initial capacity and incremental capacity can be added by the purchase of IB licenses. IB licenses are considered distinct performance obligations because customers can provision additional transmission capacity on demand without the deployment of any incremental equipment. Some contracts commit the customer to purchase incremental IB licenses within a specified time frame from the initial shipment of the IB enabled hardware. The time frame varies by customer and generally ranges between 12 to 24 months. If the customer does not purchase the additional capacity within the time frame as stated in the contract, the Company has the right to deliver and invoice such IB licenses to the customer. Under ASC 605, the additional incremental licenses were not included as an element of the initial arrangement because fees for the future purchases were not fixed. Under Topic 606, future committed licenses are considered to be additional performance obligations when a minimum purchase obligation is present, as evidenced by enforceable rights and obligations. As such, the Company is required to estimate the variable consideration for future IB licenses as part of determining the contract transaction price. Contract Termination Rights The contract term is determined on the basis of the period over which the parties to the contract have present enforceable rights and obligations. Certain customer contracts include a termination for convenience clause that allows the customer to terminate services without penalty, upon advance notification. For such contracts, the service duration is limited to the non-cancellable portion of the contract. Variable Consideration The consideration associated with customer contracts is generally fixed. Variable consideration includes discounts, rebates, refunds, credits, incentives, penalties, or other similar items. The amount of consideration that can vary is not a substantial portion of total consideration . Variable consideration estimates are re-assessed at each reporting period until a final outcome is determined. The changes to the original transaction price due to a change in estimated variable consideration will be applied on a retrospective basis, with the adjustment recorded in the period in which the change occurs. Stand-alone Selling Price Stand-alone selling price is the price at which an entity would sell a good or service on a stand-alone (or separate) basis at contract inception. Under this model, the observable price of a good or service sold separately provides the best evidence of stand-alone selling price. However, in certain situations, stand-alone selling prices will not be readily observable and the entity must estimate the stand-alone selling price. When allocating on a relative stand-alone selling price basis, any discount provided in the contract is generally allocated proportionately to all of the performance obligations in the contract. The majority of products and services offered by the Company have readily observable selling prices. For products and services that do not, the Company generally estimates stand-alone selling price using the market assessment approach based on expected selling price and adjust those prices as necessary to reflect the Company’s costs and margins. As part of its stand-alone selling price policy, the Company reviews product pricing on a periodic basis to identify any significant changes and revise its expected stand-alone selling price assumptions as appropriate. Shipping and Handling The Company treats shipping and handling activities as costs to fulfill the Company's promise to transfer products. Shipping and handling fees billed to customers are recorded as a reduction to cost of product. Capitalization of Costs to Obtain a Contract The Company has assessed the treatment of costs to obtain or fulfill a contract with a customer. Sales commissions have historically been expensed as incurred. Under Topic 606, the Company capitalizes sales commissions related to multi-year service contracts, which are paid for upfront, and amortizes the asset over the period of benefit, which is the service period. Sales commissions paid on service contract renewals, are commensurate with the sales commissions paid on the initial contracts. Transaction Price Allocated to the Remaining Performance Obligation The Company’s remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially satisfied as of period end, consisting of deferred revenue and backlog. The Company’s backlog represents purchase orders received from customers for future product shipments and services that are unsatisfied or partially satisfied as of period end. The Company’s backlog is subject to future events that could cause the amount or timing of the related revenue to change, and, in certain cases, may be canceled without penalty. Orders in backlog may be fulfilled several quarters following receipt or may relate to multi-year support service obligations. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (generally the vesting period) under the straight-line amortization method. The expected forfeiture rate is estimated based on the Company's historical forfeiture data and compensation costs are recognized only for those equity awards expected to vest. The estimation of the forfeiture rate required judgment, and to the extent actual forfeitures differed from expectations, changes in estimate are recorded as an adjustment in the period when such estimates are revised. The Company historically recorded stock-based compensation expense by applying the forfeiture rates and adjusted estimated forfeiture rates to actual. During the third fiscal quarter beginning on June 26, 2016, the Company elected to early adopt ASU 2016-09 and elected to change its accounting policy to account for forfeitures when they occur on a modified retrospective basis. The Company makes a number of estimates and assumptions in determining stock-based compensation related to stock options including the following: • The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The expected term is estimated based on the Company’s historical data on employee exercise patterns and post vesting termination behavior to estimate expected exercises over the contractual term of grants. • Expected volatility of the Company’s stock is based on the weighted-average implied and historical volatility of the Company. The Company estimates the fair value of the rights to acquire stock under its 2007 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP. The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants, RSUs typically vest ratably on an annual basis over four years . For annual refresh grants, RSUs typically vest ratably on an annual basis over three or four years. The Company granted performance stock units (“PSUs”) to its executive officers and senior management in 2016, 2017 and 2018 as part of the Company's annual refresh grant process. These PSUs entitle the Company's executive officers and senior management to receive a number of shares of the Company's common stock based on its stock price performance compared to a specified target composite index for the same period. These PSUs vest over the span of one year , two years and three years , and the number of shares to be issued upon vesting ranges from zero to two times the number of PSUs granted depending on the relative performance of the Company's common stock price compared to the targeted composite index. This performance metric is classified as a market condition. The Company uses a Monte Carlo simulation model to determine the fair value of PSUs on the date of grant. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company's stock and the target composite index. The use of the Monte Carlo simulation model requires the input of a number of assumptions including expected volatility of the Company's stock price, expected volatility of target composite index, correlation between changes in the Company's stock price and changes in the target composite index, risk-free interest rate, and expected dividends as applicable. Expected volatility of the Company's stock is based on the weighted-average historical volatility of its stock. Expected volatility of target composite index is based on the historical and implied data. Correlation is based on the historical relationship between the Company's stock price and the target composite index average. The risk-free interest rate is based upon the treasury zero-coupon yield appropriate for the term of the PSU as of the grant date. The expected dividend yield is zero for the Company as it does not expect to pay dividends in the future. The expected dividend yield for the target composite index is the annual dividend yield expressed as a percentage of the composite average of the target composite index on the grant date. In addition, the Company has granted other PSUs to certain employees that only vest upon the achievement of specific operational performance criteria. The Company assesses the achievement status of these PSUs on a quarterly basis and records the related stock-based compensation expenses based on the estimated achievement payout. |
Employee Benefit and Pension Plans | Employee Benefit and Pension Plans The Company operates a number of post-employment plans in Germany, as well as smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. Benefit cost and obligations pertaining to these plans are based on assumptions for the discount rate, expected return on plan assets, mortality rates, expected salary increases, health care cost trend rates and attrition rates. The discount rate assumption is based on current investment yields of high-quality fixed-income securities with maturities similar to the expected benefits payment period. Mortality rates help predict the expected life of plan participants. The expected increase in the compensation levels assumption reflects the Company's actual experience and future expectations. The expected long-term return on plan assets is determined based on asset allocations, historical portfolio results, historical asset correlations and management’s expected returns for each asset class. The Company evaluates its expected return assumptions annually including reviewing current capital market assumptions to assess the reasonableness of the expected long-term return on plan assets. The Company updates the expected long-term return on assets when the Company observes a sufficient level of evidence that would suggest the long-term expected return has changed. |
Research and Development | Research and Development All costs to develop the Company’s hardware products are expensed as incurred. Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Generally, the Company’s software products are released soon after technological feasibility has been established. As a result, costs subsequent to achieving technological feasibility have not been significant and all software development costs have been expensed as incurred. |
Advertising | Advertising All advertising costs are expensed as incurred. |
Accounting for Income Taxes | Accounting for Income Taxes On December 22, 2017, the Securities and Exchange Commission (the “SEC”) staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Act”). The Company determined an adjustment to deferred tax assets, along with a corresponding adjustment to valuation allowance, was needed. The adjustment resulted in no tax expense impact in connection with the re-measurement of certain deferred tax assets and liabilities from 35% to 21%. Additionally, the Company provisionally recorded no tax expense in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, based upon an aggregate tax loss of its foreign subsidiaries for the year ended December 30, 2017. The Company finalized its accounting for the re-measurement of deferred tax balances and transition tax with no adjustment to income tax expense for the year ended December 29, 2018. As part of the process of preparing the Company's consolidated financial statements, it is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax expense together with assessing temporary differences resulting from different treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included in its consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in its consolidated statements of operations become deductible expenses under applicable income tax laws or loss, or credit carryforwards are utilized. Accordingly, realization of the Company's deferred tax assets is dependent on future taxable income within the respective jurisdictions against which these deductions, losses and credits can be utilized within the applicable future periods. 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, and to the extent the Company believes that recovery does not meet the “more-likely-than-not” standard, it must establish a valuation allowance. 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 in determining its provision for income taxes, its deferred tax assets and liabilities and any valuation allowance recorded against its net deferred tax assets. In evaluating the need for a full or partial valuation allowance, all positive and negative evidence must be considered, including the Company's forecasts of taxable income over the applicable carryforward periods, its current financial performance, its market environment, and other factors. Based on the available objective evidence, at December 29, 2018, management believes it is not more likely than not that the domestic net deferred tax assets will be realizable in the foreseeable future. Accordingly, the domestic net deferred tax assets are subject to a full valuation allowance. To the extent that the Company determines that deferred tax assets are realizable on a more likely than not basis, and an adjustment is needed, that adjustment will be recorded in the period that the determination is made. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The Company considers the functional currencies of its foreign subsidiaries to be the local currency. Assets and liabilities recorded in foreign currencies are translated at the exchange rate as of the balance sheet date, and costs and expenses are translated at average exchange rates in effect during the period. Equity transactions are translated using historical exchange rates. The effects of foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange transaction gain or loss, which is recorded to other gain (loss), net, in the same period that the re-measurement occurred. Aggregate foreign exchange transactions recorded in 2018, 2017 and 2016 were losses of $2.5 million , $0.3 million and $1.8 million , respectively. The Company enters into foreign currency exchange forward contracts to reduce the impact of foreign exchange fluctuations on earnings from accounts receivable balances denominated in euros and British pounds, and restricted cash denominated in euros. 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 pounds and Swedish kronor (“SEK”). The contracts are generally settled for U.S. dollars, euros and British pounds at maturity under an average rate method 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. |
Cash, Cash Equivalents and Short-term and Long-term Investments | Cash, Cash Equivalents and Short-term and Long-term Investments The Company considers all highly liquid instruments with an original maturity at the date of purchase of 90 days or less to be cash equivalents. These instruments may include cash, money market funds, commercial paper and U.S. treasuries. The Company also maintains a portion of its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Cash, cash equivalents and short-term investments consist of highly-liquid investments in certificates of deposits, money market funds, commercial paper, U.S. agency notes, corporate bonds and U.S. treasuries. Long-term investments primarily consist of certificates of deposits, commercial paper, U.S. agency notes, corporate bonds and U.S. treasuries. The Company considers all debt instruments with original maturities at the date of purchase greater than 90 days and remaining time to maturity of one year or less to be short-term investments. The Company classifies debt instruments with remaining maturities greater than one year as long-term investments, unless the Company intends to settle its holdings within one year or less and in such case it is considered to be short-term investments. The Company determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Available-for-sale investments are stated at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The Company evaluates its available-for-sale marketable debt securities for other-than-temporary impairments and records any credit loss portion in other income (expense), net, in the Company’s consolidated statements of operations. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and for any credit losses incurred on these securities. Gains and losses are recognized when realized in the Company’s consolidated statements of operations under the specific identification method. |
Fair Value Measurement | Fair Value Measurement 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 debt securities at fair value and classifies its securities in accordance with the fair value hierarchy on a recurring basis. 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 the following assets 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 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. Pension As a result of the Acquisition, the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal, and economic requirements. The Company classifies the following assets and liabilities within Level 3 of the fair value hierarchy and applies fair value accounting on a non-recurring basis, only if impairment is indicated: Facilities-related Charges The Company estimates the fair value of its facilities-related charges associated with the 2017 Restructuring Plan (as defined in Note 9, “Restructuring and Other Related Costs” to the Notes to Consolidated Financial Statements), based on estimated future discounted cash flows and unobservable inputs, which included the amount and timing of estimated sublease rental receipts that the Company could reasonably obtain over the remaining lease term and the discount rate. Non-marketable Equity Investment Beginning the first quarter of 2018, the Company adopted Accounting Standards Update No. 2016-01, “Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires equity investments to be measured at fair value with changes in fair value recognized in net income. As a result of adopting this new standard, the Company's non-marketable equity securities formerly classified as cost-method investments are now measured and recorded using the measurement alternative. Equity securities measured and recorded using the measurement alternative are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Adjustments resulting from impairments and qualifying observable price changes are recorded in other income (expense), net, in the accompanying consolidated statements of operations. No initial adoption adjustment was recorded for these instruments since the standard was required to be applied prospectively for securities measured using the measurement alternative. These analyses require management to make assumptions and estimates regarding industry and economic factors, future operating results and discount rates. The Company regularly evaluates the carrying value of its equity investment for impairment. When a qualitative assessment indicates that impairment exists, the Company measures the investment at fair value. |
Accounts Receivable and Allowances for Doubtful Accounts | Accounts Receivable and Allowances for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company reviews its aging by category to identify significant customers or invoices with known dispute or collectability issues. The Company makes judgments as to its ability to collect outstanding receivables based on various factors including ongoing customer credit evaluations and historical collection experience. The Company provides an allowance for receivable amounts that are potentially uncollectible and when receivables are determined to be uncollectible, amounts are written off. |
Allowances for Sales Returns | Allowances for Sales Returns Customer product returns are approved on a case by case basis. Specific reserve provisions are made based upon a specific review of all the approved product returns where the customer has yet to return the products to generate the related sales return credit at the end of a period. Estimated sales returns are provided for as a reduction to revenue. |
Concentration of Risk | Concentration of Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash equivalents, short-term investments, long-term investments and accounts receivable. Investment policies have been implemented that limit investments to investment-grade securities. The risk with respect to accounts receivable is mitigated by ongoing credit evaluations that the Company performs on its customers. As the Company continues to expand its sales internationally, it may experience increased levels of customer credit risk associated with those regions. Collateral is generally not required for accounts receivable but may be used in the future to mitigate credit risk associated with customers located in certain geographical regions. As of December 29, 2018, no customers accounted for over 10% of the Company's net accounts receivable balance. As of December 30, 2017, two customers accounted for over 10% of the Company's net accounts receivable balance. One customer accounted for approximately 11% of the Company's net accounts receivable balance, and another customer, which completed a merger in late 2017, was a combination of two of the Company's historically larger customers, accounted for approximately 16% of the Company's net accounts receivable balance. To date, a few of the Company’s customers have accounted for a significant portion of its revenue. One customer accounted for approximately 15% of the Company's revenue in 2018. One other customer, which completed a merger in late 2017 as mentioned above, was a combination of two of the Company's historically larger customers who merged in 2017 and accounted for approximately 13% and 18% of the Company's revenue in 2018 and 2017, respectively. These two historically larger customers each individually accounted for approximately 16% and 8% of the Company's revenue in 2016, respectively. No other customers accounted for over 10% of the Company's revenue for 2017 or 2016. The Company depends on sole source or limited source suppliers for several key components and raw materials. The Company generally purchases these sole source or limited source components and raw materials through standard purchase orders and does not have long-term contracts with many of these limited-source suppliers. While the Company seeks to maintain sufficient reserve stock of such components and raw materials, the Company’s business and results of operations could be adversely affected if any of its sole source or limited source suppliers suffer from capacity constraints, lower than expected yields, deployment delays, work stoppages or any other reduction or disruption in output. |
Derivative Instruments | Derivative Instruments The Company is exposed to foreign currency exchange rate fluctuations in the normal course of its business. As part of its risk management strategy, the Company uses derivative instruments, specifically forward contracts, to reduce the impact of foreign exchange fluctuations on earnings. The forward contracts are with one high-quality institution and the Company monitors the creditworthiness of the counter parties consistently. The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets. None of the Company’s derivative instruments contain credit-risk related contingent features, any rights to reclaim cash collateral or any obligation to return cash collateral. The Company does not have any leveraged derivatives. The Company does not use derivative contracts for trading or speculative purposes. The Company enters into foreign currency exchange forward contracts to manage its exposure to fluctuations in foreign exchange rates that arise primarily from its euro and British pound denominated receivables and euro denominated restricted cash balance amounts that are pledged as collateral for certain standby letters of credit. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes 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 pounds and SEK. These contracts are generally settled for U.S. dollars, euros and British pounds at maturity under an average rate method agreed to at inception of the contracts. The forward contracts are with one high-quality institution and the Company consistently monitors the creditworthiness of the counterparty. The Company has entered into factoring agreements, to sell certain receivables to unrelated third-party financial institutions. These transactions are accounted for in accordance with Accounting Standards Codification Topic 860, “Transfers and Servicing” (“ASC 860”). ASC 860 and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. The Company's factoring agreements do not allow for recourse in the event of uncollectibility, and the Company does not retain any interest in the underlying accounts receivable once sold. |
Inventory Valuation | Inventory Valuation Inventories consist of raw materials, work-in-process and finished goods and are stated at standard cost adjusted to approximate the lower of actual cost or net realizable value. Costs are recognized utilizing the first-in, first-out method. Net realizable value is based upon an estimated selling price reduced by the estimated cost of disposal. The determination of market value involves numerous judgments including estimated average selling prices based upon recent sales volumes, industry trends, existing customer orders, current contract price, future demand and pricing and technological obsolescence of the Company’s products. Inventory that is obsolete or in excess of the Company’s forecasted demand or is anticipated to be sold at a loss is written down to its estimated net realizable value based on historical usage and expected demand. In valuing its inventory costs and deferred inventory costs, the Company considered whether the net realizable value of inventory delivered or expected to be delivered at less than cost, primarily comprised of common equipment, had declined. The Company concluded that, in the instances where the net realizable value of inventory delivered or expected to be delivered was less than cost, it was appropriate to value the inventory costs and deferred inventory costs at cost or net realizable value, whichever is lower, thereby recognizing the cost of the reduction in net realizable value of inventory in the period in which the reduction occurred or can be reasonably estimated. The Company has, therefore, recognized inventory write-downs as necessary in each period in order to reflect inventory at the lower of actual cost or net realizable value. The Company considers whether it should accrue losses on firm purchase commitments related to inventory items. Given that the net realizable value of common equipment is below contractual purchase price, the Company has also recorded losses on these firm purchase commitments in the period in which the commitment is made. When the inventory parts related to these firm purchase commitments are received, that inventory is recorded at the purchase price less the accrual for the loss on the purchase commitment. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. This includes enterprise-level business software that the Company customizes to meet its specific operational needs. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. An assumption of lease renewal where a renewal option exists is used only when the renewal has been determined to be reasonably assured. Repair and maintenance costs are expensed as incurred. The estimated useful life for each asset category is as follows: Estimated Useful Lives Building 20 to 41 years Laboratory and manufacturing equipment 1.5 to 10 years Furniture and fixtures 3 to 10 years Computer hardware and software 1.5 to 7 years Leasehold and building improvements 1 to 10 years The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable or that the useful life is shorter than originally estimated. If impairment indicators are present and the projected future undiscounted cash flows are less than the carrying value of the assets, the carrying values are reduced to the estimated fair value. If assets are determined to be recoverable, but the useful lives are shorter than originally estimated, the carrying value of the assets is depreciated over the newly determined remaining useful lives. |
Accrued Warranty | Accrued Warranty The Company warrants that its products will operate substantially in conformity with product specifications. Hardware warranties provide the purchaser with protection in the event that the product does not perform to product specifications. During the warranty period, the purchaser’s sole and exclusive remedy in the event of such defect or failure to perform is limited to the correction of the defect or failure by repair, refurbishment or replacement, at the Company’s sole option and expense. The Company's hardware warranty periods generally range from one to five years from date of acceptance for hardware and the Company's software warranty is 90 days. Upon delivery of the Company's products, the Company provides for the estimated cost to repair or replace products that may be returned under warranty. The hardware warranty accrual is based on actual historical returns and cost of repair experience and the application of those historical rates to the Company's in-warranty installed base. The provision for warranty claims fluctuates depending upon the installed base of products and the failure rates and costs of repair associated with these products under warranty. Furthermore, the Company's costs of repair vary based on repair volume and its ability to repair, rather than replace, defective units. In the event that actual product failure rates and costs to repair differ from the Company's estimates, revisions to the warranty provision are required. In addition, from time to time, specific hardware warranty accruals may be made if unforeseen technical problems arise with specific products. The Company regularly assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. |
Business Combination | Business Combination Accounting for acquisitions requires the Company's management to estimate the fair value of the assets and liabilities assumed, which requires management to make significant estimates, judgments, and assumptions that could materially affect the timing or amounts recognized in its financial statements. These assumptions and estimates include the Company’s use of the asset and the appropriate discount rates. The Company’s significant estimates can include, but are not limited to, the future cash flows, the appropriate weighted cost of capital, and discount rates, as well as the estimated useful life of intangible assets, deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowance, which are initially estimated as of the acquisition date. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. In addition, unanticipated events and circumstances may occur that may affect the accuracy or validity of such estimates. As a result, during the measurement period, which may be up to one year following the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. |
Amortization of Intangible Assets | Amortization of Intangible Assets Intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. In-process research and development represents the fair value of incomplete research and development projects that have not reached technological feasibility as of the date of acquisition. Initially, these assets are not subject to amortization. Once projects have been completed they are transferred to developed technology, which are subject to amortization, while assets related to projects that have been abandoned are impaired and expensed to research and development. |
Impairment of Intangible Assets and Goodwill | mpairment of Intangible Assets and Goodwill Goodwill is evaluated for impairment on an annual basis in the fourth quarter of the Company's fiscal year, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company has elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of its single reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its single reporting unit is less than its carrying amount, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of its single reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss. The Company evaluates events and changes in circumstances that could indicate carrying amounts of purchased intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of these assets by determining whether or not the carrying amount will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, the Company records an impairment loss for the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Restructuring and Other Related Costs | Restructuring and Other Related Costs The Company records costs associated with exit activities related to restructuring plans in accordance with ASC 420, “Exit or Disposal Cost Obligations.” Liabilities for costs associated with an exit or disposal activity are recognized in the period in which the liability is incurred. The timing of the associated cash payments is dependent upon the type of exit cost and extends over an approximately four -year period. The Company records restructuring cost liabilities in “Accrued Expenses” and "Other Long-term Liabilities" in the Consolidated Balance Sheet. Restructuring costs include termination costs, facility consolidation and closure costs, equipment write-downs and inventory write-downs. One-time termination benefits are recognized as a liability at estimated fair value when the approved plan of termination has been communicated to employees, unless employees must provide future service, in which case the benefits are recognized ratably over the future service period. Ongoing termination benefits arrangements are recognized as a liability at estimated fair value when the amount of such benefits becomes estimable and payment is probable. For the facility-related restructuring costs, the Company recognizes a liability upon exiting all or a portion of a leased facility and meeting cease-use and other requirements. The amount of restructuring costs is based on the fair value of the lease obligation for the abandoned space, which includes a sublease assumption that could be reasonably obtained. Restructuring charges require significant estimates and assumptions, including sublease income and expenses for severance and other employee separation costs. Management estimates involve a number of risks and uncertainties, some of which are beyond control, including future real estate market conditions and the Company's ability to successfully enter into subleases or termination agreements with terms as favorable as those assumed when arriving at its estimates. The Company monitors these estimates and assumptions on at least a quarterly basis for changes in circumstances and any corresponding adjustments to the accrual are recorded in its statement of operations in the period when such changes are known. |
Recent Accounting Pronouncements/Accounting Pronouncements Not Yet Effective | ecent Accounting Pronouncements In December 2017, the SEC staff issued SAB 118, which allowed the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. In March 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SAB 118” and added such SEC guidance to Accounting Standards Codification 740, “Income Taxes, codified under the title: Income Tax Accounting Implications of the Tax Cuts and Jobs Act.” The Company determined an adjustment to deferred tax assets, along with a corresponding adjustment to valuation allowance, was needed. The adjustment resulted in no tax expense impact in connection with the re-measurement of certain deferred tax assets and liabilities from 35% to 21%. Additionally, we provisionally recorded no tax expense in connection with the transition tax on the mandatory deemed repatriation of foreign earnings, based upon an aggregate tax loss of our foreign subsidiaries for the year ended December 30, 2017. The Company finalized its accounting for the re-measurement of deferred tax balances and transition tax with no adjustment to income tax expense for the year ended December 29, 2018. In May 2017, the FASB issued Accounting Standards Update No. 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 Topic 718. The Company's adoption of ASU 2017-09 during its first quarter of 2018 had no impact on its consolidated financial statements. In November 2016, the FASB issued 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 adopted ASU 2016-18 during the first quarter of fiscal 2018, using the retrospective transition approach. Restricted cash in the prior period has been included with cash and cash equivalents when reconciling the beginning and ending total amounts on the statement of cash flows for the year ended December 30, 2017 and December 31, 2016, to conform to the current period presentation. The adoption of ASU 2016-18 did not have a material impact on the cash flow activity presented on the Company's consolidated statements of cash flows. See the consolidated statements of cash flows for a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts on the consolidated statements of cash flows. In May 2016, the FASB issued Accounting Standards Update No. 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 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. The Company adopted ASU 2016-11 during the first quarter of 2018. See Note 3, “Revenue Recognition” to the Notes to Consolidated Financial Statements for more information. On December 31, 2017, the Company adopted Topic 606, which provides guidance for revenue recognition that superseded the revenue recognition requirements in Topic 605 and most industry specific guidance. Under Topic 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company adopted Topic 606 under the modified retrospective transition method, applying the amendments to prospective reporting periods and applied to those contracts that were not completed as of December 31, 2017. Results for reporting periods beginning after December 31, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. See Note 3, “Revenue Recognition” to the Notes to Consolidated Financial Statements for more information. In January 2016, the FASB issued ASU 2016-01, which requires equity investments to be measured at fair value with changes in fair value recognized in the income statement and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The Company adopted ASU 2016-01 during its first quarter of 2018 and the adoption did not have a material impact on its consolidated financial statements. See Note 4, “Fair Value Measurements” to the Notes to Consolidated Financial Statements for more information. Accounting Pronouncements Not Yet Effective In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (“ASU 2018-15”), “Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update provides guidance for determining if a cloud computing arrangement is within the scope of internal-use software guidance, and would require capitalization of certain implementation costs. ASU 2018-15 is effective for the Company in its first quarter of 2020, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-15 will have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (“ASU 2018-14”), "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The update eliminates, adds, and modifies certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for the Company in its first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 will have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13 (“ASU 2018-13”), “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 is effective for the Company in its first quarter of 2020 and early adoption is permitted of the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact the adoption of ASU 2018-13 will have on its consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update No. 2018-07, “Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under ASU 2018-07, certain guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees. The guidance will be effective for the Company's first quarter of 2019 and early adoption is permitted. As the Company does not have material non-employee awards, it does not expect the adoption of ASU 2018-07 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 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 June 2016, the FASB issued Accounting Standards Update No. 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 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. 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. In July 2018, the FASB issued Accounting Standards Update 2018-11 “Leases (Topic 842): Targeted Improvements,” (“ASU 2018-11”), which provides lessees an additional (and optional) transition method to apply the new leasing standard to all open leases at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB issued Accounting Standards Update 2018-20, “Narrow-Scope Improvements for Lessors,” which contains certain narrow scope improvements to the guidance issued in ASU 2016-02. The Company is currently evaluating the other possible impacts the adoption of ASU 2016-02, ASU 2018-11 and ASU 2018-20 will have on its consolidated financial statements. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows reclassified amounts to conform to the current period's presentation: Years Ended December 30, 2017 December 31, 2016 Previously Reported Change in Presentation Reclassification Current Presentation Previously Reported Change in Presentation Reclassification Current Presentation Cost of revenue: Cost of product $ 427,118 $ (20,474 ) $ 406,644 $ 433,266 $ (19,715 ) $ 413,551 Cost of services 50,480 — 50,480 43,151 — 43,151 Amortization of intangible assets (1) N/A 20,474 20,474 N/A 19,715 19,715 Restructuring and related 19,141 — 19,141 — — — Total $ 496,739 $ — $ 496,739 $ 476,417 $ — $ 476,417 Operating expenses: Research and development $ 224,299 $ 69 $ 224,368 $ 232,291 $ (148 ) $ 232,143 Sales and marketing 116,057 (6,546 ) 109,511 118,858 (7,180 ) 111,678 General and administrative 70,625 (5 ) 70,620 68,343 (731 ) 67,612 Amortization of intangible assets (1) N/A 6,160 6,160 N/A 6,189 6,189 Acquisition and integration costs (1) N/A 322 322 N/A 1,870 1,870 Restructuring and related 16,106 — 16,106 — — — Total $ 427,087 $ — $ 427,087 $ 419,492 $ — $ 419,492 (1) These lines were not previously reported in the consolidated statements of operations. The following tables summarize the impact of adopting Topic 606 on the Company's consolidated statement of operations for the year ended December 29, 2018 and the Company's consolidated balance sheet as of December 31, 2017 (in thousands): Year Ended December 29, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Income Statement Revenue Product $ 763,555 $ (10,680 ) $ 752,875 Services 179,824 3,946 183,770 $ 943,379 $ (6,734 ) $ 936,645 Costs and expenses Cost of revenue $ 622,223 $ 1,687 $ 623,910 Net loss $ (214,295 ) $ (8,421 ) $ (222,716 ) Net loss per share - basic and diluted $ (1.36 ) $ (0.05 ) $ (1.41 ) The increase in revenue from the adoption of Topic 606 was primarily related to an increase in product revenue for certain customers as a result of recognition upon transfer of control in advance of milestone invoicing. The adoption of Topic 606 did not have a material impact to the Company's consolidated financial statements for the year ended December 29, 2018. Balance at December 30, 2017 Adjustments due to Topic 606 As Adjusted Balance at December 31, 2017 Balance Sheet Assets Accounts receivable, net $ 126,152 $ 9,093 $ 135,245 Inventory $ 214,704 $ (239 ) $ 214,465 Prepaid expenses and other assets $ 43,339 $ 2,731 $ 46,070 Liabilities Accrued expenses $ 39,782 $ 15,645 $ 55,427 Deferred revenue $ 94,923 $ (19,465 ) $ 75,458 Equity Accumulated deficit $ (758,081 ) $ 15,406 $ (742,675 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Asset | The estimated useful life for each asset category is as follows: Estimated Useful Lives Building 20 to 41 years Laboratory and manufacturing equipment 1.5 to 10 years Furniture and fixtures 3 to 10 years Computer hardware and software 1.5 to 7 years Leasehold and building improvements 1 to 10 years |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by revenue source (in thousands): Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) Product $ 763,555 $ 610,535 $ 751,167 Services 179,824 130,204 118,968 Total revenue $ 943,379 $ 740,739 $ 870,135 (1) Prior period amounts have not been adjusted under the modified retrospective method of adopting Topic 606. The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf. The following tables present the Company's revenue disaggregated by geography, based on the shipping address of the customer and by sales channel (in thousands): Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) United States $ 476,784 $ 428,592 $ 541,889 Other Americas 44,581 20,070 40,036 Europe, Middle East and Africa 309,989 234,972 243,783 Asia Pacific 112,025 57,105 44,427 Total revenue $ 943,379 $ 740,739 $ 870,135 Years Ended December 29, 2018 December 30, 2017 (1) December 31, 2016 (1) Direct $ 838,931 $ 693,472 $ 809,681 Indirect 104,448 47,267 60,454 Total revenue $ 943,379 $ 740,739 $ 870,135 (1) Prior period amounts have not been adjusted under the modified retrospective method of adopting Topic 606. |
Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 29, 2018 At Adoption Accounts receivable, net $ 317,115 $ 135,245 Contract assets $ 24,981 $ 2,825 Deferred revenue $ 120,302 $ 75,458 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) at the end of the reporting period (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Revenue expected to be recognized in the future as of December 29, 2018 $ 375,707 $ 53,258 $ 18,904 $ 6,434 $ 2,716 $ 1,193 $ 458,212 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows reclassified amounts to conform to the current period's presentation: Years Ended December 30, 2017 December 31, 2016 Previously Reported Change in Presentation Reclassification Current Presentation Previously Reported Change in Presentation Reclassification Current Presentation Cost of revenue: Cost of product $ 427,118 $ (20,474 ) $ 406,644 $ 433,266 $ (19,715 ) $ 413,551 Cost of services 50,480 — 50,480 43,151 — 43,151 Amortization of intangible assets (1) N/A 20,474 20,474 N/A 19,715 19,715 Restructuring and related 19,141 — 19,141 — — — Total $ 496,739 $ — $ 496,739 $ 476,417 $ — $ 476,417 Operating expenses: Research and development $ 224,299 $ 69 $ 224,368 $ 232,291 $ (148 ) $ 232,143 Sales and marketing 116,057 (6,546 ) 109,511 118,858 (7,180 ) 111,678 General and administrative 70,625 (5 ) 70,620 68,343 (731 ) 67,612 Amortization of intangible assets (1) N/A 6,160 6,160 N/A 6,189 6,189 Acquisition and integration costs (1) N/A 322 322 N/A 1,870 1,870 Restructuring and related 16,106 — 16,106 — — — Total $ 427,087 $ — $ 427,087 $ 419,492 $ — $ 419,492 (1) These lines were not previously reported in the consolidated statements of operations. The following tables summarize the impact of adopting Topic 606 on the Company's consolidated statement of operations for the year ended December 29, 2018 and the Company's consolidated balance sheet as of December 31, 2017 (in thousands): Year Ended December 29, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Income Statement Revenue Product $ 763,555 $ (10,680 ) $ 752,875 Services 179,824 3,946 183,770 $ 943,379 $ (6,734 ) $ 936,645 Costs and expenses Cost of revenue $ 622,223 $ 1,687 $ 623,910 Net loss $ (214,295 ) $ (8,421 ) $ (222,716 ) Net loss per share - basic and diluted $ (1.36 ) $ (0.05 ) $ (1.41 ) The increase in revenue from the adoption of Topic 606 was primarily related to an increase in product revenue for certain customers as a result of recognition upon transfer of control in advance of milestone invoicing. The adoption of Topic 606 did not have a material impact to the Company's consolidated financial statements for the year ended December 29, 2018. Balance at December 30, 2017 Adjustments due to Topic 606 As Adjusted Balance at December 31, 2017 Balance Sheet Assets Accounts receivable, net $ 126,152 $ 9,093 $ 135,245 Inventory $ 214,704 $ (239 ) $ 214,465 Prepaid expenses and other assets $ 43,339 $ 2,731 $ 46,070 Liabilities Accrued expenses $ 39,782 $ 15,645 $ 55,427 Deferred revenue $ 94,923 $ (19,465 ) $ 75,458 Equity Accumulated deficit $ (758,081 ) $ 15,406 $ (742,675 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 marketable securities measured at fair value on a recurring basis (in thousands): As of December 29, 2018 As of December 30, 2017 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 10,347 $ — $ 10,347 $ 20,371 $ — $ 20,371 Certificates of deposit — — — — 240 240 Commercial paper — — — — 26,912 26,912 Corporate bonds — 23,512 23,512 — 118,558 118,558 U.S. agency notes — 2,999 2,999 — 5,480 5,480 U.S. treasuries 23,987 — 23,987 35,408 — 35,408 Total assets $ 34,334 $ 26,511 $ 60,845 $ 55,779 $ 151,190 $ 206,969 Liabilities Foreign currency exchange forward contracts $ — $ (91 ) $ (91 ) $ — $ (204 ) $ (204 ) |
Investments at Fair Value | Cash, cash equivalents and investments were as follows (in thousands): December 29, 2018 Adjusted Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 168,620 $ — $ — $ 168,620 Money market funds 10,347 — — 10,347 U.S. treasuries 23,986 1 — 23,987 Total cash and cash equivalents $ 202,953 $ 1 $ — $ 202,954 U.S. agency notes 3,000 — (1 ) 2,999 Corporate bonds 23,603 — (91 ) 23,512 Total short-term investments $ 26,603 $ — $ (92 ) $ 26,511 Total cash, cash equivalents and investments $ 229,556 $ 1 $ (92 ) $ 229,465 December 30, 2017 Adjusted Gross Gross Fair Value Cash $ 87,991 $ — $ — $ 87,991 Money market funds 20,371 — — 20,371 U.S. treasuries 7,984 — (1 ) 7,983 Total cash and cash equivalents $ 116,346 $ — $ (1 ) $ 116,345 Certificates of deposit 240 — — 240 Commercial paper 26,924 — (12 ) 26,912 Corporate bonds 90,685 — (155 ) 90,530 U.S. agency notes 2,500 — (11 ) 2,489 U.S. treasuries 27,495 — (70 ) 27,425 Total short-term investments $ 147,844 $ — $ (248 ) $ 147,596 Corporate bonds 28,186 — (158 ) 28,028 U.S. agency notes 3,002 — (11 ) 2,991 Total long-term investments $ 31,188 $ — $ (169 ) $ 31,019 Total cash, cash equivalents and investments $ 295,378 $ — $ (418 ) $ 294,960 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 consolidated balance sheets was as follows (in thousands): As of December 29, 2018 As of December 30, 2017 Gross Notional (1) Prepaid Expenses and Other Assets Other Accrued Liabilities Gross Notional (1) Prepaid Expenses and Other Assets Other Accrued Liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ 40,068 $ — $ (52 ) $ 24,794 $ — $ (202 ) Related to British pound denominated receivables 6,412 — (38 ) — — — Related to euro denominated restricted cash $ 240 $ — $ (1 ) $ 252 $ — $ (2 ) Total $ — $ (91 ) $ — $ (204 ) (1) Represents the face amounts of forward contracts that were outstanding as of the period noted. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions | The Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations” and consisted of the following (in thousands, except shares): Cash $ 154,192 Equity consideration (1) 129,628 Total $ 283,820 (1) Based on the closing price of the Company's common stock of $6.18 on October 1, 2018, the $129.6 million equity consideration represents the fair value of 21 million shares of the Company's common stock issued to Coriant shareholders in accordance with the Purchase Agreement. |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Acquisition Date (in thousands): Cash and cash equivalents $ 15,549 Restricted cash 25,743 Accounts receivable 170,466 Inventory 96,067 Property, plant and equipment, net 217,991 Other assets 39,145 Intangible assets, net 200,700 Goodwill 48,235 Financing lease obligation (194,700 ) Deferred revenue (43,502 ) Other liabilities (291,874 ) Total net assets $ 283,820 |
Schedule of Intangible Assets Acquired | The following table presents details of the identifiable assets acquired at the Acquisition Date (in thousands): Fair Value Estimated Useful Life (Years) Customer relationships and backlog $ 111,400 8 Developed technology 70,550 5 In-process technology 17,750 n/a Trade name 1,000 1 Total $ 200,700 |
Pro Forma Information | The following table presents the unaudited pro forma financial information for the years ended December 29, 2018 and December 30, 2017 as though the companies were combined as of January 1, 2017 (in millions): Years Ended December 29, 2018 December 30, 2017 Revenue $ 1,441 $ 1,488 Net loss $ (421 ) $ (370 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents details of the Company’s goodwill for the year ended December 29, 2018 (in thousands): Balance as of December 30, 2017 $ 195,615 Goodwill acquired 48,235 Foreign currency translation adjustments (16,619 ) Accumulated impairment loss — Balance as of December 29, 2018 $ 227,231 |
Schedule of Finite-Lived Intangible Assets | The following table presents details of the Company’s intangible assets as of December 29, 2018 and December 30, 2017 (in thousands): December 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (250 ) $ 750 NMF* Customer relationships and backlog 158,110 (42,478 ) 115,632 3.5 Developed technology 166,355 (67,368 ) 98,987 1.7 Total intangible assets with finite lives $ 325,465 $ (110,096 ) $ 215,369 5.2 Acquired in-process technology 17,750 — 17,750 Total intangible assets $ 343,215 $ (110,096 ) $ 233,119 *NMF = Not meaningful December 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships $ 51,050 $ (15,007 ) $ 36,043 5.6 Developed technology 104,708 (48,563 ) 56,145 2.7 Total intangible assets with finite lives $ 155,758 $ (63,570 ) $ 92,188 3.9 |
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 December 29, 2018 (in thousands): Fiscal Years Total 2019 2020 2021 2022 2023 and Thereafter Total future amortization expense $ 215,369 $ 60,512 $ 44,979 $ 32,044 $ 29,497 $ 48,337 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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): December 29, 2018 December 30, Inventory: Raw materials $ 74,435 $ 27,568 Work in process 57,232 59,662 Finished goods 180,221 127,474 Total $ 311,888 $ 214,704 Property, plant and equipment, net: Computer hardware $ 15,633 $ 13,881 Computer software (1) 40,923 32,521 Laboratory and manufacturing equipment 304,889 246,380 Land and building 187,184 12,347 Furniture and fixtures 2,587 2,474 Leasehold and building improvements 46,038 43,475 Construction in progress 32,997 34,816 Subtotal $ 630,251 $ 385,894 Less accumulated depreciation and amortization (2) (287,431 ) (249,952 ) Total $ 342,820 $ 135,942 Accrued expenses: Loss contingency related to non-cancelable purchase commitments $ 26,042 $ 6,379 Professional and other consulting fees 10,442 5,305 Taxes payable 23,249 3,707 Accrued rebate and customer prepay liability 14,301 3,406 Restructuring accrual 13,097 5,490 Acquisition-related funds in escrow 10,000 — Short-term financing lease obligation 4,718 — Other accrued expenses 30,042 15,495 Total $ 131,891 $ 39,782 (1) Included in computer software at December 29, 2018 and December 30, 2017 were $13.1 million and $11.4 million , respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at December 29, 2018 and December 30, 2017 were $3.9 million and $4.7 million , respectively. (2) Depreciation expense was $47.7 million , $39.4 million and $35.5 million (which includes depreciation of capitalized ERP costs of $2.2 million , $1.7 million and $1.2 million , respectively) for 2018, 2017 and 2016, respectively. |
Restructuring and Other Relat_2
Restructuring and Other Related Costs (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the 2017 Restructuring Plan (in thousands): Year Ended December 29, 2018 Cost of Revenue Operating Expenses Severance and related expenses $ 2,630 $ 10,413 Facilities — (544 ) Asset impairment — 2,643 Total $ 2,630 $ 12,512 Year Ended December 30, 2017 Cost of Revenue Operating Expenses Severance and related expenses $ 1,510 $ 7,931 Facilities — 7,300 Asset impairment 4,004 875 Inventory write-downs 13,627 — Total $ 19,141 $ 16,106 |
Schedule of Restructuring Reserve by Type of Cost | Restructuring liabilities are reported within accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets (in thousands): December 30, 2017 Assumed Liabilities from the Acquisition Charges Cash Non-cash Settlements and Other December 29, 2018 Severance and related expenses $ 3,672 14,748 $ 13,043 $ (11,172 ) $ (449 ) $ 19,842 Facilities 6,947 — (544 ) (2,062 ) (75 ) 4,266 Asset impairment — — 2,643 — (2,400 ) 243 Total $ 10,619 $ 14,748 $ 15,142 $ (13,234 ) $ (2,924 ) $ 24,351 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | The following table sets forth the changes by component for the periods presented (in thousands): Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Tax Effect Actuarial Gain (Loss) on Pension Total Balance at December 26, 2015 $ (506 ) $ 2,389 $ (760 ) $ — $ 1,123 Other comprehensive income (loss) before reclassifications 297 (29,625 ) (119 ) — (29,447 ) Amounts reclassified from accumulated other comprehensive loss — — — — — Net current-period other comprehensive income (loss) 297 (29,625 ) (119 ) — (29,447 ) Balance at December 31, 2016 $ (209 ) $ (27,236 ) $ (879 ) $ — $ (28,324 ) Other comprehensive income (loss) before reclassifications (209 ) 34,787 — — 34,578 Amounts reclassified from accumulated other comprehensive loss — — — — — Net current-period other comprehensive income (loss) (209 ) 34,787 — — 34,578 Balance at December 30, 2017 $ (418 ) $ 7,551 $ (879 ) $ — $ 6,254 Other comprehensive income (loss) before reclassifications 327 (26,483 ) (85 ) (5,547 ) (31,788 ) Amounts reclassified from accumulated other comprehensive loss — — — 234 234 Net current-period other comprehensive income (loss) 327 (26,483 ) (85 ) (5,313 ) (31,554 ) Balance at December 29, 2018 $ (91 ) $ (18,932 ) $ (964 ) $ (5,313 ) $ (25,300 ) |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Net Income (Loss) Per Common Share Basic and Diluted | The following table sets forth the computation of net loss per common share (in thousands, except per share amounts): Years Ended December 29, 2018 December 30, December 31, Net loss $ (214,295 ) $ (194,506 ) $ (23,927 ) Weighted average common shares outstanding - basic and diluted 157,748 147,878 142,989 Net loss per common share - basic and diluted $ (1.36 ) $ (1.32 ) $ (0.17 ) |
Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share | The following table sets forth the potentially dilutive shares excluded from the computation of the diluted net loss per share because their effect was anti-dilutive (in thousands): As of December 29, 2018 December 30, December 31, Stock options outstanding 1,134 1,461 2,042 Restricted stock units 7,792 6,856 5,302 Performance stock units 1,284 1,420 896 Employee stock purchase plan shares 940 810 1,010 Total 11,150 10,547 9,250 |
Debt and Financing Lease Obli_2
Debt and Financing Lease Obligations (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Components of Convertible Senior Notes | The net carrying amounts of the debt obligation were as follows (in thousands): December 29, 2018 Principal $ 402,500 Unamortized discount (1) (127,264 ) Unamortized issuance cost (1) (8,307 ) Net carrying amount $ 266,929 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2024 Notes, which is approximately 69 months . The net carrying amount of the debt obligation as of December 30, 2017 was as follows (in thousands): Principal $ 150,000 Unamortized discount (4,670 ) Unamortized issuance cost (402 ) Net carrying amount $ 144,928 |
Interest Expense Recognized Related To Notes | The following table sets forth total interest expense recognized related to the 2018 Notes (in thousands): Years Ended December 29, 2018 December 30, 2017 Contractual interest expense $ 1,094 $ 2,625 Amortization of debt issuance costs 402 898 Amortization of debt discount 4,671 10,444 Total interest expense $ 6,167 $ 13,967 The following table sets forth total interest expense recognized related to the 2024 Notes (in thousands): Year Ended December 29, 2018 Contractual interest expense $ 2,613 Amortization of debt issuance costs 5,716 Amortization of debt discount 373 Total interest expense $ 8,702 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Annual Minimum Operating Lease Payments | Future annual minimum operating lease payments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Operating lease payments $ 18,352 $ 14,047 $ 7,888 $ 5,926 $ 4,905 $ 18,303 $ 69,421 |
Finance Lease Obligations Maturity | Future annual minimum financing lease payments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Financing lease obligations $ 9,346 $ 9,454 $ 6,666 $ 5,728 $ 4,465 $ 15,750 $ 51,409 |
Future Purchase Commitments | Future purchase commitments at December 29, 2018 were as follows (in thousands): 2019 2020 2021 2022 2023 Thereafter Total Purchase obligations $ 200,939 $ 751 $ 599 $ 500 $ 757 $ — $ 203,546 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Activity Related to Product Warranty | Activity related to product warranty was as follows (in thousands): December 29, 2018 December 30, Beginning balance $ 30,909 $ 40,342 Charges to operations 28,685 18,283 Utilization (18,028 ) (14,985 ) Change in estimate (1) (545 ) (12,731 ) Balance at the end of the period $ 41,021 $ 30,909 (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 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 . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock Reserved for Future Issuance | Common stock reserved for future issuance was as follows (in thousands): December 29, 2018 Outstanding stock options and awards 8,990 Reserved for future option and award grants 8,728 Reserved for future ESPP 4,835 Total common stock reserved for stock options and awards 22,553 |
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 Options Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 26, 2015 2,511 $ 7.26 $ 28,288 Options granted — $ — Options exercised (825 ) $ 4.97 $ 4,433 Options canceled (31 ) $ 12.46 Outstanding at December 31, 2016 1,655 $ 8.30 $ 965 Options granted — $ — Options exercised (196 ) $ 7.78 $ 373 Options canceled (62 ) $ 14.11 Outstanding at December 30, 2017 1,397 $ 8.11 $ 1 Options granted — $ — Options exercised (229 ) $ 7.43 $ 496 Options canceled (53 ) $ 11.57 Outstanding at December 29, 2018 1,115 $ 8.09 $ — Exercisable at December 29, 2018 1,115 $ 8.09 $ — |
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 26, 2015 4,932 $ 12.76 $ 91,285 RSUs granted 2,992 $ 13.94 RSUs released (2,303 ) $ 11.06 $ 26,407 RSUs canceled (328 ) $ 13.90 Outstanding at December 31, 2016 5,293 $ 14.10 $ 44,939 RSUs granted 4,281 $ 9.66 RSUs released (2,198 ) $ 13.56 $ 20,791 RSUs canceled (585 ) $ 13.24 Outstanding at December 30, 2017 6,791 $ 11.55 $ 42,988 RSUs granted 3,756 $ 10.52 RSUs released (2,642 ) $ 12.12 $ 26,457 RSUs canceled (1,159 ) $ 11.12 Outstanding at December 29, 2018 6,746 $ 10.83 $ 26,446 |
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 26, 2015 731 $ 12.35 $ 13,540 PSUs granted 647 $ 15.28 PSU performance earned (1) 234 $ 12.28 PSUs released (614 ) $ 11.34 $ 8,077 PSUs canceled (94 ) $ 15.18 Outstanding at December 31, 2016 904 $ 14.13 $ 7,672 PSUs granted 916 $ 10.88 PSUs released (26 ) $ 11.83 $ 225 PSUs canceled (427 ) $ 12.20 Outstanding at December 30, 2017 1,367 $ 16.28 $ 8,651 PSUs granted 521 $ 9.79 PSUs released (55 ) $ 15.93 $ 411 PSUs canceled (704 ) $ 16.01 Outstanding at December 29, 2018 1,129 $ 16.10 $ 4,425 Expected to vest as of December 29, 2018 17 $ 65 (1) Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant. |
Summary of 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 December 29, 2018. 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) RSUs $ 54,006 2.48 PSUs $ 6,649 1.41 |
Summary of Options Outstanding | The following table summarizes information about options outstanding at December 29, 2018. Options Outstanding Vested and Exercisable Options Exercise Price Number of Shares Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price (In thousands) (In years) (In thousands) $6.71 - $ 7.25 183 0.72 $ 7.01 183 $ 7.01 $7.45 - $ 7.53 185 0.94 $ 7.47 185 $ 7.47 $7.68 - $ 8.19 192 1.48 $ 8.08 192 $ 8.08 $ 8.58 485 2.12 $ 8.58 485 $ 8.58 $9.02 - $9.28 70 1.60 $ 9.19 70 $ 9.19 1,115 1.55 $ 8.09 1,115 $ 8.09 |
Estimated Fair Value of ESPP Shares | The fair value of the ESPP shares was estimated at the date of grant using the following assumptions: Years Ended December 29, 2018 December 30, December 31, Volatility 48% - 62% 47% - 51% 56% - 67% Risk-free interest rate 1.90% - 2.31% 0.81% - 1.16% 0.51% - 0.52% Expected life 0.5 years 0.5 years 0.5 years Estimated fair value $2.47 - $3.13 $2.44 - $3.46 $3.16 - $4.53 |
Summary of Employee Stock Purchase Plan Activity | The Company’s ESPP activity for the following periods was as follows (in thousands): Years Ended December 29, 2018 December 30, December 31, Stock-based compensation expense $ 5,478 $ 6,049 $ 6,094 Employee contributions $ 15,992 $ 16,410 $ 13,609 Shares purchased 2,189 2,140 1,369 |
Estimated Fair Value of PSU Granted | The ranges of estimated values of the PSUs granted that are compared to the SPGIIPTR, as well as the assumptions used in calculating these values were based on estimates as follows: 2018 2017 2016 Index volatility 33% 33% - 34% 18% Infinera volatility 58% - 59% 55% - 56% 55% Risk-free interest rate 2.37% - 2.40% 1.41% - 1.63% 0.95% - 1.07% Correlation with index 0.04 - 0.48 0.10 - 0.49 0.58 - 0.59 Estimated fair value $14.99 - $19.46 $15.23 - $17.35 $10.31 - $16.62 |
Schedule Of Nonvested Performance Based Units Activity By Grant Year | The following table summarizes by grant year, the Company’s PSU activity for the year ended December 29, 2018 (in thousands): Grant Year Total Number of Performance Stock Units 2015 2016 2017 2018 Outstanding at December 30, 2017 1,367 77 420 869 — PSUs granted 521 — — — 521 PSUs released (55 ) — — — (55 ) PSUs canceled (704 ) (77 ) (210 ) (388 ) (29 ) Outstanding at December 29, 2018 1,129 — 210 481 437 (1) Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant since the original grants were at 100% of target amounts. |
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 consolidated balance sheets and statements of operations for the periods presented (in thousands): Years Ended December 29, 2018 December 30, December 31, Stock-based compensation effects in inventory $ 4,750 $ 5,255 $ 4,911 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 1,635 $ 3,065 $ 2,966 Research and development 16,270 15,845 13,732 Sales and marketing 10,869 11,288 11,043 General and administrative 9,649 10,776 9,295 $ 38,423 $ 40,974 $ 37,036 Cost of revenue—amortization from balance sheet (1) 4,986 4,746 3,497 Total stock-based compensation expense $ 43,409 $ 45,720 $ 40,533 (1) Represents stock-based compensation expense deferred to inventory in prior periods and recognized in the current period. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Geographic Breakdown of Provision for (Benefit from) Income Taxes | The following is a geographic breakdown of the benefit from income taxes (in thousands): Years Ended December 29, 2018 December 30, December 31, Current: Federal $ — $ — $ 32 State 186 69 861 Foreign 6,832 4,679 2,288 Total current $ 7,018 $ 4,748 $ 3,181 Deferred: Federal $ (546 ) $ — $ — State — — — Foreign (7,127 ) (6,178 ) (7,932 ) Total deferred $ (7,673 ) $ (6,178 ) $ (7,932 ) Total benefit from income taxes $ (655 ) $ (1,430 ) $ (4,751 ) |
Provisions for Income Taxes Computed by Applying Statutory Federal Income Tax Rates | The provisions for (benefit from) income taxes differ from the amount computed by applying the statutory federal income tax rates as follows: Years Ended December 29, December 30, December 31, Expected tax (benefit) at federal statutory rate (21.0 )% (35.0 )% (35.0 )% State taxes, net of federal benefit 0.1 % — % 2.2 % Research credits (1.8 )% (1.8 )% (8.9 )% Stock-based compensation 0.8 % 6.0 % 22.3 % Change in valuation allowance 18.1 % 26.8 % (5.9 )% Foreign rate differential 2.9 % 3.3 % 9.4 % Other 0.6 % — % (0.4 )% Effective tax rate (0.3 )% (0.7 )% (16.3 )% |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets are as follows, reduced by the effects of the change in the U.S. corporate tax rate from 35% to 21%, as applicable (in thousands): Years Ended December 29, 2018 December 30, Deferred tax assets: Net operating losses $ 257,928 $ 66,122 Research and foreign tax credits 221,943 74,434 Nondeductible accruals 50,312 28,801 Inventory valuation 39,430 29,197 Property, plant and equipment 2,591 1,919 Intangible assets — 3 Stock-based compensation 4,825 6,325 Total deferred tax assets $ 577,029 $ 206,801 Valuation allowance (493,157 ) (205,241 ) Net deferred tax assets $ 83,872 $ 1,560 Deferred tax liabilities: Accrual and reverse - lease (16,802 ) — Depreciation (199 ) (67 ) Accruals, reserves and prepaid expenses (784 ) (1,154 ) Acquired intangible assets (49,406 ) (20,348 ) Convertible senior notes (29,419 ) (1,191 ) Total deferred tax liabilities $ (96,610 ) $ (22,760 ) Net deferred tax liabilities $ (12,738 ) $ (21,200 ) |
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): December 29, 2018 December 30, December 31, Beginning balance $ 19,786 $ 22,282 $ 19,130 Tax position related to current year Additions 2,296 2,234 2,548 Tax positions related to prior years Additions 2,981 — 1,292 Reductions (40 ) (4,728 ) — Lapses of statute of limitations (406 ) (2 ) (688 ) Ending balance $ 24,617 $ 19,786 $ 22,282 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Property, Plant and Equipment, Net | Revenue by geographic region is based on the shipping address of the customer. The following tables set forth long-lived assets by geographic region (in thousands): Property, plant and equipment, net December 29, 2018 December 30, United States $ 288,614 $ 128,582 Other Americas 2,370 661 Europe, Middle East and Africa 38,273 3,527 Asia Pacific and Japan 13,563 3,172 Total property, plant and equipment, net $ 342,820 $ 135,942 |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table sets forth the changes in benefits obligations and the fair value of plan assets of the Company's benefit plans (in thousands): December 29, 2018 Benefit obligation as of Acquisition Date $ 106,474 Service cost 466 Interest cost 512 Benefits paid (194 ) Actuarial loss 236 Foreign currency exchange rate changes (2,870 ) Benefit obligation at December 29, 2018 (1) $ 104,624 Fair value of plan assets as of Acquisition Date $ 69,614 Actual return on plan assets 653 Actuarial loss (5,319 ) Foreign currency exchange rate changes (1,884 ) Fair value of plan assets at December 29, 2018 $ 63,064 Net liability recognized $ 41,560 (1) The Company's accumulated benefit obligation was $100.2 million at December 29, 2018. |
Schedule of Amounts Recognized in Balance Sheet | The following table presents net amounts of non-current assets and current and non-current liabilities for the Company's pension and other post-retirement benefit plans recognized on its consolidated balance sheet (in thousands): December 29, 2018 Other non-current assets $ 63,064 Current liabilities (901 ) Other long-term liabilities (103,723 ) Net liability recognized $ (41,560 ) |
Schedule of Net Benefit Costs | Net periodic benefit cost for the Company's pension and other post-retirement benefit plans for the Acquisition Date through December 29, 2018 consisted of the following (in thousands): Service cost $ 466 Interest cost 512 Expected return on plan assets (653 ) Amortization of actuarial loss 234 Total net periodic benefit cost $ 559 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table sets forth the changes in accumulated other comprehensive income for the Company's benefit plans (pre-tax) (in thousands): December 29, 2018 Beginning balance as of Acquisition Date $ — Net actuarial loss arising in current year (5,562 ) Amortization of net actuarial loss (1) 234 Foreign currency translation gain 15 Ending balance $ (5,313 ) (1) The actuarial loss in for the year ended December 29, 2018 was caused primarily by the change in the discount rate. Amounts in accumulated other comprehensive income expected to be recognized as components of net periodic pension cost during fiscal year 2019 is $1.7 million (pre-tax). |
Schedule of Assumptions Used | Certain weighted-average assumptions used in computing the benefit obligations are as follows: December 29, 2018 Discount rate 2.07 % Salary growth rate 2.25 % Pension growth rate 2.00 % These assumptions translate into an average remaining life expectancy in years for a pensioner retiring at age 65: 2019 Life Expectancy Retiring at the end of the reporting period 20.5 Male 20.0 Female 23.6 |
Schedule of Allocation of Plan Assets | The following tables present the fair value of plan assets for pension and other benefit plans by major asset category as of December 29, 2018 (in thousands). As of December 29, 2018 Fair Value Measured Using Level 1 Level 2 Total Cash $ 686 $ — $ 686 Equity fund — 32,513 32,513 Insurance contracts — 24,852 24,852 Mixed fund — 4,114 4,114 Pension fund — 899 899 Total plan assets at fair value $ 686 $ 62,378 $ 63,064 |
Schedule of Expected Benefit Payments | Estimated future benefit payments under the Company's pension plans as of December 29, 2018 are as follows (in thousands): 2019 $ 2,660 2020 $ 2,579 2021 $ 3,911 2022 $ 4,284 2023 $ 3,667 2024 to 2027 $ 20,954 |
Financial Information by Quar_2
Financial Information by Quarter (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Consolidated Statements of Operations Data for Each of Eight Quarters | The following table sets forth the Company’s unaudited quarterly consolidated statements of operations data for 2018 and 2017. The data has been prepared on the same basis as the audited consolidated financial statements and related notes included in this report. The table includes all necessary adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair presentation of this data. For the Three Months Ended (Unaudited) 2018 2017 Dec. 29 Sep. 29 Jun. 30 Mar. 31 Dec. 30 Sep. 30 Jul. 1 Apr. 1 (In thousands, except per share data) Revenue: Product $ 249,608 $ 167,030 $ 175,288 $ 171,629 $ 160,543 $ 159,579 $ 143,360 $ 147,053 Services 82,450 33,383 32,939 31,052 35,273 33,001 33,461 28,469 Total revenue 332,058 200,413 208,227 202,681 195,816 192,580 176,821 175,522 Cost of revenue: Cost of product (1) 197,251 112,276 105,914 102,324 110,512 106,413 95,267 94,452 Cost of services 39,409 13,075 13,039 12,831 13,708 12,951 11,687 12,134 Amortization of intangible assets (1) 8,315 4,876 4,943 5,341 5,169 5,390 5,035 4,880 Restructuring and related 2,580 7 26 17 19,141 — — — Total cost of revenue 247,555 130,234 123,922 120,513 148,530 124,754 111,989 111,466 Gross profit 84,503 70,179 84,305 82,168 47,286 67,826 64,832 64,056 Operating expenses 198,728 95,337 105,924 106,846 117,793 102,074 105,337 101,883 Loss from operations (114,225 ) (25,158 ) (21,619 ) (24,678 ) (70,507 ) (34,248 ) (40,505 ) (37,827 ) Other income (expense), net (19,231 ) (7,317 ) (443 ) (2,280 ) (4,449 ) (2,772 ) (2,846 ) (2,782 ) Loss before income taxes (133,456 ) (32,475 ) (22,062 ) (26,958 ) (74,956 ) (37,020 ) (43,351 ) (40,609 ) Provision for (benefit from) income taxes 12 135 (124 ) (678 ) (971 ) 211 (512 ) (158 ) Net loss $ (133,468 ) $ (32,610 ) $ (21,938 ) $ (26,280 ) $ (73,985 ) $ (37,231 ) $ (42,839 ) $ (40,451 ) Net loss per common share Basic $ (0.76 ) $ (0.21 ) $ (0.14 ) $ (0.17 ) $ (0.50 ) $ (0.25 ) $ (0.29 ) $ (0.28 ) Diluted $ (0.76 ) $ (0.21 ) $ (0.14 ) $ (0.17 ) $ (0.50 ) $ (0.25 ) $ (0.29 ) $ (0.28 ) (1) Prior periods have been adjusted to conform with the current period's presentation. See Note 1, “Organization and Basis of Presentation” to the Notes to Consolidated Financial Statements for additional information. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Restatement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Amortization of intangible assets | $ 23,475 | $ 20,474 | $ 19,715 | ||||||||
Restructuring and related | $ 2,580 | $ 7 | $ 26 | $ 17 | $ 19,141 | $ 0 | $ 0 | $ 0 | 2,630 | 19,141 | 0 |
Total cost of revenue | 247,555 | 130,234 | 123,922 | 120,513 | 148,530 | 124,754 | 111,989 | 111,466 | 622,223 | 496,739 | 476,417 |
Research and development | 244,302 | 224,368 | 232,143 | ||||||||
Sales and marketing | 124,238 | 109,511 | 111,678 | ||||||||
General and administrative | 80,957 | 70,620 | 67,612 | ||||||||
Amortization of intangible assets | 29,296 | 6,160 | 6,189 | ||||||||
Acquisition and integration costs | 15,530 | 322 | 1,870 | ||||||||
Restructuring and related | 12,512 | 16,106 | 0 | ||||||||
Total operating expenses | 198,728 | 95,337 | 105,924 | 106,846 | 117,793 | 102,074 | 105,337 | 101,883 | 506,835 | 427,087 | 419,492 |
Product | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | 197,251 | 112,276 | 105,914 | 102,324 | 110,512 | 106,413 | 95,267 | 94,452 | 517,765 | 406,644 | 413,551 |
Services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | $ 39,409 | $ 13,075 | $ 13,039 | $ 12,831 | $ 13,708 | $ 12,951 | $ 11,687 | $ 12,134 | 78,353 | 50,480 | 43,151 |
Previously Reported | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Restructuring and related | 19,141 | 0 | |||||||||
Total cost of revenue | $ 623,910 | 496,739 | 476,417 | ||||||||
Research and development | 224,299 | 232,291 | |||||||||
Sales and marketing | 116,057 | 118,858 | |||||||||
General and administrative | 70,625 | 68,343 | |||||||||
Restructuring and related | 16,106 | 0 | |||||||||
Total operating expenses | 427,087 | 419,492 | |||||||||
Previously Reported | Product | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | 427,118 | 433,266 | |||||||||
Previously Reported | Services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | 50,480 | 43,151 | |||||||||
Change in Presentation Reclassification | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Amortization of intangible assets | 20,474 | 19,715 | |||||||||
Restructuring and related | 0 | 0 | |||||||||
Total cost of revenue | 0 | 0 | |||||||||
Research and development | 69 | (148) | |||||||||
Sales and marketing | (6,546) | (7,180) | |||||||||
General and administrative | (5) | (731) | |||||||||
Amortization of intangible assets | 6,160 | 6,189 | |||||||||
Acquisition and integration costs | 322 | 1,870 | |||||||||
Restructuring and related | 0 | 0 | |||||||||
Total operating expenses | 0 | 0 | |||||||||
Change in Presentation Reclassification | Product | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | (20,474) | (19,715) | |||||||||
Change in Presentation Reclassification | Services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cost of revenue | $ 0 | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||||
Expected dividend yield | 0.00% | ||||
Advertising expenses | $ 0.9 | $ 1.8 | $ 1.9 | ||
Foreign currency transaction gain (loss) | (2.5) | (0.3) | 1.8 | ||
Revenue reserves recorded for potential sales returns | $ 4.3 | $ 4.3 | $ 0.9 | $ 0.6 | |
Software warranty period | 90 days | ||||
Restructuring payment timing period | 4 years | ||||
Customer Concentration Risk | Accounts Receivable | Customer One | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk | 11.00% | ||||
Customer Concentration Risk | Accounts Receivable | Customer Two | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk | 16.00% | ||||
Customer Concentration Risk | Sales Revenue, Net | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk | 18.00% | ||||
Customer Concentration Risk | Sales Revenue, Net | Customer One | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk | 15.00% | 16.00% | |||
Customer Concentration Risk | Sales Revenue, Net | Customer Two | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk | 13.00% | 8.00% | |||
Restricted stock units | New Hire Employee | Vesting 4 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 4 years | ||||
Restricted stock units | Existing Employees | Vesting 4 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 4 years | ||||
Restricted stock units | Existing Employees | Vesting 3 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 3 years | ||||
Performance stock units | Existing Employees | Vesting 3 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 3 years | ||||
Performance stock units | Existing Employees | Vesting 1 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 1 year | ||||
Performance stock units | Existing Employees | Vesting 2 | |||||
Significant Accounting Policies [Line Items] | |||||
Term of future options grants | 2 years | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Payment term | 30 days | ||||
Purchase commitment time frame | 12 months | ||||
Product warranty period | 1 year | ||||
Minimum | Performance stock units | |||||
Significant Accounting Policies [Line Items] | |||||
Ranges of number of shares issued on vesting of PSUs | 0 | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Payment term | 120 days | ||||
Purchase commitment time frame | 24 months | ||||
Product warranty period | 5 years | ||||
Maximum | Performance stock units | |||||
Significant Accounting Policies [Line Items] | |||||
Ranges of number of shares issued on vesting of PSUs | 2 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Life for Each Asset (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 10 years |
Minimum | Laboratory and manufacturing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 1 year 6 months |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 3 years |
Minimum | Computer hardware and software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 1 year 6 months |
Minimum | Leasehold and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 1 year |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 41 years |
Maximum | Laboratory and manufacturing equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 10 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 10 years |
Maximum | Computer hardware and software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 7 years |
Maximum | Leasehold and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 10 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accumulated deficit | $ (956,970) | $ (758,081) | $ (956,970) | $ (758,081) | $ (742,675) | |||||||
(Increase) decrease in revenue | 332,058 | $ 200,413 | $ 208,227 | $ 202,681 | 195,816 | $ 192,580 | $ 176,821 | $ 175,522 | 943,379 | 740,739 | $ 870,135 | |
Capitalized cost to obtain contract | $ 400 | 400 | ||||||||||
Deferred revenue recognized | 44,400 | |||||||||||
Adjustments | Accounting Standards Update 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accumulated deficit | $ 15,406 | $ 15,406 | ||||||||||
(Increase) decrease in revenue | $ (6,734) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 332,058 | $ 200,413 | $ 208,227 | $ 202,681 | $ 195,816 | $ 192,580 | $ 176,821 | $ 175,522 | $ 943,379 | $ 740,739 | $ 870,135 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 476,784 | 428,592 | 541,889 | ||||||||
Other Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 44,581 | 20,070 | 40,036 | ||||||||
Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 309,989 | 234,972 | 243,783 | ||||||||
Asia Pacific and Japan | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 112,025 | 57,105 | 44,427 | ||||||||
Product | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 249,608 | 167,030 | 175,288 | 171,629 | 160,543 | 159,579 | 143,360 | 147,053 | 763,555 | 610,535 | 751,167 |
Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 82,450 | $ 33,383 | $ 32,939 | $ 31,052 | $ 35,273 | $ 33,001 | $ 33,461 | $ 28,469 | 179,824 | 130,204 | 118,968 |
Direct | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 838,931 | 693,472 | 809,681 | ||||||||
Indirect | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 104,448 | $ 47,267 | $ 60,454 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 317,115 | $ 135,245 | $ 135,245 | $ 126,152 |
Accounts receivable, net | 24,981 | 2,825 | ||
Deferred revenue | $ 120,302 | $ 75,458 | $ 75,458 | $ 94,923 |
Revenue Recognition - Revenue,
Revenue Recognition - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 458,212 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 375,707 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 53,258 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 18,904 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 6,434 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 2,716 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of December 29, 2018 | $ 1,193 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of New Accounting Pronouncements and Changes in Accounting Principles (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue | |||||||||||||
Revenues | $ 332,058 | $ 200,413 | $ 208,227 | $ 202,681 | $ 195,816 | $ 192,580 | $ 176,821 | $ 175,522 | $ 943,379 | $ 740,739 | $ 870,135 | ||
Costs and expenses | |||||||||||||
Cost of revenue | 247,555 | 130,234 | 123,922 | 120,513 | 148,530 | 124,754 | 111,989 | 111,466 | 622,223 | 496,739 | 476,417 | ||
Net loss | $ (214,295) | $ (194,506) | $ (23,927) | ||||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (1.36) | $ (1.32) | $ (0.17) | ||||||||||
Assets | |||||||||||||
Accounts receivable, net | 317,115 | 126,152 | $ 317,115 | $ 126,152 | $ 135,245 | $ 135,245 | |||||||
Inventory | 311,888 | 214,704 | 311,888 | 214,704 | 214,465 | ||||||||
Prepaid expenses and other current assets | 43,339 | 43,339 | 46,070 | ||||||||||
Liabilities | |||||||||||||
Accrued expenses | 131,891 | 39,782 | 131,891 | 39,782 | 55,427 | ||||||||
Deferred revenue | 120,302 | 94,923 | 120,302 | 94,923 | $ 75,458 | 75,458 | |||||||
Equity | |||||||||||||
Accumulated deficit | (956,970) | (758,081) | (956,970) | (758,081) | $ (742,675) | ||||||||
Adjustments | |||||||||||||
Costs and expenses | |||||||||||||
Cost of revenue | 0 | $ 0 | |||||||||||
Balances Without Adoption of ASC 606 | |||||||||||||
Revenue | |||||||||||||
Revenues | 936,645 | ||||||||||||
Costs and expenses | |||||||||||||
Cost of revenue | 623,910 | 496,739 | 476,417 | ||||||||||
Net loss | $ (222,716) | ||||||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (1.41) | ||||||||||||
Accounting Standards Update 2014-09 | Adjustments | |||||||||||||
Revenue | |||||||||||||
Revenues | $ (6,734) | ||||||||||||
Costs and expenses | |||||||||||||
Cost of revenue | 1,687 | ||||||||||||
Net loss | $ (8,421) | ||||||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.05) | ||||||||||||
Assets | |||||||||||||
Accounts receivable, net | 9,093 | 9,093 | |||||||||||
Inventory | (239) | (239) | |||||||||||
Prepaid expenses and other current assets | 2,731 | 2,731 | |||||||||||
Liabilities | |||||||||||||
Accrued expenses | 15,645 | 15,645 | |||||||||||
Deferred revenue | (19,465) | (19,465) | |||||||||||
Equity | |||||||||||||
Accumulated deficit | 15,406 | 15,406 | |||||||||||
Product | |||||||||||||
Revenue | |||||||||||||
Revenue | 249,608 | 167,030 | 175,288 | 171,629 | 160,543 | 159,579 | 143,360 | 147,053 | $ 763,555 | 610,535 | 751,167 | ||
Product | Balances Without Adoption of ASC 606 | |||||||||||||
Revenue | |||||||||||||
Revenue | 752,875 | ||||||||||||
Product | Accounting Standards Update 2014-09 | Adjustments | |||||||||||||
Revenue | |||||||||||||
Revenue | (10,680) | ||||||||||||
Services | |||||||||||||
Revenue | |||||||||||||
Revenue | $ 82,450 | $ 33,383 | $ 32,939 | $ 31,052 | $ 35,273 | $ 33,001 | $ 33,461 | $ 28,469 | 179,824 | $ 130,204 | $ 118,968 | ||
Services | Balances Without Adoption of ASC 606 | |||||||||||||
Revenue | |||||||||||||
Revenue | 183,770 | ||||||||||||
Services | Accounting Standards Update 2014-09 | Adjustments | |||||||||||||
Revenue | |||||||||||||
Revenue | $ 3,946 |
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 | Dec. 29, 2018 | Dec. 30, 2017 |
Assets | ||
Total assets | $ 60,845 | $ 206,969 |
Money market funds | ||
Assets | ||
Total assets | 10,347 | 20,371 |
Certificates of deposit | ||
Assets | ||
Total assets | 0 | 240 |
Commercial paper | ||
Assets | ||
Total assets | 0 | 26,912 |
Corporate bonds | ||
Assets | ||
Total assets | 23,512 | 118,558 |
U.S. agency notes | ||
Assets | ||
Total assets | 2,999 | 5,480 |
U.S. treasuries | ||
Assets | ||
Total assets | 23,987 | 35,408 |
Foreign currency exchange forward contracts | ||
Liabilities | ||
Total liabilities | (91) | (204) |
Level 1 | ||
Assets | ||
Total assets | 34,334 | 55,779 |
Level 1 | Money market funds | ||
Assets | ||
Total assets | 10,347 | 20,371 |
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 | 23,987 | 35,408 |
Level 1 | Foreign currency exchange forward contracts | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 26,511 | 151,190 |
Level 2 | Money market funds | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets | ||
Total assets | 0 | 240 |
Level 2 | Commercial paper | ||
Assets | ||
Total assets | 0 | 26,912 |
Level 2 | Corporate bonds | ||
Assets | ||
Total assets | 23,512 | 118,558 |
Level 2 | U.S. agency notes | ||
Assets | ||
Total assets | 2,999 | 5,480 |
Level 2 | U.S. treasuries | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Foreign currency exchange forward contracts | ||
Liabilities | ||
Total liabilities | $ (91) | $ (204) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents [Line Items] | ||||||
Realized gain on sale of cost-method investment | $ 1,050 | $ 0 | $ 8,983 | |||
Equity method investments | $ 0 | $ 5,100 | 0 | 5,100 | ||
Impairment of non-marketable equity investment | 800 | $ 4,300 | 1,900 | $ 5,110 | 1,890 | 0 |
Facilities | 7,300 | |||||
Maximum contractual maturity term | 9 months | |||||
Cash, cash equivalents, and short-term investments | 229,500 | $ 229,500 | ||||
Cash and cash equivalents held by its foreign subsidiaries | 202,954 | $ 116,345 | 202,954 | $ 116,345 | 162,641 | |
Foreign Subsidiary | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents held by its foreign subsidiaries | $ 89,800 | $ 89,800 | ||||
Cost-method Investments | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Payments to acquire investments | 7,000 | |||||
Realized gain on sale of cost-method investment | $ 9,000 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments at Fair Value (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash | $ 168,620 | $ 87,991 |
Adjusted Amortized Cost | 229,556 | 295,378 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (92) | (418) |
Fair Value | 229,465 | 294,960 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 202,953 | 116,346 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 202,954 | 116,345 |
Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 26,603 | 147,844 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (92) | (248) |
Fair Value | 26,511 | 147,596 |
Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 31,188 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (169) | |
Fair Value | 31,019 | |
Money market funds | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 10,347 | 20,371 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,347 | 20,371 |
U.S. treasuries | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 23,986 | 7,984 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 23,987 | 7,983 |
U.S. treasuries | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 27,495 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (70) | |
Fair Value | 27,425 | |
Certificates of deposit | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 240 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 240 | |
Commercial paper | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 26,924 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (12) | |
Fair Value | 26,912 | |
Corporate bonds | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 23,603 | 90,685 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (91) | (155) |
Fair Value | 23,512 | 90,530 |
Corporate bonds | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 28,186 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (158) | |
Fair Value | 28,028 | |
U.S. agency notes | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 3,000 | 2,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (11) |
Fair Value | $ 2,999 | 2,489 |
U.S. agency notes | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjusted Amortized Cost | 3,002 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (11) | |
Fair Value | $ 2,991 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Restricted cash | $ 900,000 | ||
Before-tax effect of foreign currency exchange forward contracts not designated as hedging instruments, gain (loss) | 700,000 | $ (3,500,000) | $ (900,000) |
Interest expense | 22,049,000 | $ 14,017,000 | $ 12,887,000 |
Trade accounts receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest expense | 100,000 | ||
Account receivables sold | $ 12,600,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative [Line Items] | ||
Prepaid Expenses and Other Assets | $ 85,400,000 | $ 42,596,000 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Prepaid Expenses and Other Assets | 0 | 0 |
Other Accrued Liabilities | (91,000) | (204,000) |
Not Designated as Hedging Instrument | Related to euro denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 40,068,000 | 24,794,000 |
Prepaid Expenses and Other Assets | 0 | 0 |
Other Accrued Liabilities | (52,000) | (202,000) |
Not Designated as Hedging Instrument | Related to British pound denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 6,412,000 | 0 |
Prepaid Expenses and Other Assets | 0 | 0 |
Other Accrued Liabilities | (38,000) | 0 |
Not Designated as Hedging Instrument | Related to euro denominated restricted cash | ||
Derivative [Line Items] | ||
Gross Notional | 240,000 | 252,000 |
Prepaid Expenses and Other Assets | 0 | 0 |
Other Accrued Liabilities | $ (1,000) | $ (2,000) |
Business Combination - Prelimin
Business Combination - Preliminary Purchase Consideration (Details) - Telecom Holding Parent LLC $ / shares in Units, $ in Thousands | Oct. 01, 2018USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Cash | $ 154,192 |
Equity consideration | 129,628 |
Total | $ 283,820 |
Common Stock | |
Business Acquisition [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 6.18 |
Number of shares issued (in shares) | shares | 21,000,000 |
Business Combination - Assets A
Business Combination - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Oct. 01, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 227,231 | $ 195,615 | |
Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 15,549 | ||
Restricted cash | 25,743 | ||
Accounts receivable | 170,466 | ||
Inventory | 96,067 | ||
Property, plant and equipment, net | 217,991 | ||
Other assets | 39,145 | ||
Intangible assets, net | 200,700 | ||
Goodwill | 48,235 | ||
Financing lease obligation | (194,700) | ||
Deferred revenue | (43,502) | ||
Other liabilities | (291,874) | ||
Total net assets | $ 283,820 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 29, 2018 | Dec. 29, 2018 | Oct. 01, 2018 | |
Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Ownership acquired | 100.00% | ||
Acquisition-related costs | $ 8,300 | ||
Revenue since acquisition | $ 139,600 | ||
Net loss since acquisition | 71,800 | ||
2.125% Convertible Senior Notes Due September 1, 2024 | |||
Business Acquisition [Line Items] | |||
Principal amount | $ 402,500 | $ 402,500 | |
Debt instrument interest percentage | 2.125% | 2.125% |
Business Combination - Intangib
Business Combination - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 29, 2018 | Dec. 30, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (Years) | 5 years 2 months | 3 years 10 months 8 days | |
Customer relationships and backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (Years) | 3 years 6 months | 5 years 7 months 20 days | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (Years) | 1 year 8 months | 2 years 8 months 15 days | |
Telecom Holding Parent LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 200,700 | ||
Telecom Holding Parent LLC | Customer relationships and backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived assets | $ 111,400 | ||
Estimated Useful Life (Years) | 8 years | ||
Telecom Holding Parent LLC | Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived assets | $ 70,550 | ||
Estimated Useful Life (Years) | 5 years | ||
Telecom Holding Parent LLC | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived assets | $ 1,000 | ||
Estimated Useful Life (Years) | 1 year | ||
In-process technology | Telecom Holding Parent LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived assets | $ 17,750 |
Business Combination - Pro Form
Business Combination - Pro Forma Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Business Combinations [Abstract] | ||
Revenue | $ 1,441 | $ 1,488 |
Net loss | $ (421) | $ (370) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Roll Forward (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 30, 2017 | $ 195,615 |
Goodwill acquired | 48,235 |
Foreign currency translation adjustments | (16,619) |
Accumulated impairment loss | 0 |
Balance as of December 29, 2018 | $ 227,231 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 325,465 | $ 155,758 |
Accumulated amortization | (110,096) | (63,570) |
Total future amortization expense | $ 215,369 | $ 92,188 |
Estimated Useful Life (Years) | 5 years 2 months | 3 years 10 months 8 days |
Total intangible assets, gross | $ 343,215 | |
Total intangible assets | 233,119 | $ 92,188 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,000 | |
Accumulated amortization | (250) | |
Total future amortization expense | 750 | |
Customer relationships and backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 158,110 | 51,050 |
Accumulated amortization | (42,478) | (15,007) |
Total future amortization expense | $ 115,632 | $ 36,043 |
Estimated Useful Life (Years) | 3 years 6 months | 5 years 7 months 20 days |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 166,355 | $ 104,708 |
Accumulated amortization | (67,368) | (48,563) |
Total future amortization expense | $ 98,987 | $ 56,145 |
Estimated Useful Life (Years) | 1 year 8 months | 2 years 8 months 15 days |
Acquired in-process technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired in-process technology | $ 17,750 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||
Impairment of in-process technology | $ 0 | $ 252 | $ 11,295 | |||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Amortization expense | $ 8,315 | $ 4,876 | $ 4,943 | $ 5,341 | $ 5,169 | $ 5,390 | $ 5,035 | $ 4,880 | $ 52,800 | 26,600 | ||
Other intangible assets | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Impairment charge | $ 300 | |||||||||||
Developed technology | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Finite-lived intangible assets, period increase (decrease) | $ 300 | |||||||||||
Finite-lived intangible asset, useful life | 5 years | |||||||||||
Telecom Holding Parent LLC | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Intangible assets, net | $ 200,700 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total future amortization expense | $ 215,369 | $ 92,188 |
2019 | 60,512 | |
2020 | 44,979 | |
2021 | 32,044 | |
2022 | 29,497 | |
2023 and Thereafter | $ 48,337 |
Balance Sheet Details - Details
Balance Sheet Details - Details of Selected Balance Sheet Items (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Inventory: | |||
Raw materials | $ 74,435 | $ 27,568 | |
Work in process | 57,232 | 59,662 | |
Finished goods | 180,221 | 127,474 | |
Total | 311,888 | $ 214,465 | 214,704 |
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 630,251 | 385,894 | |
Less accumulated depreciation and amortization | (287,431) | (249,952) | |
Total | 342,820 | 135,942 | |
Accrued expenses: | |||
Loss contingency related to non-cancelable purchase commitments | 26,042 | 6,379 | |
Professional and other consulting fees | 10,442 | 5,305 | |
Taxes payable | 23,249 | 3,707 | |
Accrued rebate and customer prepay liability | 14,301 | 3,406 | |
Restructuring accrual | 13,097 | 5,490 | |
Acquisition-related funds in escrow | 10,000 | 0 | |
Short-term financing lease obligation | 4,718 | 0 | |
Other accrued expenses | 30,042 | 15,495 | |
Total | 131,891 | $ 55,427 | 39,782 |
Computer hardware | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 15,633 | 13,881 | |
Computer software | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 40,923 | 32,521 | |
Laboratory and manufacturing equipment | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 304,889 | 246,380 | |
Land and building | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 187,184 | 12,347 | |
Furniture and fixtures | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 2,587 | 2,474 | |
Leasehold and building improvements | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | 46,038 | 43,475 | |
Construction in progress | |||
Property, plant and equipment, net: | |||
Property, plant and equipment, gross | $ 32,997 | $ 34,816 |
Balance Sheet Details - Narrati
Balance Sheet Details - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Acquisition-related funds in escrow | $ 10,000 | $ 0 | |
Property, plant and equipment, gross | 630,251 | 385,894 | |
Unamortized ERP costs | 342,820 | 135,942 | |
Depreciation expense | 47,700 | 39,400 | $ 35,500 |
Enterprise resource planning | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 13,100 | 11,400 | |
Unamortized ERP costs | 3,900 | 4,700 | |
Amortization of capitalized costs | $ 2,200 | $ 1,700 | $ 1,200 |
Restructuring and Other Relat_3
Restructuring and Other Related Costs - Restructuring and Other Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Facilities | $ 7,300 | |||
Total | $ 15,142 | |||
Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and related expenses | $ 1,500 | 2,630 | 1,510 | |
Facilities | 0 | 0 | ||
Asset impairment | 4,000 | 0 | 4,004 | |
License | 13,600 | 13,627 | ||
Total | $ 1,600 | 19,100 | 2,630 | 19,141 |
Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and related expenses | 8,600 | 7,900 | 10,413 | 7,931 |
Facilities | 300 | 7,300 | (544) | 7,300 |
Asset impairment | 1,900 | 900 | 2,643 | 875 |
License | 0 | |||
Total | $ 10,800 | $ 16,100 | $ 12,512 | $ 16,106 |
Restructuring and Other Relat_4
Restructuring and Other Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 10,619,000 |
Assumed Liabilities from the Acquisition | 14,748,000 |
Charges | 15,142,000 |
Cash | (13,234,000) |
Non-cash Settlements and Other | (2,924,000) |
Ending balance | 24,351,000 |
Severance and related expenses | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 3,672,000 |
Assumed Liabilities from the Acquisition | 14,748,000 |
Charges | 13,043,000 |
Cash | (11,172,000) |
Non-cash Settlements and Other | (449,000) |
Ending balance | 19,842,000 |
Facilities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 6,947,000 |
Assumed Liabilities from the Acquisition | 0 |
Charges | (544,000) |
Cash | (2,062,000) |
Non-cash Settlements and Other | (75,000) |
Ending balance | 4,266,000 |
Asset impairment | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Assumed Liabilities from the Acquisition | 0 |
Charges | 2,643,000 |
Cash | 0 |
Non-cash Settlements and Other | (2,400,000) |
Ending balance | $ 243,000 |
Restructuring and Other Relat_5
Restructuring and Other Related Costs - Narrative (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 24,351 | $ 10,619 |
Severance and related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 19,842 | 3,672 |
Facility closures | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 4,266 | $ 6,947 |
License | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 200 | |
Coriant | Other restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 13,900 | |
2018 Restructuring Plan | Severance and related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 5,900 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (879) | $ (879) | $ (760) | |
Beginning balance | 6,254 | (28,324) | 1,123 | |
Other comprehensive income (loss) before reclassifications, Accumulated tax effect | (85) | 0 | (119) | |
Other comprehensive income (loss) before reclassifications | (31,788) | 34,578 | (29,447) | |
Amounts reclassified from accumulated other comprehensive income (loss), Accumulated tax effect | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 234 | 0 | 0 | |
Net current-period other comprehensive income (loss), Accumulated tax effect | (85) | 0 | (119) | |
Net current-period other comprehensive income (loss) | (31,554) | 34,578 | (29,447) | |
Ending balance | (964) | (879) | (879) | |
Ending balance | 6,254 | (28,324) | 1,123 | $ (25,300) |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (418) | (209) | (506) | |
Other comprehensive income (loss) before reclassifications | 327 | (209) | 297 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Net current-period other comprehensive income (loss) | 327 | (209) | 297 | |
Ending balance | (91) | (418) | (209) | |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 7,551 | (27,236) | 2,389 | |
Other comprehensive income (loss) before reclassifications | (26,483) | 34,787 | (29,625) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Net current-period other comprehensive income (loss) | (26,483) | 34,787 | (29,625) | |
Ending balance | (18,932) | 7,551 | (27,236) | |
Actuarial Gain (Loss) on Pension | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | |
Other comprehensive income (loss) before reclassifications | (5,547) | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 234 | 0 | 0 | |
Net current-period other comprehensive income (loss) | (5,313) | 0 | 0 | |
Ending balance | $ (5,313) | $ 0 | $ 0 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Common Share - Computation of Net Income (Loss) Per Common Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | May 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | $ (214,295,000) | $ (194,506,000) | $ (23,927,000) | |
Weighted average common shares outstanding - basic and diluted (in shares) | 157,748 | 147,878 | 142,989 | |
Net loss per common share - basic and diluted (in dollars per share) | $ (1.36) | $ (1.32) | $ (0.17) | |
1.75% Convertible Senior Notes Due June 1, 2018 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Principal amount | $ 150,000,000 | $ 150,000,000 | ||
Debt instrument interest percentage | 1.75% | 1.75% |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Common Share - Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 11,150 | 10,547 | 9,250 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 1,134 | 1,461 | 2,042 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 7,792 | 6,856 | 5,302 |
Performance stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 1,284 | 1,420 | 896 |
Employee stock purchase plan shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 940 | 810 | 1,010 |
Debt and Financing Lease Obli_3
Debt and Financing Lease Obligations - Narrative (Details) $ / shares in Units, shares in Millions | Jun. 01, 2018USD ($) | Sep. 29, 2018USD ($)d$ / sharesshares | Mar. 28, 2015USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 28, 2018$ / shares | May 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Proceeds from issuance of debt, net | $ 0 | $ 391,431,000 | $ 0 | |||||
Payment of capped call | $ 48,880,000 | 0 | $ 0 | |||||
Closing price of common stock (in usd per share) | $ / shares | $ 3.92 | |||||||
2.125% Convertible Senior Notes Due September 1, 2024 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Proceeds from issuance of debt, net | $ 391,400,000 | |||||||
Payment of capped call | $ 48,900,000 | |||||||
Strike price (in dollars per share) | $ / shares | $ 9.87 | |||||||
Cap price (in dollars per share) | $ / shares | $ 15.19 | |||||||
Number of shares covered by capped transactions (in shares) | shares | 40.8 | |||||||
Conversion ratio | 101.2812 | |||||||
Debt instrument, convertible, if-converted value in excess of principal | $ 1,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 9.87 | |||||||
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change | 100.00% | |||||||
Debt instrument term | 69 months | |||||||
Net equity component carrying amount | $ 128,700,000 | |||||||
Deferred tax liability | $ 30,900,000 | |||||||
Additional effective rate of interest to be used on amortized carrying value | 10.07% | |||||||
Fair value of convertible debt | $ 289,000,000 | |||||||
Debt instrument interest percentage | 2.125% | |||||||
2.125% Convertible Senior Notes, Circumstance 1 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold trading days | d | 20 | |||||||
Threshold consecutive trading days | d | 30 | |||||||
Convertible threshold minimum percentage | 130.00% | |||||||
2.125% Convertible Senior Notes, Circumstance 2 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Debt instrument, convertible, if-converted value in excess of principal | $ 1,000 | |||||||
Threshold trading days | d | 5 | |||||||
Threshold consecutive trading days | d | 5 | |||||||
Convertible, threshold maximum percentage | 98.00% | |||||||
1.75% Convertible Senior Notes Due June 1, 2018 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net equity component carrying amount | $ 43,300,000 | |||||||
Additional effective rate of interest to be used on amortized carrying value | 10.23% | |||||||
Repayment of debt | $ 150,000,000 | |||||||
Repayment of final coupon interest | $ 1,300,000 | |||||||
Debt instrument interest percentage | 1.75% | 1.75% |
Debt and Financing Lease Obli_4
Debt and Financing Lease Obligations - Components of Convertible Senior Notes (Details) - USD ($) | Dec. 29, 2018 | May 31, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 266,929,000 | $ 0 | |
Net carrying amount | 0 | $ 144,928,000 | |
2.125% Convertible Senior Notes Due September 1, 2024 | |||
Debt Instrument [Line Items] | |||
Principal amount | 402,500,000 | ||
Unamortized discount | (127,264,000) | ||
Unamortized issuance cost | (8,307,000) | ||
Net carrying amount | 266,929,000 | ||
1.75% Convertible Senior Notes Due June 1, 2018 | |||
Debt Instrument [Line Items] | |||
Principal amount | 150,000,000 | $ 150,000,000 | |
Unamortized discount | (4,670,000) | ||
Unamortized issuance cost | (402,000) | ||
Net carrying amount | $ 144,928,000 |
Debt and Financing Lease Obli_5
Debt and Financing Lease Obligations - Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
2.125% Convertible Senior Notes Due September 1, 2024 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 2,613 | |
Amortization of debt issuance costs | 5,716 | |
Amortization of debt discount | 373 | |
Total interest expense | 8,702 | |
1.75% Convertible Senior Notes Due June 1, 2018 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 1,094 | $ 2,625 |
Amortization of debt issuance costs | 402 | 898 |
Amortization of debt discount | 4,671 | 10,444 |
Total interest expense | $ 6,167 | $ 13,967 |
Debt and Financing Lease Obli_6
Debt and Financing Lease Obligations - Sale Leaseback Transactions (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($)transaction | |
Sale Leaseback Transaction [Line Items] | |
Number of transactions | transaction | 2 |
Reimbursement | $ 31.5 |
Depreciation expense | 1 |
Interest expense | 6.5 |
Rent expense | $ 2.3 |
Discount Rate | |
Sale Leaseback Transaction [Line Items] | |
Measurement input | 0.07 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)lease | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease renewal period | 5 years | ||
Asset retirement obligations | $ 5,400 | $ 3,500 | |
Rent expense incurred | 12,100 | 12,000 | $ 11,000 |
Sublease rental income | $ 900 | ||
Number of finance leases | lease | 2 | ||
Purchase obligation | $ 203,546 | $ 96,100 | $ 111,900 |
Uncertain tax positions | $ 3,400 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease period | 1 year | ||
Finance lease period | 7 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease period | 10 years | ||
Finance lease period | 10 years |
Commitments and Contingencies_2
Commitments and Contingencies - Future Annual Minimum Operating Lease Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 18,352 |
2020 | 14,047 |
2021 | 7,888 |
2022 | 5,926 |
2023 | 4,905 |
Thereafter | 18,303 |
Total | $ 69,421 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Purchase Commitments (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | |||
2019 | $ 200,939 | ||
2020 | 751 | ||
2021 | 599 | ||
2022 | 500 | ||
2023 | 757 | ||
Thereafter | 0 | ||
Total | $ 203,546 | $ 96,100 | $ 111,900 |
Commitments and Contingencies_4
Commitments and Contingencies - Financing Lease Obligations (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 9,346 |
2020 | 9,454 |
2021 | 6,666 |
2022 | 5,728 |
2023 | 4,465 |
Thereafter | 15,750 |
Total | $ 51,409 |
Guarantees - Activity Related t
Guarantees - Activity Related to Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 30,909 | $ 40,342 |
Charges to operations | 28,685 | 18,283 |
Utilization | (18,028) | (14,985) |
Increase (decrease) in accrual due to change in estimate | (545) | (12,731) |
Balance at the end of the period | $ 41,021 | 30,909 |
Warranty Obligations | ||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Increase (decrease) in accrual due to change in estimate | $ (2,200) |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Guarantor Obligations [Line Items] | ||
Standby letters of credit outstanding | $ 30,000,000 | $ 4,200,000 |
Floating charges | 4,900,000 | 5,200,000 |
Banker's Guarantees Or Performance Bonds | ||
Guarantor Obligations [Line Items] | ||
Line of credit | 1,600,000 | 1,600,000 |
Proceeds from line of credit | 0 | 0 |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantee | 23,400,000 | 2,200,000 |
Value added tax license | 1,400,000 | 1,300,000 |
Property leases | 2,900,000 | $ 700,000 |
Pre-acquisition restructuring plans | 1,800,000 | |
Credit cards | 500,000 | |
Cash collateral | $ 13,400,000 | |
Annual interest on cash collateral | 5.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2018USD ($)shares | Feb. 29, 2016 | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 28, 2018$ / shares | Dec. 26, 2015shares | Feb. 28, 2007shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Closing price of common stock (in usd per share) | $ / shares | $ 3.92 | |||||||
Stock-based compensation expense | $ | $ 43,409,000 | $ 45,720,000 | $ 40,533,000 | |||||
Stock options outstanding | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options to purchase common stock (in shares) | 1,115,000 | 1,397,000 | 1,655,000 | 2,511,000 | ||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options to purchase RSUs (in shares) | 6,746,000 | 6,791,000 | 5,293,000 | 4,932,000 | ||||
Amortization of stock based compensation | $ | $ 29,200,000 | $ 30,500,000 | $ 29,600,000 | |||||
Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options to purchase RSUs (in shares) | 1,129,000 | 1,367,000 | 904,000 | 731,000 | ||||
Amortization of stock based compensation | $ | $ 8,200,000 | $ 9,500,000 | $ 6,600,000 | |||||
Performance stock units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ranges of number of shares issued on vesting of PSUs | 0 | |||||||
Performance stock units | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ranges of number of shares issued on vesting of PSUs | 2 | |||||||
2007 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reserved common stock for issuance of options (in shares) | 46,800,000 | |||||||
Authorized issuance of common stock shares (in shares) | 21,100,000 | |||||||
Duration of ESPP | 20 years | |||||||
Common stock payroll deduction price percentage of lover of fair market value | 85.00% | |||||||
ESPP offering period | 6 months | |||||||
Employee payroll deduction limit | 15.00% | |||||||
Maximum employee stock purchase | $ | $ 25,000 | |||||||
2007 Plan | Stock options outstanding | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options to purchase common stock (in shares) | 1,100,000 | |||||||
2007 Plan | Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options to purchase RSUs (in shares) | 1,000,000 | |||||||
2016 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reserved common stock for issuance of options (in shares) | 15,400,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Increase In Number of Shares Authorized | 1,500,000 | |||||||
2016 Plan maximum term | 10 years | |||||||
Vesting 1 | Existing Employees | Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of future options grants | 1 year | |||||||
Vesting 2 | Existing Employees | Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of future options grants | 2 years | |||||||
Vesting 3 | Existing Employees | Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of future options grants | 3 years | |||||||
Vesting 3 | Existing Employees | Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of future options grants | 3 years |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands | Dec. 29, 2018shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding stock options and awards (in shares) | 8,990 |
Reserved for future option and award grants (in shares) | 8,728 |
Reserved for future ESPP (in shares) | 4,835 |
Total common stock reserved for stock options and awards (in shares) | 22,553 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Company's Equity Award Activity - Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Weighted-Average Exercise Price Per Share | |||
Weighted-average exercise price per share, ending balance (in usd per share) | $ 8.09 | ||
Equity Option | |||
Number of Options | |||
Number of options, beginning balance (in shares) | 1,397 | 1,655 | 2,511 |
Number of options, granted (in shares) | 0 | 0 | 0 |
Number of options, exercised (in shares) | (229) | (196) | (825) |
Number of options, canceled (in shares) | (53) | (62) | (31) |
Number of options, ending balance (in shares) | 1,115 | 1,397 | 1,655 |
Exercisable at December 26, 2015 (in shares) | 1,115 | ||
Weighted-Average Exercise Price Per Share | |||
Weighted-average exercise price per share, beginning balance (in usd per share) | $ 8.11 | $ 8.30 | $ 7.26 |
Weighted-average exercise price per share, options granted (in usd per share) | 0 | 0 | 0 |
Weighted-average exercise price per share, options exercised (in usd per share) | 7.43 | 7.78 | 4.97 |
Weighted-average exercise price per share, options canceled (in usd per share) | 11.57 | 14.11 | 12.46 |
Weighted-average exercise price per share, ending balance (in usd per share) | 8.09 | $ 8.11 | $ 8.30 |
Exercisable at December 26, 2015 (in usd per share) | $ 8.09 | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, beginning balance | $ 1 | $ 965 | $ 28,288 |
Aggregate intrinsic value, options exercised | 496 | 373 | 4,433 |
Aggregate intrinsic value, ending balance | 0 | $ 1 | $ 965 |
Exercisable at December 29, 2018 | $ 0 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Company's Equity Award Activity - RSUs (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Number of Restricted Stock Units | |||
Number of restricted/performance stock units, beginning balance (in shares) | 6,791 | 5,293 | 4,932 |
Number of shares available for grant cost (in shares) | 3,756 | 4,281 | 2,992 |
Number of restricted/performance stock units, released (in shares) | (2,642) | (2,198) | (2,303) |
Number of restricted/performance stock units, canceled (in shares) | (1,159) | (585) | (328) |
Number of restricted/performance stock units, ending balance (in shares) | 6,746 | 6,791 | 5,293 |
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 11.55 | $ 14.10 | $ 12.76 |
Weighted-average grant date fair value per share, granted (in usd per share) | 10.52 | 9.66 | 13.94 |
Weighted-average grant date fair value per share, released (in usd per share) | 12.12 | 13.56 | 11.06 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 11.12 | 13.24 | 13.90 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 10.83 | $ 11.55 | $ 14.10 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value , beginning balance | $ 42,988 | $ 44,939 | $ 91,285 |
Aggregate intrinsic value, RSUs released | 26,457 | 20,791 | 26,407 |
Aggregate intrinsic value , ending balance | $ 26,446 | $ 42,988 | $ 44,939 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Company's Equity Award Activity - PSUs (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Performance stock units | |||
Number of Performance Stock Units | |||
Number of restricted/performance stock units, beginning balance (in shares) | 1,367 | 904 | 731 |
Number of shares available for grant cost (in shares) | 521 | 916 | 647 |
Number of restricted/performance stock units, released (in shares) | (55) | (26) | (614) |
Number of restricted/performance stock units, canceled (in shares) | (704) | (427) | (94) |
Number of restricted/performance stock units, ending balance (in shares) | 1,129 | 1,367 | 904 |
Expected to vest as of December 26, 2015 (in shares) | 17 | ||
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 16.28 | $ 14.13 | $ 12.35 |
Weighted-average grant date fair value per share, granted (in usd per share) | 9.79 | 10.88 | 15.28 |
Weighted-average grant date fair value per share, released (in usd per share) | 15.93 | 11.83 | 11.34 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 16.01 | 12.20 | 15.18 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 16.10 | $ 16.28 | $ 14.13 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value , beginning balance | $ 8,651 | $ 7,672 | $ 13,540 |
Aggregate intrinsic value , PSUs released | 411 | 225 | 8,077 |
Aggregate intrinsic value , ending balance | 4,425 | $ 8,651 | $ 7,672 |
Aggregate Intrinsic Value, Expected to vest as of December 27, 2014 | $ 65 | ||
Additional grants for performance | |||
Number of Performance Stock Units | |||
Number of shares available for grant cost (in shares) | 234 | ||
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, granted (in usd per share) | $ 12.28 |
Stockholders' Equity - Total St
Stockholders' Equity - Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU/PSU, unrecognized compensation expense, net | $ 54,006 |
RSU/PSU, weighted-average period | 2 years 5 months 23 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU/PSU, unrecognized compensation expense, net | $ 6,649 |
RSU/PSU, weighted-average period | 1 year 4 months 28 days |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Dec. 29, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares (in shares) | shares | 1,115 |
Weighted-average remaining contractual life | 1 year 6 months 18 days |
Weighted-average exercise price (in usd per share) | $ 8.09 |
Number of shares (in shares) | shares | 1,115 |
Weighted-average exercise price (in usd per share) | $ 8.09 |
$6.71 - $ 7.25 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price lower limit (in usd per share) | 6.71 |
Exercise price upper limit (in usd per share) | $ 7.25 |
Number of shares (in shares) | shares | 183 |
Weighted-average remaining contractual life | 8 months 19 days |
Weighted-average exercise price (in usd per share) | $ 7.01 |
Number of shares (in shares) | shares | 183 |
Weighted-average exercise price (in usd per share) | $ 7.01 |
$7.45 - $ 7.53 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price lower limit (in usd per share) | 7.45 |
Exercise price upper limit (in usd per share) | $ 7.53 |
Number of shares (in shares) | shares | 185 |
Weighted-average remaining contractual life | 11 months 9 days |
Weighted-average exercise price (in usd per share) | $ 7.47 |
Number of shares (in shares) | shares | 185 |
Weighted-average exercise price (in usd per share) | $ 7.47 |
$7.68 - $ 8.19 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price lower limit (in usd per share) | 7.68 |
Exercise price upper limit (in usd per share) | $ 8.19 |
Number of shares (in shares) | shares | 192 |
Weighted-average remaining contractual life | 1 year 5 months 23 days |
Weighted-average exercise price (in usd per share) | $ 8.08 |
Number of shares (in shares) | shares | 192 |
Weighted-average exercise price (in usd per share) | $ 8.08 |
$ 8.58 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price (in usd per share) | $ 8.58 |
Number of shares (in shares) | shares | 485 |
Weighted-average remaining contractual life | 2 years 1 month 13 days |
Weighted-average exercise price (in usd per share) | $ 8.58 |
Number of shares (in shares) | shares | 485 |
Weighted-average exercise price (in usd per share) | $ 8.58 |
$9.02 - $9.28 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price lower limit (in usd per share) | 9.02 |
Exercise price upper limit (in usd per share) | $ 9.28 |
Number of shares (in shares) | shares | 70 |
Weighted-average remaining contractual life | 1 year 7 months 6 days |
Weighted-average exercise price (in usd per share) | $ 9.19 |
Number of shares (in shares) | shares | 70 |
Weighted-average exercise price (in usd per share) | $ 9.19 |
Stockholders' Equity - Ranges o
Stockholders' Equity - Ranges of Estimated Values of Stock Options and Performance-Based Stock Options Granted (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 months | 6 months | 6 months |
Stockholders' Equity - Estimate
Stockholders' Equity - Estimated Fair Value of ESPP Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 months | 6 months | 6 months |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Infinera volatility | 48.00% | 47.00% | 56.00% |
Risk-free interest rate | 1.90% | 0.81% | 0.51% |
Estimated fair value, (in usd per share) | $ 2.47 | $ 2.44 | $ 3.16 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Infinera volatility | 62.00% | 51.00% | 67.00% |
Risk-free interest rate | 2.31% | 1.16% | 0.52% |
Estimated fair value, (in usd per share) | $ 3.13 | $ 3.46 | $ 4.53 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Employee Stock Purchase Plan Activity (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 43,409 | $ 45,720 | $ 40,533 | |
Employee stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 5,478 | 6,049 | $ 6,094 | |
Employee contributions | $ 15,992 | $ 16,410 | $ 13,609 | |
Shares issued (in shares) | 2,189 | 2,140 | 1,369 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumption of PSU Granted (Details) | 12 Months Ended | ||
Dec. 29, 2018$ / shares | Dec. 30, 2017$ / shares | Dec. 31, 2016$ / shares | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Infinera volatility | 48.00% | 47.00% | 56.00% |
Risk-free interest rate | 1.90% | 0.81% | 0.51% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Infinera volatility | 62.00% | 51.00% | 67.00% |
Risk-free interest rate | 2.31% | 1.16% | 0.52% |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 33.00% | 18.00% | |
Infinera volatility | 55.00% | ||
Estimated fair value (in dollar per share) | $ 9.79 | $ 10.88 | $ 15.28 |
Performance stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 33.00% | ||
Infinera volatility | 58.00% | 55.00% | |
Risk-free interest rate | 2.37% | 1.41% | 0.95% |
Correlation with index | 0.0004 | 0.001 | 0.0058 |
Estimated fair value (in dollar per share) | $ 14.99 | $ 15.23 | $ 10.31 |
Performance stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Index volatility | 34.00% | ||
Infinera volatility | 59.00% | 56.00% | |
Risk-free interest rate | 2.40% | 1.63% | 1.07% |
Correlation with index | 0.48 | 0.0049 | 0.0059 |
Estimated fair value (in dollar per share) | $ 19.46 | $ 17.35 | $ 16.62 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Nonvested Performance Based Units Activity By Grant Year (Details) - Performance stock units - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted/performance stock units, beginning balance (in shares) | 1,367 | 904 | 731 |
Number of shares available for grant cost (in shares) | 521 | 916 | 647 |
Number of restricted/performance stock units, released (in shares) | (55) | (26) | (614) |
Number of restricted/performance stock units, canceled (in shares) | (704) | (427) | (94) |
Number of restricted/performance stock units, ending balance (in shares) | 1,129 | 1,367 | 904 |
2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted/performance stock units, beginning balance (in shares) | 77 | ||
Number of shares available for grant cost (in shares) | 0 | ||
Number of restricted/performance stock units, released (in shares) | 0 | ||
Number of restricted/performance stock units, canceled (in shares) | (77) | ||
Number of restricted/performance stock units, ending balance (in shares) | 0 | 77 | |
2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted/performance stock units, beginning balance (in shares) | 420 | ||
Number of shares available for grant cost (in shares) | 0 | ||
Number of restricted/performance stock units, released (in shares) | 0 | ||
Number of restricted/performance stock units, canceled (in shares) | (210) | ||
Number of restricted/performance stock units, ending balance (in shares) | 210 | 420 | |
2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted/performance stock units, beginning balance (in shares) | 869 | ||
Number of shares available for grant cost (in shares) | 0 | ||
Number of restricted/performance stock units, released (in shares) | 0 | ||
Number of restricted/performance stock units, canceled (in shares) | (388) | ||
Number of restricted/performance stock units, ending balance (in shares) | 481 | 869 | |
2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted/performance stock units, beginning balance (in shares) | 0 | ||
Number of shares available for grant cost (in shares) | 521 | ||
Number of restricted/performance stock units, released (in shares) | (55) | ||
Number of restricted/performance stock units, canceled (in shares) | (29) | ||
Number of restricted/performance stock units, ending balance (in shares) | 437 | 0 |
Stockholders' Equity - Summar_6
Stockholders' Equity - Summary of Effects of Stock Based Compensation on Company's Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Stock-based compensation effects in inventory | |||
Effects Of Stock Based Compensation [Line Items] | |||
Effects of stock based compensation | $ 4,750 | $ 5,255 | $ 4,911 |
Stockholders' Equity - Summar_7
Stockholders' Equity - Summary of Effects of Stock Based Compensation on Company's Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Effects Of Stock Based Compensation [Line Items] | |||
Gross share based compensation before amortization | $ 38,423 | $ 40,974 | $ 37,036 |
Cost of revenue—amortization from balance sheet | 4,986 | 4,746 | 3,497 |
Total stock-based compensation expense | 43,409 | 45,720 | 40,533 |
Cost of revenue | |||
Effects Of Stock Based Compensation [Line Items] | |||
Gross share based compensation before amortization | 1,635 | 3,065 | 2,966 |
Research and development | |||
Effects Of Stock Based Compensation [Line Items] | |||
Gross share based compensation before amortization | 16,270 | 15,845 | 13,732 |
Sales and marketing | |||
Effects Of Stock Based Compensation [Line Items] | |||
Gross share based compensation before amortization | 10,869 | 11,288 | 11,043 |
General and administrative | |||
Effects Of Stock Based Compensation [Line Items] | |||
Gross share based compensation before amortization | $ 9,649 | $ 10,776 | $ 9,295 |
Income Taxes - Geographic Break
Income Taxes - Geographic Breakdown of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||
Federal | $ 0 | $ 0 | $ 32 | ||||||||
State | 186 | 69 | 861 | ||||||||
Foreign | 6,832 | 4,679 | 2,288 | ||||||||
Total current | 7,018 | 4,748 | 3,181 | ||||||||
Deferred: | |||||||||||
Federal | (546) | 0 | 0 | ||||||||
State | 0 | 0 | 0 | ||||||||
Foreign | (7,127) | (6,178) | (7,932) | ||||||||
Total deferred | (7,673) | (6,178) | (7,932) | ||||||||
Total benefit from income taxes | $ 12 | $ 135 | $ (124) | $ (678) | $ (971) | $ 211 | $ (512) | $ (158) | $ (655) | $ (1,430) | $ (4,751) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Income before provision for income taxes from international operations | $ 135,500 | $ 22,600 | $ 23,100 | |||||||||
Benefit from income taxes | $ (12) | $ (135) | $ 124 | $ 678 | $ 971 | $ (211) | $ 512 | $ 158 | 655 | 1,430 | 4,751 | |
Loss before provision of income taxes | 133,456 | $ 32,475 | $ 22,062 | $ 26,958 | 74,956 | $ 37,020 | $ 43,351 | $ 40,609 | $ 214,950 | $ 195,936 | $ 29,181 | |
Effective tax rate | (0.30%) | (0.70%) | (16.30%) | |||||||||
Federal statutory rate | 21.00% | 35.00% | 35.00% | |||||||||
Operating loss carryforwards | 592,700 | $ 592,700 | ||||||||||
Cumulative unrecognized tax benefit | 24,617 | 19,786 | 24,617 | $ 19,786 | $ 22,282 | $ 19,130 | ||||||
Unrecognized tax benefits netted against deferred tax assets | 21,300 | |||||||||||
Unrecognized tax benefits | 3,300 | 3,300 | ||||||||||
Accrued interest or penalties related to unrecognized tax benefits | 1,200 | 700 | 1,200 | 700 | 500 | |||||||
Accrued interest or penalty included in income tax | 200 | 200 | $ 200 | |||||||||
Accrued interest and penalties | 200 | 200 | ||||||||||
Federal research and development credits | ||||||||||||
Research credits | 179,600 | 179,600 | ||||||||||
California research and development credits | ||||||||||||
Research credits | 60,300 | 60,300 | ||||||||||
Scientific Research and Experimental Development (SRED) Credits | ||||||||||||
Research credits | 2,300 | 2,300 | ||||||||||
Portugal SIFIDE credit | ||||||||||||
Research credits | $ 5,300 | $ 5,300 | ||||||||||
State | ||||||||||||
Operating loss carryforwards | 495,000 | 495,000 | ||||||||||
Luxembourg | Foreign | ||||||||||||
Operating loss carryforwards | 356,000 | 356,000 | ||||||||||
Finland | Foreign | ||||||||||||
Operating loss carryforwards | 57,400 | 57,400 | ||||||||||
California | State | ||||||||||||
Operating loss carryforwards | 111,600 | 111,600 | ||||||||||
Illinois | State | ||||||||||||
Operating loss carryforwards | $ 55,600 | $ 55,600 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes Computed by Applying Statutory Federal Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Expected tax (benefit) at federal statutory rate | (21.00%) | (35.00%) | (35.00%) |
State taxes, net of federal benefit | 0.10% | (0.00%) | 2.20% |
Research credits | 1.80% | 1.80% | 8.90% |
Stock-based compensation | 0.80% | 6.00% | 22.30% |
Change in valuation allowance | 18.10% | 26.80% | (5.90%) |
Foreign rate differential | 2.90% | 3.30% | 9.40% |
Other | 0.60% | (0.00%) | (0.40%) |
Effective tax rate | (0.30%) | (0.70%) | (16.30%) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes Differences Between Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||
Net operating losses | $ 257,928 | $ 66,122 |
Research and foreign tax credits | 221,943 | 74,434 |
Nondeductible accruals | 50,312 | 28,801 |
Inventory valuation | 39,430 | 29,197 |
Property, plant and equipment | 2,591 | 1,919 |
Intangible assets | 0 | 3 |
Stock-based compensation | 4,825 | 6,325 |
Total deferred tax assets | 577,029 | 206,801 |
Valuation allowance | (493,157) | (205,241) |
Net deferred tax assets | 83,872 | 1,560 |
Deferred tax liabilities: | ||
Accrual and reverse - lease | (16,802) | 0 |
Depreciation | (199) | (67) |
Accruals, reserves and prepaid expenses | (784) | (1,154) |
Acquired intangible assets | (49,406) | (20,348) |
Convertible senior notes | (29,419) | (1,191) |
Total deferred tax liabilities | (96,610) | (22,760) |
Net deferred tax liabilities | $ (12,738) | $ (21,200) |
Income Taxes - Aggregate Change
Income Taxes - Aggregate Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 19,786 | $ 22,282 | $ 19,130 |
Tax position related to current year | |||
Additions | 2,296 | 2,234 | 2,548 |
Tax positions related to prior years | |||
Additions | 2,981 | 0 | 1,292 |
Reductions | (40) | (4,728) | 0 |
Lapses of statute of limitations | (406) | (2) | (688) |
Ending balance | $ 24,617 | $ 19,786 | $ 22,282 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 29, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segment Information - Property,
Segment Information - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 342,820 | $ 135,942 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 288,614 | 128,582 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,370 | 661 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 38,273 | 3,527 |
Asia Pacific and Japan | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 13,563 | $ 3,172 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Postretirement costs | $ 2.5 | ||
401(k) Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Cash contribution | 2.3 | $ 2.2 | $ 2.1 |
ITP Pension Plan | Transmode | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Pension expense | $ 2.8 | $ 3.3 | $ 2.6 |
Employee Benefit Plan - Obligat
Employee Benefit Plan - Obligations and Funded Status (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation as of Acquisition Date | $ 106,474 | |
Service cost | 466 | $ 466 |
Interest cost | 512 | 512 |
Benefits paid | (194) | |
Actuarial loss | 236 | |
Foreign currency exchange rate changes | (2,870) | |
Benefit obligation at end of year | 104,624 | 104,624 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of Acquisition Date | 69,614 | |
Actual return on plan assets | 653 | |
Actuarial loss | (5,319) | |
Foreign currency exchange rate changes | (1,884) | |
Fair value of plan assets at December 31, 2018 | 63,064 | 63,064 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 41,560 | 41,560 |
Accumulated benefit obligation | $ 100,200 | $ 100,200 |
Employee Benefit Plan - Pension
Employee Benefit Plan - Pension Plan Assets (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Retirement Benefits [Abstract] | |
Other non-current assets | $ 63,064 |
Current liabilities | (901) |
Other long-term liabilities | (103,723) |
Net liability recognized | $ (41,560) |
Employee Benefit Plan - Compone
Employee Benefit Plan - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 29, 2018 | Dec. 29, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 466 | $ 466 |
Interest cost | $ 512 | 512 |
Expected return on plan assets | (653) | |
Amortization of actuarial loss | 234 | |
Total net periodic benefit cost | $ 559 |
Employee Benefit Plan - Amounts
Employee Benefit Plan - Amounts Recognized in Accumulated Other Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Dec. 29, 2018USD ($) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income, Before Tax Roll Forward [Roll Forward] | |
Beginning balance | $ 0 |
Net actuarial loss arising in current year | (5,562) |
Amortization of net actuarial loss | 234 |
Foreign currency translation gain | 15 |
Ending balance | (5,313) |
Net actuarial loss | $ 1,700 |
Employee Benefit Plan - Weighte
Employee Benefit Plan - Weighted Average Assumptions (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |
Discount rate | 2.07% |
Salary growth rate | 2.25% |
Pension growth rate | 2.00% |
Retiring at the end of the reporting period | 20 years 6 months |
2019 Life Expectancy, Male | 20 years |
2019 Life Expectancy, Female | 23 years 7 months |
Employee Benefit Plan - Fair Va
Employee Benefit Plan - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Oct. 01, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | $ 63,064 | $ 69,614 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 686 | |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 62,378 | |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 686 | |
Cash | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 686 | |
Cash | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 0 | |
Equity fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 32,513 | |
Equity fund | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 0 | |
Equity fund | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 32,513 | |
Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 24,852 | |
Insurance contracts | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 0 | |
Insurance contracts | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 24,852 | |
Mixed fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 4,114 | |
Mixed fund | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 0 | |
Mixed fund | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 4,114 | |
Pension fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 899 | |
Pension fund | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 0 | |
Pension fund | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | $ 899 |
Employee Benefit Plan - Estimat
Employee Benefit Plan - Estimated Future Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Retirement Benefits [Abstract] | |
2019 | $ 2,660 |
2020 | 2,579 |
2021 | 3,911 |
2022 | 4,284 |
2023 | 3,667 |
2024 to 2027 | $ 20,954 |
Financial Information by Quar_3
Financial Information by Quarter (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Total revenue | $ 332,058 | $ 200,413 | $ 208,227 | $ 202,681 | $ 195,816 | $ 192,580 | $ 176,821 | $ 175,522 | $ 943,379 | $ 740,739 | $ 870,135 |
Cost of revenue: | |||||||||||
Amortization of intangible assets | 8,315 | 4,876 | 4,943 | 5,341 | 5,169 | 5,390 | 5,035 | 4,880 | 52,800 | 26,600 | |
Restructuring and related | 2,580 | 7 | 26 | 17 | 19,141 | 0 | 0 | 0 | 2,630 | 19,141 | 0 |
Total cost of revenue | 247,555 | 130,234 | 123,922 | 120,513 | 148,530 | 124,754 | 111,989 | 111,466 | 622,223 | 496,739 | 476,417 |
Gross profit | 84,503 | 70,179 | 84,305 | 82,168 | 47,286 | 67,826 | 64,832 | 64,056 | 321,156 | 244,000 | 393,718 |
Operating expenses | 198,728 | 95,337 | 105,924 | 106,846 | 117,793 | 102,074 | 105,337 | 101,883 | 506,835 | 427,087 | 419,492 |
Loss from operations | (114,225) | (25,158) | (21,619) | (24,678) | (70,507) | (34,248) | (40,505) | (37,827) | (185,679) | (183,087) | (25,774) |
Other income (expense), net | (19,231) | (7,317) | (443) | (2,280) | (4,449) | (2,772) | (2,846) | (2,782) | (29,271) | (12,849) | (3,407) |
Loss before income taxes | (133,456) | (32,475) | (22,062) | (26,958) | (74,956) | (37,020) | (43,351) | (40,609) | (214,950) | (195,936) | (29,181) |
Provision for (benefit from) for income taxes | 12 | 135 | (124) | (678) | (971) | 211 | (512) | (158) | (655) | (1,430) | (4,751) |
Net loss | $ (133,468) | $ (32,610) | $ (21,938) | $ (26,280) | $ (73,985) | $ (37,231) | $ (42,839) | $ (40,451) | $ (214,295) | $ (194,506) | $ (24,430) |
Net loss per common share | |||||||||||
Basic (in usd per share) | $ (0.76) | $ (0.21) | $ (0.14) | $ (0.17) | $ (0.50) | $ (0.25) | $ (0.29) | $ (0.28) | $ (1.36) | $ (1.32) | $ (0.17) |
Diluted (in usd per share) | $ (0.76) | $ (0.21) | $ (0.14) | $ (0.17) | $ (0.50) | $ (0.25) | $ (0.29) | $ (0.28) | $ (1.36) | $ (1.32) | $ (0.17) |
Restructuring charges | $ 15,142 | ||||||||||
Facilities | $ 7,300 | ||||||||||
Impairment of non-marketable equity investment | $ 800 | $ 4,300 | $ 1,900 | 5,110 | 1,890 | $ 0 | |||||
Cost of revenue | |||||||||||
Net loss per common share | |||||||||||
Restructuring charges | 1,600 | 19,100 | 2,630 | 19,141 | |||||||
License | 13,600 | 13,627 | |||||||||
Asset impairment | 4,000 | 0 | 4,004 | ||||||||
Severance and related expenses | 1,500 | 2,630 | 1,510 | ||||||||
Facilities | 0 | 0 | |||||||||
Operating Expenses | |||||||||||
Net loss per common share | |||||||||||
Restructuring charges | 10,800 | 16,100 | 12,512 | 16,106 | |||||||
License | 0 | ||||||||||
Asset impairment | 1,900 | 900 | 2,643 | 875 | |||||||
Severance and related expenses | 8,600 | 7,900 | 10,413 | 7,931 | |||||||
Facilities | 300 | 7,300 | (544) | 7,300 | |||||||
Product | |||||||||||
Revenue: | |||||||||||
Revenue | 249,608 | 167,030 | $ 175,288 | $ 171,629 | 160,543 | $ 159,579 | $ 143,360 | $ 147,053 | 763,555 | 610,535 | 751,167 |
Cost of revenue: | |||||||||||
Cost of revenue | 197,251 | 112,276 | 105,914 | 102,324 | 110,512 | 106,413 | 95,267 | 94,452 | 517,765 | 406,644 | 413,551 |
Services | |||||||||||
Revenue: | |||||||||||
Revenue | 82,450 | 33,383 | 32,939 | 31,052 | 35,273 | 33,001 | 33,461 | 28,469 | 179,824 | 130,204 | 118,968 |
Cost of revenue: | |||||||||||
Cost of revenue | 39,409 | $ 13,075 | $ 13,039 | $ 12,831 | $ 13,708 | $ 12,951 | $ 11,687 | $ 12,134 | $ 78,353 | $ 50,480 | $ 43,151 |
Coriant | Cost of revenue | |||||||||||
Net loss per common share | |||||||||||
Restructuring charges | $ 1,000 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Deferred tax asset, valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 205,241 | $ 200,476 | $ 169,240 |
Additions | 355,166 | 31,759 | 31,913 |
Reductions | (67,250) | (26,994) | (677) |
Ending balance | 493,157 | 205,241 | 200,476 |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 892 | 772 | 630 |
Additions | 929 | 138 | 772 |
Additions due to the Acquisition | 3,263 | 0 | 0 |
Reductions | 0 | (18) | (630) |
Ending balance | $ 5,084 | $ 892 | $ 772 |