Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33486 | |
Entity Registrant Name | INFINERA CORPORATION | |
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 stock, par value $0.001 per share | |
Trading Symbol | INFN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 225,615,552 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001138639 | |
Current Fiscal Year End Date | --12-30 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 163,765 | $ 178,657 |
Short-term restricted cash | 3,873 | 7,274 |
Accounts receivable, net | 334,434 | 419,735 |
Inventory | 412,940 | 374,855 |
Prepaid expenses and other current assets | 155,228 | 152,451 |
Total current assets | 1,070,240 | 1,132,972 |
Property, plant and equipment, net | 177,007 | 172,929 |
Operating lease right-of-use assets | 34,434 | 34,543 |
Intangible assets, net | 40,661 | 47,787 |
Goodwill | 233,774 | 232,663 |
Long-term restricted cash | 2,096 | 3,272 |
Other long-term assets | 40,174 | 44,972 |
Total assets | 1,598,386 | 1,669,138 |
Current liabilities: | ||
Accounts payable | 275,177 | 304,880 |
Accrued expenses and other current liabilities | 120,657 | 141,450 |
Accrued compensation and related benefits | 59,666 | 78,849 |
Short-term debt, net | 7,148 | 510 |
Accrued warranty | 18,296 | 19,747 |
Deferred revenue | 153,287 | 158,501 |
Total current liabilities | 634,231 | 703,937 |
Long-term debt, net | 661,739 | 667,719 |
Long-term accrued warranty | 17,338 | 16,874 |
Long-term deferred revenue | 22,263 | 23,178 |
Long-term deferred tax liability | 2,365 | 2,348 |
Long-term operating lease liabilities | 44,646 | 45,862 |
Other long-term liabilities | 29,548 | 29,573 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value Authorized shares – 25,000 and no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value Authorized shares – 500,000 as of April 1, 2023 and December 31, 2022 Issued and outstanding shares – 224,832 as of April 1, 2023 and 220,408 as of December 31, 2022 | 225 | 220 |
Additional paid-in capital | 1,925,060 | 1,901,491 |
Accumulated other comprehensive loss | (31,026) | (22,471) |
Accumulated deficit | (1,708,003) | (1,699,593) |
Total stockholders' equity | 186,256 | 179,647 |
Total liabilities and stockholders’ equity | $ 1,598,386 | $ 1,669,138 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars 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 dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 224,832,000 | 220,408,000 |
Common stock, shares outstanding (in shares) | 224,832,000 | 220,408,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Revenue: | ||
Total revenue | $ 392,075 | $ 338,874 |
Cost of revenue: | ||
Amortization of intangible assets | 3,556 | 6,231 |
Restructuring and other related costs | 0 | 150 |
Total cost of revenue | 245,177 | 227,227 |
Gross profit | 146,898 | 111,647 |
Operating expenses: | ||
Research and development | 81,042 | 73,411 |
Sales and marketing | 41,707 | 35,824 |
General and administrative | 29,235 | 27,890 |
Amortization of intangible assets | 3,589 | 3,746 |
Restructuring and other related costs | 790 | 7,270 |
Total operating expenses | 156,363 | 148,141 |
Loss from operations | (9,465) | (36,494) |
Other income (expense), net: | ||
Interest income | 471 | 53 |
Interest expense | (6,800) | (4,992) |
Other gain | 10,956 | 6,020 |
Total other income, net | 4,627 | 1,081 |
Loss before income taxes | (4,838) | (35,413) |
Provision for income taxes | 3,572 | 6,437 |
Net loss | $ (8,410) | $ (41,850) |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.04) | $ (0.20) |
Diluted (in dollars per share) | $ (0.04) | $ (0.20) |
Weighted average shares used in computing net loss per common share: | ||
Basic (in shares) | 222,393 | 212,182 |
Diluted (in shares) | 222,393 | 212,182 |
Product | ||
Revenue: | ||
Total revenue | $ 314,820 | $ 267,453 |
Cost of revenue: | ||
Cost of revenue | 198,674 | 182,887 |
Services | ||
Revenue: | ||
Total revenue | 77,255 | 71,421 |
Cost of revenue: | ||
Cost of revenue | $ 42,947 | $ 37,959 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (8,410) | $ (41,850) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | (7,171) | (11,201) |
Actuarial loss on pension liabilities | (447) | 0 |
Amortization of actuarial (gain) loss | (937) | 87 |
Net change in accumulated other comprehensive loss | (8,555) | (11,114) |
Comprehensive loss | $ (16,965) | $ (52,964) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 25, 2021 | 211,381 | |||||||
Beginning 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] | ||||||||
ESPP shares issued (in shares) | 1,234 | |||||||
ESPP shares issued | 8,881 | $ 1 | 8,880 | |||||
Restricted stock units released (in shares) | 675 | |||||||
Restricted stock units released | 1 | $ 1 | ||||||
Shares withheld for tax obligations (in shares) | (59) | |||||||
Shares withheld for tax obligations | (524) | (524) | ||||||
Stock-based compensation | 13,041 | 13,041 | ||||||
Other comprehensive loss | (11,114) | (11,114) | ||||||
Net loss | (41,850) | (41,850) | ||||||
Ending balance (in shares) at Mar. 26, 2022 | 213,231 | |||||||
Ending balance at Mar. 26, 2022 | 170,205 | $ 213 | 1,851,002 | (15,610) | (1,665,400) | |||
Beginning balance (in shares) at Dec. 31, 2022 | 220,408 | |||||||
Beginning balance at Dec. 31, 2022 | 179,647 | $ 220 | 1,901,491 | (22,471) | (1,699,593) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
ESPP shares issued (in shares) | 1,775 | |||||||
ESPP shares issued | 8,736 | $ 2 | 8,734 | |||||
Restricted stock units released (in shares) | 2,801 | |||||||
Restricted stock units released | 3 | $ 3 | ||||||
Shares withheld for tax obligations (in shares) | (152) | |||||||
Shares withheld for tax obligations | (1,101) | (1,101) | ||||||
Stock-based compensation | 15,936 | 15,936 | ||||||
Other comprehensive loss | (8,555) | (8,555) | ||||||
Net loss | (8,410) | (8,410) | ||||||
Ending balance (in shares) at Apr. 01, 2023 | 224,832 | |||||||
Ending balance at Apr. 01, 2023 | $ 186,256 | $ 225 | $ 1,925,060 | $ (31,026) | $ (1,708,003) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | ||
Cash Flows from Operating Activities: | |||
Net loss | $ (8,410) | $ (41,850) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 19,602 | 21,572 | |
Non-cash restructuring charges and other related costs | 136 | 5,390 | |
Amortization of debt issuance costs | 847 | 1,060 | |
Operating lease expense | 2,148 | 2,702 | |
Stock-based compensation expense | 15,651 | 12,939 | |
Other, net | (1,037) | 789 | |
Changes in assets and liabilities: | |||
Accounts receivable | 86,239 | 81,816 | |
Inventory | (38,555) | (1,979) | |
Prepaid expenses and other current assets | 1,004 | (23,481) | |
Accounts payable | (27,969) | (19,829) | |
Accrued expenses and other current liabilities | (44,749) | (14,351) | |
Deferred revenue | (6,676) | (8,990) | |
Net cash (used in) provided by operating activities | (1,769) | 15,788 | |
Cash Flows from Investing Activities: | |||
Purchase of property and equipment | (16,809) | (16,059) | |
Net cash used in investing activities | (16,809) | (16,059) | |
Cash Flows from Financing Activities: | |||
Repayment of mortgage payable | (127) | (121) | |
Payment of debt issuance cost | (154) | 0 | |
Payment of term license obligation | (2,323) | (1,418) | |
Principal payments on finance lease obligations | (227) | (400) | |
Proceeds from issuance of common stock | 8,738 | 8,875 | |
Tax withholding paid on behalf of employees for net share settlement | (1,100) | (524) | |
Net cash provided by financing activities | 4,807 | 6,412 | |
Effect of exchange rate changes on cash | (5,698) | (4,634) | |
Net change in cash, cash equivalents and restricted cash | (19,469) | 1,507 | |
Cash, cash equivalents and restricted cash at beginning of period | 189,203 | 202,521 | |
Cash, cash equivalents, and restricted cash at end of period | [1] | 169,734 | 204,028 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net | 1,963 | 1,967 | |
Cash paid for interest | 10,931 | 7,137 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Property and equipment included in accounts payable and accrued liabilities | 10,229 | 1,477 | |
Transfer of inventory to fixed assets | 1,099 | 2,037 | |
Unpaid term licenses (included in accounts payable, accrued liabilities and other long-term liabilities) | $ 7,134 | $ 9,290 | |
[1]Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: April 1, March 26, Cash and cash equivalents $ 163,765 $ 191,937 Short-term restricted cash 3,873 6,528 Long-term restricted cash 2,096 5,563 Total cash, cash equivalents and restricted cash $ 169,734 $ 204,028 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 26, 2022 | Dec. 25, 2021 | ||
Restricted Cash and Cash Equivalents [Abstract] | ||||||
Cash and cash equivalents | $ 163,765 | $ 178,657 | $ 191,937 | |||
Short-term restricted cash | 3,873 | 7,274 | 6,528 | |||
Long-term restricted cash | 2,096 | 3,272 | 5,563 | |||
Total cash, cash equivalents and restricted cash | $ 169,734 | [1] | $ 189,203 | $ 204,028 | [1] | $ 202,521 |
[1]Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: April 1, March 26, Cash and cash equivalents $ 163,765 $ 191,937 Short-term restricted cash 3,873 6,528 Long-term restricted cash 2,096 5,563 Total cash, cash equivalents and restricted cash $ 169,734 $ 204,028 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Infinera Corporation (the “Company”) prepared its interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The Company has made certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Estimates, assumptions and judgments 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. Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with inflation, disruption in the global economy and financial markets and the on-going effects of the coronavirus (“COVID-19”) pandemic. These estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in the Company's condensed consolidated financial statements. The interim financial information is unaudited, but reflects all adjustments that are, in management’s opinion, necessary to provide a fair presentation of results for the interim periods presented. All adjustments are of a normal recurring nature. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated. This interim information should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. For the three-month periods ended April 1, 2023 and March 26, 2022, no customer accounted for 10% or more of the Company's total revenue. There have been no material changes in the Company’s significant accounting policies for the three- months ended April 1, 2023 compare d to those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Leases
Leases | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for real estate (facilities) and automobiles. For the three-months ended April 1, 2023 and March 26, 2022, operating lease expense was $3.8 million and $9.3 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 $0.8 million and $5.6 million, for the three-months ended April 1, 2023 and March 26, 2022, respectively. Variable lease cost, short-term lease cost and sublease income were immaterial during the three-months ended April 1, 2023 and March 26, 2022. The following table presents current and long-term portion of operating lease liabilities as classified in the condensed consolidated balance sheets (in thousands): April 1, December 31, Accrued expenses and other current liabilities $ 11,582 $ 10,948 Other long-term liabilities 44,646 45,862 Total operating lease liability $ 56,228 $ 56,810 The Company also has finance leases. The lease term for these arrangements range from three The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of April 1, 2023 (in thousands): Operating Lease Finance Lease Total lease payments $ 70,357 $ 1,006 Less: interest (1) 14,129 59 Present value of lease liabilities $ 56,228 $ 947 (1) Calculated using the interest rate for each lease. The following table presents supplemental information for the Company's non-cancelable leases for the three-months ended April 1, 2023 (in thousands, except for weighted average and percentage data): Operating Lease Finance Lease Weighted average remaining lease term 5.16 years 1.32 years Weighted average discount rate 9.29 % 7.82 % Cash paid for amounts included in the measurement of lease liabilities $ 4,045 $ 227 Leased assets obtained in exchange for new lease liabilities $ 1,846 $ 208 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents the Company's revenue disaggregated by geography, based on the shipping address of the customer (in thousands): Three Months Ended April 1, March 26, United States $ 237,035 $ 170,185 Other Americas 20,555 20,911 Europe, Middle East and Africa 93,250 108,611 Asia Pacific 41,235 39,167 Total revenue $ 392,075 $ 338,874 The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf. The following table presents the Company's revenue disaggregated by sales channel (in thousands): Three Months Ended April 1, March 26, Direct $ 262,862 $ 260,892 Indirect 129,213 77,982 Total revenue $ 392,075 $ 338,874 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): April 1, December 31, Assets (Liabilities) Accounts receivable, net $ 334,434 $ 419,735 Contract assets $ 65,174 $ 60,172 Deferred revenue $ (175,550) $ (181,679) Revenue recognized for the three-months ended April 1, 2023 that was included in the deferred revenue balance at the beginning of the reporting period was $50.9 million. Revenue recognized for the three-months ended March 26, 2022 that was included in the deferred revenue balance at the beginning of the reporting period was $44.9 million. Changes in the contract asset and liability balances during the three-month periods ended April 1, 2023 and March 26, 2022 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): Remainder of 2023 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized in the future as of April 1, 2023 $ 594,213 $ 238,535 $ 47,156 $ 10,664 $ 5,731 $ 6,427 $ 902,726 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 (as defined below and collectively referred to as "convertible senior notes") approximate their fair values. The fair value of convertible senior notes was determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on March 31, 2023 (the last trading day of the quarter). The following table presents the estimated fair values of the convertible senior notes (in thousands): As of April 1, 2023 As of December 31, 2022 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Convertible senior notes $ — $855,088 $ 855,088 $ — $ 785,364 $ 785,364 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 April 1, 2023 As of December 31, 2022 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 85,000 $ — $ 85,000 $ 95,000 $ — $ 95,000 During the three-months ended April 1, 2023, there were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy. As of each of April 1, 2023 and December 31, 2022, none of the Company’s existing assets or liabilities were classified as Level 3. 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 April 1, 2023. 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. In connection with its restructuring plans (as discussed in Note 7, “Restructuring and Other Related Costs” to the notes to condensed consolidated financial statements), the Company incurred facilities-related charges of $0.8 million and $5.6 million for the three-months ended April 1, 2023 and March 26, 2022, 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 April 1, 2023, the Company had $169.7 million of cash, cash equivalents and restricted cash, including $65.1 million of cash held by its foreign subsidiaries. As of December 31, 2022, the Company had $189.2 million of cash, cash equivalents and restricted cash, including $65.9 million of cash 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. The following table presents details of the Company’s goodwill during the three-months ended April 1, 2023 (in thousands): Balance as of December 31, 2022 $ 232,663 Foreign currency translation adjustments 1,111 Balance as of April 1, 2023 $ 233,774 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 not recognized any impairment losses on goodwill. Intangible Assets The following tables present details of the Company’s intangible assets as of April 1, 2023 and December 31, 2022 (in thousands, except for weighted average data): April 1, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog $ 112,550 $ (78,954) $ 33,596 3.3 Developed technology 153,312 (146,247) 7,065 0.5 Total intangible assets with finite lives $ 265,862 $ (225,201) $ 40,661 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 with finite lives $ 321,928 $ (274,141) $ 47,787 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 expenses were $7.1 million and $10.0 million for the three-month periods ended April 1, 2023 and March 26, 2022, respectively. Intangible assets are carried at cost less accumulated amortization and impairment, if any. Amortization expenses are recorded to the appropriate cost and expense categories. The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of April 1, 2023 (in thousands): Fiscal Years Total Remainder of 2023 2024 2025 2026 2027 Thereafter Total future amortization expense $ 40,661 $ 15,843 $ 9,025 $ 9,025 $ 6,768 $ — $ — |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Apr. 01, 2023 | |
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 three-months ended April 1, 2023 (in thousands): Balance as of December 31, 2022 $ 1,422 Additions (1) 266 Write offs (2) (356) Recoveries during the period (322) Other (3) 2 Balance as of April 1, 2023 $ 1,012 (1) The new additions during the three-months ended April 1, 2023 are primarily due to specific reserves. (2) The write offs during the three-months ended April 1, 2023 are primarily amounts fully reserved previously. (3) Primarily represents foreign currency translation adjustments. 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 Topic 860, "Transfers and Servicing". 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 condensed consolidated balance sheets and cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows. 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 condensed consolidated statements of operations. For the three-months ended April 1, 2023 and March 26, 2022, the Company's recognized factoring related interest expense was approximately $0.3 million and $0.1 million, respectively. For the three-months ended April 1, 2023 and March 26, 2022, the Company's gross amount of trade accounts receivables sold were approximately $21.2 million and $24.0 million, respectively. Selected Balance Sheet Items The following table provides details of selected balance sheet items (in thousands): April 1, December 31, Inventory Raw materials $ 67,601 $ 48,688 Work in process 71,750 66,591 Finished goods 273,589 259,576 Total inventory $ 412,940 $ 374,855 Property, plant and equipment, net Computer hardware $ 47,514 $ 46,454 Computer software (1) 58,867 62,102 Laboratory and manufacturing equipment 306,600 297,261 Land and building 12,372 12,369 Furniture and fixtures 2,862 2,828 Leasehold and building improvements 50,042 50,360 Construction in progress 48,702 42,418 Subtotal 526,959 513,792 Less accumulated depreciation and amortization (2) (349,952) (340,863) Total property, plant and equipment, net $ 177,007 $ 172,929 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 22,881 $ 28,796 Taxes payable 41,676 42,757 Short-term operating and finance lease liability 12,364 11,701 Restructuring accrual 397 941 Other accrued expenses and other current liabilities 43,339 57,255 Total accrued expenses $ 120,657 $ 141,450 (1) Included in computer software at April 1, 2023 and December 31, 2022 were $30.2 million and $29.3 million, respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at April 1, 2023 and December 31, 2022 were $8.9 million and $9.0 million, respectively. Also included in computer software at April 1, 2023 and December 31, 2022 was $19.3 million and $24.2 million, respectively, related to term licenses. The unamortized term license costs at April 1, 2023 and December 31, 2022 was $7.1 million and $9.1 million, respectively. (2) Depreciation expense was $12.5 million and $11.6 million (which includes depreciation of capitalized ERP cost of $0.9 million and $0.8 million, respectively) for the three-months ended April 1, 2023 and March 26, 2022, respectively. Also included in depreciation expense for three-months ended April 1, 2023 and March 26, 2022 was $2.2 million and $1.7 million, respectively, related to term licenses. |
Restructuring and Other Related
Restructuring and Other Related Costs | 3 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Costs | Restructuring and Other Related Costs In 2021, the Company announced a plan to restructure certain international research and development operations (the "2021 Restructuring Plan"). 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. In the three-month periods ended April 1, 2023 and March 26, 2022, the Company incurred lease-related impairment charges from consolidation of various sites that resulted in abandonment of related leased facilities. This was a result of restructuring initiatives undertaken in previous years. The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying condensed consolidated statements of operations under the restructuring plans (in thousands): Three Months Ended April 1, 2023 March 26, 2022 Cost of Operating Expenses Cost of Operating Expenses Severance and other related expenses $ — $ — $ 140 $ 1,461 Lease related impairment charges — 786 — 5,641 Others — 4 10 168 Total $ — $ 790 $ 150 $ 7,270 Restructuring liabilities are reported within accrued expenses and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands): Severance and other related expenses Lease related impairment charges Others Total Balance at December 31, 2022 $ 792 $ — $ 149 $ 941 Charges — 786 4 790 Cash Payments (562) (633) (4) (1,199) Non-Cash Settlements and Other 15 (153) 3 (135) Balance at April 1, 2023 $ 245 $ — $ 152 $ 397 As of April 1, 2023, the Company's restructuring liability was primarily comprised of $0.3 million related to the 2021 Restructuring Plan and $0.1 million 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 Loss | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes certain changes in equity that are excluded from net loss. The following table sets forth the changes in accumulated other comprehensive loss by component for the three-months ended April 1, 2023 (in thousands): Foreign Currency Translation Actuarial Gain (Loss) on Pension Total Balance at December 31, 2022 $ (49,632) $ 27,161 $ (22,471) Other comprehensive loss before reclassifications (7,171) (447) (7,618) Amounts reclassified from accumulated other comprehensive loss — (937) (937) Net current-period other comprehensive loss (7,171) (1,384) (8,555) Balance at April 1, 2023 $ (56,803) $ 25,777 $ (31,026) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using net loss and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed release of outstanding restricted stock units (“RSUs”) and performance shares (referred to herein as the “PSUs”), assumed issuance of common stock under the Company’s 2007 Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method, and shares of common stock issuable upon conversion of convertible senior notes. The Company includes the common shares underlying PSUs in the calculation of diluted net income per common share only when they become contingently issuable. As the Company incurred net losses during the three-month periods ended April 1, 2023 and March 26, 2022, all potentially issuable shares of common stock were determined to be anti-dilutive. The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended April 1, March 26, Net loss $ (8,410) $ (41,850) Weighted average common shares outstanding - basic and diluted 222,393 212,182 Net loss per common share - basic and diluted $ (0.04) $ (0.20) The following 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): Three Months Ended April 1, March 26, Convertible senior notes 40,100 69,930 Restricted stock units 15,582 17,887 Performance stock units 3,685 2,824 Employee stock purchase plan shares — 1,095 Total 59,367 91,736 The Company uses the if-converted method for calculating any potential dilutive effect of the convertible senior notes. 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 three-month periods ended April 1, 2023 and March 26, 2022, because the effect would have been anti-dilutive. |
Debt
Debt | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company's debt as of April 1, 2023 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 101.9 $ 102.7 September 2024 2027 Notes — 196.1 200.0 March 2027 2028 Notes — 363.7 373.8 August 2028 Mortgage 7.1 — 7.1 March 2024 Total Debt $ 7.1 $ 661.7 $ 683.6 The following is a summary of the Company's 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 Mortgage 0.5 6.8 7.3 March 2024 Total Debt $ 0.5 $ 667.7 $ 683.8 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. No sinking fund is provided for the convertible senior notes. There have been no changes to the initial conversion price of the convertible senior notes since issuance and during the three-months ended April 1, 2023. 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 the three-months ended April 1, 2023. Interest Expense The following table presents the interest expense related to the contractual interest coupon and the amortization of debt issuance costs on the Company's convertible senior notes (in thousands): Three Months Ended April 1, March 26, Contractual interest expense $ 5,299 $ 3,388 Amortization of debt issuance costs 785 767 Total interest expense $ 6,084 $ 4,155 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 17 months, 47 months, and 64 months, respectively. The net carrying amount of the convertible senior notes as of April 1, 2023 and as of December 31, 2022 was as follows (in thousands): 2024 Notes 2027 Notes 2028 Notes April 1, 2023 December 31, 2022 April 1, 2023 December 31, 2022 April 1, 2023 December 31, 2022 Principal $ 102,652 $ 102,652 $ 200,000 $ 200,000 $ 373,650 $ 373,750 Unamortized issuance costs (789) (926) (3,887) (4,121) (9,987) (10,401) Net carrying amount $ 101,863 $ 101,726 $ 196,113 $ 195,879 $ 363,663 $ 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 April 1, 2023, 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 April 1, 2023, the Company had availability of $133.4 million under the Credit Facility. As of April 1, 2023, the Loan Agreement included a $50.0 million letter of credit subfacility and $19.1 million letters of credit issued and outstanding. 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 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 each. As of April 1, 2023, $7.1 million of the loan remained outstanding and is included in short-term debt, net in the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. Legal Matters NextGen Innovations, LLC On August 9, 2022, NextGen Innovations, LLC ("NextGen") filed a complaint against the Company in the United States District Court for the Eastern District of Texas. The complaint asserts that through certain products the Company infringed 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. The Company is currently unable to predict the outcome of this litigation and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. In addition to the matter described above, the Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material effect on its condensed 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 April 1, 2023 and December 31, 2022, 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2016 Equity Incentive Plan and Employee Stock Purchase Plan In February of 2007, the Company's board of directors adopted the ESPP and the Company's stockholders approved the ESPP in May of 2007. The ESPP was last amended by the Company's 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 Equity Incentive Plan (the "2016 Plan") and the Company's stockholders approved the 2016 Plan in May 2016. In May 2017, May 2018, May 2019, May 2020, 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 April 1, 2023, 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 Equity Incentive Plan (the "2007 Plan") that, after the effective date of the 2016 Plan, expire, are forfeited or otherwise terminate without having been exercised in full to the extent such awards were exercisable, and shares issued pursuant to awards granted under the 2007 Plan that, after the effective date of the 2016 Plan, are forfeited to or repurchased by the Company due to failure to vest. The 2016 Plan has a maximum term of 10 years from the date of adoption, or it can be earlier terminated by the Company's board of directors. The 2007 Plan was canceled and there are no outstanding grants under the 2007 Plan. Stock-based Compensation Plans As described above, the Company has stock-based compensation plans pursuant to which the Company has granted RSUs and PSUs, as well as an ESPP for all eligible employees. (in thousands except weighted average data) Number of Weighted Aggregate Outstanding at December 31, 2022 12,588 $ 8.13 $ 84,847 RSUs granted 5,931 $ 7.34 RSUs released (2,801) $ 8.45 $ 20,343 RSUs canceled (137) $ 8.25 Outstanding at April 1, 2023 15,581 $ 7.77 120,914 (in thousands except weighted average data) Number of Weighted Aggregate Outstanding at December 31, 2022 2,559 $ 7.40 $ 17,251 PSUs granted 1,835 $ 7.26 PSUs canceled (708) $ 5.89 Outstanding at April 1, 2023 3,686 $ 7.62 $ 28,603 The aggregate intrinsic value of unreleased RSUs and unreleased PSUs is calculated using the closing price of the Company's common stock of $7.76 at March 31, 2023 (the last trading day of the quarter). The aggregate intrinsic value of RSUs and PSUs released is calculated using the fair market value of the common stock at the date of release. The following table presents total stock-based compensation cost for instruments granted but not yet fully amortized, of the Company’s equity compensation plans as of April 1, 2023. 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 data): Unrecognized Weighted RSUs $ 105,199 2.33 PSUs $ 26,268 2.11 Employee Stock Purchase Plan The fair value of the ESPP shares was estimated at the date of grant using the following assumptions: Three Months Ended April 1, 2023 March 26, 2022 Volatility 60% 39% Risk-free interest rate 4.98% 0.67% Expected life 0.5 years 0.5 years Estimated fair value $2.37 $2.21 Stock-based compensation expense related to ESPP for the three-months ended April 1, 2023 was approximately $1.6 million, and for three-months ended March 26, 2022 was approximately $1.3 million. 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 related to RSUs for the three-months ended April 1, 2023 was approximately $13.0 million, and for the three-months ended March 26, 2022 was approximately $10.9 million. 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. The following table summarizes by grant year, the Company’s PSU activity for the three-months ended April 1, 2023 (in thousands): Total Number of Performance Stock Units 2020 2021 2022 2023 Outstanding at December 31, 2022 2,559 1,058 602 899 — PSUs granted 1,835 — — — 1,835 PSUs canceled (708) (708) — — — Outstanding at April 1, 2023 3,686 350 602 899 1,835 Stock-based compensation expense related to PSUs for the three-month periods ended April 1, 2023 and March 26, 2022 was approximately $1.4 million and $0.9 million, respectively. Stock-Based Compensation The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): April 1, December 31, Stock-based compensation effects in inventory $ 4,267 $ 3,979 Three Months Ended April 1, March 26, Income tax benefit associated with stock-based compensation $ 1,984 $ 2,226 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 2,276 $ 1,889 Research and development 5,623 4,841 Sales and marketing 3,594 2,767 General and administration 4,158 3,442 Total stock-based compensation expense $ 15,651 $ 12,939 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the three-months ended April 1, 2023 represented a tax expense of $3.6 million on pre-tax losses of $4.8 million. This compared to a tax expense of $6.4 million on pre-tax losses of $35.4 million for the three-months ended March 26, 2022. Provision for income taxes decreased by approximately $2.8 million for the three-months ended April 1, 2023, compared to the corresponding period in 2022 as a result of a decrease in income taxes and withholding taxes in foreign jurisdictions, primarily driven by elimination of the withholding tax in Germany due to an internal restructuring of the Company's supply chain and customer-facing entities. The Company must assess the likelihood that some portion or all of its deferred tax assets will be recovered from future taxable income within the respective jurisdictions. In the past, the Company established a valuation allowance against its deferred tax assets as it determined that its ability to recover the value of these assets did not meet the “more-likely-than-not” standard. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management judgment is required on an on-going basis to determine whether it needs to maintain the valuation allowance recorded against its net deferred tax assets. The Company must consider all positive and negative evidence, including its forecasts of taxable income over the applicable carryforward periods, its current financial performance, its market environment and other factors in evaluating the need for a valuation allowance against its net U.S. deferred tax assets. As of April 1, 2023, the Company does not believe that it is more-likely-than-not that it would be able to utilize its domestic deferred tax assets in the foreseeable future. Accordingly, the domestic net deferred tax assets continued to be fully reserved with a valuation allowance. To the extent that the Company determines that deferred tax assets are realizable on a more-likely-than-not basis, and adjustment is needed, that adjustment will be recorded in the period that the determination is made and would generally decrease the valuation allowance and record a corresponding benefit to earnings. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationOperating 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 (the "CEO”). The CEO reviews financial information presented on a condensed 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 related services. Accordingly, the Company is considered 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 3, “Revenue Recognition” to the notes to condensed consolidated financial statements. Additionally, the following table sets forth the Company's property, plant and equipment, net by geographic region (in thousands): April 1, December 31, 2022 United States $ 160,032 $ 156,065 Other Americas 3,022 2,908 Europe, Middle East and Africa 10,286 10,285 Asia Pacific 3,667 3,671 Total property, plant and equipment, net $ 177,007 $ 172,929 |
Guarantees
Guarantees | 3 Months Ended |
Apr. 01, 2023 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Product Warranties Activity related to product warranty was as follows (in thousands): Three Months Ended April 1, 2023 March 26, 2022 Beginning balance $ 36,621 $ 44,310 Charges to operations 5,237 5,975 Utilization (5,194) (5,709) Change in estimate (1) (1,030) (4,991) Balance at the end of the period $ 35,634 $ 39,585 (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 compared to 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 $24.5 million and $24.7 million of standby letters of credit, bank guarantees and surety bonds outstanding as of April 1, 2023 and December 31, 2022, respectively. Details are provided in the table below (in thousands). April 1, December 31, Customer performance guarantees $ 19,406 $ 20,903 Value added tax license 2,307 1,434 Property leases 2,769 2,398 Total $ 24,482 $ 24,735 Of the $19.4 million related to customer performance guarantees as of April 1, 2023, approximately $4.0 million was used to secure surety bonds in the aggregate of $7.5 million. Of the $20.9 million related to customer performance guarantees as of December 31, 2022, approximately $4.0 million was used to secure surety bonds in the aggregate of $7.5 million. As of April 1, 2023, of the aforementioned standby letters of credit and bank guarantees outstanding, $5.2 million was backed by cash collateral. |
Pension and Post-Retirement Ben
Pension and Post-Retirement Benefit Plans | 3 Months Ended |
Apr. 01, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Post-Retirement Benefit Plans | Pension and Post-Retirement Benefit Plans As a result of the acquisition of Telecom Holding Parent LLC (the "Acquisition"), the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal and economic requirements. 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): Three Months Ended April 1, 2023 March 26, 2022 Service cost $ 67 $ 80 Interest cost 769 333 Expected return on plan assets (654) (780) Amortization of actuarial (gain) loss (937) 87 Total net periodic benefit cost $ (755) $ (280) The service cost component is included in operating expenses in the Company's condensed consolidated statements of operations. All other components are included in Other income (expense), net in the Company's condensed consolidated statements of operations. 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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 condensed consolidated balance sheets (in thousands): April 1, December 31, Accrued expenses and other current liabilities $ 11,582 $ 10,948 Other long-term liabilities 44,646 45,862 Total operating lease liability $ 56,228 $ 56,810 |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of April 1, 2023 (in thousands): Operating Lease Finance Lease Total lease payments $ 70,357 $ 1,006 Less: interest (1) 14,129 59 Present value of lease liabilities $ 56,228 $ 947 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. |
Schedule of Finance Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of April 1, 2023 (in thousands): Operating Lease Finance Lease Total lease payments $ 70,357 $ 1,006 Less: interest (1) 14,129 59 Present value of lease liabilities $ 56,228 $ 947 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed 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 three-months ended April 1, 2023 (in thousands, except for weighted average and percentage data): Operating Lease Finance Lease Weighted average remaining lease term 5.16 years 1.32 years Weighted average discount rate 9.29 % 7.82 % Cash paid for amounts included in the measurement of lease liabilities $ 4,045 $ 227 Leased assets obtained in exchange for new lease liabilities $ 1,846 $ 208 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by geography, based on the shipping address of the customer (in thousands): Three Months Ended April 1, March 26, United States $ 237,035 $ 170,185 Other Americas 20,555 20,911 Europe, Middle East and Africa 93,250 108,611 Asia Pacific 41,235 39,167 Total revenue $ 392,075 $ 338,874 The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf. The following table presents the Company's revenue disaggregated by sales channel (in thousands): Three Months Ended April 1, March 26, Direct $ 262,862 $ 260,892 Indirect 129,213 77,982 Total revenue $ 392,075 $ 338,874 |
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): April 1, December 31, Assets (Liabilities) Accounts receivable, net $ 334,434 $ 419,735 Contract assets $ 65,174 $ 60,172 Deferred revenue $ (175,550) $ (181,679) |
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): Remainder of 2023 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized in the future as of April 1, 2023 $ 594,213 $ 238,535 $ 47,156 $ 10,664 $ 5,731 $ 6,427 $ 902,726 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the estimated fair values of the convertible senior notes (in thousands): As of April 1, 2023 As of December 31, 2022 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Convertible senior notes $ — $855,088 $ 855,088 $ — $ 785,364 $ 785,364 As of April 1, 2023 As of December 31, 2022 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Money market funds $ 85,000 $ — $ 85,000 $ 95,000 $ — $ 95,000 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents details of the Company’s goodwill during the three-months ended April 1, 2023 (in thousands): Balance as of December 31, 2022 $ 232,663 Foreign currency translation adjustments 1,111 Balance as of April 1, 2023 $ 233,774 |
Schedule of Finite-Lived Intangible Assets | The following tables present details of the Company’s intangible assets as of April 1, 2023 and December 31, 2022 (in thousands, except for weighted average data): April 1, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Customer relationships and backlog $ 112,550 $ (78,954) $ 33,596 3.3 Developed technology 153,312 (146,247) 7,065 0.5 Total intangible assets with finite lives $ 265,862 $ (225,201) $ 40,661 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 with finite lives $ 321,928 $ (274,141) $ 47,787 |
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 April 1, 2023 (in thousands): Fiscal Years Total Remainder of 2023 2024 2025 2026 2027 Thereafter Total future amortization expense $ 40,661 $ 15,843 $ 9,025 $ 9,025 $ 6,768 $ — $ — |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Credit Losses | The following table provides a rollforward of the allowance for credit losses for accounts receivable for the three-months ended April 1, 2023 (in thousands): Balance as of December 31, 2022 $ 1,422 Additions (1) 266 Write offs (2) (356) Recoveries during the period (322) Other (3) 2 Balance as of April 1, 2023 $ 1,012 (1) The new additions during the three-months ended April 1, 2023 are primarily due to specific reserves. (2) The write offs during the three-months ended April 1, 2023 are primarily amounts fully reserved previously. (3) Primarily represents foreign currency translation adjustments. |
Schedule of Details of Selected Balance Sheet Items | The following table provides details of selected balance sheet items (in thousands): April 1, December 31, Inventory Raw materials $ 67,601 $ 48,688 Work in process 71,750 66,591 Finished goods 273,589 259,576 Total inventory $ 412,940 $ 374,855 Property, plant and equipment, net Computer hardware $ 47,514 $ 46,454 Computer software (1) 58,867 62,102 Laboratory and manufacturing equipment 306,600 297,261 Land and building 12,372 12,369 Furniture and fixtures 2,862 2,828 Leasehold and building improvements 50,042 50,360 Construction in progress 48,702 42,418 Subtotal 526,959 513,792 Less accumulated depreciation and amortization (2) (349,952) (340,863) Total property, plant and equipment, net $ 177,007 $ 172,929 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 22,881 $ 28,796 Taxes payable 41,676 42,757 Short-term operating and finance lease liability 12,364 11,701 Restructuring accrual 397 941 Other accrued expenses and other current liabilities 43,339 57,255 Total accrued expenses $ 120,657 $ 141,450 (1) Included in computer software at April 1, 2023 and December 31, 2022 were $30.2 million and $29.3 million, respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at April 1, 2023 and December 31, 2022 were $8.9 million and $9.0 million, respectively. Also included in computer software at April 1, 2023 and December 31, 2022 was $19.3 million and $24.2 million, respectively, related to term licenses. The unamortized term license costs at April 1, 2023 and December 31, 2022 was $7.1 million and $9.1 million, respectively. (2) Depreciation expense was $12.5 million and $11.6 million (which includes depreciation of capitalized ERP cost of $0.9 million and $0.8 million, respectively) for the three-months ended April 1, 2023 and March 26, 2022, respectively. Also included in depreciation expense for three-months ended April 1, 2023 and March 26, 2022 was $2.2 million and $1.7 million, respectively, related to term licenses. |
Restructuring and Other Relat_2
Restructuring and Other Related Costs (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Related Costs | The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying condensed consolidated statements of operations under the restructuring plans (in thousands): Three Months Ended April 1, 2023 March 26, 2022 Cost of Operating Expenses Cost of Operating Expenses Severance and other related expenses $ — $ — $ 140 $ 1,461 Lease related impairment charges — 786 — 5,641 Others — 4 10 168 Total $ — $ 790 $ 150 $ 7,270 |
Schedule of Restructuring Reserve by Type of Cost | Restructuring liabilities are reported within accrued expenses and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands): Severance and other related expenses Lease related impairment charges Others Total Balance at December 31, 2022 $ 792 $ — $ 149 $ 941 Charges — 786 4 790 Cash Payments (562) (633) (4) (1,199) Non-Cash Settlements and Other 15 (153) 3 (135) Balance at April 1, 2023 $ 245 $ — $ 152 $ 397 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table sets forth the changes in accumulated other comprehensive loss by component for the three-months ended April 1, 2023 (in thousands): Foreign Currency Translation Actuarial Gain (Loss) on Pension Total Balance at December 31, 2022 $ (49,632) $ 27,161 $ (22,471) Other comprehensive loss before reclassifications (7,171) (447) (7,618) Amounts reclassified from accumulated other comprehensive loss — (937) (937) Net current-period other comprehensive loss (7,171) (1,384) (8,555) Balance at April 1, 2023 $ (56,803) $ 25,777 $ (31,026) |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Net Loss Per Common Share Basic and Diluted | The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended April 1, March 26, Net loss $ (8,410) $ (41,850) Weighted average common shares outstanding - basic and diluted 222,393 212,182 Net loss per common share - basic and diluted $ (0.04) $ (0.20) |
Schedule of Antidilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The following 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): Three Months Ended April 1, March 26, Convertible senior notes 40,100 69,930 Restricted stock units 15,582 17,887 Performance stock units 3,685 2,824 Employee stock purchase plan shares — 1,095 Total 59,367 91,736 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Convertible Senior Notes | The following is a summary of the Company's debt as of April 1, 2023 (in millions): Net Carrying Value Unpaid Principal Balance Contractual Maturity Date Current Long-Term 2024 Notes $ — $ 101.9 $ 102.7 September 2024 2027 Notes — 196.1 200.0 March 2027 2028 Notes — 363.7 373.8 August 2028 Mortgage 7.1 — 7.1 March 2024 Total Debt $ 7.1 $ 661.7 $ 683.6 The following is a summary of the Company's 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 Mortgage 0.5 6.8 7.3 March 2024 Total Debt $ 0.5 $ 667.7 $ 683.8 The net carrying amount of the convertible senior notes as of April 1, 2023 and as of December 31, 2022 was as follows (in thousands): 2024 Notes 2027 Notes 2028 Notes April 1, 2023 December 31, 2022 April 1, 2023 December 31, 2022 April 1, 2023 December 31, 2022 Principal $ 102,652 $ 102,652 $ 200,000 $ 200,000 $ 373,650 $ 373,750 Unamortized issuance costs (789) (926) (3,887) (4,121) (9,987) (10,401) Net carrying amount $ 101,863 $ 101,726 $ 196,113 $ 195,879 $ 363,663 $ 363,349 |
Schedule of Interest Expense Recognized Related To Notes | The following table presents the interest expense related to the contractual interest coupon and the amortization of debt issuance costs on the Company's convertible senior notes (in thousands): Three Months Ended April 1, March 26, Contractual interest expense $ 5,299 $ 3,388 Amortization of debt issuance costs 785 767 Total interest expense $ 6,084 $ 4,155 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of April 1, 2023 (in thousands): Operating Lease Finance Lease Total lease payments $ 70,357 $ 1,006 Less: interest (1) 14,129 59 Present value of lease liabilities $ 56,228 $ 947 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. |
Schedule of Finance Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable leases as of April 1, 2023 (in thousands): Operating Lease Finance Lease Total lease payments $ 70,357 $ 1,006 Less: interest (1) 14,129 59 Present value of lease liabilities $ 56,228 $ 947 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. |
Schedule of Maturities of Long-term Debt | The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. |
Schedule of Short-term Debt | The following table sets forth commitments and contingencies related to the Company's various obligations (in thousands): Payments Due by Period Total Remainder of 2023 2024 2025 2026 2027 Thereafter Operating leases (1)(2) $ 70,357 $ 12,226 $ 15,481 $ 13,747 $ 10,338 $ 7,979 $ 10,586 Finance lease obligations (3) 1,006 624 268 91 23 — — 2028 Notes, including interest (4) 450,836 7,007 14,016 14,016 14,016 14,016 387,765 2027 Notes, including interest (4) 220,000 2,500 5,000 5,000 5,000 202,500 — 2024 Notes, including interest (4) 105,924 1,091 104,833 — — — — Mortgage Payable, including interest (4) 7,415 586 6,829 — — — — Total contractual obligations $ 855,538 $ 24,034 $ 146,427 $ 32,854 $ 29,377 $ 224,495 $ 398,351 (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 $4.7 million and $4.9 million as of April 1, 2023 and December 31, 2022, respectively. Of the $4.7 million as of April 1, 2023, $4.6 million is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. The remainder is classified as accrued expenses and other current liabilities. (3) The Company has finance leases for manufacturing and other equipment. The above payment schedule includes interest. See Note 2, "Leases" to the notes to condensed consolidated financial statements for more information. (4) See Note 10, "Debt" to the notes to condensed consolidated financial statements for more information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Company's Equity Award Activity - RSUs | (in thousands except weighted average data) Number of Weighted Aggregate Outstanding at December 31, 2022 12,588 $ 8.13 $ 84,847 RSUs granted 5,931 $ 7.34 RSUs released (2,801) $ 8.45 $ 20,343 RSUs canceled (137) $ 8.25 Outstanding at April 1, 2023 15,581 $ 7.77 120,914 |
Schedule of Company's Equity Award Activity - PSUs | (in thousands except weighted average data) Number of Weighted Aggregate Outstanding at December 31, 2022 2,559 $ 7.40 $ 17,251 PSUs granted 1,835 $ 7.26 PSUs canceled (708) $ 5.89 Outstanding at April 1, 2023 3,686 $ 7.62 $ 28,603 |
Schedule of Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized | The following table presents total stock-based compensation cost for instruments granted but not yet fully amortized, of the Company’s equity compensation plans as of April 1, 2023. 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 data): Unrecognized Weighted RSUs $ 105,199 2.33 PSUs $ 26,268 2.11 |
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: Three Months Ended April 1, 2023 March 26, 2022 Volatility 60% 39% Risk-free interest rate 4.98% 0.67% Expected life 0.5 years 0.5 years Estimated fair value $2.37 $2.21 |
Schedule of Nonvested Performance Based Units Activity by Grant Year | The following table summarizes by grant year, the Company’s PSU activity for the three-months ended April 1, 2023 (in thousands): Total Number of Performance Stock Units 2020 2021 2022 2023 Outstanding at December 31, 2022 2,559 1,058 602 899 — PSUs granted 1,835 — — — 1,835 PSUs canceled (708) (708) — — — Outstanding at April 1, 2023 3,686 350 602 899 1,835 |
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 condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): April 1, December 31, Stock-based compensation effects in inventory $ 4,267 $ 3,979 Three Months Ended April 1, March 26, Income tax benefit associated with stock-based compensation $ 1,984 $ 2,226 Stock-based compensation effects in net loss before income taxes Cost of revenue $ 2,276 $ 1,889 Research and development 5,623 4,841 Sales and marketing 3,594 2,767 General and administration 4,158 3,442 Total stock-based compensation expense $ 15,651 $ 12,939 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Long Lived Assets | Additionally, the following table sets forth the Company's property, plant and equipment, net by geographic region (in thousands): April 1, December 31, 2022 United States $ 160,032 $ 156,065 Other Americas 3,022 2,908 Europe, Middle East and Africa 10,286 10,285 Asia Pacific 3,667 3,671 Total property, plant and equipment, net $ 177,007 $ 172,929 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Guarantees [Abstract] | |
Schedule of Activity Related to Product Warranty | Activity related to product warranty was as follows (in thousands): Three Months Ended April 1, 2023 March 26, 2022 Beginning balance $ 36,621 $ 44,310 Charges to operations 5,237 5,975 Utilization (5,194) (5,709) Change in estimate (1) (1,030) (4,991) Balance at the end of the period $ 35,634 $ 39,585 (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 compared to 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 provided in the table below (in thousands). April 1, December 31, Customer performance guarantees $ 19,406 $ 20,903 Value added tax license 2,307 1,434 Property leases 2,769 2,398 Total $ 24,482 $ 24,735 |
Pension and Post-Retirement B_2
Pension and Post-Retirement Benefit Plans (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Retirement Benefits [Abstract] | |
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): Three Months Ended April 1, 2023 March 26, 2022 Service cost $ 67 $ 80 Interest cost 769 333 Expected return on plan assets (654) (780) Amortization of actuarial (gain) loss (937) 87 Total net periodic benefit cost $ (755) $ (280) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Operating lease expense | $ 3.8 | $ 9.3 | |
Accelerated rent expense | 0.8 | $ 5.6 | |
Finance lease, right-of-use asset | $ 2 | $ 1.9 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Term of finance lease | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Term of finance lease | 5 years |
Leases - Schedule of Assets And
Leases - Schedule of Assets And Liabilities, Lessee, Operating Leases (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Accrued expenses and other current liabilities | $ 11,582 | $ 10,948 |
Other long-term liabilities | 44,646 | 45,862 |
Total operating lease liability | $ 56,228 | $ 56,810 |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance lease, liability, statement of financial position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Operating Lease | ||
Total lease payments | $ 70,357 | |
Less: interest | 14,129 | |
Present value of lease liabilities | 56,228 | $ 56,810 |
Finance Lease | ||
Total lease payments | 1,006 | |
Less: interest | 59 | |
Present value of lease liabilities | $ 947 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 1 month 28 days |
Weighted average discount rate | 9.29% |
Cash paid for amounts included in the measurement of lease liabilities | $ 4,045 |
Leased assets obtained in exchange for new lease liabilities | $ 1,846 |
Weighted average remaining lease term | 1 year 3 months 25 days |
Weighted average discount rate | 7.82% |
Cash paid for amounts included in the measurement of lease liabilities | $ 227 |
Leased assets obtained in exchange for new lease liabilities | $ 208 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 392,075 | $ 338,874 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 262,862 | 260,892 |
Indirect | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 129,213 | 77,982 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 237,035 | 170,185 |
Other Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 20,555 | 20,911 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 93,250 | 108,611 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 41,235 | $ 39,167 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 334,434 | $ 419,735 |
Contract assets | 65,174 | 60,172 |
Deferred revenue | $ (175,550) | $ (181,679) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 50.9 | $ 44.9 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 902,726 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 594,213 |
Revenue expected to be recognized in the future, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 238,535 |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 47,156 |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 10,664 |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 5,731 |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue expected to be recognized in the future as of April 1, 2023 | $ 6,427 |
Revenue expected to be recognized in the future, period |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Money Market Funds | ||
Assets (Liabilities) | ||
Money market funds | $ 85,000 | $ 95,000 |
Level 1 | Money Market Funds | ||
Assets (Liabilities) | ||
Money market funds | 85,000 | 95,000 |
Level 2 | Money Market Funds | ||
Assets (Liabilities) | ||
Money market funds | 0 | 0 |
Convertible senior notes | ||
Assets (Liabilities) | ||
Convertible senior notes | 855,088 | 785,364 |
Convertible senior notes | Level 1 | ||
Assets (Liabilities) | ||
Convertible senior notes | 0 | 0 |
Convertible senior notes | Level 2 | ||
Assets (Liabilities) | ||
Convertible senior notes | $ 855,088 | $ 785,364 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | Dec. 25, 2021 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Accelerated rent expense | $ 800 | $ 5,600 | ||||
Cash, cash equivalents and restricted cash | 169,734 | [1] | $ 204,028 | [1] | $ 189,203 | $ 202,521 |
Foreign Subsidiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash, cash equivalents and restricted cash | $ 65,100 | $ 65,900 | ||||
[1]Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: April 1, March 26, Cash and cash equivalents $ 163,765 $ 191,937 Short-term restricted cash 3,873 6,528 Long-term restricted cash 2,096 5,563 Total cash, cash equivalents and restricted cash $ 169,734 $ 204,028 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill Roll Forward (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 232,663 |
Foreign currency translation adjustments | 1,111 |
Goodwill, ending balance | $ 233,774 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 01, 2023 | Dec. 31, 2022 | |
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 265,862 | $ 321,928 |
Accumulated Amortization | (225,201) | (274,141) |
Net Carrying Amount | 40,661 | 47,787 |
Customer relationships and backlog | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 112,550 | 151,461 |
Accumulated Amortization | (78,954) | (114,294) |
Net Carrying Amount | $ 33,596 | $ 37,167 |
Weighted Average Remaining Useful Life (In Years) | 3 years 3 months 18 days | 3 years 6 months |
Developed technology | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 153,312 | $ 170,467 |
Accumulated Amortization | (146,247) | (159,847) |
Net Carrying Amount | $ 7,065 | $ 10,620 |
Weighted Average Remaining Useful Life (In Years) | 6 months | 8 months 12 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 7.1 | $ 10 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Net Carrying Amount | $ 40,661 | $ 47,787 |
Remainder of 2023 | 15,843 | |
2024 | 9,025 | |
2025 | 9,025 | |
2026 | 6,768 | |
2027 | 0 | |
Thereafter | $ 0 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Allowance for credit losses (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 1,422 |
Additions | 266 |
Write offs | (356) |
Recoveries during the period | (322) |
Other | 2 |
Ending balance | $ 1,012 |
Balance Sheet Details - Narrati
Balance Sheet Details - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Interest expense | $ 6,800 | $ 4,992 |
Trade Accounts Receivable | ||
Property, Plant and Equipment [Line Items] | ||
Interest expense | 300 | 100 |
Receivables sold | $ 21,200 | $ 24,000 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Selected Balance Sheet Items (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Inventory | |||
Raw materials | $ 67,601 | $ 48,688 | |
Work in process | 71,750 | 66,591 | |
Finished goods | 273,589 | 259,576 | |
Total inventory | 412,940 | 374,855 | |
Property, plant and equipment, net | |||
Subtotal | 526,959 | 513,792 | |
Less accumulated depreciation and amortization | (349,952) | (340,863) | |
Total property, plant and equipment, net | 177,007 | 172,929 | |
Accrued expenses and other current liabilities | |||
Loss contingency related to non-cancelable purchase commitments | 22,881 | 28,796 | |
Taxes payable | 41,676 | 42,757 | |
Short-term operating and finance lease liability | 12,364 | 11,701 | |
Restructuring accrual | 397 | 941 | |
Other accrued expenses and other current liabilities | 43,339 | 57,255 | |
Total accrued expenses | 120,657 | 141,450 | |
Depreciation | 12,500 | $ 11,600 | |
License Agreement Terms | |||
Accrued expenses and other current liabilities | |||
Depreciation | 2,200 | 1,700 | |
Computer hardware | |||
Property, plant and equipment, net | |||
Subtotal | 47,514 | 46,454 | |
Computer software | |||
Property, plant and equipment, net | |||
Subtotal | 58,867 | 62,102 | |
Laboratory and manufacturing equipment | |||
Property, plant and equipment, net | |||
Subtotal | 306,600 | 297,261 | |
Land and building | |||
Property, plant and equipment, net | |||
Subtotal | 12,372 | 12,369 | |
Furniture and fixtures | |||
Property, plant and equipment, net | |||
Subtotal | 2,862 | 2,828 | |
Leasehold and building improvements | |||
Property, plant and equipment, net | |||
Subtotal | 50,042 | 50,360 | |
Construction in progress | |||
Property, plant and equipment, net | |||
Subtotal | 48,702 | 42,418 | |
Enterprise Resource Planning Systems | |||
Property, plant and equipment, net | |||
Subtotal | 30,200 | 29,300 | |
Total property, plant and equipment, net | 8,900 | 9,000 | |
Accrued expenses and other current liabilities | |||
Depreciation | 900 | $ 800 | |
Enterprise Resource Planning Systems | License | |||
Property, plant and equipment, net | |||
Subtotal | 19,300 | 24,200 | |
Total property, plant and equipment, net | $ 7,100 | $ 9,100 |
Restructuring and Other Relat_3
Restructuring and Other Related Costs - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 397 | $ 941 |
Severance and other related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 245 | $ 792 |
Severance and other related expenses | Telecom Holding Parent LLC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 100 | |
2021 Restructuring Plan | Severance and other related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 300 |
Restructuring and Other Relat_4
Restructuring and Other Related Costs - Schedule of Restructuring and Other Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | $ 790 | |
Cost of Revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | $ 150 |
Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 790 | 7,270 |
Severance and other related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | |
Severance and other related expenses | Cost of Revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | 140 |
Severance and other related expenses | Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | 1,461 |
Lease related impairment charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 786 | |
Lease related impairment charges | Cost of Revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | 0 |
Lease related impairment charges | Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 786 | 5,641 |
Others | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 4 | |
Others | Cost of Revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | 0 | 10 |
Others | Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related costs | $ 4 | $ 168 |
Restructuring and Other Relat_5
Restructuring and Other Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 941 |
Charges | 790 |
Cash Payments | (1,199) |
Non-Cash Settlements and Other | (135) |
Ending balance | 397 |
Severance and other related expenses | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 792 |
Charges | 0 |
Cash Payments | (562) |
Non-Cash Settlements and Other | 15 |
Ending balance | 245 |
Lease related impairment charges | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 786 |
Cash Payments | (633) |
Non-Cash Settlements and Other | (153) |
Ending balance | 0 |
Others | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 149 |
Charges | 4 |
Cash Payments | (4) |
Non-Cash Settlements and Other | 3 |
Ending balance | $ 152 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 179,647 | $ 323,771 |
Other comprehensive loss before reclassifications | (7,618) | |
Amounts reclassified from accumulated other comprehensive loss | (937) | |
Net change in accumulated other comprehensive loss | (8,555) | (11,114) |
Ending balance | 186,256 | 170,205 |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (22,471) | (4,496) |
Net change in accumulated other comprehensive loss | (8,555) | (11,114) |
Ending balance | (31,026) | $ (15,610) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (49,632) | |
Other comprehensive loss before reclassifications | (7,171) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net change in accumulated other comprehensive loss | (7,171) | |
Ending balance | (56,803) | |
Actuarial Gain (Loss) on Pension | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 27,161 | |
Other comprehensive loss before reclassifications | (447) | |
Amounts reclassified from accumulated other comprehensive loss | (937) | |
Net change in accumulated other comprehensive loss | (1,384) | |
Ending balance | $ 25,777 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Common Share - Schedule of Computation of Net Loss Per Common Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (8,410) | $ (41,850) |
Weighted average common shares outstanding - basic (in shares) | 222,393 | 212,182 |
Weighted average common shares outstanding - diluted (in shares) | 222,393 | 212,182 |
Net loss per common share - basic (in dollars per share) | $ (0.04) | $ (0.20) |
Net loss per common share - diluted (in dollars per share) | $ (0.04) | $ (0.20) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Common Share - Schedule of Antidilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 59,367 | 91,736 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 40,100 | 69,930 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 15,582 | 17,887 |
Performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 3,685 | 2,824 |
Employee stock purchase plan shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 0 | 1,095 |
Debt - Schedule of Components o
Debt - Schedule of Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Current | $ 7,100 | $ 500 |
Long-term debt, net | 661,739 | 667,719 |
Unpaid Principal Balance | 683,600 | 683,800 |
Mortgage | ||
Debt Instrument [Line Items] | ||
Current | 7,100 | 500 |
Long-term debt, net | 0 | 6,800 |
Unpaid Principal Balance | 7,100 | 7,300 |
2024 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 101,863 | 101,726 |
2024 Notes | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 101,900 | 101,700 |
Unpaid Principal Balance | 102,700 | 102,700 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 196,113 | 195,879 |
2027 Notes | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 196,100 | 195,900 |
Unpaid Principal Balance | 200,000 | 200,000 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 363,663 | 363,349 |
2028 Notes | Convertible senior notes | ||
Debt Instrument [Line Items] | ||
Current | 0 | 0 |
Long-term debt, net | 363,700 | 363,300 |
Unpaid Principal Balance | $ 373,800 | $ 373,800 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | |||||||||
Aug. 08, 2022 | Jun. 24, 2022 USD ($) | Dec. 26, 2021 | Sep. 24, 2021 USD ($) installment | Mar. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) installment | Sep. 30, 2018 USD ($) | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Current | $ 7,100,000 | $ 500,000 | ||||||||
Letter of Credit | Banker's Guarantees or Performance Bonds | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Letters of credit outstanding | 19,100,000 | |||||||||
Line of credit, outstanding | 19,100,000 | |||||||||
2024 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | 102,652,000 | 102,652,000 | ||||||||
Conversion ratio | 0.1012812 | |||||||||
2027 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | 200,000,000 | 200,000,000 | ||||||||
2028 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | 373,650,000 | 373,750,000 | ||||||||
Conversion ratio | 0.1471183 | |||||||||
Senior Notes | 2024 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | $ 402,500,000 | |||||||||
Contractual Interest Rates | 2.125% | |||||||||
Additional effective rate of interest to be used on amortized carrying value | 2.70% | |||||||||
Debt issuance costs amortization period | 17 months | |||||||||
Senior Notes | 2027 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | $ 200,000,000 | |||||||||
Contractual Interest Rates | 2.50% | |||||||||
Additional effective rate of interest to be used on amortized carrying value | 3% | |||||||||
Debt issuance costs amortization period | 47 months | |||||||||
Conversion ratio | 0.1305995 | |||||||||
Senior Notes | 2028 Notes | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Debt instrument, face amount | $ 373,800,000 | |||||||||
Contractual Interest Rates | 3.75% | |||||||||
Additional effective rate of interest to be used on amortized carrying value | 4.30% | |||||||||
Debt issuance costs amortization period | 64 months | |||||||||
Asset-based revolving credit facility | Credit Agreement | Revolving Credit Facility | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||
Additional borrowing capacity | $ 100,000,000 | |||||||||
Commitment fee percentage | 0.25% | |||||||||
Debt issuance costs, net | 1,200,000 | |||||||||
Debt available borrowing capacity | 133,400,000 | |||||||||
Asset-based revolving credit facility | Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Variable rate | 1.25% | |||||||||
Asset-based revolving credit facility | Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Variable rate | 1.75% | |||||||||
Asset-based revolving credit facility | Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Variable rate | 0.25% | |||||||||
Asset-based revolving credit facility | Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Variable rate | 0.75% | |||||||||
Asset-based revolving credit facility | Credit Agreement | Letter of Credit | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | ||||||||
Asset-based revolving credit facility | Credit Agreement | Swing Loan Sub-Facility | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||||
Mortgage | ||||||||||
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 | |||||||||
Current | $ 7,100,000 | $ 500,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) - 2024 Notes - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 5,299 | $ 3,388 |
Amortization of debt issuance costs | 785 | 767 |
Total interest expense | $ 6,084 | $ 4,155 |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term debt, net | $ 661,739 | $ 667,719 |
2024 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal | 102,652 | 102,652 |
Unamortized issuance costs | (789) | (926) |
Long-term debt, net | 101,863 | 101,726 |
2027 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal | 200,000 | 200,000 |
Unamortized issuance costs | (3,887) | (4,121) |
Long-term debt, net | 196,113 | 195,879 |
2028 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal | 373,650 | 373,750 |
Unamortized issuance costs | (9,987) | (10,401) |
Long-term debt, net | $ 363,663 | $ 363,349 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Annual Minimum Operating Lease Payments (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total lease payments | $ 70,357 |
Remainder of 2023 | 12,226 |
2024 | 15,481 |
2025 | 13,747 |
2026 | 10,338 |
2027 | 7,979 |
Thereafter | $ 10,586 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Finance Lease Obligations (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total lease payments | $ 1,006 |
Remainder of 2023 | 624 |
2024 | 268 |
2025 | 91 |
2026 | 23 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Interest and Principal Payments (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Mortgage | |
Debt Instrument [Line Items] | |
Total | $ 7,415 |
Remainder of 2023 | 586 |
2024 | 6,829 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
2028 Notes, including interest | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 450,836 |
Remainder of 2023 | 7,007 |
2024 | 14,016 |
2025 | 14,016 |
2026 | 14,016 |
2027 | 14,016 |
Thereafter | 387,765 |
2027 Notes, including interest | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 220,000 |
Remainder of 2023 | 2,500 |
2024 | 5,000 |
2025 | 5,000 |
2026 | 5,000 |
2027 | 202,500 |
Thereafter | 0 |
2024 Notes, including interest | Senior Notes | |
Debt Instrument [Line Items] | |
Total | 105,924 |
Remainder of 2023 | 1,091 |
2024 | 104,833 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Total Contractual Obligations (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total contractual obligations | $ 855,538 |
Remainder of 2023 | 24,034 |
2024 | 146,427 |
2025 | 32,854 |
2026 | 29,377 |
2027 | 224,495 |
Thereafter | $ 398,351 |
Commitments and Contingencies_5
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Asset retirement obligations | $ 4.7 | $ 4.9 |
Other Long Term Liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligations | $ 4.6 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Operating lease term | 1 year | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Operating lease term | 11 years |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||||
May 31, 2019 | Feb. 28, 2016 | Apr. 01, 2023 | Mar. 26, 2022 | Mar. 31, 2023 | 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 dollars per share) | $ 7.76 | |||||||||
Stock based compensation expense | $ 15,651 | $ 12,939 | ||||||||
2016 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Plan maximum term | 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 | |||||||||
ESPP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based compensation expense | $ 1,600 | 1,300 | ||||||||
ESPP | 2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized to be issued (in shares) | 31,600,000 | |||||||||
Plan maximum term | 20 years | |||||||||
Payroll deduction price as a percentage of market value | 85% | |||||||||
Maximum employee subscription rate | 15% | |||||||||
Maximum number of shares per employee (in shares) | 3,000 | |||||||||
Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amortization of stock based compensation | 13,000 | 10,900 | ||||||||
Performance stock units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amortization of stock based compensation | $ 1,400 | $ 900 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Company's Equity Award Activity - RSUs (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) $ / shares shares | |
Number of Restricted Stock Units | |
Number of units, beginning balance (in shares) | shares | 12,588 |
Number of units granted (in shares) | shares | 5,931 |
Number of units released (in shares) | shares | (2,801) |
Number units canceled (in shares) | shares | (137) |
Number of units, ending balance (in shares) | shares | 15,581 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted Average Grant Date Fair Value Per Share, beginning balance (in dollars per share) | $ / shares | $ 8.13 |
Weighted Average Grant Date Fair Value Per Share, granted (in dollars per share) | $ / shares | 7.34 |
Weighted Average Grant Date Fair Value Per Share, released (in dollars per share) | $ / shares | 8.45 |
Weighted Average Grant Date Fair Value Per Share, canceled (in dollars per share) | $ / shares | 8.25 |
Weighted Average Grant Date Fair Value Per Share, ending balance (in dollars per share) | $ / shares | $ 7.77 |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, beginning balance | $ | $ 84,847 |
Aggregate Intrinsic Value, RSUs released | $ | 20,343 |
Aggregate Intrinsic Value, ending balance | $ | $ 120,914 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Company's Equity Award Activity - PSUs (Details) - Performance stock units $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) $ / shares shares | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | shares | 2,559 |
Number of units granted (in shares) | shares | 1,835 |
Number units canceled (in shares) | shares | (708) |
Number of units, ending balance (in shares) | shares | 3,686 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted Average Grant Date Fair Value Per Share, beginning balance (in dollars per share) | $ / shares | $ 7.40 |
Weighted Average Grant Date Fair Value Per Share, granted (in dollars per share) | $ / shares | 7.26 |
Weighted Average Grant Date Fair Value Per Share, canceled (in dollars per share) | $ / shares | 5.89 |
Weighted Average Grant Date Fair Value Per Share, ending balance (in dollars per share) | $ / shares | $ 7.62 |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, beginning balance | $ | $ 17,251 |
Aggregate Intrinsic Value, ending balance | $ | $ 28,603 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense, Net | $ 105,199 |
Weighted Average Period (in Years) | 2 years 3 months 29 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense, Net | $ 26,268 |
Weighted Average Period (in Years) | 2 years 1 month 9 days |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Estimated Fair Value of ESPP, Valuation Assumptions (Details) - ESPP - $ / shares | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 60% | 39% |
Risk-free interest rate | 4.98% | 0.67% |
Expected life | 6 months | 6 months |
Estimated fair value (in dollars per share) | $ 2.37 | $ 2.21 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Nonvested Performance Based Units Activity By Grant Year (Details) - PSUs shares in Thousands | 3 Months Ended |
Apr. 01, 2023 shares | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 2,559 |
Number of units granted (in shares) | 1,835 |
Number units canceled (in shares) | (708) |
Number of units, ending balance (in shares) | 3,686 |
2020 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 1,058 |
Number of units granted (in shares) | 0 |
Number units canceled (in shares) | (708) |
Number of units, ending balance (in shares) | 350 |
2021 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 602 |
Number of units granted (in shares) | 0 |
Number units canceled (in shares) | 0 |
Number of units, ending balance (in shares) | 602 |
2022 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 899 |
Number of units granted (in shares) | 0 |
Number units canceled (in shares) | 0 |
Number of units, ending balance (in shares) | 899 |
2023 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 0 |
Number of units granted (in shares) | 1,835 |
Number units canceled (in shares) | 0 |
Number of units, ending balance (in shares) | 1,835 |
Stockholders' Equity - Schedu_6
Stockholders' Equity - Schedule of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Effects Of Stock Based Compensation [Line Items] | |||
Income tax benefit associated with stock-based compensation | $ 1,984 | $ 2,226 | |
Total stock-based compensation expense | 15,651 | 12,939 | |
Cost of revenue | |||
Effects Of Stock Based Compensation [Line Items] | |||
Stock-based compensation effects in net loss before income taxes | 2,276 | 1,889 | |
Research and development | |||
Effects Of Stock Based Compensation [Line Items] | |||
Stock-based compensation effects in net loss before income taxes | 5,623 | 4,841 | |
Sales and marketing | |||
Effects Of Stock Based Compensation [Line Items] | |||
Stock-based compensation effects in net loss before income taxes | 3,594 | 2,767 | |
General and administration | |||
Effects Of Stock Based Compensation [Line Items] | |||
Stock-based compensation effects in net loss before income taxes | 4,158 | $ 3,442 | |
Inventory Valuation and Obsolescence | |||
Effects Of Stock Based Compensation [Line Items] | |||
Stock-based compensation effects in inventory | $ 4,267 | $ 3,979 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax expense | $ 3,572 | $ 6,437 |
Pre-tax loss | 4,838 | $ 35,413 |
Provision for income taxes increase (decrease) | $ (2,800) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of business activities | segment | 1 | |
Number of reporting segments | segment | 1 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 177,007 | $ 172,929 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 160,032 | 156,065 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 3,022 | 2,908 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 10,286 | 10,285 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 3,667 | $ 3,671 |
Guarantees - Schedule of Activi
Guarantees - Schedule of Activity Related to Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 36,621 | $ 44,310 |
Charges to operations | 5,237 | 5,975 |
Utilization | (5,194) | (5,709) |
Change in estimate | (1,030) | (4,991) |
Balance at the end of the period | $ 35,634 | $ 39,585 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Guarantor Obligations [Line Items] | ||
Outstanding standby letters of credit | $ 24,482 | $ 24,735 |
Bond secure amount | 4,000 | 4,000 |
Surety Bond | ||
Guarantor Obligations [Line Items] | ||
Bond secure amount | 7,500 | 7,500 |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantees | 19,406 | $ 20,903 |
Cash collateral | $ 5,200 |
Guarantees - Schedule of Guaran
Guarantees - Schedule of Guarantor Obligations (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Guarantor Obligations [Line Items] | ||
Total | $ 24,482 | $ 24,735 |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantees | 19,406 | 20,903 |
Value added tax license | 2,307 | 1,434 |
Property leases | $ 2,769 | $ 2,398 |
Pension and Post-Retirement B_3
Pension and Post-Retirement Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 67 | $ 80 |
Interest cost | 769 | 333 |
Expected return on plan assets | (654) | (780) |
Amortization of actuarial (gain) loss | (937) | 87 |
Total net periodic benefit cost | $ (755) | $ (280) |
Uncategorized Items - infn-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |