Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 25, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33486 | ||
Entity Registrant Name | Infinera Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0560433 | ||
Entity Address, Address Line One | 6373 San Ignacio Avenue | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95119 | ||
City Area Code | 408 | ||
Local Phone Number | 572-5200 | ||
Title of 12(b) Security | Common shares, par value $0.001 per share | ||
Trading Symbol | INFN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 835,203,452 | ||
Entity Common Stock, Shares Outstanding | 222,660,820 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001138639 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Jose, California |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 178,657 | $ 190,611 |
Short-term restricted cash | 7,274 | 2,840 |
Accounts receivable, net | 419,735 | 358,954 |
Inventory | 374,855 | 291,367 |
Prepaid expenses and other current assets | 152,451 | 147,989 |
Total current assets | 1,132,972 | 991,761 |
Property, plant and equipment, net | 172,929 | 160,218 |
Operating lease right-of-use assets | 34,543 | 45,338 |
Intangible assets, net | 47,787 | 86,574 |
Goodwill | 232,663 | 255,788 |
Long-term restricted cash | 3,272 | 9,070 |
Other long-term assets | 44,972 | 38,475 |
Total assets | 1,669,138 | 1,587,224 |
Current liabilities: | ||
Accounts payable | 304,880 | 216,404 |
Accrued expenses and other current liabilities | 141,450 | 147,029 |
Accrued compensation and related benefits | 78,849 | 88,021 |
Short-term debt, net | 510 | 533 |
Accrued warranty | 19,747 | 23,204 |
Deferred revenue | 158,501 | 137,297 |
Total current liabilities | 703,937 | 612,488 |
Long-term debt, net | 667,719 | 476,789 |
Long-term accrued warranty | 16,874 | 21,106 |
Long-term deferred revenue | 23,178 | 31,612 |
Long-term deferred tax liability | 2,348 | 2,364 |
Long-term operating lease liabilities | 45,862 | 54,326 |
Other long-term liabilities | 29,573 | 64,768 |
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 2022 and 500,000 in 2021 Issued and outstanding shares—220,408 in 2022 and 211,381 in 2021 | 220 | 211 |
Additional paid-in capital | 1,901,491 | 2,026,098 |
Accumulated other comprehensive loss | (22,471) | (4,496) |
Accumulated deficit | (1,699,593) | (1,698,042) |
Total stockholders' equity | 179,647 | 323,771 |
Total liabilities and stockholders’ equity | $ 1,669,138 | $ 1,587,224 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 25, 2021 |
Statement of Financial Position [Abstract] | ||
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) | 220,408,000 | 211,381,000 |
Common stock, shares outstanding (in shares) | 220,408,000 | 211,381,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenue: | |||
Revenue | $ 1,573,242 | $ 1,425,205 | $ 1,355,596 |
Cost of revenue: | |||
Amortization of intangible assets | 23,138 | 19,621 | 29,247 |
Acquisition and integration costs | 0 | 0 | 1,828 |
Restructuring and other related costs | 222 | 1,531 | 4,146 |
Total cost of revenue | 1,037,466 | 927,231 | 946,804 |
Gross profit | 535,776 | 497,974 | 408,792 |
Operating expenses: | |||
Research and development | 306,188 | 299,894 | 265,634 |
Sales and marketing | 146,445 | 138,829 | 129,604 |
General and administrative | 118,602 | 115,415 | 112,240 |
Amortization of intangible assets | 14,576 | 17,455 | 18,581 |
Acquisition and integration costs | 0 | 614 | 13,346 |
Restructuring and other related costs | 10,122 | 13,246 | 24,586 |
Total operating expenses | 595,933 | 585,453 | 563,991 |
Loss from operations | (60,157) | (87,479) | (155,199) |
Other income (expense), net: | |||
Interest income | 893 | 455 | 118 |
Interest expense | (26,015) | (49,099) | (46,728) |
Gain on extinguishment of debt | 15,521 | 0 | 0 |
Other income (expense), net | 14,247 | (22,667) | 1,121 |
Total other income (expense), net | 4,646 | (71,311) | (45,489) |
Loss before income taxes | (55,511) | (158,790) | (200,688) |
Provision for income taxes | 20,532 | 11,988 | 6,035 |
Net loss | $ (76,043) | $ (170,778) | $ (206,723) |
Net loss per common share: | |||
Basic (in usd per share) | $ (0.35) | $ (0.82) | $ (1.10) |
Diluted (in usd per share) | $ (0.35) | $ (0.82) | $ (1.10) |
Weighted average shares used in computing net loss per common share: | |||
Basic (in shares) | 216,376 | 207,377 | 188,216 |
Diluted (in shares) | 216,376 | 207,377 | 188,216 |
Product | |||
Revenue: | |||
Revenue | $ 1,268,624 | $ 1,099,376 | $ 1,045,551 |
Cost of revenue: | |||
Cost of revenue | 852,476 | 732,071 | 751,465 |
Services | |||
Revenue: | |||
Revenue | 304,618 | 325,829 | 310,045 |
Cost of revenue: | |||
Cost of revenue | $ 161,630 | $ 174,008 | $ 160,118 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (76,043) | $ (170,778) | $ (206,723) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment and other | (40,839) | (8,561) | 29,040 |
Actuarial gain (loss) on pension liabilities | 22,538 | 12,580 | (8,183) |
Amortization of net actuarial loss | 326 | 3,383 | 1,884 |
Net change in accumulated other comprehensive income (loss) | (17,975) | 7,402 | 22,741 |
Comprehensive loss | $ (94,018) | $ (163,376) | $ (183,982) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated Deficit Adjustment |
Beginning balance (in shares) at Dec. 28, 2019 | 181,134 | |||||||
Beginning balance at Dec. 28, 2019 | $ 386,535 | $ (650) | $ 181 | $ 1,740,884 | $ (34,639) | $ (1,319,891) | $ (650) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares of common stock sold in at-the market equity offering, net of issuance costs (in shares) | 12,000 | |||||||
Shares of common stock sold in at-the market equity offering, net of issuance costs | 92,864 | $ 12 | 92,852 | |||||
Stock options exercised (in shares) | 474 | |||||||
Stock options exercised | 3,995 | 3,995 | ||||||
Retirement of common shares purchased upon exercise of options (in shares) | (254) | |||||||
Retirement of common shares purchased upon exercise of options | (2,255) | (2,255) | ||||||
ESPP shares issued (in shares) | 3,001 | |||||||
ESPP shares issued | 15,346 | $ 3 | 15,343 | |||||
Shares withheld for tax obligations (in shares) | (330) | |||||||
Shares withheld for tax obligations | (2,013) | (2,013) | ||||||
Restricted stock units released (in shares) | 5,372 | |||||||
Restricted stock units released | 5 | $ 5 | ||||||
Stock-based compensation | 48,642 | 48,642 | ||||||
Conversion option related to convertible senior notes, net of allocated costs | 67,797 | 67,797 | ||||||
Other comprehensive income (loss) | 22,741 | 22,741 | ||||||
Net loss | (206,723) | (206,723) | ||||||
Ending balance (in shares) at Dec. 26, 2020 | 201,397 | |||||||
Ending balance at Dec. 26, 2020 | 426,284 | $ 201 | 1,965,245 | (11,898) | (1,527,264) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 46 | |||||||
Stock options exercised | 332 | 332 | ||||||
ESPP shares issued (in shares) | 2,272 | |||||||
ESPP shares issued | 16,166 | $ 2 | 16,164 | |||||
Shares withheld for tax obligations (in shares) | (808) | |||||||
Shares withheld for tax obligations | (7,178) | (7,178) | ||||||
Restricted stock units released (in shares) | 8,474 | |||||||
Restricted stock units released | 8 | $ 8 | ||||||
Stock-based compensation | 51,535 | 51,535 | ||||||
Other comprehensive income (loss) | 7,402 | 7,402 | ||||||
Net loss | (170,778) | (170,778) | ||||||
Ending balance (in shares) at Dec. 25, 2021 | 211,381 | |||||||
Ending balance at Dec. 25, 2021 | $ 323,771 | $ (122,001) | $ 211 | 2,026,098 | $ (196,493) | (4,496) | (1,698,042) | $ 74,492 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 | |||||||
ESPP shares issued (in shares) | 2,552 | |||||||
ESPP shares issued | $ 15,191 | $ 2 | 15,189 | |||||
Shares withheld for tax obligations (in shares) | (550) | |||||||
Shares withheld for tax obligations | (3,714) | (3,714) | ||||||
Restricted stock units released (in shares) | 7,025 | |||||||
Restricted stock units released | 7 | $ 7 | ||||||
Stock-based compensation | 60,411 | 60,411 | ||||||
Other comprehensive income (loss) | (17,975) | (17,975) | ||||||
Net loss | (76,043) | (76,043) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 220,408 | |||||||
Ending balance at Dec. 31, 2022 | $ 179,647 | $ 220 | $ 1,901,491 | $ (22,471) | $ (1,699,593) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||||
Cash Flows from Operating Activities: | ||||||
Net loss | $ (76,043) | $ (170,778) | $ (206,723) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | 83,830 | 83,583 | 100,140 | |||
Non-cash restructuring charges and other related costs | 6,066 | 6,805 | 5,471 | |||
Amortization of debt discount and issuance costs | 6,109 | 32,455 | 28,115 | |||
Operating lease expense | 9,421 | 14,993 | 18,556 | |||
Stock-based compensation expense | 61,015 | 51,812 | 49,461 | |||
Gain on extinguishment of debt | (15,521) | 0 | 0 | |||
Other, net | 1,218 | 4,147 | 4,438 | |||
Changes in assets and liabilities: | ||||||
Accounts receivable | (69,024) | (45,783) | 32,150 | |||
Inventory | (89,527) | (28,022) | 71,424 | |||
Prepaid expenses and other current assets | (34,046) | (424) | (36,127) | |||
Accounts payable | 88,256 | 32,304 | (93,411) | |||
Accrued expenses and other current liabilities | (24,443) | 39,283 | (107,704) | |||
Deferred revenue | 15,129 | 7,753 | 21,910 | |||
Net cash (used in) provided by operating activities | (37,560) | 28,128 | (112,300) | |||
Cash Flows from Investing Activities: | ||||||
Purchase of property and equipment | (46,053) | (41,379) | (39,009) | |||
Net cash used in investing activities | (46,053) | (41,379) | (39,009) | |||
Cash Flows from Financing Activities: | ||||||
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs of $3,380 | 0 | 0 | 92,916 | |||
Proceeds from asset-based revolving credit facility | 80,000 | 0 | 55,000 | |||
Repayment of 2024 Notes | (280,842) | 0 | 0 | |||
Repayment of third-party manufacturing funding | 0 | (24,610) | (5,346) | |||
Repayment of asset-based revolving credit facility | (80,000) | (77,000) | (8,000) | |||
Repayment of mortgage payable | (533) | (350) | (233) | |||
Payment of debt issuance cost | (12,451) | 0 | (2,455) | |||
Principal payments on financing lease obligations | (1,314) | (1,631) | (1,587) | |||
Payment of term license obligation | (7,739) | (7,272) | (5,692) | |||
Proceeds from issuance of common stock | 15,189 | 16,497 | 17,072 | |||
Tax withholding paid on behalf of employees for net share settlement | (3,714) | (7,178) | (2,013) | |||
Net cash provided by (used in) financing activities | 82,346 | (101,544) | 334,162 | |||
Effect of exchange rate changes on cash | (12,051) | 1,933 | (267) | |||
Net change in cash, cash equivalents, and restricted cash | (13,318) | (112,862) | 182,586 | |||
Cash, cash equivalents, and restricted cash at beginning of period | 202,521 | [1] | 315,383 | [1] | 132,797 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 189,203 | 202,521 | 315,383 | ||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for income taxes, net | 15,126 | 18,703 | 5,039 | |||
Cash paid for interest | 14,787 | 18,261 | 15,638 | |||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Transfer of inventory to fixed assets | 9,332 | 2,279 | 1,083 | |||
Property and equipment included in accounts payable and accrued liabilities | 7,435 | 9,011 | 0 | |||
Unpaid term licenses (included in accounts payable, accrued liabilities and other long term liabilities) | 9,178 | 9,339 | 12,478 | |||
3.75% Convertible Senior Notes Due 2028 | ||||||
Cash Flows from Financing Activities: | ||||||
Proceeds from issuance of 2027 Notes | 373,750 | 0 | 0 | |||
Convertible Senior Notes, 2.5%, Due March 1, 2027 | ||||||
Cash Flows from Financing Activities: | ||||||
Proceeds from issuance of 2027 Notes | $ 0 | $ 0 | $ 194,500 | |||
[1]Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: December 31, 2022 December 25, 2021 December 26, 2020 (In thousands) Cash and cash equivalents $ 178,657 $ 190,611 $ 298,014 Short-term restricted cash 7,274 2,840 3,293 Long-term restricted cash 3,272 9,070 14,076 Total cash, cash equivalents and restricted cash $ 189,203 $ 202,521 $ 315,383 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Statement of Cash Flows [Abstract] | ||
Payments of stock issuance costs | $ 3,380 | |
Cash and cash equivalents | 178,657 | |
Short-term restricted cash | 7,274 | |
Long-term restricted cash | 3,272 | |
Total cash, cash equivalents and restricted cash | $ 189,203 | [1] |
[1]Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: December 31, 2022 December 25, 2021 December 26, 2020 (In thousands) Cash and cash equivalents $ 178,657 $ 190,611 $ 298,014 Short-term restricted cash 7,274 2,840 3,293 Long-term restricted cash 3,272 9,070 14,076 Total cash, cash equivalents and restricted cash $ 189,203 $ 202,521 $ 315,383 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
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 San Jose, 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, optical semiconductors, software and services. Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, disaggregated router platforms, and a suite of networking and automation software offerings, and support and professional services. Infinera leverages its U.S.-based compound semiconductor fab and in-house packaging capabilities to design, develop, and manufacture industry-leading indium phosphide-based photonic integrated circuits for use in its high-capacity optical communications products. 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 year 2022 was a 53-week year that ended on December 31, 2022. Fiscal years 2021 and 2020 were 52-week years that ended on December 25, 2021 and December 26, 2020, respectively. The next 53-week year will end on December 30, 2028. The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements include all adjustments necessary for a fair presentation of the Company's annual results. All adjustments are of a normal recurring nature. The consolidated financial statements include the accounts for the Company and its subsidiaries and affiliates in the Company which the Company has a controlling financial interest or is the primary beneficiary. All inter-company balances and transactions have been eliminated. The Company reclassified certain amounts reported in previous periods to conform to the current presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management 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 reporting periods. Estimates, assumptions and judgements made by management include inventory valuation, revenue recognition, accounting for income taxes, stock-based compensation, employee benefit and pension plans, manufacturing partner and supplier liabilities, allowances for sales returns, allowances for credit losses, useful life of intangibles and property, plant and equipment, impairment loss related to lease abandonment, accrued warranty, operating and finance lease liabilities, restructuring and other related costs and loss contingencies. The Company bases its assumptions on historical experience and also on assumptions that it believes are reasonable. Actual results could differ materially from those estimates. These estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in the Company's consolidated financial statements. Revenue Recognition 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. 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-enabled systems generally include a specific initial capacity and incremental capacity can be added by the purchase of Instant Bandwidth licenses. Instant Bandwidth 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 Instant Bandwidth licenses within a specified time frame from the initial shipment of the Instant Bandwidth-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 Instant Bandwidth licenses to the customer. 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 Instant Bandwidth 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-cancelable 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 Company accounts for forfeitures as they occur. 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's 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 over 18 months to three years. Performance Stock Units ("PSUs") granted to the Company's executive officers and senior management during 2019, 2020, 2021 and 2022 are based on performance criteria related to specific financial targets over the span of a two In addition, the Company 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 2022, 2021 and 2020 were $1.5 million, $1.6 million, and $1.3 million, respectively. Accounting for Income Taxes As part of the process of preparing its consolidated financial statements, the Company 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 consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in consolidated statements of operations become deductible expenses under applicable income tax laws or loss, or credit carryforwards are utilized. Accordingly, realization of 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 our 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 forecast 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 31, 2022, 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. During 2022, the Company executed an internal realignment of its supply chain and customer-facing entities. Among other things, the new structure aligned and consolidated the exploitation of its intellectual property and the allocation of the associated commercial risk and reward with the customer-facing entities that manage its supply chain. The impact of this internal realignment is reflected in the Company’s tax provision for the year ended December 31, 2022. 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, revenue, 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 and consolidated statements of comprehensive income (loss). 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 income (loss), net, in the Company's consolidated statement of operations, in the same period that the re-measurement occurred. Aggregate foreign exchange transactions recorded was gain of $12.8 million in 2022 and losses of $17.2 million and $0.2 million, in 2021 and 2020, respectively. The Company enters into foreign currency exchange forward contracts to reduce the impact of foreign exchange fluctuations on earnings from certain non-functional currency account balances denominated primarily in euros and British pounds. Cash and Cash Equivalents Cash consists primarily of cash in bank deposit accounts which, at times, a portion may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. 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 them in accordance with the fair value hierarchy on a recurring basis. Foreign Currency Exchange Forward Contracts As discussed in Note 6, “Derivative Instruments" to the Notes to Consolidated Financial Statements, the Company historically held 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. Facilities-related Charges The Company estimates the fair value of its facilities-related charges associated with its restructuring plans, based on estimated future discounted cash flows and unobservable inputs, which includes the amount and timing of estimated sublease rental receipts that the Company can reasonably obtain over the remaining lease term and the discount rate. Accounts Receivable and Allowances for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for estimated credit losses resulting from the inability of its customers to make required payments and reviewed the allowance quarterly. The Company determines expected credit losses by performing credit evaluations of its customers' financial condition, establishing both a general reserve and specific reserve for customers in adverse financial condition and adjusting for its expectations of changes in conditions that may impact the collectability of outstanding receivables. The Company considers a customer's receivable balance past due when the amount is due beyond the credit terms extended, The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks. Amounts are written off when receivables are determined to be uncollectible. 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. At December 31, 2022, December 25, 2021 and December 26, 2020, revenue was reduced for estimated sales returns by $3.6 million, $0.8 million, and $2.4 million, respectively. Concentration of Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash, foreign exchange contracts and accounts receivable. The risk with respect to foreign exchange contracts is mitigated by entering into these contracts with a large high-quality financial institution and the Company monitors the creditworthiness of the counterparty consistently. 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. One customer accounted for over 10% of the Company's accounts receivable balance, net on the consolidated balance sheets as of December 31, 2022. No customer accounted for over 10% of the Company's accounts receivable balance, net on the consolidated balance sheets as of December 25, 2021. One customer accounted for approximately 11% of the Company's revenue in 2022 and 2020. No customer accounted for 10% or more of the Company's revenue in 2021. 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 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 high-quality institutions and the Company monitors the creditworthiness of the counterparties 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. 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 euro and British pounds. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying account balances, and therefore, do not subject the Company to material balance sheet risk. 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 ASC 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 uncollectability, and the Company does not retain any interest in the underlying accounts receivable once sold. 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 are stated at cost. This includes enterprise-level business software that the Company customizes to meet its specific operational needs and certain software licenses. 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 certain. Repair and maintenance costs are expensed as incurred. The estimated useful life for each asset category is as follows: Estimated Useful Lives Building 20 years Laboratory and manufacturing equipment 1.5 to 10 years Furniture and fixtures 3 to 5 years Computer hardware 3 to 5 years Computer software 3 years Leasehold and building improvements 1 to 11 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 In the Company's contracts with its customers, 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 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 represent 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, but once projects have been completed, these assets 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 Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the fair value of the identifiable assets acquired and liabilities assumed. The Company tests for impairment of goodwill on an annual basis in the fourth quarter and at any other time when events occur or circumstances indicate that the carrying amount of goodwill may not be recoverab |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases for real estate (facilities) and automobiles. For the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020, operating lease expense was $21.1 million, $25.7 million and $34.0 million, respectively. Included in operating lease expense were rent expense and impairment charges due to restructuring resulting in abandonment of certain lease facilities, amounting to $8.1 million, $6.5 million and $9.9 million for the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively. Variable lease cost, short-term lease cost and sublease income were immaterial during the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively. The following table presents current and long-term portion of operating lease liabilities as classified in the consolidated balance sheets (in thousands): December 31, 2022 December 25, 2021 Accrued expenses and other current liabilities $ 10,948 $ 16,542 Long-term operating lease liabilities 45,862 54,326 Total operating lease liability $ 56,810 $ 70,868 The Company also has finance leases. The lease term for these arrangements range from three As of December 31, 2022 and December 25, 2021, finance leases included in property, plant, and equipment, net in the consolidated balance sheets were $1.9 million and $3.5 million, respectively. Finance lease expense includes amortization of the right-of-use assets and interest expense. Total finance lease expense during the fiscal years ended December 31, 2022 and December 25, 2021 was not material. The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of December 31, 2022 (in thousands): Operating Lease Finance Lease Total lease payments $ 71,903 $ 966 Less: interest (1) 15,093 37 Present value of lease liabilities $ 56,810 $ 929 (1) Calculated using the interest rate for each lease. The following table presents supplemental information for the Company's non-cancelable leases for the fiscal year ended December 31, 2022 (in thousands, except for weighted average and percentage data): Operating Lease Finance Lease Weighted average remaining lease term 5.42 years 1.00 year Weighted average discount rate 9.25 % 7.02 % Cash paid for amounts included in the measurement of lease liabilities $ 23,398 $ 1,310 Leased assets obtained in exchange for new lease liabilities $ 5,748 $ — |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents the Company's revenue disaggregated by revenue source (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Product $ 1,268,624 $ 1,099,376 $ 1,045,551 Services 304,618 325,829 310,045 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 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 31, 2022 December 25, 2021 December 26, 2020 United States $ 870,282 $ 663,808 $ 630,422 Other Americas 101,600 107,963 99,158 Europe, Middle East and Africa 405,328 477,787 424,411 Asia Pacific 196,032 175,647 201,605 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Direct $ 1,191,584 $ 1,099,632 $ 1,039,976 Indirect 381,658 325,573 315,620 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): Assets (Liabilities) December 31, 2022 December 25, 2021 Accounts receivable, net $ 419,735 $ 358,954 Contract assets $ 60,172 $ 49,052 Deferred revenue $ (181,679) $ (168,909) Revenue recognized for the fiscal year ended December 31, 2022 and December 25, 2021 that was included in the deferred revenue balance at the beginning of the reporting period was $106.8 million and $88.1 million, respectively. Changes in the contract asset and liability balances during the fiscal year ended December 31, 2022 and December 25, 2021 were not materially impacted by other factors. 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, consisting of deferred revenue and backlog. The Company’s backlog represents purchase orders received from customers for future product shipments and services. 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. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) pursuant to contracts that are not subject to cancellation without penalty at the end of the reporting period (in thousands): 2023 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized in the future as of December 31, 2022 $ 827,410 $ 106,100 $ 29,108 $ 9,043 $ 5,227 $ 6,066 $ 982,954 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s fair value hierarchy for its assets (liabilities) measured at fair value on a recurring basis (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets (Liabilities) Foreign currency exchange forward contracts $ — $ — $ — $ — $ (221) $ (221) Disclosure of Fair Values Financial instruments that are not re-measured at fair value include accounts receivable, accounts payable, accrued liabilities, and debt. The carrying values of these financial instruments other than the Company's 2024 Notes, 2027 Notes and 2028 Notes (collectively referred to as "convertible senior notes" below) approximate their fair values. The fair value of each series of convertible senior notes was determined based on the quoted bid price of the applicable series of convertible senior notes in an over-the-counter market on December 30, 2022 (the last trading day of the fiscal quarter). The following table presents the estimated fair values of the convertible senior notes (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Convertible senior notes $ — $ 785,364 $ 785,364 $ — $ 765,412 $ 765,412 Cash equivalents are measured and reported at fair value on a recurring basis. The following table presents the fair value of these financial assets and their levels within the fair value hierarchy (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 95,000 $ — $ 95,000 $ — $ — $ — During 2022 and 2021, there were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy. As of December 31, 2022 and December 25, 2021, none of the Company’s existing securities were classified as Level 3 securities. The Company measures goodwill and intangible assets at fair value on a nonrecurring basis when there are identifiable events or changes in circumstances that may have a significant adverse impact on the fair value of these assets. The Company performed an analysis of impairment indicators of these assets and noted no adverse impact to their fair values as of December 31, 2022. Facilities-related Charges The Company classifies 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. In connection with its Restructuring Plans (as defined in Note 9, “Restructuring and Other Related Costs” to the Notes to Consolidated Financial Statements), the Company incurred facilities related charges of $8.1 million and $6.5 million for the years ended December 31, 2022 and December 25, 2021, respectively. These charges primarily consisted of impairment charges incurred for operating lease right-of-use assets and were calculated at fair value based on estimated future sublease rental receipts that the Company could reasonably obtain over the remaining lease term at the discount rate. Facilities-related charges are classified as Level 3 measurement due to the significance of these unobservable inputs. Cash and Cash Equivalents As of December 31, 2022, the Company had $189.2 million of cash, cash equivalents and restricted cash, including $65.9 million held by its foreign subsidiaries. As of December 25, 2021, the Company had $202.5 million of cash, cash equivalents and restricted cash including $77.6 million held by its foreign subsidiaries. The Company's cash held by its foreign subsidiaries is used for operating 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. 31, 2022 | |
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 account balances, 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 account balances. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate fluctuations on the underlying foreign currency denominated account balances, do not subject the Company to material balance sheet risk. The Company had no outstanding foreign currency exchange forward contracts as of December 31, 2022. As of December 25, 2021, the Company had $29.5 million outstanding foreign currency exchange forward contract and posted collateral of $0.9 million to cover associated potential credit risk exposure. This collateral amount was 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 $0.6 million, $0.9 million and $0.3 million for 2022, 2021 and 2020, respectively, included in other income (expense), 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. The Company does 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 31, 2022 As of December 25, 2021 Gross Notional (1) Accrued expenses and other current liabilities Gross Notional (1) Accrued expenses and other current liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ — $ — $ 21,981 $ (139) Related to British pound denominated receivables — — 7,566 (82) Total $ — $ — $ 29,547 $ (221) (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 with well-established factoring companies. 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. For the years ended December 31, 2022, December 25, 2021 and December 26, 2020, the Company's recognized factoring related interest expense was approximately $0.9 million, $0.4 million and $0.4 million, respectively. The gross amount of trade accounts receivables sold totaled approximately $101.0 million and $121.3 million for the fiscal years ended December 31, 2022 and December 25, 2021 respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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 fiscal year ended December 31, 2022 (in thousands): Balance as of December 25, 2021 $ 255,788 Foreign currency translation adjustments (23,125) Balance as of December 31, 2022 $ 232,663 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. To date, the Company has zero accumulated impairment loss on goodwill. Intangible Assets The following tables present details of the Company’s intangible assets as of December 31, 2022 and December 25, 2021 (in thousands): December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog 151,461 (114,294) 37,167 3.5 Developed technology 170,467 (159,847) 10,620 0.7 Total intangible assets $ 321,928 $ (274,141) $ 47,787 December 25, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog 157,495 (104,701) 52,794 4.2 Developed technology 182,844 (149,064) 33,780 1.5 Total intangible assets $ 340,339 $ (253,765) $ 86,574 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 $37.7 million, $37.1 million and $47.8 million for the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively. The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2022 (in thousands): Total 2023 2024 2025 2026 2027 Thereafter Total future amortization expense $ 47,787 $ 22,968 $ 9,025 $ 9,025 $ 6,769 $ — $ — |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Details | Balance Sheet Details Restricted Cash The Company’s restricted cash balance is held in deposit accounts at various banks globally. These amounts primarily collateralize the Company’s issuances of standby letters of credit and bank guarantees. Allowance for Credit Losses The following table provides a rollforward of the allowance for credit losses for accounts receivable for the fiscal year ended December 31, 2022 (in thousands): Balance as of December 25, 2021 $ 1,304 Additions (1) 1,397 Write offs (2) (1,279) Balance as of December 31, 2022 $ 1,422 (1) The new additions during the fiscal year ended December 31, 2022 are primarily due to specific reserves. (2) The write offs during the fiscal year ended December 31, 2022 are primarily amounts fully reserved previously. The following table provides details of selected balance sheet items (in thousands): December 31, 2022 December 25, 2021 Inventory Raw materials $ 48,688 $ 39,379 Work in process 66,591 53,924 Finished goods 259,576 198,064 Total $ 374,855 $ 291,367 Property, plant and equipment, net Computer hardware $ 46,454 $ 45,824 Computer software (1) 62,102 56,820 Laboratory and manufacturing equipment 297,261 287,875 Land and building 12,369 12,369 Furniture and fixtures 2,828 2,164 Leasehold and building improvements 50,360 51,471 Construction in progress 42,418 18,807 Subtotal $ 513,792 $ 475,330 Less accumulated depreciation and amortization (2) (340,863) (315,112) Total $ 172,929 $ 160,218 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 28,796 $ 19,405 Taxes payable 42,757 43,308 Restructuring accrual 941 8,610 Short-term operating and finance lease liability 11,701 17,792 Other accrued expenses and other current liabilities 57,255 57,914 Total accrued expenses and other current liabilities $ 141,450 $ 147,029 (1) Included in computer software at December 31, 2022 and December 25, 2021 were $29.3 million and $25.9 million, respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented in prior years. The unamortized ERP costs at December 31, 2022 and December 25, 2021 were $9.0 million and $8.9 million, respectively. Also included in computer software at December 31, 2022 and December 25, 2021 was $24.2 million and $20.9 million, respectively, related to term licenses. The unamortized term license costs at December 31, 2022 and December 25, 2021 was $9.1 million and $9.2 million, respectively. (2) Depreciation expense was $46.1 million, $47.1 million and $52.3 million (which includes depreciation of capitalized ERP costs of $3.5 million, $2.8 million and $2.6 million) for 2022, 2021 and 2020, respectively. Also included in depreciation expense for 2022 and 2021 was $7.6 million and $6.7 million, respectively, related to term licenses. |
Restructuring and Other Related
Restructuring and Other Related Costs | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Costs | Restructuring and Other Related Costs In 2020, the Company implemented a restructuring initiative (the "2020 Restructuring Plan") that was primarily intended to reduce costs and consolidate its operations. The identified cost reduction initiatives under the 2020 Restructuring Plan were substantially completed, with the majority of associated payments made in 2020 and the remaining amounts substantially paid during 2021. In 2021, the Company announced a plan to restructure certain international research & development operations (the "2021 Restructuring Plan"). The Company estimates it will incur total costs related to the restructuring ranging from $15.0 million to $17.0 million, of which $6.1 million and $8.5 million was recorded in the fiscal years ended December 31, 2022 and December 25, 2021, respectively. The 2021 Restructuring Plan is substantially completed with the associated payments made in 2022. Additional restructuring activities may occur in the future in connection with the Company’s ongoing transformation initiatives. 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 2021 Restructuring Plan, 2020 Restructuring Plan, and Coriant's previous restructuring and reorganization plans (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 203 $ 1,834 $ 335 $ 4,615 $ 4,042 $ 14,054 Lease related impairment charges — 8,059 — 6,534 88 9,932 Asset impairment — 35 — 1,552 14 387 Others 19 194 1,196 545 2 213 Total $ 222 $ 10,122 $ 1,531 $ 13,246 $ 4,146 $ 24,586 Restructuring liabilities are reported within accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets (in thousands): Severance and related expenses Lease related impairment charges Asset impairment Others Total Balance as of December 26, 2020 $ 10,241 $ — $ — $ 230 $ 10,471 Charges 4,951 6,534 1,552 1,740 14,777 Cash payments (7,091) (2,089) — (381) (9,561) Non-cash Settlements and Other (565) (4,445) (1,552) (243) (6,805) Balance as of December 25, 2021 $ 7,536 $ — $ — $ 1,346 $ 8,882 Charges 2,033 8,059 35 204 10,331 Cash payments (8,503) (2,267) — (1,436) (12,206) Non-cash Settlements and Other (274) (5,792) (35) 35 (6,066) Balance as of December 31, 2022 $ 792 $ — $ — $ 149 $ 941 As of December 31, 2022, the Company's restructuring liability was primarily comprised of $0.7 million related to the 2021 Restructuring Plan and $0.2 million is related to assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans, which was substantially completed in previous years. The liability related to the 2021 Restructuring Plan is expected to be paid by the end of 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
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): Foreign Currency Translation Actuarial Gain (Loss) on Pension Accumulated Tax Effect Total Balance at December 28, 2019 $ (28,308) $ (5,367) $ (964) $ (34,639) Other comprehensive income (loss) before reclassifications 29,040 (8,183) — 20,857 Amounts reclassified from accumulated other comprehensive income — 1,884 — 1,884 Net current-period other comprehensive income (loss) 29,040 (6,299) — 22,741 Balance at December 26, 2020 $ 732 $ (11,666) $ (964) $ (11,898) Other comprehensive income (loss) before reclassifications (8,561) 12,580 — 4,019 Amounts reclassified from accumulated other comprehensive income — 3,383 — 3,383 Net current-period other comprehensive income (loss) (8,561) 15,963 — 7,402 Balance at December 25, 2021 $ (7,829) $ 4,297 $ (964) $ (4,496) Other comprehensive income (loss) before reclassifications (41,803) 22,538 — (19,265) Amounts reclassified from accumulated other comprehensive loss — 326 964 1,290 Net current-period other comprehensive income (loss) (41,803) 22,864 964 (17,975) Balance at December 31, 2022 $ (49,632) $ 27,161 $ — $ (22,471) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common ShareBasic 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 in-the-money 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 shares of common stock issuable upon conversion of the convertible senior notes using the if-converted method, as further discussed in Note 12, “Debt” to the Notes to Consolidated Financial Statements. 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 31, 2022 December 25, 2021 December 26, 2020 Net loss $ (76,043) $ (170,778) $ (206,723) Weighted average common shares outstanding - basic and diluted 216,376 207,377 188,216 Net loss per common share - basic and diluted $ (0.35) $ (0.82) $ (1.10) The Company incurred net losses during 2022 , 2021 and 2020, 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 2028 Notes, the 2027 Notes and the 2024 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 31, 2022 December 25, 2021 December 26, 2020 Convertible senior notes (1) 55,800 4,448 8 Stock options outstanding — — 451 Restricted stock units 14,836 12,860 13,947 Performance stock units 2,685 2,751 3,668 Employee stock purchase plan shares 360 1,157 1,713 Total 73,681 21,216 19,787 (1) The convertible senior notes were calculated under the if-converted method for 2022 due to the adoption of ASU 2020-06 and under the treasury stock method for 2021 and 2020. Prior to the adoption of ASU 2020-06, the Company used the treasury stock method for calculating any potential dilutive effect of the conversion spread of its convertible senior notes. The conversion spread had a dilutive impact for the 2027 Notes during the fiscal year ended December 25, 2021 since the average market price of the Company’s common stock during the periods exceeded the initial conversion price of $7.66 per share. However, the potential shares of common stock issuable upon the conversion of the convertible senior notes were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive. After the adoption of ASU 2020-06, the Company used the if-converted method for calculating any potential dilutive effect of the convertible senior notes for fiscal year ended December 31, 2022. The Company calculates diluted earnings per share assuming that all of the convertible senior notes permitted to be share settled were converted solely into shares of common stock at the beginning of the reporting period. The potential impact upon the conversion of the convertible senior notes was excluded from the calculation of diluted net loss per share for the fiscal year ended December 31, 2022 because the effect would have been anti-dilutive. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of our debt as of December 31, 2022 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 101.7 $ 102.7 September 2024 2027 Notes — 195.9 200.0 March 2027 2028 Notes — 363.3 373.8 August 2028 Asset-based Revolving Credit Facility — — — June 2027 Mortgage 0.5 6.8 7.3 March 2024 Total Debt $ 0.5 $ 667.7 $ 683.8 The following is a summary of our debt as of December 25, 2021 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 329.2 $ 402.5 September 2024 2027 Notes — 140.3 200.0 March 2027 Asset-based Revolving Credit Facility — — — March 2024 Mortgage 0.5 7.3 7.8 March 2024 Total Debt $ 0.5 $ 476.8 $ 610.3 Convertible Senior Notes In September 2018, the Company issued $402.5 million aggregate principal amount of 2.125% Convertible Senior Notes due 2024 (the "2024 Notes"). In March 2020, the Company issued $200.0 million aggregate principal amount of 2.5% Convertible Senior Notes due 2027 (the “2027 Notes"). In August 2022, the Company issued $373.8 million aggregate principal amount of 3.75% Convertible Senior Notes due 2028 (the "2028 Notes," and, together with the 2024 Notes and 2027 Notes, the “convertible senior notes”). The 2024 Notes bear interest at a fixed rate of 2.125% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2019. The 2027 Notes bear interest at a fixed rate of 2.5% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2020. The 2028 Notes bear interest at a fixed rate of 3.75% per year, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2023. Each series of the convertible senior notes is governed by an indenture between the Company, as the issuer, and U.S. Bank National Association, as Trustee (individually, each an “Indenture,” and together, the “Indentures”). The convertible senior notes of each series are unsecured and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the convertible senior notes; equal in right of payment to any of the Company's existing and future liabilities that are not so subordinated, effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s current or future subsidiaries. The applicable Indenture governing each series of the convertible senior notes 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. The net proceeds to the Company from the issuance of 2024 Notes 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, including fees and expenses relating thereto, and used 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 Calls 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. The net proceeds to the Company from the issuance of 2027 Notes were approximately $193.3 million after deducting initial purchasers' fee and other debt issuance costs. The Company used the remaining net proceeds for general corporate purposes, including working capital to fund growth and potential strategic projects. The net proceeds to the Company from the issuance of 2028 Notes were approximately $362.4 million after deducting the initial purchasers' fee and other debt issuance costs. The Company used approximately $283.6 million, which included accrued and unpaid interest, of the net proceeds from this issuance to repurchase approximately $299.8 million in aggregate principal amount of its 2024 Notes concurrently with the issuance. This transaction involved a contemporaneous exchange of cash between the Company and holders of the 2024 Notes participating in the issuance of the 2028 Notes. Accordingly, the transaction was evaluated for modification or extinguishment accounting in accordance with ASC 470-50, Debt – Modifications and Extinguishments on a creditor-by creditor basis depending on whether the exchange was determined to have substantially different terms. The repurchase of the 2024 Notes and issuance of the 2028 Notes were deemed to have substantially different terms based on the present value of the cash flows or significant difference between the value of the conversion option immediately prior to and after the exchange. Therefore, the repurchase of the 2024 Notes was accounted for as a debt extinguishment. The Company recorded a $15.5 million gain on extinguishment of debt on its consolidated statements of operations during the fiscal year ended December 31, 2022, which includes the write-off of related deferred issuance costs of $3.5 million. After giving effect to the repurchase, the total remaining principal amount outstanding under the 2024 Notes as of December 31, 2022 was $102.7 million. The Company intends to use the remaining net proceeds from the issuance of 2028 Notes for general corporate purposes, including working capital and to fund growth and potential strategic projects. The 2024 Notes, the 2027 Notes and the 2028 Notes mature on September 1, 2024, March 1, 2027 and August 1, 2028, respectively. The Company did not have the right to redeem the 2024 Notes prior to September 5, 2021, and may not redeem the 2027 Notes prior to March 5, 2024 or the 2028 Notes prior to August 5, 2025. The Company may redeem for cash all or any portion of the 2024 Notes at its option, on or after September 5, 2021, the 2027 Notes, at its option, on or after March 5, 2024, and the 2028 Notes, at its option, on or after August 5, 2025, if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the convertible senior notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the convertible senior notes . Conversion Rate and Initial Conversion Price for each series of convertible senior notes are presented in the following table: Conversion Rate per $1,000 Principal Initial Conversion Price 2024 Notes 101.2812 $ 9.87 2027 Notes 130.5995 $ 7.66 2028 Notes 147.1183 $ 6.80 Throughout the term of the convertible senior notes, the conversion rate may be adjusted upon the occurrence of certain events, including for any cash dividends. Holders of the convertible senior notes will not receive any cash payment representing accrued and unpaid interest upon conversion. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Prior to the close of business on the business day immediately preceding June 1, 2024 for the 2024 Notes, December 1, 2026 for the 2027 Notes and May 1, 2028 for the 2028 Notes (the convertible dates), holders may convert their convertible senior notes under the following circumstances: • during any fiscal quarter commencing after the fiscal quarters ended on December 29, 2018 for the 2024 Notes, June 27, 2020 for the 2027 Notes and September 24, 2022 for the 2028 Notes (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 the convertible senior 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 any or all of the convertible senior 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 Indentures, such as a consolidation, merger or binding share exchange; • or at any time on or after respective convertible dates, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their convertible senior notes at any time, regardless of the foregoing circumstances. Upon the receipt of conversion requests, the settlement of the convertible senior notes will be paid pursuant to the terms of the respective governing Indentures. In the event that any of the 2024 Notes and 2027 Notes are converted, the Company would be required to repay the principal amount and any conversion premium in any combination of cash and shares of its common stock at the Company’s option. In the event that any of the 2028 Notes are converted, the Company would be required to repay the principal amount in cash and the conversion premium in any combination of cash and shares of its common stock at the Company’s option. If the Company undergoes a fundamental change as defined in the Indentures, holders may require the Company to repurchase for cash all or any portion of their convertible senior notes at a repurchase price equal to 100% of the principal amount of the convertible senior 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 each of the Indentures), 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 convertible senior notes in connection with such make-whole fundamental change. There have been no changes to the initial conversion price of the convertible senior notes since issuance. None of the conditions allowing holders of the convertible senior notes to convert early were met. The convertible senior notes were therefore not convertible during 2022. Interest Expense The following table presents the interest expense related to the contractual interest coupon, the amortization of debt issuance costs, and the amortization of debt discounts on our convertible senior notes (in thousands): Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Contractual interest expense $ 16,589 $ 13,553 $ 12,577 Amortization of debt issuance costs 3,404 1,892 1,634 Amortization of debt discount — 29,411 25,349 Total interest expense $ 19,993 $ 44,856 $ 39,560 Adoption of ASU 2020-06 Prio r to the adoption of ASU 2020-06 on December 26, 2021 and in accounting for the issuance of the convertible senior notes , the convertible senior notes were separated 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 conversion feature. The carrying amounts of the equity component representing the conversion option related to the 2024 Notes and 2027 Notes were $128.7 million and $67.8 million, respectively. This was determined by deducting the fair value of the liability component from its par value. The equity component was recorded in additional paid-in-capital and was not re-measured as long as it continued to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the “debt discount”) was amortized to interest expense over the respective contractual term of the convertible senior notes at an effective interest rate of 9.92%. Prior to the adoption of ASU 2020-06 on December 26, 2021 and in accounting for the debt issuance costs o f $12.9 million and $6.7 million r elated to the 2024 Notes and 2027 Notes, respectively, the Company allocated the total amount incurred to the liability and equity components of the convertible senior notes based on their relative values. Issuance costs attributable to the liability component were $8.7 million and $4.3 million, r elated to the 2024 Notes and 2027 Notes, respectively, and were amortized to interest expense using the effective interest method over the contractual term of the convertible senior notes . Issuance costs attributable to the equity component were netted with the equity component in additional paid-in-capital. On December 26, 2021, the Company adopted ASU 2020-06 based on a modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted. In accounting for the convertible senior notes after adoption of ASU 2020-06, the convertible senior notes are accounted for as a single liability. The issuance cost related to the 2024 Notes, the 2027 Notes and the 2028 Notes are being amortized to interest expense over the respective contractual term, at effective interest rates of 2.7%, 3.0% and 4.3%, respectively. Unamortized debt issuance costs will be amortized over the remaining life of the 2024 Notes, the 2027 Notes and the 2028 Notes which is approximately 20 months, 50 months, and 67 months, respectively. The net carrying amount of the convertible senior notes as of December 31, 2022 (post-ASU 2020-06 adoption) and as of December 25, 2021 (pre-ASU 2020-06 adoption) was as follows (in thousands): 2024 Notes 2027 Notes 2028 Notes December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 December 31, 2022 Principal $ 102,652 $ 402,500 $ 200,000 $ 200,000 $ 373,750 Unamortized debt discount — (68,755) — (56,270) — Unamortized issuance costs (926) (4,488) (4,121) (3,472) (10,401) Net carrying amount $ 101,726 $ 329,257 $ 195,879 $ 140,258 $ 363,349 Asset-based revolving credit facility On June 24, 2022, the Company entered into a Loan, Guaranty and Security Agreement (the “Loan Agreement”) with the lenders party thereto, and Bank of America, N.A., as agent. The Loan Agreement provides for a senior secured asset-based revolving credit facility of up to $200 million (the "Credit Facility"), which the Company may draw upon from time to time. The Company may increase the total commitments under the revolving credit facility by up to an additional $100 million, subject to certain conditions. In addition, the Loan Agreement provides for a $50 million letter of credit subfacility and a $20 million swingline loan facility. The proceeds of the loans under the Loan Agreement may be used to pay the fees, costs, and expenses incurred in connection with the Loan Agreement, repay existing debt and for working capital and general corporate purposes, including to fund growth. The Credit Facility has a stated maturity date of June 24, 2027. Availability under the Credit Facility will be based upon periodic borrowing base certifications valuing certain inventory and accounts receivable, as reduced by certain reserves. The Credit Facility is secured by a first-priority security interest (subject to certain exceptions) in inventory, certain related assets, specified deposit accounts, and certain other accounts. Outstanding borrowings accrue interest at floating rates plus an applicable margin of 1.25% to 1.75% for Term Secured Overnight Financing Rate ("SOFR") rate loans and 0.25% to 0.75% for base rate loans. The unused line fee rate payable on the unused portion of the Credit Facility is equal to 0.25% per annum based on utilization of the Credit Facility. The Loan Agreement contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates. The Loan Agreement also contains customary covenants that limit the ability of the Company to, among other things, incur debt, create liens and encumbrances, engage in certain fundamental changes, dispose of assets, prepay certain indebtedness, make restricted payments, make investments, and engage in transactions with affiliates. The Loan Agreement also contains a financial covenant that requires the Company to maintain a minimum fixed charge coverage ratio. As of December 31, 2022, the Company was in compliance with all covenants under the Loan Agreement. In connection with the Credit Facility, the Company incurred lender and other third-party costs of approximately $1.2 million, which are recorded as a deferred asset and will be amortized to interest expense using a straight-line method over the term of the Credit Facility. As of December 31, 2022, the Company had availability of $161.6 million under the Credit Facility. As of December 31, 2022, the Loan Agreement included a $50.0 million letter of credit subfacility and $15.4 million letters of credit issued and outstanding. On August 1, 2019, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., (the "2019 Credit Agreement"), which was subsequently amended on December 23, 2019 (the "Amended Credit Agreement", and together with the 2019 Credit Agreement, the "Prior Credit Agreement"). The Prior Credit Agreement provided for a senior secured asset-based revolving credit facility of up to $150 million, which the Company could draw upon from time to time. The credit facility was secured by first-priority security interest (subject to certain exceptions) in inventory, certain related assets, specified deposit accounts, and certain other accounts in certain domestic subsidiaries. The Prior Credit Agreement also provided for a $50 million letter of credit sub-facility and a $10 million swing loan sub-facility. Outstanding borrowings under the Prior Credit Agreement accrued interest at floating rates plus and applicable margin from 2.00% to 2.50% for LIBOR rate loans and 1.00% to 1.50% for base rate loans, depending on the utilization of the credit facility. The commitment fee payable on the unused portion of the credit facility ranged from 0.375% to 0.625% per annum, also based on the utilization of the credit facility. The letter of credit accrued fee at a per annum rate equal to the applicable LIBOR rate margin times by the average amount of the letter of credit usage during the immediately preceding quarter, in addition to the fronting fees, commissions and other fees. Effective January 1, 2022, with the cessation of LIBOR, the Prior Credit Agreement provided for an alternative benchmark rate for LIBOR-based loans, which included SOFR or other prevailing market rate as determined by the agent plus a spread based on prevailing market convention for the applicable interest period plus a margin ranging from 2.00% to 2.50%. The Prior Credit Agreement contained customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates. It also contained customary covenants that limited the ability of the Company and its subsidiaries to, among other things, incur debt, create liens and encumbrances, engage in certain fundamental changes, dispose of assets, prepay certain indebtedness, make restricted payments, make investments, and engage in transactions with affiliates. In addition the Prior Credit Agreement also contained a financial covenant that required the Company to maintain a minimum amount of liquidity and customary events of default. In connection with the Prior Credit Agreement, the Company incurred lender and other third-party costs of approximately $4.9 million in 2019, which were recorded as a deferred asset and are amortized to interest expense using a straight-line method over the term of the Prior Credit Agreement. As of December 25, 2021, the Prior Credit Agreement included a $50 million letter of credit facility and $11.5 million had been issued and outstanding. In June 2022, the Company terminated the Prior Credit Agreement and repaid the entire outstanding principal balance of $40.0 million, in addition to accrued interest and other fees of $0.5 million. The Company also recorded $2.0 million in interest expense to write off the unamortized deferred debt issuance costs related to the Prior Credit Agreement. Mortgage Payable In March 2019, the Company mortgaged a property it owns. The Company received proceeds of $8.7 million in connection with the loan. The loan carries a fixed interest rate of 5.25% and is repayable in 59 equal monthly installments of principal and interest with the remaining unpaid principal balance plus accrued unpaid interest due five years from the date of the loan. On September 24, 2021, the loan was amended to reduce the interest rate from 5.25% to 3.80% for the remaining 31 equal monthly installments of approximately $0.1 million, with the remaining principal payment at maturity date. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. Legal Matters NextGen Innovations, LLC On August 9, 2022, NextGen Innovations, LLC ("NextGen") filed a complaint against us in the United States District Court for the Eastern District of Texas. The complaint asserts that through certain products we infringe on U.S. Patent Nos. 9,887,795, 10,263,723, and 10,771,181. The complaint alleges that NextGen is entitled to unspecified damages, costs, fees, expenses, interest, and injunctive relief. We are 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. In addition to the matter described above, we are 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, we do not expect that the ultimate costs to resolve these matters will have a material effect on our 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 each of December 31, 2022 and December 25, 2021, 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. 31, 2022 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Product Warranties Activity related to product warranty was as follows (in thousands): December 31, 2022 December 25, 2021 Beginning balance $ 44,310 $ 40,708 Charges to operations 27,176 23,061 Utilization (22,420) (25,745) Change in estimate (1) (12,445) 6,286 Balance at the end of the period $ 36,621 $ 44,310 (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 and product recalls. As the Company's products mature over time, failure rates and repair costs associated with such products generally decline leading to favorable changes in warranty reserves. Letters of Credit and Bank Guarantees The Company had $24.7 million and $22.5 million of standby letters of credit, bank guarantees and surety bonds outstanding as of December 31, 2022 and December 25, 2021, respectively. Details are sets in below table (in thousands). December 31, 2022 December 25, 2021 Customer performance guarantees $ 20,903 $ 16,307 Value added tax license 1,434 287 Property leases 2,398 4,684 Pension plans — 1,004 Credit cards — 150 Other liabilities — 68 Total $ 24,735 $ 22,500 Of the $20.9 million related to customer performance guarantees, approximately $4.0 million was used to secure surety bonds in the aggregate of $7.5 million as of December 31, 2022. Of the $16.3 million to customer performance guarantees, approximately $4.0 million was used to secure surety bonds in the aggregate of $5.5 million as of December 25, 2021. As of December 31, 2022, of the aforementioned standby letters of credit and bank guarantees outstanding, $9.2 million was backed by cash collateral. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Shareholders' Equity | Stockholders’ Equity 2016 Equity Incentive Plan, 2019 Inducement Equity Incentive Plan and Employee Stock Purchase Plan In February 2007, the Company's board of directors adopted the ESPP and the Company's stockholders approved the ESPP in May 2007. The ESPP was last amended by the stockholders in May 2019 to increase the shares authorized under the ESPP to a total of approximately 31.6 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 a maximum of 15% of the employee’s compensation and an employee may not purchase more than 3,000 shares per purchase period. 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 2017, May 2018, May 2019, May 2020 and May 2021 and May 2022, the Company's stockholders approved amendments to the 2016 Plan to increase the number of shares authorized for issuance under the 2016 Plan by 6.4 million shares, 1.5 million shares, 7.3 million shares, 8.1 million shares, 4.4 million shares and 8.5 million shares, respectively. As of December 31, 2022, the Company reserved a total of 43.7 million shares of common stock for the award 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 2007 Plan was cancelled and there are no outstanding grants under the 2007 Plan. Shares Reserved for Future Issuances Common stock reserved for future issuance was as follows (in thousands): December 31, 2022 Outstanding stock awards 15,148 Reserved for future award grants 9,078 Reserved for future ESPP 4,613 Total common stock reserved for stock options and awards 28,839 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 Weighted-Average Aggregate Outstanding at December 28, 2019 11,600 $ 6.20 $ 90,254 RSUs granted 7,064 $ 5.95 RSUs released (5,087) $ 6.36 $ 30,421 RSUs canceled (1,109) $ 6.29 Outstanding at December 26, 2020 12,468 $ 5.99 $ 136,781 RSUs granted 7,377 $ 8.68 RSUs released (7,509) $ 5.96 $ 66,317 RSUs canceled (729) $ 6.92 Outstanding at December 25, 2021 11,607 $ 7.66 $ 110,849 RSUs granted 8,897 $ 8.26 RSUs released (6,690) $ 7.52 $ 46,104 RSUs canceled (1,226) $ 7.89 Outstanding at December 31, 2022 12,588 $ 8.13 $ 84,847 Number of Weighted-Average Aggregate Outstanding at December 28, 2019 2,505 $ 6.48 $ 19,485 PSUs granted 1,628 $ 5.89 PSUs released (285) $ 9.02 $ 1,702 PSUs canceled (382) $ 6.93 Outstanding at December 26, 2020 3,466 $ 5.36 $ 38,022 PSUs granted 659 $ 8.61 PSUs released (964) $ 5.21 $ 8,278 PSUs canceled (1,047) $ 4.91 Outstanding at December 25, 2021 2,114 $ 6.66 $ 20,184 PSUs granted 899 $ 8.38 PSUs released (335) $ 5.40 $ 2,592 PSUs canceled (119) $ 7.19 Outstanding at December 31, 2022 2,559 $ 7.40 $ 17,251 Expected to vest as of December 31, 2022 1,701 $ 11,464 The aggregate intrinsic value of unreleased RSUs and unreleased PSUs is calculated using the closing price of the Company's common stock of $6.74 at December 30, 2022. 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 recognized, net of forfeitures, of the Company’s equity compensation plans as of December 31, 2022. 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 Weighted- RSUs $ 75,755 2.00 PSUs $ 8,069 1.90 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 31, 2022 December 25, 2021 December 26, 2020 Volatility 39% - 63% 38% - 50% 42% - 97% Risk-free interest rate 0.67% - 3.12% 0.05% - 0.06% 0.12% - 1.56% Expected life 0.5 years 0.5 years 0.5 years Estimated fair value $1.91 - $2.21 $2.22 - $3.11 $2.17 - $3.42 The expected dividend yield is zero for the Company as it does not expect to pay dividends in the future. The Company’s ESPP activity for the following periods was as follows (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Stock-based compensation expense $ 5,551 $ 5,879 $ 6,607 Employee contributions $ 15,189 $ 16,167 $ 15,346 Shares purchased 2,552 2,272 3,001 Restricted Stock Units Pursuant to the 2016 Plan, the Company has granted RSUs to employees and non-employee members of the Company's board of directors. 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 2022, 2021 and 2020 was approximately $54.1 million, $42.3 million and $36.1 million, respectively. Performance Stock Units Pursuant to the 2016 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. PSUs granted to the Company's executive officers and senior management under the 2016 Plan during 2020, 2021 and 2022 are based on performance criteria related to a specific financial target over the span of a three-year performance period. These PSUs may become eligible for vesting to begin before the end of the three-year performance period, if the applicable financial target is met. The number of shares to be issued upon vesting of these PSUs are capped at the target number of PSUs granted. Certain other employees were awarded PSUs that will only vest upon the achievement of specific financial and operational performance criteria. The following table summarizes by grant year, the Company’s PSU activity for the fiscal year ended December 31, 2022 (in thousands): Total Number of Performance Stock Units 2019 2020 2021 2022 Outstanding at December 25, 2021 2,114 185 1,270 659 — PSUs granted 899 — — — 899 PSUs released (335) (185) (150) — — PSUs canceled (119) — (62) (57) — Outstanding at December 31, 2022 2,559 — 1,058 602 899 Amortization of stock-based compensation expense related to PSUs in 2022, 2021 and 2020 was approximately $1.6 million, $3.3 million and $6.0 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 31, 2022 December 25, 2021 December 26, 2020 Stock-based compensation effects in inventory $ 3,979 $ 3,707 $ 3,979 Income tax benefit associated with stock-based compensation $ 8,588 $ 9,345 $ 8,637 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 9,485 $ 7,928 $ 7,785 Research and development 23,553 18,554 16,863 Sales and marketing 13,311 12,345 10,907 General and administrative 14,666 12,985 13,906 Total stock-based compensation expense $ 61,015 $ 51,812 $ 49,461 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a geographic breakdown of the provision for income taxes (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Current: Federal $ 945 $ 991 $ 494 State 1,537 137 917 Foreign 20,616 12,431 9,606 Total current $ 23,098 $ 13,559 $ 11,017 Deferred: Federal $ — $ — $ — State — — — Foreign (2,566) (1,571) (4,982) Total deferred $ (2,566) $ (1,571) $ (4,982) Total provision for income taxes $ 20,532 $ 11,988 $ 6,035 Loss before provision for income taxes from international operations was $20.2 million, $20.7 million and $37.3 million for the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively. The provisions for income taxes differ from the amount computed by applying the statutory federal income tax rates as follows: Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Expected tax at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit (2.2) % (1.2) % (0.4) % Research credits 8.9 % 1.7 % 1.2 % Stock-based compensation (10.2) % 1.1 % (1.2) % Change in valuation allowance (25.9) % (20.9) % (16.9) % Foreign rate differential (7.3) % (6.9) % (6.3) % Nondeductible expenses (15.4) % — % — % Other (6.0) % (2.3) % (0.4) % Effective tax rate (37.1) % (7.5) % (3.0) % For 2022, the Company's income tax expense was $20.5 million with effective tax rate of (37.1)%. The difference between the effective income tax rate and the U.S federal statutory rate of 21% to income before income taxes is primarily the result of R&D credits, stock-based compensation, foreign income taxed at different rates and valuation allowances. The Company recognized an income tax expense of $12.0 million and $6.0 million in 2021 and 2020, respectively. The resulting effective tax rates were (7.5)% and (3.0)% for 2021 and 2020, respectively. The 2021 and 2020 effective tax rates differ from the expected statutory rate of 21%, based on the Company's ability to benefit from its U.S. loss carryforwards, offset by state income taxes, non-deductible stock-based compensation expenses and foreign taxes provided on foreign subsidiary earnings. During 2022, the Company implemented a realignment of its internal supply chain and customer facing entities. The new structure aligned and consolidated the Company's intellectual property and the associated commercial risk and reward among the customer-facing entities in their internal supply chain and improved operational efficiency. The impact of this internal realignment is reflected in the Company’s tax provision for the year ended December 31, 2022. Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to reverse. Significant deferred tax assets and liabilities consist of the following (in thousands): Years Ended December 31, 2022 December 25, 2021 Deferred tax assets: Net operating losses $ 293,179 $ 336,711 Research and foreign tax credits 140,828 132,829 Nondeductible accruals 57,480 76,898 R&D expense capitalization 49,135 — Inventory valuation 14,329 22,651 Leasing Liabilities 16,890 19,407 Stock-based compensation 5,138 4,902 Total deferred tax assets $ 576,979 $ 593,398 Valuation allowance (548,257) (521,620) Net deferred tax assets $ 28,722 $ 71,778 Deferred tax liabilities: Property, plant and equipment $ (11,912) $ (10,792) Right of use asset (10,482) (12,216) Acquired intangible assets (4,293) (19,273) Convertible senior notes — (29,897) Total deferred tax liabilities $ (26,687) $ (72,178) Net deferred tax assets (liabilities) $ 2,035 $ (400) 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 31, 2022 and December 25, 2021. The Company intends to continue maintaining a full valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, considering the Company's current assessment of the probability of maintaining profitability, there is a reasonable possibility that, within the next year or two, sufficient positive evidence may become available to reach a conclusion that a portion of the valuation allowance will no longer be needed. As such, the Company may release a portion of its valuation allowance against its deferred tax assets within the next 12-24 months. This release, if any, would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period such release is recorded. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. Due to this required capitalization of research and development expenditures, the Company has recorded U.S. current income tax expense of $1.3 million for the year ended December 31, 2022. The U.S. current income tax provision is primarily for state taxes we anticipate paying as a result of statutory limitations on our ability to offset expected taxable income with net operating loss and research and development credit carry forwards. The increase in Federal taxable income due to R&D expense capitalization is offset by net operating carryover balance. It is expected that R&D expense capitalization will continue to generate Federal and State taxable income in future years and continue to utilize net operating loss and other available tax credits. As of December 31, 2022, the Company had net operating loss carryforwards of approximately $507.0 million for federal income tax purposes which will begin to expire in 2032 if unused. The Company had net operating loss carryforwards of approximately $512.0 million for state income tax purposes which will begin to expire in the year 2023 if unused. The Company also had foreign net operating loss carryforwards of approximately $605.5 million, some of which will begin expiring in the year 2023 if unused. As of December 31, 2022, the Company also had R&D credit carryforwards of approximately $49.3 million for federal income tax and $55.1 million for state income tax purposes. The federal R&D tax credit will begin to expire in 2023 if unused. State R&D tax credits will carry forward indefinitely. As of December 31, 2022, the Company also had Foreign Tax credit carryforwards of approximately $38.9 million for federal income tax. The foreign tax credit will begin to expire in 2023 if unused. Infinera Canada Inc., an indirect wholly owned subsidiary, has Scientific Research and Experimental Development Expenditures (“SRED”) credits available of $4.0 million to offset future Canadian income taxes payable as of December 31, 2022. Infinera Portugal subsidiary has a SIFIDE Credit of $4.3 million to offset future income tax payable in Portugal as of December 31, 2022. Canadian SRED credits will begin to expire in the year 2032 if not fully utilized. The Portugal SIFIDE credits will begin to expire in the year 2023. At December 31, 2022, the Company had federal capital loss carryforwards of $19.6 million. If not utilized, the federal capital loss will expire in 2023. The federal and state net operating loss carryforwards may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended (the "Code") and similar provisions under state law. The Tax Reform Act of 1986 contains provisions that limit the federal net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. The Company has completed a Section 382 review and has determined that none of its operating losses will expire solely due to Section 382 limitation(s). The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): December 31, 2022 December 25, 2021 December 26, 2020 Beginning balance $ 54,250 $ 57,931 $ 44,092 Tax position related to current year Additions 1,536 1,198 3,213 Tax positions related to prior years Additions 7,220 7,633 11,494 Reductions (4,832) (9,569) (625) Lapses of statute of limitations (325) (2,943) (243) Ending balance $ 57,849 $ 54,250 $ 57,931 As of December 31, 2022, the cumulative unrecognized tax benefit was $57.8 million, of which $49.5 million was netted against deferred tax assets, which would have otherwise been subjected with a full valuation allowance. Of the total unrecognized tax benefit as of December 31, 2022, approximately $8.3 million, if recognized, would impact the Company’s effective tax rate. The amount of unrecognized tax benefit could be reduced upon expiration of the applicable statute of limitation. The potential reduction in unrecognized tax benefits during the next 12 months is not expected to be material. As of December 31, 2022, December 25, 2021 and December 26, 2020, the Company had $1.3 million, $2.1 million and $2.9 million, respectively, of accrued interest or penalties related to unrecognized tax benefits, of which $0.8 million was included in the Company’s provision for income taxes in each of the years ended December 31, 2022, December 25, 2021 and December 26, 2020, 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 2003 and forward. Included in the balance of income tax liabilities, accrued interest and penalties at December 31, 2022 is an immaterial amount 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. Post U.S. Tax Reform, the Company and its subsidiaries do not have significant unremitted foreign earnings and the associated withholding and other taxes are not material for the fiscal year ended December 31, 2022. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
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. For more information regarding revenue disaggregated by geography, see Note 4, “Revenue Recognition” to the Notes to Consolidated Financial Statements. Additionally, the following table sets forth our property, plant and equipment, net by geographic region (in thousands): December 31, 2022 December 25, 2021 United States $ 156,065 $ 141,977 Other Americas 2,908 2,687 Europe, Middle East and Africa 10,285 12,245 Asia Pacific and Japan 3,671 3,309 Total property, plant and equipment, net $ 172,929 $ 160,218 |
Employee Benefit and Pension Pl
Employee Benefit and Pension Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit and Pension Plans | Employee Benefit and Pension Plans Defined Contribution Plans The Company has established a savings plan under Section 401(k) of the Code (the “401(k) Plan”). As allowed under Section 401(k) of the 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 Code. The Company made voluntary cash contributions and matched a portion of employee contributions of $3.0 million, $2.8 million and $2.4 million for 2022, 2021, and 2020, respectively. Expenses related to the 401(k) Plan were insignificant for each of the years 2022, 2021, and 2020. 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 $2.5 million for 2022, $2.8 million for 2021 and $2.7 million for 2020. The Company also provides defined contribution plans in certain foreign countries where required by local statute or at the Company's discretion. For the years ended December 31, 2022, December 25, 2021 and December 26, 2020, the Company had $4.9 million, $6.2 million, and $3.5 million related to post-retirement costs, respectively. Pension Plans Pension and Post-Retirement Benefit Plans The Company has 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 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 115,771 $ 129,936 Service cost 300 351 Interest cost 1,249 1,265 Benefits paid (3,382) (3,413) Actuarial gain (30,779) (3,050) Employee contributions 54 190 Foreign currency exchange rate changes (7,041) (9,508) Benefit obligation at end of year (1) $ 76,172 $ 115,771 Fair value of plan assets at beginning of year $ 81,615 $ 77,561 Actual (loss) return on plan assets (5,305) 12,425 Payments (5,316) (3,206) Employee contributions 153 289 Foreign currency exchange rate changes (4,692) (5,454) Fair value of plan assets at end of year $ 66,455 $ 81,615 Net liability recognized $ 9,717 $ 34,156 (1) The Company's accumulated benefit obligation was $76.1 million and $115.1 million at December 31, 2022 and December 25, 2021, respectively. 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 31, 2022 December 25, 2021 Other non-current assets $ 66,455 $ 81,615 Other long-term liabilities (76,172) (115,771) Net liability recognized $ (9,717) $ (34,156) Components of Net Periodic Benefit Cost Net periodic benefit cost for the Company's pension and other post-retirement benefit plans consisted of the following (in thousands): Years ended December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 300 $ 351 $ 896 Interest cost 1,249 1,265 1,773 Expected return on plan assets (2,936) (2,895) (2,644) Amortization of net actuarial loss 326 3,383 1,884 Total net periodic (benefit) cost $ (1,061) $ 2,104 $ 1,909 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. The service cost component is included in operating expenses in the Company's consolidated statements of operations. All other components are included in Other income (expense), net in the Company's consolidated statements of operations. The following table sets forth the changes in accumulated other comprehensive income (loss) for the Company's benefit plans (pre-tax) (in thousands): December 31, 2022 December 25, 2021 Beginning balance $ 4,297 $ (11,666) Net actuarial gain arising in current year 22,538 12,580 Amortization of net actuarial loss (1) 326 3,383 Ending balance $ 27,161 $ 4,297 (1) The actuarial gain for the fiscal years ended December 31, 2022 and December 25, 2021 is primarily due to the change in the discount rate. Amounts recorded in accumulated other comprehensive income (loss) expected to be amortized as a part of net periodic pension cost during 2023 is $3.7 million (pre-tax). Assumptions Certain actuarial assumptions used in computing the benefit obligations for the major plans are as follows: December 31, 2022 December 25, 2021 Discount rate 4.17 % 1.20 % Salary growth rate 2.50 % 2.25 % Pension growth rate 2.25 % 2.00 % Expected long-term rate of return on plan assets 3.93 % 3.93 % 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 (in thousands): As of December 31, 2022 December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Cash $ 1,160 $ — $ 1,160 $ 738 $ — $ 738 Equity fund — 41,492 41,492 — 55,400 55,400 Insurance contracts — 23,803 23,803 — 25,388 25,388 Pension fund — — — — 89 89 Total plan assets at fair value $ 1,160 $ 65,295 $ 66,455 $ 738 $ 80,877 $ 81,615 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 during the fiscal year ended December 31, 2022. Future Contributions In 2023, the Company does not expect to make additional contributions to the plan. Cash Flows Estimated future benefit payments under the Company's pension plans as of December 31, 2022 are as follows (in thousands): 2023 $ 5,385 2024 4,071 2025 4,698 2026 4,020 2027 3,908 2027 to 2031 20,752 |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts Years Ended December 31, 2022 December 25, 2021 December 26, (In thousands) Deferred tax asset, valuation allowance Beginning balance $ 521,620 $ 531,923 $ 484,834 Additions 41,782 14,395 53,761 Reductions (15,145) (24,698) (6,672) Ending balance $ 548,257 $ 521,620 $ 531,923 Allowance for credit losses Beginning balance $ 1,304 $ 2,912 $ 4,005 Additions 1,397 822 2,422 Write-offs (1,279) (2,430) (3,515) Ending balance $ 1,422 $ 1,304 $ 2,912 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management 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 reporting periods. Estimates, assumptions and judgements made by management include inventory valuation, revenue recognition, accounting for income taxes, stock-based compensation, employee benefit and pension plans, manufacturing partner and supplier liabilities, allowances for sales returns, allowances for credit losses, useful life of intangibles and property, plant and equipment, impairment loss related to lease abandonment, accrued warranty, operating and finance lease liabilities, restructuring and other related costs and loss contingencies. The Company bases its assumptions on historical experience and also on assumptions that it believes are reasonable. Actual results could differ materially from those estimates. These estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in the Company's consolidated financial statements. |
Revenue Recognition | Revenue Recognition 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. 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-enabled systems generally include a specific initial capacity and incremental capacity can be added by the purchase of Instant Bandwidth licenses. Instant Bandwidth 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 Instant Bandwidth licenses within a specified time frame from the initial shipment of the Instant Bandwidth-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 Instant Bandwidth licenses to the customer. 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 Instant Bandwidth 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-cancelable 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 Company accounts for forfeitures as they occur. 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's 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 over 18 months to three years. Performance Stock Units ("PSUs") granted to the Company's executive officers and senior management during 2019, 2020, 2021 and 2022 are based on performance criteria related to specific financial targets over the span of a two In addition, the Company 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 | AdvertisingAll advertising costs are expensed as incurred. |
Accounting for Income Taxes | Accounting for Income Taxes As part of the process of preparing its consolidated financial statements, the Company 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 consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in consolidated statements of operations become deductible expenses under applicable income tax laws or loss, or credit carryforwards are utilized. Accordingly, realization of 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 our 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 forecast 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 31, 2022, 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. During 2022, the Company executed an internal realignment of its supply chain and customer-facing entities. Among other things, the new structure aligned and consolidated the exploitation of its intellectual property and the allocation of the associated commercial risk and reward with the customer-facing entities that manage its supply chain. The impact of this internal realignment is reflected in the Company’s tax provision for the year ended December 31, 2022. |
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, revenue, 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 and consolidated statements of comprehensive income (loss). 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 income (loss), net, in the Company's consolidated statement of operations, in the same period that the re-measurement occurred. Aggregate foreign exchange transactions recorded was gain of $12.8 million in 2022 and losses of $17.2 million and $0.2 million, in 2021 and 2020, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists primarily of cash in bank deposit accounts which, at times, a portion may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
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 them in accordance with the fair value hierarchy on a recurring basis. Foreign Currency Exchange Forward Contracts As discussed in Note 6, “Derivative Instruments" to the Notes to Consolidated Financial Statements, the Company historically held 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. Facilities-related Charges |
Accounts Receivable and Allowances for Credit Losses | Accounts Receivable and Allowances for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for estimated credit losses resulting from the inability of its customers to make required payments and reviewed the allowance quarterly. The Company determines expected credit losses by performing credit evaluations of its customers' financial condition, establishing both a general reserve and specific reserve for customers in adverse financial condition and adjusting for its expectations of changes in conditions that may impact the collectability of outstanding receivables. The Company considers a customer's receivable balance past due when the amount is due beyond the credit terms extended, The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks. Amounts are written off when receivables are determined to be uncollectible. |
Allowances for Sales Returns | Allowances for Sales ReturnsCustomer 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, cash equivalents and restricted cash, foreign exchange contracts and accounts receivable. The risk with respect to foreign exchange contracts is mitigated by entering into these contracts with a large high-quality financial institution and the Company monitors the creditworthiness of the counterparty consistently. 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. One customer accounted for over 10% of the Company's accounts receivable balance, net on the consolidated balance sheets as of December 31, 2022. No customer accounted for over 10% of the Company's accounts receivable balance, net on the consolidated balance sheets as of December 25, 2021. One customer accounted for approximately 11% of the Company's revenue in 2022 and 2020. No customer accounted for 10% or more of the Company's revenue in 2021. 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 high-quality institutions and the Company monitors the creditworthiness of the counterparties 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. 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 euro and British pounds. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying account balances, and therefore, do not subject the Company to material balance sheet risk. 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 ASC 860, Transfers and Servicing |
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 and certain software licenses. 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 certain. Repair and maintenance costs are expensed as incurred. The estimated useful life for each asset category is as follows: Estimated Useful Lives Building 20 years Laboratory and manufacturing equipment 1.5 to 10 years Furniture and fixtures 3 to 5 years Computer hardware 3 to 5 years Computer software 3 years Leasehold and building improvements 1 to 11 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 In the Company's contracts with its customers, 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 |
Amortization of Intangible Assets | Amortization of Intangible AssetsIntangible 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 represent 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, but once projects have been completed, these assets 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 Goodwill and Intangible Assets | Impairment of Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the fair value of the identifiable assets acquired and liabilities assumed. The Company tests for impairment of goodwill on an annual |
Leases | Leases The Company has operating leases primarily for real estate (facilities) and automobiles. The Company has finance leases primarily for computer hardware, laboratory and manufacturing equipment and leasehold and building improvements. The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right of use ("ROU") assets, accrued expenses and other current liabilities and operating lease liabilities on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, net, accrued expenses and other current liabilities and other long-term liabilities on the Company's consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company rents or subleases certain real estate under agreements that are classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs). Upon abandoning or committing to a plan to abandon a leased property in the short term before the lease term expires, the Company assesses the fair value of its remaining obligation under the lease and records an impairment of the ROU asset, if needed. The impairment loss is calculated as the present value of the amount by which the remaining lease obligation, adjusted for the effects of any one-time costs to sublease, exceeds the estimated sublease rentals that could be reasonably obtained. The estimated sublease rentals consider Company's ability and intent to sublease the space. The significant assumptions used in the Company's discounted cash flow model include the amount and timing of estimated sublease rental receipts and the discount rate which 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. |
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 , or ASC 712, Compensation — Nonretirement Postemployment Benefits . 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 current liabilities” and "other long-term liabilities" in the consolidated balance sheet. Restructuring costs include employee and contract termination costs, facility consolidation and closure costs, lease related impairment charges, 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. Restructuring charges require significant estimates and assumptions, including estimates made for employee separation costs and other contract termination charges. Management estimates involve a number of risks and uncertainties, some of which are beyond control, including the Company's ability to successfully enter into termination agreements with employees and others 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 | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"). ASU 2020-06 simplifies the accounting for convertible instruments by removing certain separation models in ASC 470-20, Debt—Debt with Conversion and Other Options , for convertible instruments. On December 26, 2021, the Company adopted ASU 2020-06 using the modified retrospective method. Applying the transition guidance, the Company was required to apply the guidance to all impacted financial instruments that were outstanding as of December 26, 2021 with the cumulative effect recognized as an adjustment to the opening balance of accumulated deficit. The adoption of ASU 2020-06 required the Company to record a $196.5 million reduction of additional paid in capital, on December 26, 2021, due to the recombination of the equity conversion component of convertible debt remaining outstanding, which was initially separated and recorded in equity. The $122.0 million increase in debt represented the removal of the remaining debt discounts recorded for this previous separation. The Company recognized a $74.5 million cumulative effect decrease of initially applying ASU 2020-06 as an adjustment to the December 26, 2021 opening balance of accumulated deficit. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible senior notes as a liability instrument. Since the Company had a net loss in 2022, the convertible senior notes were determined to be anti-dilutive and therefore had no impact to basic or diluted net loss per share in 2022 as a result of adopting ASU 2020-06. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Asset | The estimated useful life for each asset category is as follows: Estimated Useful Lives Building 20 years Laboratory and manufacturing equipment 1.5 to 10 years Furniture and fixtures 3 to 5 years Computer hardware 3 to 5 years Computer software 3 years Leasehold and building improvements 1 to 11 years |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Assets And Liabilities, Lessee | The following table presents current and long-term portion of operating lease liabilities as classified in the consolidated balance sheets (in thousands): December 31, 2022 December 25, 2021 Accrued expenses and other current liabilities $ 10,948 $ 16,542 Long-term operating lease liabilities 45,862 54,326 Total operating lease liability $ 56,810 $ 70,868 |
Schedule of Finance Lease Liability | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of December 31, 2022 (in thousands): Operating Lease Finance Lease Total lease payments $ 71,903 $ 966 Less: interest (1) 15,093 37 Present value of lease liabilities $ 56,810 $ 929 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of December 31, 2022 (in thousands): Operating Lease Finance Lease Total lease payments $ 71,903 $ 966 Less: interest (1) 15,093 37 Present value of lease liabilities $ 56,810 $ 929 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Schedule of Lease Costs | The following table presents supplemental information for the Company's non-cancelable leases for the fiscal year ended December 31, 2022 (in thousands, except for weighted average and percentage data): Operating Lease Finance Lease Weighted average remaining lease term 5.42 years 1.00 year Weighted average discount rate 9.25 % 7.02 % Cash paid for amounts included in the measurement of lease liabilities $ 23,398 $ 1,310 Leased assets obtained in exchange for new lease liabilities $ 5,748 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by revenue source (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Product $ 1,268,624 $ 1,099,376 $ 1,045,551 Services 304,618 325,829 310,045 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 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 31, 2022 December 25, 2021 December 26, 2020 United States $ 870,282 $ 663,808 $ 630,422 Other Americas 101,600 107,963 99,158 Europe, Middle East and Africa 405,328 477,787 424,411 Asia Pacific 196,032 175,647 201,605 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Direct $ 1,191,584 $ 1,099,632 $ 1,039,976 Indirect 381,658 325,573 315,620 Total revenue $ 1,573,242 $ 1,425,205 $ 1,355,596 |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): Assets (Liabilities) December 31, 2022 December 25, 2021 Accounts receivable, net $ 419,735 $ 358,954 Contract assets $ 60,172 $ 49,052 Deferred revenue $ (181,679) $ (168,909) |
Schedule of 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) pursuant to contracts that are not subject to cancellation without penalty at the end of the reporting period (in thousands): 2023 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized in the future as of December 31, 2022 $ 827,410 $ 106,100 $ 29,108 $ 9,043 $ 5,227 $ 6,066 $ 982,954 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for its assets (liabilities) measured at fair value on a recurring basis (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Assets (Liabilities) Foreign currency exchange forward contracts $ — $ — $ — $ — $ (221) $ (221) The following table presents the estimated fair values of the convertible senior notes (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Convertible senior notes $ — $ 785,364 $ 785,364 $ — $ 765,412 $ 765,412 Cash equivalents are measured and reported at fair value on a recurring basis. The following table presents the fair value of these financial assets and their levels within the fair value hierarchy (in thousands): As of December 31, 2022 As of December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 95,000 $ — $ 95,000 $ — $ — $ — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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 31, 2022 As of December 25, 2021 Gross Notional (1) Accrued expenses and other current liabilities Gross Notional (1) Accrued expenses and other current liabilities Foreign currency exchange forward contracts Related to euro denominated receivables $ — $ — $ 21,981 $ (139) Related to British pound denominated receivables — — 7,566 (82) Total $ — $ — $ 29,547 $ (221) (1) Represents the face amounts of forward contracts that were outstanding as of the period noted. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents details of the Company’s goodwill for the fiscal year ended December 31, 2022 (in thousands): Balance as of December 25, 2021 $ 255,788 Foreign currency translation adjustments (23,125) Balance as of December 31, 2022 $ 232,663 |
Schedule of Finite-Lived Intangible Assets | The following tables present details of the Company’s intangible assets as of December 31, 2022 and December 25, 2021 (in thousands): December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog 151,461 (114,294) 37,167 3.5 Developed technology 170,467 (159,847) 10,620 0.7 Total intangible assets $ 321,928 $ (274,141) $ 47,787 December 25, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog 157,495 (104,701) 52,794 4.2 Developed technology 182,844 (149,064) 33,780 1.5 Total intangible assets $ 340,339 $ (253,765) $ 86,574 |
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 31, 2022 (in thousands): Total 2023 2024 2025 2026 2027 Thereafter Total future amortization expense $ 47,787 $ 22,968 $ 9,025 $ 9,025 $ 6,769 $ — $ — |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table provides a rollforward of the allowance for credit losses for accounts receivable for the fiscal year ended December 31, 2022 (in thousands): Balance as of December 25, 2021 $ 1,304 Additions (1) 1,397 Write offs (2) (1,279) Balance as of December 31, 2022 $ 1,422 (1) The new additions during the fiscal year ended December 31, 2022 are primarily due to specific reserves. (2) The write offs during the fiscal year ended December 31, 2022 are primarily amounts fully reserved previously. |
Schedule of Details of Selected Balance Sheet Items | The following table provides details of selected balance sheet items (in thousands): December 31, 2022 December 25, 2021 Inventory Raw materials $ 48,688 $ 39,379 Work in process 66,591 53,924 Finished goods 259,576 198,064 Total $ 374,855 $ 291,367 Property, plant and equipment, net Computer hardware $ 46,454 $ 45,824 Computer software (1) 62,102 56,820 Laboratory and manufacturing equipment 297,261 287,875 Land and building 12,369 12,369 Furniture and fixtures 2,828 2,164 Leasehold and building improvements 50,360 51,471 Construction in progress 42,418 18,807 Subtotal $ 513,792 $ 475,330 Less accumulated depreciation and amortization (2) (340,863) (315,112) Total $ 172,929 $ 160,218 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 28,796 $ 19,405 Taxes payable 42,757 43,308 Restructuring accrual 941 8,610 Short-term operating and finance lease liability 11,701 17,792 Other accrued expenses and other current liabilities 57,255 57,914 Total accrued expenses and other current liabilities $ 141,450 $ 147,029 (1) Included in computer software at December 31, 2022 and December 25, 2021 were $29.3 million and $25.9 million, respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented in prior years. The unamortized ERP costs at December 31, 2022 and December 25, 2021 were $9.0 million and $8.9 million, respectively. Also included in computer software at December 31, 2022 and December 25, 2021 was $24.2 million and $20.9 million, respectively, related to term licenses. The unamortized term license costs at December 31, 2022 and December 25, 2021 was $9.1 million and $9.2 million, respectively. (2) Depreciation expense was $46.1 million, $47.1 million and $52.3 million (which includes depreciation of capitalized ERP costs of $3.5 million, $2.8 million and $2.6 million) for 2022, 2021 and 2020, respectively. Also included in depreciation expense for 2022 and 2021 was $7.6 million and $6.7 million, respectively, related to term licenses. |
Restructuring and Other Relat_2
Restructuring and Other Related Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of 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 2021 Restructuring Plan, 2020 Restructuring Plan, and Coriant's previous restructuring and reorganization plans (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 203 $ 1,834 $ 335 $ 4,615 $ 4,042 $ 14,054 Lease related impairment charges — 8,059 — 6,534 88 9,932 Asset impairment — 35 — 1,552 14 387 Others 19 194 1,196 545 2 213 Total $ 222 $ 10,122 $ 1,531 $ 13,246 $ 4,146 $ 24,586 |
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): Severance and related expenses Lease related impairment charges Asset impairment Others Total Balance as of December 26, 2020 $ 10,241 $ — $ — $ 230 $ 10,471 Charges 4,951 6,534 1,552 1,740 14,777 Cash payments (7,091) (2,089) — (381) (9,561) Non-cash Settlements and Other (565) (4,445) (1,552) (243) (6,805) Balance as of December 25, 2021 $ 7,536 $ — $ — $ 1,346 $ 8,882 Charges 2,033 8,059 35 204 10,331 Cash payments (8,503) (2,267) — (1,436) (12,206) Non-cash Settlements and Other (274) (5,792) (35) 35 (6,066) Balance as of December 31, 2022 $ 792 $ — $ — $ 149 $ 941 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of AOCI | The following table sets forth the changes by component for the periods presented (in thousands): Foreign Currency Translation Actuarial Gain (Loss) on Pension Accumulated Tax Effect Total Balance at December 28, 2019 $ (28,308) $ (5,367) $ (964) $ (34,639) Other comprehensive income (loss) before reclassifications 29,040 (8,183) — 20,857 Amounts reclassified from accumulated other comprehensive income — 1,884 — 1,884 Net current-period other comprehensive income (loss) 29,040 (6,299) — 22,741 Balance at December 26, 2020 $ 732 $ (11,666) $ (964) $ (11,898) Other comprehensive income (loss) before reclassifications (8,561) 12,580 — 4,019 Amounts reclassified from accumulated other comprehensive income — 3,383 — 3,383 Net current-period other comprehensive income (loss) (8,561) 15,963 — 7,402 Balance at December 25, 2021 $ (7,829) $ 4,297 $ (964) $ (4,496) Other comprehensive income (loss) before reclassifications (41,803) 22,538 — (19,265) Amounts reclassified from accumulated other comprehensive loss — 326 964 1,290 Net current-period other comprehensive income (loss) (41,803) 22,864 964 (17,975) Balance at December 31, 2022 $ (49,632) $ 27,161 $ — $ (22,471) |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of 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 31, 2022 December 25, 2021 December 26, 2020 Net loss $ (76,043) $ (170,778) $ (206,723) Weighted average common shares outstanding - basic and diluted 216,376 207,377 188,216 Net loss per common share - basic and diluted $ (0.35) $ (0.82) $ (1.10) |
Schedule of 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 31, 2022 December 25, 2021 December 26, 2020 Convertible senior notes (1) 55,800 4,448 8 Stock options outstanding — — 451 Restricted stock units 14,836 12,860 13,947 Performance stock units 2,685 2,751 3,668 Employee stock purchase plan shares 360 1,157 1,713 Total 73,681 21,216 19,787 (1) The convertible senior notes were calculated under the if-converted method for 2022 due to the adoption of ASU 2020-06 and under the treasury stock method for 2021 and 2020. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Convertible Senior Notes | The following is a summary of our debt as of December 31, 2022 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 101.7 $ 102.7 September 2024 2027 Notes — 195.9 200.0 March 2027 2028 Notes — 363.3 373.8 August 2028 Asset-based Revolving Credit Facility — — — June 2027 Mortgage 0.5 6.8 7.3 March 2024 Total Debt $ 0.5 $ 667.7 $ 683.8 The following is a summary of our debt as of December 25, 2021 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 329.2 $ 402.5 September 2024 2027 Notes — 140.3 200.0 March 2027 Asset-based Revolving Credit Facility — — — March 2024 Mortgage 0.5 7.3 7.8 March 2024 Total Debt $ 0.5 $ 476.8 $ 610.3 Conversion Rate per $1,000 Principal Initial Conversion Price 2024 Notes 101.2812 $ 9.87 2027 Notes 130.5995 $ 7.66 2028 Notes 147.1183 $ 6.80 The net carrying amount of the convertible senior notes as of December 31, 2022 (post-ASU 2020-06 adoption) and as of December 25, 2021 (pre-ASU 2020-06 adoption) was as follows (in thousands): 2024 Notes 2027 Notes 2028 Notes December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 December 31, 2022 Principal $ 102,652 $ 402,500 $ 200,000 $ 200,000 $ 373,750 Unamortized debt discount — (68,755) — (56,270) — Unamortized issuance costs (926) (4,488) (4,121) (3,472) (10,401) Net carrying amount $ 101,726 $ 329,257 $ 195,879 $ 140,258 $ 363,349 |
Schedule of Interest Expense Recognized Related To Notes | The following table presents the interest expense related to the contractual interest coupon, the amortization of debt issuance costs, and the amortization of debt discounts on our convertible senior notes (in thousands): Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Contractual interest expense $ 16,589 $ 13,553 $ 12,577 Amortization of debt issuance costs 3,404 1,892 1,634 Amortization of debt discount — 29,411 25,349 Total interest expense $ 19,993 $ 44,856 $ 39,560 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Interest and Principal Payments | The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of December 31, 2022 (in thousands): Operating Lease Finance Lease Total lease payments $ 71,903 $ 966 Less: interest (1) 15,093 37 Present value of lease liabilities $ 56,810 $ 929 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Schedule of Finance Lease Obligations Maturity | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of December 31, 2022 (in thousands): Operating Lease Finance Lease Total lease payments $ 71,903 $ 966 Less: interest (1) 15,093 37 Present value of lease liabilities $ 56,810 $ 929 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Schedule of Financing Assistance Arrangement | The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period Total 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 71,903 $ 15,603 $ 14,366 $ 13,202 $ 10,232 $ 7,930 $ 10,570 Financing lease obligations (3) 966 789 177 — — — — Purchase obligations (4) 744,777 695,641 41,904 7,232 — — — 2028 Notes, including interest (5) 457,572 13,743 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (5) 222,500 5,000 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (5) 107,015 2,182 104,833 — — — — Mortgage Payable, including interest (5) 7,611 781 6,830 — — — — Total contractual obligations $ 1,612,344 $ 733,739 $ 187,126 $ 39,450 $ 29,248 $ 224,446 $ 398,335 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one (2) 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 $4.9 million and $5.1 million as of December 31, 2022 and December 25, 2021, respectively. Of the $4.9 million as of December 31, 2022, $4.6 million is classified as other long-term liabilities on the accompanying consolidated balance sheets. The remainder is included in accrued expenses and other current liabilities. (3) The Company has finance leases for computer hardware and leasehold improvements. The above payment schedule includes interest. See Note 3, "Leases" to the Notes to Consolidated Financial Statements for more information. (4) The Company has agreements with its major production suppliers, where the Company is committed to purchase certain parts. As of December 31, 2022, December 25, 2021 and December 26, 2020, these non-cancelable purchase commitments were $744.8 million, $591.5 million and $291.4 million, respectively. (5) See Note 12, "Debt" to the Notes to Consolidated Financial Statements for more information. |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
Schedule of Activity Related to Product Warranty | Activity related to product warranty was as follows (in thousands): December 31, 2022 December 25, 2021 Beginning balance $ 44,310 $ 40,708 Charges to operations 27,176 23,061 Utilization (22,420) (25,745) Change in estimate (1) (12,445) 6,286 Balance at the end of the period $ 36,621 $ 44,310 (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 and product recalls. As the Company's products mature over time, failure rates and repair costs associated with such products generally decline leading to favorable changes in warranty reserves. |
Schedule of Guarantor Obligations | Details are sets in below table (in thousands). December 31, 2022 December 25, 2021 Customer performance guarantees $ 20,903 $ 16,307 Value added tax license 1,434 287 Property leases 2,398 4,684 Pension plans — 1,004 Credit cards — 150 Other liabilities — 68 Total $ 24,735 $ 22,500 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance was as follows (in thousands): December 31, 2022 Outstanding stock awards 15,148 Reserved for future award grants 9,078 Reserved for future ESPP 4,613 Total common stock reserved for stock options and awards 28,839 |
Schedule of Company's Equity Award Activity - RSUs | The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Weighted-Average Aggregate Outstanding at December 28, 2019 11,600 $ 6.20 $ 90,254 RSUs granted 7,064 $ 5.95 RSUs released (5,087) $ 6.36 $ 30,421 RSUs canceled (1,109) $ 6.29 Outstanding at December 26, 2020 12,468 $ 5.99 $ 136,781 RSUs granted 7,377 $ 8.68 RSUs released (7,509) $ 5.96 $ 66,317 RSUs canceled (729) $ 6.92 Outstanding at December 25, 2021 11,607 $ 7.66 $ 110,849 RSUs granted 8,897 $ 8.26 RSUs released (6,690) $ 7.52 $ 46,104 RSUs canceled (1,226) $ 7.89 Outstanding at December 31, 2022 12,588 $ 8.13 $ 84,847 |
Schedule of Company's Equity Award Activity - PSUs | Number of Weighted-Average Aggregate Outstanding at December 28, 2019 2,505 $ 6.48 $ 19,485 PSUs granted 1,628 $ 5.89 PSUs released (285) $ 9.02 $ 1,702 PSUs canceled (382) $ 6.93 Outstanding at December 26, 2020 3,466 $ 5.36 $ 38,022 PSUs granted 659 $ 8.61 PSUs released (964) $ 5.21 $ 8,278 PSUs canceled (1,047) $ 4.91 Outstanding at December 25, 2021 2,114 $ 6.66 $ 20,184 PSUs granted 899 $ 8.38 PSUs released (335) $ 5.40 $ 2,592 PSUs canceled (119) $ 7.19 Outstanding at December 31, 2022 2,559 $ 7.40 $ 17,251 Expected to vest as of December 31, 2022 1,701 $ 11,464 |
Schedule 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 recognized, net of forfeitures, of the Company’s equity compensation plans as of December 31, 2022. 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 Weighted- RSUs $ 75,755 2.00 PSUs $ 8,069 1.90 |
Schedule of 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 31, 2022 December 25, 2021 December 26, 2020 Volatility 39% - 63% 38% - 50% 42% - 97% Risk-free interest rate 0.67% - 3.12% 0.05% - 0.06% 0.12% - 1.56% Expected life 0.5 years 0.5 years 0.5 years Estimated fair value $1.91 - $2.21 $2.22 - $3.11 $2.17 - $3.42 |
Schedule of Employee Stock Purchase Plan Activity | The Company’s ESPP activity for the following periods was as follows (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Stock-based compensation expense $ 5,551 $ 5,879 $ 6,607 Employee contributions $ 15,189 $ 16,167 $ 15,346 Shares purchased 2,552 2,272 3,001 |
Schedule of Nonvested Performance Based Units Activity by Grant Year | The following table summarizes by grant year, the Company’s PSU activity for the fiscal year ended December 31, 2022 (in thousands): Total Number of Performance Stock Units 2019 2020 2021 2022 Outstanding at December 25, 2021 2,114 185 1,270 659 — PSUs granted 899 — — — 899 PSUs released (335) (185) (150) — — PSUs canceled (119) — (62) (57) — Outstanding at December 31, 2022 2,559 — 1,058 602 899 |
Schedule 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 31, 2022 December 25, 2021 December 26, 2020 Stock-based compensation effects in inventory $ 3,979 $ 3,707 $ 3,979 Income tax benefit associated with stock-based compensation $ 8,588 $ 9,345 $ 8,637 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 9,485 $ 7,928 $ 7,785 Research and development 23,553 18,554 16,863 Sales and marketing 13,311 12,345 10,907 General and administrative 14,666 12,985 13,906 Total stock-based compensation expense $ 61,015 $ 51,812 $ 49,461 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Geographic Breakdown of Provision for (Benefit from) Income Taxes | The following is a geographic breakdown of the provision for income taxes (in thousands): Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Current: Federal $ 945 $ 991 $ 494 State 1,537 137 917 Foreign 20,616 12,431 9,606 Total current $ 23,098 $ 13,559 $ 11,017 Deferred: Federal $ — $ — $ — State — — — Foreign (2,566) (1,571) (4,982) Total deferred $ (2,566) $ (1,571) $ (4,982) Total provision for income taxes $ 20,532 $ 11,988 $ 6,035 |
Schedule of Provisions for Income Taxes Computed by Applying Statutory Federal Income Tax Rates | The provisions for income taxes differ from the amount computed by applying the statutory federal income tax rates as follows: Years Ended December 31, 2022 December 25, 2021 December 26, 2020 Expected tax at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit (2.2) % (1.2) % (0.4) % Research credits 8.9 % 1.7 % 1.2 % Stock-based compensation (10.2) % 1.1 % (1.2) % Change in valuation allowance (25.9) % (20.9) % (16.9) % Foreign rate differential (7.3) % (6.9) % (6.3) % Nondeductible expenses (15.4) % — % — % Other (6.0) % (2.3) % (0.4) % Effective tax rate (37.1) % (7.5) % (3.0) % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to reverse. Significant deferred tax assets and liabilities consist of the following (in thousands): Years Ended December 31, 2022 December 25, 2021 Deferred tax assets: Net operating losses $ 293,179 $ 336,711 Research and foreign tax credits 140,828 132,829 Nondeductible accruals 57,480 76,898 R&D expense capitalization 49,135 — Inventory valuation 14,329 22,651 Leasing Liabilities 16,890 19,407 Stock-based compensation 5,138 4,902 Total deferred tax assets $ 576,979 $ 593,398 Valuation allowance (548,257) (521,620) Net deferred tax assets $ 28,722 $ 71,778 Deferred tax liabilities: Property, plant and equipment $ (11,912) $ (10,792) Right of use asset (10,482) (12,216) Acquired intangible assets (4,293) (19,273) Convertible senior notes — (29,897) Total deferred tax liabilities $ (26,687) $ (72,178) Net deferred tax assets (liabilities) $ 2,035 $ (400) |
Schedule of 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 31, 2022 December 25, 2021 December 26, 2020 Beginning balance $ 54,250 $ 57,931 $ 44,092 Tax position related to current year Additions 1,536 1,198 3,213 Tax positions related to prior years Additions 7,220 7,633 11,494 Reductions (4,832) (9,569) (625) Lapses of statute of limitations (325) (2,943) (243) Ending balance $ 57,849 $ 54,250 $ 57,931 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Additionally, the following table sets forth our property, plant and equipment, net by geographic region (in thousands): December 31, 2022 December 25, 2021 United States $ 156,065 $ 141,977 Other Americas 2,908 2,687 Europe, Middle East and Africa 10,285 12,245 Asia Pacific and Japan 3,671 3,309 Total property, plant and equipment, net $ 172,929 $ 160,218 |
Employee Benefit and Pension _2
Employee Benefit and Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of 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 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 115,771 $ 129,936 Service cost 300 351 Interest cost 1,249 1,265 Benefits paid (3,382) (3,413) Actuarial gain (30,779) (3,050) Employee contributions 54 190 Foreign currency exchange rate changes (7,041) (9,508) Benefit obligation at end of year (1) $ 76,172 $ 115,771 Fair value of plan assets at beginning of year $ 81,615 $ 77,561 Actual (loss) return on plan assets (5,305) 12,425 Payments (5,316) (3,206) Employee contributions 153 289 Foreign currency exchange rate changes (4,692) (5,454) Fair value of plan assets at end of year $ 66,455 $ 81,615 Net liability recognized $ 9,717 $ 34,156 (1) The Company's accumulated benefit obligation was $76.1 million and $115.1 million at December 31, 2022 and December 25, 2021, respectively. |
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 31, 2022 December 25, 2021 Other non-current assets $ 66,455 $ 81,615 Other long-term liabilities (76,172) (115,771) Net liability recognized $ (9,717) $ (34,156) |
Schedule of Net Benefit Costs | Net periodic benefit cost for the Company's pension and other post-retirement benefit plans consisted of the following (in thousands): Years ended December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 300 $ 351 $ 896 Interest cost 1,249 1,265 1,773 Expected return on plan assets (2,936) (2,895) (2,644) Amortization of net actuarial loss 326 3,383 1,884 Total net periodic (benefit) cost $ (1,061) $ 2,104 $ 1,909 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table sets forth the changes in accumulated other comprehensive income (loss) for the Company's benefit plans (pre-tax) (in thousands): December 31, 2022 December 25, 2021 Beginning balance $ 4,297 $ (11,666) Net actuarial gain arising in current year 22,538 12,580 Amortization of net actuarial loss (1) 326 3,383 Ending balance $ 27,161 $ 4,297 (1) The actuarial gain for the fiscal years ended December 31, 2022 and December 25, 2021 is primarily due to the change in the discount rate. Amounts recorded in accumulated other comprehensive income (loss) expected to be amortized as a part of net periodic pension cost during 2023 is $3.7 million (pre-tax). |
Schedule of Assumptions Used | Certain actuarial assumptions used in computing the benefit obligations for the major plans are as follows: December 31, 2022 December 25, 2021 Discount rate 4.17 % 1.20 % Salary growth rate 2.50 % 2.25 % Pension growth rate 2.25 % 2.00 % Expected long-term rate of return on plan assets 3.93 % 3.93 % |
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 (in thousands): As of December 31, 2022 December 25, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Cash $ 1,160 $ — $ 1,160 $ 738 $ — $ 738 Equity fund — 41,492 41,492 — 55,400 55,400 Insurance contracts — 23,803 23,803 — 25,388 25,388 Pension fund — — — — 89 89 Total plan assets at fair value $ 1,160 $ 65,295 $ 66,455 $ 738 $ 80,877 $ 81,615 |
Schedule of Expected Benefit Payments | Estimated future benefit payments under the Company's pension plans as of December 31, 2022 are as follows (in thousands): 2023 $ 5,385 2024 4,071 2025 4,698 2026 4,020 2027 3,908 2027 to 2031 20,752 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 26, 2021 | |
Significant Accounting Policies [Line Items] | ||||
Contractual support period | 1 year | |||
Stock plan offering period | 6 months | |||
Advertising expenses | $ 1,500 | $ 1,600 | $ 1,300 | |
Foreign currency transaction loss | (12,800) | 17,200 | 200 | |
Revenue reserves recorded for potential sales returns | $ 3,600 | 800 | $ 2,400 | |
Software warranty period | 90 days | |||
Lease renewal term | 6 years | |||
Restructuring payment timing period | 4 years | |||
Long-term debt, net | $ 667,719 | 476,789 | ||
Accumulated deficit | $ (1,699,593) | $ (1,698,042) | ||
Adjustment | Accounting Standards Update 2020-06 | ||||
Significant Accounting Policies [Line Items] | ||||
Additional Paid in Capital | $ 196,500 | |||
Long-term debt, net | 122,000 | |||
Accumulated deficit | $ 74,500 | |||
Customer Concentration Risk | Accounts Receivable | Customer One | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk | 10% | |||
Customer Concentration Risk | Revenue | Customer One | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk | 11% | 11% | ||
Restricted Stock Units | New Hire Employee | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period | 4 years | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Payment term | 30 days | |||
Purchase commitment time frame | 12 months | |||
Product warranty period | 1 year | |||
Lease term | 1 year | |||
Minimum | Restricted Stock Units | Existing Employees | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period | 18 months | |||
Minimum | Performance Stock Units | ||||
Significant Accounting Policies [Line Items] | ||||
Award performance period | 2 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Payment term | 120 days | |||
Purchase commitment time frame | 24 months | |||
Product warranty period | 5 years | |||
Lease term | 11 years | |||
Maximum | Restricted Stock Units | Existing Employees | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period | 3 years | |||
Maximum | Performance Stock Units | ||||
Significant Accounting Policies [Line Items] | ||||
Award performance period | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Life for Each Asset (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 3 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 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 3 years |
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 | 20 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 | 5 years |
Maximum | Computer hardware | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 5 years |
Maximum | Leasehold and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 11 years |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Rent expense | $ 21.1 | $ 25.7 | $ 34 |
Accelerated rent expense | 8.1 | 6.5 | $ 9.9 |
Finance lease right of use asset | $ 1.9 | $ 3.5 | |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance lease period | 3 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance lease period | 5 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Leases [Abstract] | ||
Accrued expenses and other current liabilities | $ 10,948 | $ 16,542 |
Long-term operating lease liabilities | 45,862 | 54,326 |
Total operating lease liability | $ 56,810 | $ 70,868 |
Finance lease, liability, statement of financial position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Other Accrued Liabilities, Current | Accounts Payable and Other Accrued Liabilities, Current |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Operating Lease | ||
Total | $ 71,903 | |
Less: interest | 15,093 | |
Present value of lease liabilities | 56,810 | $ 70,868 |
Finance Lease | ||
Total lease payments | 966 | |
Less: interest | 37 | |
Present value of lease liabilities | $ 929 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 5 months 1 day |
Weighted average discount rate | 9.25% |
Cash paid for amounts included in the measurement of lease liabilities | $ 23,398 |
Leased assets obtained in exchange for new lease liabilities | $ 5,748 |
Weighted average remaining lease term | 1 year |
Weighted average discount rate | 7.02% |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,310 |
Leased assets obtained in exchange for new lease liabilities | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 106.8 | $ 88.1 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,573,242 | $ 1,425,205 | $ 1,355,596 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 870,282 | 663,808 | 630,422 |
Other Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 101,600 | 107,963 | 99,158 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 405,328 | 477,787 | 424,411 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 196,032 | 175,647 | 201,605 |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,268,624 | 1,099,376 | 1,045,551 |
Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 304,618 | 325,829 | 310,045 |
Direct | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,191,584 | 1,099,632 | 1,039,976 |
Indirect | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 381,658 | $ 325,573 | $ 315,620 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 419,735 | $ 358,954 |
Contract assets | 60,172 | 49,052 |
Deferred revenue | $ (181,679) | $ (168,909) |
Revenue Recognition - Revenue,
Revenue Recognition - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 982,954 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 827,410 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 106,100 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 29,108 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 9,043 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 5,227 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future as of December 31, 2022 | $ 6,066 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
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. 31, 2022 | Dec. 25, 2021 |
Money Market Funds | ||
Assets (Liabilities) | ||
Cash and cash equivalents | $ 95,000 | $ 0 |
Convertible senior notes | ||
Assets (Liabilities) | ||
Total debt | 785,364 | 765,412 |
Foreign currency exchange forward contracts | ||
Assets (Liabilities) | ||
Foreign currency exchange forward contracts | 0 | (221) |
Level 1 | Money Market Funds | ||
Assets (Liabilities) | ||
Cash and cash equivalents | 95,000 | 0 |
Level 1 | Convertible senior notes | ||
Assets (Liabilities) | ||
Total debt | 0 | 0 |
Level 1 | Foreign currency exchange forward contracts | ||
Assets (Liabilities) | ||
Foreign currency exchange forward contracts | 0 | 0 |
Level 2 | Money Market Funds | ||
Assets (Liabilities) | ||
Cash and cash equivalents | 0 | 0 |
Level 2 | Convertible senior notes | ||
Assets (Liabilities) | ||
Total debt | 785,364 | 765,412 |
Level 2 | Foreign currency exchange forward contracts | ||
Assets (Liabilities) | ||
Foreign currency exchange forward contracts | $ 0 | $ (221) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | ||||
Cash and Cash Equivalents [Line Items] | |||||||
Accelerated rent expense | $ 8,100 | $ 6,500 | $ 9,900 | ||||
Cash and restricted cash | 189,203 | [1] | 202,521 | [1] | $ 315,383 | [1] | $ 132,797 |
Foreign Subsidiary | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and restricted cash | $ 65,900 | $ 77,600 | |||||
[1]Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: December 31, 2022 December 25, 2021 December 26, 2020 (In thousands) Cash and cash equivalents $ 178,657 $ 190,611 $ 298,014 Short-term restricted cash 7,274 2,840 3,293 Long-term restricted cash 3,272 9,070 14,076 Total cash, cash equivalents and restricted cash $ 189,203 $ 202,521 $ 315,383 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
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) | $ 600,000 | 900,000 | $ 300,000 |
Interest expense | 26,015,000 | 49,099,000 | 46,728,000 |
Foreign currency exchange forward contracts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Derivative liability | 0 | 29,500,000 | |
Trade accounts receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest expense | 900,000 | 400,000 | $ 400,000 |
Account receivables sold | $ 101,000,000 | $ 121,300,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Derivative [Line Items] | ||
Gross Notional | $ 0 | $ 29,547 |
Accrued expenses and other current liabilities | 0 | (221) |
Related to euro denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 0 | 21,981 |
Accrued expenses and other current liabilities | 0 | (139) |
Related to British pound denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 0 | 7,566 |
Accrued expenses and other current liabilities | $ 0 | $ (82) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Roll Forward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 25, 2021 | $ 255,788 |
Foreign currency translation adjustments | (23,125) |
Balance as of December 31, 2022 | $ 232,663 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (274,141) | $ (253,765) |
Total future amortization expense | 47,787 | |
Total intangible assets | 321,928 | 340,339 |
Total intangible assets | 47,787 | 86,574 |
Customer relationships and backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 151,461 | 157,495 |
Accumulated Amortization | (114,294) | (104,701) |
Total future amortization expense | $ 37,167 | $ 52,794 |
Finite-lived intangible asset, useful life | 3 years 6 months | 4 years 2 months 12 days |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170,467 | $ 182,844 |
Accumulated Amortization | (159,847) | (149,064) |
Total future amortization expense | $ 10,620 | $ 33,780 |
Finite-lived intangible asset, useful life | 8 months 12 days | 1 year 6 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated impairment loss | $ 0 | ||
Amortization expense | $ 37,700,000 | $ 37,100,000 | $ 47,800,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total future amortization expense | $ 47,787 |
2023 | 22,968 |
2024 | 9,025 |
2025 | 9,025 |
2026 | 6,769 |
2027 | 0 |
Thereafter | $ 0 |
Balance Sheet Details - Allowan
Balance Sheet Details - Allowance for Credit Losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 25, 2021 | $ 1,304 |
Additions | 1,397 |
Write offs | (1,279) |
Balance as of December 31, 2022 | $ 1,422 |
Balance Sheet Details - Details
Balance Sheet Details - Details of Selected Balance Sheet Items (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Inventory | |||
Raw materials | $ 48,688 | $ 39,379 | |
Work in process | 66,591 | 53,924 | |
Finished goods | 259,576 | 198,064 | |
Total | 374,855 | 291,367 | |
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 513,792 | 475,330 | |
Less accumulated depreciation and amortization | (340,863) | (315,112) | |
Property, plant and equipment, net | 172,929 | 160,218 | |
Accrued expenses and other current liabilities | |||
Loss contingency related to non-cancelable purchase commitments | 28,796 | 19,405 | |
Taxes payable | 42,757 | 43,308 | |
Restructuring accrual | 941 | 8,610 | |
Short-term operating and finance lease liability | 11,701 | 17,792 | |
Other accrued expenses and other current liabilities | 57,255 | 57,914 | |
Total accrued expenses and other current liabilities | 141,450 | 147,029 | |
Depreciation expense | 46,100 | 47,100 | $ 52,300 |
License Agreement Terms | |||
Accrued expenses and other current liabilities | |||
Depreciation expense | 7,600 | 6,700 | |
Computer hardware | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 46,454 | 45,824 | |
Computer software | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 62,102 | 56,820 | |
Laboratory and manufacturing equipment | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 297,261 | 287,875 | |
Land and building | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 12,369 | 12,369 | |
Furniture and fixtures | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 2,828 | 2,164 | |
Leasehold and building improvements | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 50,360 | 51,471 | |
Construction in progress | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 42,418 | 18,807 | |
Enterprise Resource Planning | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 29,300 | 25,900 | |
Property, plant and equipment, net | 9,000 | 8,900 | |
Accrued expenses and other current liabilities | |||
Depreciation expense | 3,500 | 2,800 | $ 2,600 |
Enterprise Resource Planning | License | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 24,200 | 20,900 | |
Property, plant and equipment, net | $ 9,100 | $ 9,200 |
Restructuring and Other Relat_3
Restructuring and Other Related Costs - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 10,331 | $ 14,777 | |
Restructuring liability | 941 | 8,882 | $ 10,471 |
Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,033 | 4,951 | |
Restructuring liability | 792 | 7,536 | $ 10,241 |
Telecom Holding Parent LLC | Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 200 | ||
2021 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6,100 | $ 8,500 | |
2021 Restructuring Plan | Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 700 | ||
2021 Restructuring Plan | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring ranging cost | 15,000 | ||
2021 Restructuring Plan | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring ranging cost | $ 17,000 |
Restructuring and Other Relat_4
Restructuring and Other Related Costs - Restructuring and Other Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 10,331 | $ 14,777 | |
Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,033 | 4,951 | |
Lease related impairment charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8,059 | 6,534 | |
Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 35 | 1,552 | |
Others | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 204 | 1,740 | |
Cost of Revenue | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 222 | 1,531 | $ 4,146 |
Cost of Revenue | Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 203 | 335 | 4,042 |
Cost of Revenue | Lease related impairment charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 88 |
Cost of Revenue | Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 14 |
Cost of Revenue | Others | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 19 | 1,196 | 2 |
Operating Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10,122 | 13,246 | 24,586 |
Operating Expenses | Severance and related expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,834 | 4,615 | 14,054 |
Operating Expenses | Lease related impairment charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8,059 | 6,534 | 9,932 |
Operating Expenses | Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 35 | 1,552 | 387 |
Operating Expenses | Others | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 194 | $ 545 | $ 213 |
Restructuring and Other Relat_5
Restructuring and Other Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 8,882 | $ 10,471 |
Charges | 10,331 | 14,777 |
Cash payments | (12,206) | (9,561) |
Non-cash Settlements and Other | (6,805) | |
Non-cash Settlements and Other | (6,066) | |
Ending balance | 941 | 8,882 |
Severance and related expenses | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 7,536 | 10,241 |
Charges | 2,033 | 4,951 |
Cash payments | (8,503) | (7,091) |
Non-cash Settlements and Other | (565) | |
Non-cash Settlements and Other | (274) | |
Ending balance | 792 | 7,536 |
Lease related impairment charges | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 0 |
Charges | 8,059 | 6,534 |
Cash payments | (2,267) | (2,089) |
Non-cash Settlements and Other | (4,445) | |
Non-cash Settlements and Other | (5,792) | |
Ending balance | 0 | 0 |
Asset impairment | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 0 |
Charges | 35 | 1,552 |
Cash payments | 0 | 0 |
Non-cash Settlements and Other | (1,552) | |
Non-cash Settlements and Other | (35) | |
Ending balance | 0 | 0 |
Others | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1,346 | 230 |
Charges | 204 | 1,740 |
Cash payments | (1,436) | (381) |
Non-cash Settlements and Other | (243) | |
Non-cash Settlements and Other | 35 | |
Ending balance | $ 149 | $ 1,346 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
AOCI Attributable to Parent, Net of Tax: | |||
Beginning balance | $ 323,771 | $ 426,284 | $ 386,535 |
Other comprehensive income (loss) before reclassifications | (19,265) | 4,019 | 20,857 |
Amounts reclassified from accumulated other comprehensive income | 1,290 | 3,383 | 1,884 |
Net change in accumulated other comprehensive income (loss) | (17,975) | 7,402 | 22,741 |
Ending balance | 179,647 | 323,771 | 426,284 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax: | |||
Beginning balance | (4,496) | (11,898) | (34,639) |
Net change in accumulated other comprehensive income (loss) | (17,975) | 7,402 | 22,741 |
Ending balance | (22,471) | (4,496) | (11,898) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax: | |||
Beginning balance | (7,829) | 732 | (28,308) |
Other comprehensive income (loss) before reclassifications | (41,803) | (8,561) | 29,040 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | (41,803) | (8,561) | 29,040 |
Ending balance | (49,632) | (7,829) | 732 |
Actuarial Gain (Loss) on Pension | |||
AOCI Attributable to Parent, Net of Tax: | |||
Beginning balance | 4,297 | (11,666) | (5,367) |
Other comprehensive income (loss) before reclassifications | 22,538 | 12,580 | (8,183) |
Amounts reclassified from accumulated other comprehensive income | 326 | 3,383 | 1,884 |
Net change in accumulated other comprehensive income (loss) | 22,864 | 15,963 | (6,299) |
Ending balance | 27,161 | 4,297 | (11,666) |
Accumulated Tax Effect | |||
AOCI Attributable to Parent, Net of Tax: | |||
Beginning balance | (964) | (964) | (964) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 964 | 0 | 0 |
Net change in accumulated other comprehensive income (loss) | 964 | 0 | 0 |
Ending balance | $ 0 | $ (964) | $ (964) |
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, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (76,043) | $ (170,778) | $ (206,723) |
Weighted average common shares outstanding - basic (in shares) | 216,376 | 207,377 | 188,216 |
Weighted average common shares outstanding - diluted (in shares) | 216,376 | 207,377 | 188,216 |
Net loss per common share - basic (in dollars per share) | $ (0.35) | $ (0.82) | $ (1.10) |
Net loss per common share - diluted (in dollars per share) | $ (0.35) | $ (0.82) | $ (1.10) |
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. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 73,681 | 21,216 | 19,787 |
Convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 55,800 | 4,448 | 8 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 0 | 0 | 451 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 14,836 | 12,860 | 13,947 |
Performance stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 2,685 | 2,751 | 3,668 |
Employee stock purchase plan shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities (in shares) | 360 | 1,157 | 1,713 |
Basic and Diluted Net Loss Pe_5
Basic and Diluted Net Loss Per Common Share - Narrative (Details) - $ / shares | Dec. 31, 2022 | Dec. 25, 2021 |
Convertible Senior Notes, 2.5%, Due March 1, 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 7.66 | $ 7.66 |
Debt - Components of Convertibl
Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Debt Instrument [Line Items] | ||
Current | $ 500 | $ 500 |
Long-term debt, net | 667,719 | 476,789 |
Unpaid Principal Balance | 683,800 | 610,300 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Current | 500 | 500 |
Long-term debt, net | 6,800 | 7,300 |
Unpaid Principal Balance | 7,300 | 7,800 |
2.125% Convertible Senior Notes Due September 1, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 101,726 | 329,257 |
2.125% Convertible Senior Notes Due September 1, 2024 | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 101,700 | 329,200 |
Unpaid Principal Balance | 102,700 | 402,500 |
Convertible Senior Notes, 2.5%, Due March 1, 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 195,879 | 140,258 |
Convertible Senior Notes, 2.5%, Due March 1, 2027 | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 195,900 | 140,300 |
Unpaid Principal Balance | 200,000 | $ 200,000 |
3.75% Convertible Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 363,349 | |
3.75% Convertible Senior Notes Due 2028 | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | |
Long-term debt, net | 363,300 | |
Unpaid Principal Balance | $ 373,800 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Aug. 08, 2022 | Jun. 24, 2022 USD ($) | Jan. 01, 2022 | Sep. 24, 2021 USD ($) installment | Aug. 01, 2019 USD ($) | Aug. 31, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) installment | Sep. 30, 2018 USD ($) d $ / shares shares | Dec. 31, 2022 USD ($) | Sep. 24, 2022 | Dec. 31, 2022 USD ($) d | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Dec. 26, 2021 | Dec. 28, 2019 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Gain on extinguishment of debt | $ 15,521,000 | $ 0 | $ 0 | ||||||||||||||
Conversion option related to convertible senior notes, net of allocated costs | 67,797,000 | ||||||||||||||||
Repayment, lines of credit | 80,000,000 | 77,000,000 | 8,000,000 | ||||||||||||||
Interest expense, debt | $ 19,993,000 | 44,856,000 | 39,560,000 | ||||||||||||||
Unpaid Principal Balance | 683,800,000 | 683,800,000 | 610,300,000 | ||||||||||||||
Current | 500,000 | 500,000 | 500,000 | ||||||||||||||
Long-term debt, net | 667,719,000 | 667,719,000 | 476,789,000 | ||||||||||||||
Letter of Credit | Banker's Guarantees Or Performance Bonds | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Proceeds from line of credit | 15,400,000 | 15,400,000 | 11,500,000 | ||||||||||||||
Line of credit, outstanding | 15,400,000 | 15,400,000 | 11,500,000 | ||||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Conversion option related to convertible senior notes, net of allocated costs | 67,797,000 | ||||||||||||||||
2.125% Convertible Senior Notes Due September 1, 2024 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | 102,652,000 | 102,652,000 | 402,500,000 | ||||||||||||||
Amortization of debt issuance costs | 3,404,000 | 1,892,000 | $ 1,634,000 | ||||||||||||||
Long-term debt, net | 101,726,000 | 101,726,000 | 329,257,000 | ||||||||||||||
Convertible Senior Notes, 2.5%, Due March 1, 2027 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||
Long-term debt, net | 195,879,000 | 195,879,000 | $ 140,258,000 | ||||||||||||||
Credit Agreement | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt issuance costs, net | $ 4,900,000 | ||||||||||||||||
Repayment, lines of credit | $ 40,000,000 | ||||||||||||||||
Interest payable, debt | 500,000 | ||||||||||||||||
Interest expense, debt | $ 2,000,000 | ||||||||||||||||
Credit Agreement | SOFR | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 2% | ||||||||||||||||
Credit Agreement | SOFR | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 2.50% | ||||||||||||||||
Credit Agreement | Base Rate | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 1% | ||||||||||||||||
Credit Agreement | Base Rate | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 1.50% | ||||||||||||||||
Credit Agreement | LIBOR | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 2% | ||||||||||||||||
Credit Agreement | LIBOR | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 2.50% | ||||||||||||||||
Credit Agreement | Revolving Credit Facility | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Commitment fee percentage | 0.375% | ||||||||||||||||
Credit Agreement | Revolving Credit Facility | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Commitment fee percentage | 0.625% | ||||||||||||||||
3.75% Convertible Senior Notes Due 2028 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | 373,750,000 | 373,750,000 | |||||||||||||||
Long-term debt, net | 363,349,000 | 363,349,000 | |||||||||||||||
Senior Notes | 2.125% Convertible Senior Notes Due September 1, 2024 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 402,500,000 | ||||||||||||||||
Contractual Interest Rates | 2.125% | ||||||||||||||||
Proceeds from issuance of 2024 notes | $ 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 | ||||||||||||||||
Payment for debt extinguishment | $ 283,600,000 | ||||||||||||||||
Extinguishment of debt, amount | 299,800,000 | ||||||||||||||||
Gain on extinguishment of debt | 15,500,000 | ||||||||||||||||
Write-off of deferred issuance costs | $ 3,500,000 | ||||||||||||||||
Convertible threshold minimum percentage | 130% | ||||||||||||||||
Threshold trading days | d | 20 | ||||||||||||||||
Threshold consecutive trading days | d | 30 | ||||||||||||||||
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change | 100% | 100% | |||||||||||||||
Additional effective rate of interest to be used on amortized carrying value | 9.92% | 2.70% | |||||||||||||||
Debt issuance costs, gross | $ 12,900,000 | ||||||||||||||||
Amortization of debt issuance costs | 8,700,000 | ||||||||||||||||
Debt issuance costs amortization period | 20 months | ||||||||||||||||
Senior Notes | 2.125% Convertible Senior Notes Due September 1, 2024 | Additional Paid-in Capital | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Conversion option related to convertible senior notes, net of allocated costs | 128,700,000 | ||||||||||||||||
Senior Notes | 2.125% Convertible Senior Notes, Circumstance 1 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Convertible threshold minimum percentage | 130% | ||||||||||||||||
Threshold trading days | d | 20 | ||||||||||||||||
Threshold consecutive trading days | d | 30 | ||||||||||||||||
Senior Notes | 2.125% Convertible Senior Notes, Circumstance 2 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 1,000 | ||||||||||||||||
Threshold trading days | d | 5 | ||||||||||||||||
Threshold consecutive trading days | d | 5 | ||||||||||||||||
Convertible, threshold maximum percentage | 98% | ||||||||||||||||
Senior Notes | Convertible Senior Notes, 2.5%, Due March 1, 2027 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 200,000,000 | ||||||||||||||||
Contractual Interest Rates | 2.50% | ||||||||||||||||
Proceeds from issuance of 2024 notes | $ 193,300,000 | ||||||||||||||||
Additional effective rate of interest to be used on amortized carrying value | 3% | ||||||||||||||||
Debt issuance costs, gross | 6,700,000 | ||||||||||||||||
Amortization of debt issuance costs | 4,300,000 | ||||||||||||||||
Debt issuance costs amortization period | 50 months | ||||||||||||||||
Senior Notes | Convertible Senior Notes, 2.5%, Due March 1, 2027 | Additional Paid-in Capital | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Conversion option related to convertible senior notes, net of allocated costs | 67,800,000 | ||||||||||||||||
Senior Notes | 3.75% Convertible Senior Notes Due 2028 | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 373,800,000 | ||||||||||||||||
Contractual Interest Rates | 3.75% | ||||||||||||||||
Proceeds from issuance of 2024 notes | $ 362,400,000 | ||||||||||||||||
Additional effective rate of interest to be used on amortized carrying value | 4.30% | ||||||||||||||||
Debt issuance costs amortization period | 67 months | ||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Unpaid Principal Balance | 0 | 0 | 0 | ||||||||||||||
Current | 0 | 0 | 0 | ||||||||||||||
Long-term debt, net | 0 | 0 | 0 | ||||||||||||||
Line of Credit | Credit Agreement | Revolving Credit Facility | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 150,000,000 | |||||||||||||||
Additional borrowing capacity | $ 100,000,000 | ||||||||||||||||
Commitment fee percentage | 0.25% | ||||||||||||||||
Debt issuance costs, net | 1,200,000 | 1,200,000 | |||||||||||||||
Debt available borrowing capacity | 161,600,000 | 161,600,000 | |||||||||||||||
Line of Credit | Credit Agreement | Revolving Credit Facility | SOFR | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 1.25% | ||||||||||||||||
Line of Credit | Credit Agreement | Revolving Credit Facility | SOFR | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 1.75% | ||||||||||||||||
Line of Credit | Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 0.25% | ||||||||||||||||
Line of Credit | Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Variable rate | 0.75% | ||||||||||||||||
Line of Credit | Credit Agreement | Letter of Credit | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||
Line of Credit | Credit Agreement | Swing Loan Sub-Facility | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 10,000,000 | |||||||||||||||
Mortgages | |||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||
Contractual Interest Rates | 3.80% | 5.25% | |||||||||||||||
Proceeds from debt | $ 8,700,000 | ||||||||||||||||
Debt payment installments | installment | 31 | 59 | |||||||||||||||
Debt term | 5 years | ||||||||||||||||
Debt payment | $ 100,000 | ||||||||||||||||
Unpaid Principal Balance | 7,300,000 | 7,300,000 | 7,800,000 | ||||||||||||||
Current | 500,000 | 500,000 | 500,000 | ||||||||||||||
Long-term debt, net | $ 6,800,000 | $ 6,800,000 | $ 7,300,000 |
Debt - Conversation Ratio (Deta
Debt - Conversation Ratio (Details) | 1 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2022 $ / shares | Dec. 25, 2021 $ / shares | |
2.125% Convertible Senior Notes Due September 1, 2024 | |||
Debt Instrument [Line Items] | |||
Conversion ratio | 0.1012812 | ||
2.125% Convertible Senior Notes Due September 1, 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Conversion price (in dollars per share) | $ 9.87 | ||
Convertible Senior Notes, 2.5%, Due March 1, 2027 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Conversion ratio | 0.1305995 | ||
Conversion price (in dollars per share) | 7.66 | $ 7.66 | |
3.75% Convertible Senior Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Conversion ratio | 0.1471183 | ||
3.75% Convertible Senior Notes Due 2028 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Conversion price (in dollars per share) | $ 6.80 |
Debt - Interest Expense Recogni
Debt - Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Debt Instrument [Line Items] | |||
Total interest expense | $ 19,993 | $ 44,856 | $ 39,560 |
2.125% Convertible Senior Notes Due September 1, 2024 | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 16,589 | 13,553 | 12,577 |
Amortization of debt issuance costs | 3,404 | 1,892 | 1,634 |
Amortization of debt discount | $ 0 | $ 29,411 | $ 25,349 |
Debt - Net Carrying Amount (Det
Debt - Net Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term debt, net | $ 667,719 | $ 476,789 |
2.125% Convertible Senior Notes Due September 1, 2024 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 102,652 | 402,500 |
Unamortized debt discount | 0 | (68,755) |
Unamortized issuance costs | (926) | (4,488) |
Long-term debt, net | 101,726 | 329,257 |
Convertible Senior Notes, 2.5%, Due March 1, 2027 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 200,000 | 200,000 |
Unamortized debt discount | 0 | (56,270) |
Unamortized issuance costs | (4,121) | (3,472) |
Long-term debt, net | 195,879 | $ 140,258 |
3.75% Convertible Senior Notes Due 2028 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 373,750 | |
Unamortized debt discount | 0 | |
Unamortized issuance costs | (10,401) | |
Long-term debt, net | $ 363,349 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ARO, non current | $ 4,900 | $ 5,100 | |
Purchase obligation | 744,777 | ||
Other Noncurrent Liabilities [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ARO, non current | 4,600 | ||
Certain Parts, Production Suppliers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase obligation | $ 744,800 | $ 591,500 | $ 291,400 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease period | 11 years |
Commitments and Contingencies_2
Commitments and Contingencies - Future Annual Minimum Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 71,903 |
2023 | 15,603 |
2024 | 14,366 |
2025 | 13,202 |
2026 | 10,232 |
2027 | 7,930 |
Thereafter | $ 10,570 |
Commitments and Contingencies_3
Commitments and Contingencies - Financing Lease Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total lease payments | $ 966 |
2023 | 789 |
2024 | 177 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 744,777 |
2023 | 695,641 |
2024 | 41,904 |
2025 | 7,232 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_5
Commitments and Contingencies - Future Interest and Principal Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Mortgages | |
Debt Instrument [Line Items] | |
Total | $ 7,611 |
2023 | 781 |
2024 | 6,830 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
3.75% Convertible Senior Notes Due 2028 | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 457,572 |
2023 | 13,743 |
2024 | 14,016 |
2025 | 14,016 |
2026 | 14,016 |
2027 | 14,016 |
Thereafter | 387,765 |
Convertible Senior Notes, 2.5%, Due March 1, 2027 | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 222,500 |
2023 | 5,000 |
2024 | 5,000 |
2025 | 5,000 |
2026 | 5,000 |
2027 | 202,500 |
Thereafter | 0 |
2.125% Convertible Senior Notes Due September 1, 2024 | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 107,015 |
2023 | 2,182 |
2024 | 104,833 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_6
Commitments and Contingencies - Total Contractual Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total | $ 1,612,344 |
2023 | 733,739 |
2024 | 187,126 |
2025 | 39,450 |
2026 | 29,248 |
2027 | 224,446 |
Thereafter | $ 398,335 |
Guarantees - Activity Related t
Guarantees - Activity Related to Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 44,310 | $ 40,708 |
Charges to operations | 27,176 | 23,061 |
Utilization | (22,420) | (25,745) |
Change in estimate | (12,445) | 6,286 |
Balance at the end of the period | $ 36,621 | $ 44,310 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Guarantor Obligations [Line Items] | ||
Total | $ 24,735 | $ 22,500 |
Bond secure amount | 4,000 | 4,000 |
Surety Bond | ||
Guarantor Obligations [Line Items] | ||
Bond secure amount | 7,500 | 5,500 |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantee | 20,903 | 16,307 |
Credit cards | 0 | $ 150 |
Cash collateral | $ 9,200 |
Guarantees - Letters of Credit
Guarantees - Letters of Credit and Bank Guarantees (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Guarantor Obligations [Line Items] | ||
Total | $ 24,735 | $ 22,500 |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantee | 20,903 | 16,307 |
Value added tax license | 1,434 | 287 |
Property leases | 2,398 | 4,684 |
Pension plans | 0 | 1,004 |
Credit cards | 0 | 150 |
Other liabilities | $ 0 | $ 68 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
May 31, 2019 | Feb. 29, 2016 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 30, 2022 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Closing price of common stock (in usd per share) | $ 6.74 | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Amortization of stock based compensation | $ 54.1 | $ 42.3 | $ 36.1 | ||||||||
Performance stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Term of award | 3 years | ||||||||||
Amortization of stock based compensation | $ 1.6 | $ 3.3 | $ 6 | ||||||||
2007 Plan | Employee stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized (in shares) | 31,600,000 | ||||||||||
Term of award | 20 years | ||||||||||
Common stock payroll deduction price percentage of lover of fair market value | 85% | ||||||||||
Employee payroll deduction limit | 15% | ||||||||||
Maximum employee stock purchase (in shares) | 3,000 | ||||||||||
2016 Equity Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Term of award | 10 years | ||||||||||
Increase in number of shares authorized (in shares) | 7,300,000 | 8,500,000 | 4,400,000 | 8,100,000 | 1,500,000 | 6,400,000 | |||||
Reserved common stock for issuance of options (in shares) | 43,700,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands | Dec. 31, 2022 shares |
Share-Based Payment Arrangement [Abstract] | |
Outstanding stock options and awards (in shares) | 15,148 |
Reserved for future option and award grants (in shares) | 9,078 |
Reserved for future ESPP (in shares) | 4,613 |
Total common stock reserved for stock options and awards (in shares) | 28,839 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Company's Equity Award Activity - RSUs (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Restricted Stock Units | |||
Number of Restricted Stock Units | |||
Number of performance stock units, beginning balance (in shares) | 11,607 | 12,468 | 11,600 |
Number of shares available for grant cost (in shares) | 8,897 | 7,377 | 7,064 |
Number of restricted/performance stock units, released (in shares) | (6,690) | (7,509) | (5,087) |
Number of restricted/performance stock units, canceled (in shares) | (1,226) | (729) | (1,109) |
Number of performance stock units, ending balance (in shares) | 12,588 | 11,607 | 12,468 |
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 7.66 | $ 5.99 | $ 6.20 |
Weighted-average grant date fair value per share, granted (in usd per share) | 8.26 | 8.68 | 5.95 |
Weighted-average grant date fair value per share, released (in usd per share) | 7.52 | 5.96 | 6.36 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 7.89 | 6.92 | 6.29 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 8.13 | $ 7.66 | $ 5.99 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value , beginning balance | $ 110,849 | $ 136,781 | $ 90,254 |
Aggregate intrinsic value, RSUs released | 46,104 | 66,317 | 30,421 |
Aggregate intrinsic value , ending balance | $ 84,847 | $ 110,849 | $ 136,781 |
Performance stock units | |||
Number of Restricted Stock Units | |||
Number of performance stock units, beginning balance (in shares) | 2,114 | 3,466 | 2,505 |
Number of shares available for grant cost (in shares) | 899 | 659 | 1,628 |
Number of restricted/performance stock units, released (in shares) | (335) | (964) | (285) |
Number of restricted/performance stock units, canceled (in shares) | (119) | (1,047) | (382) |
Number of performance stock units, ending balance (in shares) | 2,559 | 2,114 | 3,466 |
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 6.66 | $ 5.36 | $ 6.48 |
Weighted-average grant date fair value per share, granted (in usd per share) | 8.38 | 8.61 | 5.89 |
Weighted-average grant date fair value per share, released (in usd per share) | 5.40 | 5.21 | 9.02 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 7.19 | 4.91 | 6.93 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 7.40 | $ 6.66 | $ 5.36 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value , beginning balance | $ 20,184 | $ 38,022 | $ 19,485 |
Aggregate intrinsic value, RSUs released | 2,592 | 8,278 | 1,702 |
Aggregate intrinsic value , ending balance | $ 17,251 | $ 20,184 | $ 38,022 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Company's Equity Award Activity - PSUs (Details) - Performance stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Number of Performance Stock Units | |||
Number of performance stock units, beginning balance (in shares) | 2,114 | 3,466 | 2,505 |
Number of shares available for grant cost (in shares) | 899 | 659 | 1,628 |
Number of restricted/performance stock units, released (in shares) | (335) | (964) | (285) |
Number of restricted/performance stock units, canceled (in shares) | (119) | (1,047) | (382) |
Number of performance stock units, ending balance (in shares) | 2,559 | 2,114 | 3,466 |
Weighted-Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 6.66 | $ 5.36 | $ 6.48 |
Weighted-average grant date fair value per share, granted (in usd per share) | 8.38 | 8.61 | 5.89 |
Weighted-average grant date fair value per share, released (in usd per share) | 5.40 | 5.21 | 9.02 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 7.19 | 4.91 | 6.93 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 7.40 | $ 6.66 | $ 5.36 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value , beginning balance | $ 20,184 | $ 38,022 | $ 19,485 |
Aggregate intrinsic value , PSUs released | 2,592 | 8,278 | 1,702 |
Aggregate intrinsic value , ending balance | $ 17,251 | $ 20,184 | $ 38,022 |
Expected to vest as of December 26, 2020 (in shares) | 1,701 | ||
Aggregate Intrinsic Value, Expected to vest as of December 26, 2020 | $ 11,464 |
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. 31, 2022 USD ($) | |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU/PSU, unrecognized compensation expense, net | $ 75,755 |
RSU/PSU, weighted-average period | 2 years |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSU/PSU, unrecognized compensation expense, net | $ 8,069 |
RSU/PSU, weighted-average period | 1 year 10 months 24 days |
Stockholders' Equity - Estimate
Stockholders' Equity - Estimated Fair Value of ESPP Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
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] | |||
Volatility | 39% | 38% | 42% |
Risk-free interest rate | 0.67% | 0.05% | 0.12% |
Estimated fair value, (in usd per share) | $ 1.91 | $ 2.22 | $ 2.17 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 63% | 50% | 97% |
Risk-free interest rate | 3.12% | 0.06% | 1.56% |
Estimated fair value, (in usd per share) | $ 2.21 | $ 3.11 | $ 3.42 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Employee Stock Purchase Plan Activity (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 61,015 | $ 51,812 | $ 49,461 |
Employee stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 5,551 | 5,879 | 6,607 |
Employee contributions | $ 15,189 | $ 16,167 | $ 15,346 |
Shares purchased | 2,552 | 2,272 | 3,001 |
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. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock units, beginning balance (in shares) | 2,114 | 3,466 | 2,505 |
Number of performance stock units, granted (in shares) | 899 | 659 | 1,628 |
Number of performance stock units, released (in shares) | (335) | (964) | (285) |
Number of performance stock units, canceled (in shares) | (119) | (1,047) | (382) |
Number of performance stock units, ending balance (in shares) | 2,559 | 2,114 | 3,466 |
2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock units, beginning balance (in shares) | 185 | ||
Number of performance stock units, granted (in shares) | 0 | ||
Number of performance stock units, released (in shares) | (185) | ||
Number of performance stock units, canceled (in shares) | 0 | ||
Number of performance stock units, ending balance (in shares) | 0 | 185 | |
2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock units, beginning balance (in shares) | 1,270 | ||
Number of performance stock units, granted (in shares) | 0 | ||
Number of performance stock units, released (in shares) | (150) | ||
Number of performance stock units, canceled (in shares) | (62) | ||
Number of performance stock units, ending balance (in shares) | 1,058 | 1,270 | |
2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock units, beginning balance (in shares) | 659 | ||
Number of performance stock units, granted (in shares) | 0 | ||
Number of performance stock units, released (in shares) | 0 | ||
Number of performance stock units, canceled (in shares) | (57) | ||
Number of performance stock units, ending balance (in shares) | 602 | 659 | |
2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance stock units, beginning balance (in shares) | 0 | ||
Number of performance stock units, granted (in shares) | 899 | ||
Number of performance stock units, released (in shares) | 0 | ||
Number of performance stock units, canceled (in shares) | 0 | ||
Number of performance stock units, ending balance (in shares) | 899 | 0 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Effects of Stock Based Compensation on Company's Statements of Balance Sheets and Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Effects Of Stock Based Compensation [Line Items] | |||
Income tax benefit associated with stock-based compensation | $ 8,588 | $ 9,345 | $ 8,637 |
Total stock-based compensation expense | 61,015 | 51,812 | 49,461 |
Stock-based compensation effects in inventory | |||
Effects Of Stock Based Compensation [Line Items] | |||
Effects of stock based compensation | 3,979 | 3,707 | 3,979 |
Cost of revenue | |||
Effects Of Stock Based Compensation [Line Items] | |||
Total stock-based compensation expense | 9,485 | 7,928 | 7,785 |
Research and development | |||
Effects Of Stock Based Compensation [Line Items] | |||
Total stock-based compensation expense | 23,553 | 18,554 | 16,863 |
Sales and marketing | |||
Effects Of Stock Based Compensation [Line Items] | |||
Total stock-based compensation expense | 13,311 | 12,345 | 10,907 |
General and administrative | |||
Effects Of Stock Based Compensation [Line Items] | |||
Total stock-based compensation expense | $ 14,666 | $ 12,985 | $ 13,906 |
Income Taxes - Geographic Break
Income Taxes - Geographic Breakdown of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Current: | |||
Federal | $ 945 | $ 991 | $ 494 |
State | 1,537 | 137 | 917 |
Foreign | 20,616 | 12,431 | 9,606 |
Total current | 23,098 | 13,559 | 11,017 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (2,566) | (1,571) | (4,982) |
Total Deferred | (2,566) | (1,571) | (4,982) |
Total provision for income taxes | $ 20,532 | $ 11,988 | $ 6,035 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax [Line Items] | ||||
Loss from international operations | $ 20,200 | $ 20,700 | $ 37,300 | |
Provision for income taxes | $ 20,532 | $ 11,988 | $ 6,035 | |
Effective tax rate | (37.10%) | (7.50%) | (3.00%) | |
Federal statutory rate | 21% | 21% | 21% | |
Cumulative unrecognized tax benefit | $ 57,849 | $ 54,250 | $ 57,931 | $ 44,092 |
Unrecognized tax benefits netted against deferred tax assets | 49,500 | |||
Unrecognized tax benefits impact effective tax rate | 8,300 | |||
Accrued interest or penalties related to unrecognized tax benefits | 1,300 | 2,100 | 2,900 | |
Income tax penalties and interest expense | 800 | $ 800 | $ 800 | |
Scientific Research and Experimental Development (SRED) Credits | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | 4,000 | |||
Portugal SIFIDE credit | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | 4,300 | |||
Capital Loss Carryforward | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | 19,600 | |||
Federal | ||||
Income Tax [Line Items] | ||||
Provision for income taxes | 1,300 | |||
Operating loss carryforwards | 507,000 | |||
Federal | Research Tax Credit Carryforward | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | 49,300 | |||
Foreign | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | 605,500 | |||
Tax credit carryforward | 38,900 | |||
State | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | 512,000 | |||
State | Research Tax Credit Carryforward | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | $ 55,100 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes Computed by Applying Statutory Federal Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Expected tax at federal statutory rate | 21% | 21% | 21% |
State taxes, net of federal benefit | (2.20%) | (1.20%) | (0.40%) |
Research credits | 8.90% | 1.70% | 1.20% |
Stock-based compensation | (10.20%) | 1.10% | (1.20%) |
Change in valuation allowance | (25.90%) | (20.90%) | (16.90%) |
Foreign rate differential | (7.30%) | (6.90%) | (6.30%) |
Nondeductible expenses | (15.40%) | 0% | 0% |
Other | (6.00%) | (2.30%) | (0.40%) |
Effective tax rate | (37.10%) | (7.50%) | (3.00%) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes Differences Between Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred tax assets: | ||
Net operating losses | $ 293,179 | $ 336,711 |
Research and foreign tax credits | 140,828 | 132,829 |
Nondeductible accruals | 57,480 | 76,898 |
R&D expense capitalization | 49,135 | 0 |
Inventory valuation | 14,329 | 22,651 |
Leasing Liabilities | 16,890 | 19,407 |
Stock-based compensation | 5,138 | 4,902 |
Total deferred tax assets | 576,979 | 593,398 |
Valuation allowance | (548,257) | (521,620) |
Net deferred tax assets | 28,722 | 71,778 |
Deferred tax liabilities: | ||
Property, plant and equipment | (11,912) | (10,792) |
Right of use asset | (10,482) | (12,216) |
Acquired intangible assets | (4,293) | (19,273) |
Convertible senior notes | 0 | (29,897) |
Total deferred tax liabilities | (26,687) | (72,178) |
Net deferred tax assets (liabilities) | $ (400) | |
Net deferred tax assets (liabilities) | $ 2,035 |
Income Taxes - Aggregate Change
Income Taxes - Aggregate Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Cumulative unrecognized tax benefit | $ 57,849 | $ 54,250 | $ 57,931 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 54,250 | 57,931 | 44,092 |
Tax position related to current year | |||
Additions | 1,536 | 1,198 | 3,213 |
Tax positions related to prior years | |||
Additions | 7,220 | 7,633 | 11,494 |
Reductions | (4,832) | (9,569) | (625) |
Lapses of statute of limitations | (325) | (2,943) | (243) |
Ending balance | $ 57,849 | $ 54,250 | $ 57,931 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
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. 31, 2022 | Dec. 25, 2021 |
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | $ 172,929 | $ 160,218 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 156,065 | 141,977 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 2,908 | 2,687 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 10,285 | 12,245 |
Asia Pacific and Japan | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | $ 3,671 | $ 3,309 |
Employee Benefit and Pension _3
Employee Benefit and Pension Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Postretirement costs | $ 4,900 | $ 6,200 | $ 3,500 | |
Amortization of net actuarial loss | 326 | 3,383 | ||
Forecast | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Amortization of net actuarial loss | $ 3,700 | |||
401(k) Plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash contribution | 3,000 | 2,800 | 2,400 | |
ITP Pension Plan | Transmode | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Pension expense | $ 2,500 | $ 2,800 | $ 2,700 |
Employee Benefit and Pension _4
Employee Benefit and Pension Plans - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 115,771 | $ 129,936 | |
Service cost | 300 | 351 | $ 896 |
Interest cost | 1,249 | 1,265 | 1,773 |
Benefits paid | (3,382) | (3,413) | |
Actuarial gain | (30,779) | (3,050) | |
Employee contributions | 54 | 190 | |
Foreign currency exchange rate changes | (7,041) | (9,508) | |
Benefit obligation at end of year | 76,172 | 115,771 | 129,936 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 81,615 | 77,561 | |
Actual (loss) return on plan assets | (5,305) | 12,425 | |
Payments | (5,316) | (3,206) | |
Employee contributions | 153 | 289 | |
Foreign currency exchange rate changes | (4,692) | (5,454) | |
Fair value of plan assets at end of year | 66,455 | 81,615 | $ 77,561 |
Net liability recognized | 9,717 | 34,156 | |
Accumulated benefit obligation | $ 76,100 | $ 115,100 |
Employee Benefit and Pension _5
Employee Benefit and Pension Plans - Pension Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Retirement Benefits [Abstract] | ||
Other non-current assets | $ 66,455 | $ 81,615 |
Other long-term liabilities | (76,172) | (115,771) |
Net liability recognized | $ (9,717) | $ (34,156) |
Employee Benefit and Pension _6
Employee Benefit and Pension Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 300 | $ 351 | $ 896 |
Interest cost | $ 1,249 | $ 1,265 | $ 1,773 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Expenses | Operating Expenses | Operating Expenses |
Expected return on plan assets | $ (2,936) | $ (2,895) | $ (2,644) |
Amortization of net actuarial loss | 326 | 3,383 | 1,884 |
Total net periodic (benefit) cost | $ (1,061) | $ 2,104 | $ 1,909 |
Employee Benefit and Pension _7
Employee Benefit and Pension Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income, Before Tax Roll Forward [Roll Forward] | ||
Beginning balance | $ 4,297 | $ (11,666) |
Net actuarial gain arising in current year | 22,538 | 12,580 |
Amortization of net actuarial loss | 326 | 3,383 |
Ending balance | $ 27,161 | $ 4,297 |
Employee Benefit and Pension _8
Employee Benefit and Pension Plans - Weighted Average Assumptions (Details) | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 4.17% | 1.20% |
Salary growth rate | 2.50% | 2.25% |
Pension growth rate | 2.25% | 2% |
Expected long-term rate of return on plan assets | 3.93% |
Employee Benefit and Pension _9
Employee Benefit and Pension Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | $ 66,455 | $ 81,615 | $ 77,561 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 1,160 | 738 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 65,295 | 80,877 | |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 1,160 | 738 | |
Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 1,160 | 738 | |
Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 0 | 0 | |
Equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 41,492 | 55,400 | |
Equity fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 0 | 0 | |
Equity fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 41,492 | 55,400 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 23,803 | 25,388 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 0 | 0 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 23,803 | 25,388 | |
Pension fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 0 | 89 | |
Pension fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 0 | 0 | |
Pension fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | $ 0 | $ 89 |
Employee Benefit and Pension_10
Employee Benefit and Pension Plans - Estimated Future Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 5,385 |
2024 | 4,071 |
2025 | 4,698 |
2026 | 4,020 |
2027 | 3,908 |
2027 to 2031 | $ 20,752 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Deferred tax asset, valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 521,620 | $ 531,923 | $ 484,834 |
Additions | 41,782 | 14,395 | 53,761 |
Reductions | (15,145) | (24,698) | (6,672) |
Ending balance | 548,257 | 521,620 | 531,923 |
Allowance for credit losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 1,304 | 2,912 | 4,005 |
Additions | 1,397 | 822 | 2,422 |
Reductions | (1,279) | (2,430) | (3,515) |
Ending balance | $ 1,422 | $ 1,304 | $ 2,912 |
Uncategorized Items - infn-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |