Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 27, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33486 | |
Entity Registrant Name | INFINERA CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0560433 | |
Entity Address, Address Line One | 140 Caspian Court | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94089 | |
City Area Code | 408 | |
Local Phone Number | 572-5200 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | INFN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 187,385,376 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001138639 | |
Current Fiscal Year End Date | --12-26 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash | $ 202,782 | $ 109,201 |
Short-term restricted cash | 4,307 | 4,339 |
Accounts receivable, net of allowance for doubtful accounts of $3,183 in 2020 and $4,005 in 2019 | 289,107 | 349,645 |
Inventory | 288,159 | 340,429 |
Prepaid expenses and other current assets | 168,052 | 139,217 |
Total current assets | 952,407 | 942,831 |
Property, plant and equipment, net | 145,110 | 150,793 |
Operating lease right-of-use assets | 60,798 | 68,081 |
Intangible assets | 143,762 | 170,346 |
Goodwill | 251,050 | 249,848 |
Long-term restricted cash | 17,108 | 19,257 |
Other non-current assets | 25,623 | 27,182 |
Total assets | 1,595,858 | 1,628,338 |
Current liabilities: | ||
Accounts payable | 195,947 | 273,397 |
Accrued expenses and other current liabilities | 172,100 | 193,168 |
Accrued compensation and related benefits | 52,674 | 92,221 |
Short-term debt, net | 27,726 | 31,673 |
Accrued warranty | 17,674 | 21,107 |
Deferred revenue | 95,932 | 103,753 |
Total current liabilities | 562,053 | 715,319 |
Long-term debt, net | 508,459 | 323,678 |
Long-term financing lease obligations | 1,869 | 2,394 |
Accrued warranty, non-current | 19,409 | 22,241 |
Deferred revenue, non-current | 31,300 | 36,067 |
Deferred tax liability | 5,564 | 8,700 |
Operating lease liabilities | 63,819 | 64,210 |
Other long-term liabilities | 73,531 | 69,194 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value Authorized shares – 25,000 and no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value Authorized shares – 500,000 as of June 27, 2020 and December 28, 2019 Issued and outstanding shares – 187,299 as of June 27, 2020 and 181,134 as of December 28, 2019 | 187 | 181 |
Additional paid-in capital | 1,838,677 | 1,740,884 |
Accumulated other comprehensive loss | (27,566) | (34,639) |
Accumulated deficit | (1,481,444) | (1,319,891) |
Total stockholders' equity | 329,854 | 386,535 |
Total liabilities and stockholders’ equity | $ 1,595,858 | $ 1,628,338 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 3,183 | $ 4,005 |
Commitments and contingencies (Note 13) | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 187,229,000 | 181,134,000 |
Common stock, shares outstanding (in shares) | 187,229,000 | 181,134,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Revenue: | ||||
Total revenue | $ 331,587 | $ 296,250 | $ 661,860 | $ 588,957 |
Cost of revenue: | ||||
Amortization of intangible assets | 8,721 | 8,098 | 17,349 | 16,350 |
Acquisition and integration costs | 750 | 10,700 | 1,785 | 12,764 |
Restructuring and related | 1,591 | 1,864 | 2,748 | 23,330 |
Total cost of revenue | 234,180 | 234,994 | 487,487 | 461,269 |
Gross profit | 97,407 | 61,256 | 174,373 | 127,688 |
Operating expenses: | ||||
Research and development | 67,090 | 73,937 | 135,270 | 147,597 |
Sales and marketing | 31,816 | 37,651 | 68,505 | 77,688 |
General and administrative | 30,101 | 35,672 | 59,721 | 68,716 |
Amortization of intangible assets | 4,585 | 6,745 | 9,140 | 13,802 |
Acquisition and integration costs | 3,344 | 12,164 | 12,566 | 19,298 |
Restructuring and related | 5,097 | 3,471 | 10,677 | 20,659 |
Total operating expenses | 142,033 | 169,640 | 295,879 | 347,760 |
Loss from operations | (44,626) | (108,384) | (121,506) | (220,072) |
Other income (expense), net: | ||||
Interest income | 54 | 183 | 78 | 949 |
Interest expense | (12,436) | (7,280) | (21,230) | (14,843) |
Other gain (loss), net | (1,992) | 3,210 | (14,674) | 287 |
Total other income (expense), net | (14,374) | (3,887) | (35,826) | (13,607) |
Loss before income taxes | (59,000) | (112,271) | (157,332) | (233,679) |
Provision for income taxes | 2,635 | 1,385 | 3,571 | 1,578 |
Net loss | $ (61,635) | $ (113,656) | $ (160,903) | $ (235,257) |
Net loss per common share: | ||||
Basic (in usd per share) | $ (0.33) | $ (0.64) | $ (0.88) | $ (1.33) |
Diluted (in usd per share) | $ (0.33) | $ (0.64) | $ (0.88) | $ (1.33) |
Weighted average shares used in computing net loss per common share: | ||||
Basic (in shares) | 185,596 | 178,677 | 183,810 | 177,542 |
Diluted (in shares) | 185,596 | 178,677 | 183,810 | 177,542 |
Product | ||||
Revenue: | ||||
Total revenue | $ 261,227 | $ 226,866 | $ 516,419 | $ 449,873 |
Cost of revenue: | ||||
Cost of revenue | 186,519 | 177,501 | 388,311 | 335,318 |
Services | ||||
Revenue: | ||||
Total revenue | 70,360 | 69,384 | 145,441 | 139,084 |
Cost of revenue: | ||||
Cost of revenue | $ 36,599 | $ 36,831 | $ 77,294 | $ 73,507 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (61,635) | $ (113,656) | $ (160,903) | $ (235,257) |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gain on available-for-sale investments | 0 | 24 | 0 | 89 |
Foreign currency translation adjustment | 18,068 | (1,949) | 6,962 | (7,506) |
Actuarial gain on pension liabilities | 505 | 403 | 111 | 481 |
Net change in accumulated other comprehensive loss | 18,573 | (1,522) | 7,073 | (6,936) |
Comprehensive loss | $ (43,062) | $ (115,178) | $ (153,830) | $ (242,193) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentAccumulated Deficit |
Beginning balance (in shares) at Dec. 29, 2018 | 175,452 | ||||||
Beginning balance at Dec. 29, 2018 | $ 703,821 | $ 175 | $ 1,685,916 | $ (25,300) | $ (956,970) | $ 23,697 | $ 23,697 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESPP shares issued (in shares) | 1,825 | ||||||
ESPP shares issued | 7,740 | $ 2 | 7,738 | ||||
Restricted stock units released (in shares) | 2,142 | ||||||
Restricted stock units released | 0 | $ 2 | (2) | ||||
Shares withheld for tax obligations (in shares) | (80) | ||||||
Shares withheld for tax obligations | (354) | (354) | |||||
Stock-based compensation | 22,359 | 22,359 | |||||
Other comprehensive loss | (6,936) | (6,936) | |||||
Net loss | (235,257) | (235,257) | |||||
Ending balance (in shares) at Jun. 29, 2019 | 179,339 | ||||||
Ending balance at Jun. 29, 2019 | 515,070 | $ 179 | 1,715,657 | (32,236) | (1,168,530) | ||
Beginning balance (in shares) at Mar. 30, 2019 | 177,415 | ||||||
Beginning balance at Mar. 30, 2019 | 617,299 | $ 177 | 1,702,710 | (30,714) | (1,054,874) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Restricted stock units released (in shares) | 2,004 | ||||||
Restricted stock units released | 0 | $ 2 | (2) | ||||
Shares withheld for tax obligations (in shares) | (80) | ||||||
Shares withheld for tax obligations | (354) | (354) | |||||
Stock-based compensation | 13,303 | 13,303 | |||||
Other comprehensive loss | (1,522) | (1,522) | |||||
Net loss | (113,656) | (113,656) | |||||
Ending balance (in shares) at Jun. 29, 2019 | 179,339 | ||||||
Ending balance at Jun. 29, 2019 | 515,070 | $ 179 | 1,715,657 | (32,236) | (1,168,530) | ||
Beginning balance (in shares) at Dec. 28, 2019 | 181,134 | ||||||
Beginning balance at Dec. 28, 2019 | 386,535 | $ 181 | 1,740,884 | (34,639) | (1,319,891) | $ (650) | $ (650) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESPP shares issued (in shares) | 1,839 | ||||||
ESPP shares issued | 7,394 | $ 2 | 7,392 | ||||
Restricted stock units released (in shares) | 4,548 | ||||||
Restricted stock units released | 4 | $ 4 | 0 | ||||
Shares withheld for tax obligations (in shares) | (222) | ||||||
Shares withheld for tax obligations | (1,319) | (1,319) | |||||
Stock-based compensation | 23,923 | 23,923 | |||||
Conversion option related to convertible senior notes, net of allocated costs | 67,797 | 67,797 | |||||
Other comprehensive loss | 7,073 | 7,073 | |||||
Net loss | (160,903) | (160,903) | |||||
Ending balance (in shares) at Jun. 27, 2020 | 187,299 | ||||||
Ending balance at Jun. 27, 2020 | 329,854 | $ 187 | 1,838,677 | (27,566) | (1,481,444) | ||
Beginning balance (in shares) at Mar. 28, 2020 | 183,198 | ||||||
Beginning balance at Mar. 28, 2020 | 361,719 | $ 183 | 1,827,484 | (46,139) | (1,419,809) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Restricted stock units released (in shares) | 4,323 | ||||||
Restricted stock units released | 4 | $ 4 | 0 | ||||
Shares withheld for tax obligations (in shares) | (222) | ||||||
Shares withheld for tax obligations | (1,319) | (1,319) | |||||
Stock-based compensation | 12,512 | 12,512 | |||||
Other comprehensive loss | 18,573 | 18,573 | |||||
Net loss | (61,635) | (61,635) | |||||
Ending balance (in shares) at Jun. 27, 2020 | 187,299 | ||||||
Ending balance at Jun. 27, 2020 | $ 329,854 | $ 187 | $ 1,838,677 | $ (27,566) | $ (1,481,444) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | ||
Cash Flows from Operating Activities: | |||
Net loss | $ (160,903) | $ (235,257) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 51,369 | 62,143 | |
Non-cash restructuring charges and related costs | 2,818 | 14,538 | |
Amortization of debt discount and issuance costs | 13,016 | 9,245 | |
Operating lease expense | 9,873 | 19,913 | |
Stock-based compensation expense | 24,479 | 21,760 | |
Other, net | 3,001 | 10 | |
Changes in assets and liabilities: | |||
Accounts receivable | 53,989 | 55,216 | |
Inventory | 50,164 | (30,640) | |
Prepaid expenses and other assets | (26,961) | (30,958) | |
Accounts payable | (77,358) | 4,726 | |
Accrued liabilities and other expenses | (59,939) | 1,604 | |
Deferred revenue | (11,637) | (12,267) | |
Net cash used in operating activities | (128,089) | (119,967) | |
Cash Flows from Investing Activities: | |||
Proceeds from Sale of Held-to-maturity Securities | 0 | 1,009 | |
Proceeds from maturities of investments | 0 | 25,085 | |
Acquisition of business, net of cash acquired | 0 | (10,000) | |
Purchase of property and equipment, net | (19,002) | (15,784) | |
Net cash (used in)/provided by investing activities | (19,002) | 310 | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of 2027 Notes | 194,500 | 0 | |
Proceeds from mortgage payable | 0 | 8,584 | |
Proceeds from revolving line of credit | 55,000 | 0 | |
Repayment of revolving line of credit | (8,000) | 0 | |
Repayments of Other Long-term Debt | (3,960) | 0 | |
Payment of debt issuance cost | (2,073) | 0 | |
Repayment of mortgage payable | (166) | (96) | |
Principal payments on financing lease obligations | (922) | 0 | |
Proceeds from issuance of common stock | 7,399 | 7,740 | |
Minimum tax withholding paid on behalf of employees for net share settlement | (1,319) | (354) | |
Net cash provided by financing activities | 240,459 | 15,874 | |
Effect of exchange rate changes on cash and restricted cash | (1,968) | (33) | |
Net change in cash, cash equivalents and restricted cash | 91,400 | (103,816) | |
Cash, cash equivalents and restricted cash at beginning of period | 132,797 | 242,337 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 224,197 | 138,521 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of refunds | (773) | 13,606 | |
Cash paid for interest | 7,320 | 4,687 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Unpaid debt issuance cost | 382 | 0 | |
Third-party manufacturer funding for transfer expenses incurred | 0 | 3,327 | |
Transfer of inventory to fixed assets | 118 | 2,195 | |
Restricted Cash and Cash Equivalents [Abstract] | |||
Total cash, cash equivalents and restricted cash | [1] | $ 224,197 | $ 138,521 |
[1] | Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: June 27, June 29, (In thousands) Cash and cash equivalents $ 202,782 $ 109,034 Short-term restricted cash 4,307 2,742 Long-term restricted cash 17,108 26,745 Total cash, cash equivalents and restricted cash $ 224,197 $ 138,521 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation Infinera Corporation (the “Company”) prepared its interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 . The Company has made certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates, assumptions and judgments made by management include revenue recognition, stock-based compensation, employee benefit and pension plans, inventory valuation, accrued warranty, operating lease liabilities, business combinations, fair value measurement of investments and accounting for income taxes. Other less significant estimates, assumptions and judgments made by management include allowances for sales returns, allowances for doubtful accounts, useful life of intangible assets, and property, plant and equipment. 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 the recent outbreak of a novel strain of the coronavirus (“COVID-19”). 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 28, 2019 . To date, a few of the Company’s customers have accounted for a significant portion of its revenue. For the three months ended June 27, 2020 , one customer accounted for 13% of the Company's total revenue and for the three months ended June 29, 2019, the same customer accounted for 13% of the Company's total revenue. For each of the six months ended June 27, 2020 and June 29, 2019, the same customer accounted for 12% of the Company's total revenue. Certain reclassifications have been made to prior period balances in order to conform to the current period presentation of the cash flows from operating activities in the condensed consolidated statements of cash flows. Certain other reclassifications have been made to prior period balances in order to conform to the current period presentation of accrued expenses and other current liabilities in Note 8, “Balance Sheet Details” to the Notes to Condensed Consolidated Financial Statements. These reclassifications were not material and had no impact on previously reported net cash used in operating activities for the period ended June 29, 2020 and on the Company's Condensed consolidated Balance sheets for the periods ended June 27, 2020 and December 28, 2019. There have been no material changes in the Company’s significant accounting policies for the six months ended June 27, 2020 compare d to those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 , with the exception of updates to the policy noted below as a result of the adoption of ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326)" ("Topic 326") as of December 29, 2019. Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated credit losses resulting from the inability of its customers to make required payments and reviews the allowance quarterly. The Company determines expected credit losses by performing credit evaluations of its customers' financial condition, establishing both a general reserve and specific reserves for customers in an adverse financial condition and adjusting for its expectations of changes in conditions that may impact the collectability of outstanding receivables. The Company considers a customer's receivable balance past due when the amount is due beyond the credit terms extended. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks. Amounts are written off when receivables are determined to be uncollectible. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Topic 326, in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. Topic 326 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior U.S. GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted Topic 326 on a modified retrospective basis in the first quarter of 2020 through a cumulative-effect adjustment at the beginning of the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of the Company’s customers, and external market factors. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). This update eliminates, adds and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 was effective for the Company in its first quarter of 2020. The Company adopted ASU 2018-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements. Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (Topic 848), "Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides temporary optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The standard was effective upon issuance and may generally be applied through December 31, 2022 to any new or amended contracts, hedging relationships, and other transactions that reference LIBOR. The Company is currently evaluating the impact the adoption of ASU 2020-04 would have on its consolidated financial statements. In December 2019, FASB issued Accounting Standards Update No. 2019-12, "Simplifying the Accounting for Income Taxes" (“ASU 2019-12”), as part of its simplification initiative. ASU 2019-12 removes certain exceptions from Accounting Standards Codification ("ASC") 740, "Income Taxes" ("ASC 740"), including (i) the exception to the incremental approach for intra period tax allocation when there is a loss from continuing operations and income or a gain from other items such as discontinued operations or other comprehensive income; (ii) the exception to accounting for outside basis differences of equity method investments and foreign subsidiaries; and (iii) the exception to limit tax benefit recognized in interim period in cases when the year-to-date losses exceeds anticipated losses. ASU 2019-12 also simplifies U.S. GAAP in several other areas of ASC 740 such as (i) franchise taxes and other taxes partially based on income; (ii) step-up in tax basis goodwill considered part of a business combination in which the book goodwill was originally recognized or should be considered a separate transaction; (iii) separate financial statements of entities not subject to tax; and (iv) interim recognition of enactment of tax laws or rate changes. ASU 2019-12 is effective for the Company for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2020, with early adoption permitted. The Company elected not to early adopt ASU 2019-12 as of June 27, 2020. The Company is currently evaluating the impact the adoption of ASU 2019-12 would have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). This update eliminates, adds and modifies certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. ASU 2018-14 is effective for the Company in its first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 would have on its consolidated financial statements. |
Leases
Leases | 6 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for real estate and automobiles. The operating lease expense for the three months and six months ended June 27, 2020 was $6.5 million and $15.0 million (including $1.4 million of rent expense due to restructuring resulting in abandonment of certain lease facilities), respectively. The operating lease expense for the three and six months ended June 29, 2019 was $6.7 million and $23.4 million (including $10.2 million of accelerated rent expense due to restructuring resulting in abandonment of certain lease facilities), respectively. Variable lease cost, short-term lease cost and sublease income were immaterial during the three months and six months ended June 27, 2020 and June 29, 2019. As of June 27, 2020 , $17.0 million was included in accrued expenses and other current liabilities and $63.8 million as long-term operating lease liabilities. As of December 28, 2019, $18.1 million was included in accrued expenses and other current liabilities and $64.2 million as long term operating lease liabilities. The following table presents maturity of lease liabilities under the Company's non-cancelable operating leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 13,162 2021 19,454 2022 16,040 2023 12,919 2024 10,890 Thereafter 36,613 Total lease payments 109,078 Less: interest (1) 28,245 Present value of lease liabilities $ 80,833 (1) Calculated using the interest rate for each lease. The following table presents supplemental information for the Company's non-cancelable operating leases for the six months ended June 27, 2020 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 6.89 years Weighted average discount rate 9.12 % Cash paid for amounts included in the measurement of lease liabilities $ 12,919 Operating cash flow from operating leases $ 12,919 Leased assets obtained in exchange for new operating lease liabilities $ 4,501 Financing Lease Obligations During the three and six months ended June 27, 2020, there were no new finance lease arrangements. The lease term for existing arrangements range from 3 - 5 years with options to purchase at the end of the term. Finance lease cost for the three months and six months ended June 27, 2020 was approximately $0.2 million and $0.5 million , respectively. Finance lease cost for the for the three and six months ended June 29, 2019 was zero . As of June 27, 2020, $1.1 million was included in accrued expenses and other current liabilities and $1.9 million as long-term finance lease obligation related to these equipment finance lease arrangements. As of December 28, 2019, $1.4 million was included in accrued expenses and other current liabilities and $2.4 million as a long-term finance lease obligation related to these equipment finance lease arrangements. The following table presents maturity of lease liability under the Company's finance leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 646 2021 1,210 2022 942 2023 411 Thereafter — Total lease payments 3,209 Less: interest 236 Present value of lease liabilities $ 2,973 The following table presents supplemental information for the Company's finance leases for the six months ended June 27, 2020 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 2.63 years Weighted average discount rate 7.00 % Cash paid for amounts included in the measurement of lease liabilities $ 922 Cash flow from finance leases $ 922 Leased assets obtained in exchange for new finance lease liabilities $ — |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Capitalization of Costs to Obtain a Contract T he ending balance of the Company’s capitalized costs to obtain a contract as of June 27, 2020 and December 28, 2019 were zero and $0.2 million , respectively. The Company's amortization expense was $0.2 million and $0.2 million for the three and six months ended June 27, 2020 . The amortization expense for three and six months ended June 29, 2019 was not material. Disaggregation of Revenue The following table presents the Company's revenue disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Product $ 261,227 $ 226,866 $ 516,419 $ 449,873 Services 70,360 69,384 145,441 139,084 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 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 geography, based on the shipping address of the customer (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, United States $ 166,223 $ 133,213 $ 336,749 $ 265,735 Other Americas 25,832 29,535 45,520 44,667 Europe, Middle East and Africa 97,168 90,467 185,746 189,459 Asia Pacific 42,364 43,035 93,845 89,096 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 The following table presents the Company's revenue disaggregated by sales channel (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Direct $ 268,326 $ 241,017 $ 512,677 $ 489,213 Indirect 63,261 55,233 149,183 99,744 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): June 27, December 28, 2019 Accounts receivable, net $ 289,107 $ 349,645 Contract assets $ 28,262 $ 22,814 Deferred revenue $ 127,232 $ 139,820 Revenue recognized for the three and six months ended June 27, 2020 that was included in the deferred revenue balance at the beginning of the reporting period was $50.9 million and $89.5 million , respectively. Revenue recognized for the three and six months ended June 29, 2019 that was included in the deferred revenue balance at the beginning of the reporting period was $30.9 million and $67.7 million , respectively. Changes in the contract asset and liability balances during the three and six months ended June 27, 2020 and June 29, 2019 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) on contracts that are not subject to cancellation without penalty at the end of the reporting period (in thousands): Remainder of 2020 2021 2022 2023 2024 Thereafter Total Revenue expected to be recognized in the future as of June 27, 2020 $ 401,347 $ 40,971 $ 8,662 $ 3,107 $ 1,449 $ 193 $ 455,729 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands): As of June 27, 2020 As of December 28, 2019 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Liabilities Foreign currency exchange forward contracts $ — $ (32 ) $ (32 ) $ — $ (159 ) $ (159 ) During the three and six months ended June 27, 2020 , there were no transfers of liabilities between Level 1 and Level 2 of the fair value hierarchy. As of June 27, 2020 , and December 28, 2019 , none of the Company’s existing liabilities were classified as Level 3. The Company classifies certain facilities-related charges within Level 3 of the fair value hierarchy and applies fair value accounting on a nonrecurring basis when impairment indicators exist or upon the existence of observable fair values. The fair values are classified as Level 3 measurements due to the significance of unobservable inputs. This analysis requires management to make assumptions and estimates regarding industry and economic factors, future operating results and discount rates. 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. In light of the COVID-19 pandemic, the Company performed an analysis of impairment indicators of these assets and noted no adverse impact to their fair values as of June 27, 2020. Facilities-related Charges In connection with the 2018 Restructuring Plan (as defined in Note 9, “Restructuring and Related Costs” to the Notes to Consolidated Financial Statements), for the three and six months ended June 27, 2020, the Company calculated the fair value of the $1.4 million and $4.3 million , respectively, in facilities-related charges based on estimated future discounted cash flows and classified the fair value as a Level 3 measurement due to the significance of unobservable inputs, which included the amount and timing of estimated sublease rental receipts that the Company could reasonably obtain over the remaining lease term and the discount rate. Cash As of June 27, 2020 , the Company had $202.8 million of cash, including $66.4 million of cash held by its foreign subsidiaries. As of December 28, 2019, the Company had $109.2 million of cash including $68.7 million of cash held by its foreign subsidiaries. The Company's cash held by its foreign subsidiaries is used for operational and investing activities in those locations, and the Company does not currently have the need or the intent to repatriate those funds to the United States. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Foreign Currency Exchange Forward Contracts The Company transacts business in various foreign currencies and has international sales, cost of sales, and expenses denominated in foreign currencies, and carries foreign-currency-denominated monetary assets and liabilities, subjecting the Company to foreign currency risk. The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows. The Company utilizes foreign currency forward contracts, primarily short term in nature. Historically, the Company enters into foreign currency exchange forward contracts to manage its exposure to fluctuation in foreign exchange rates that arise from its euro denominated receivables and restricted cash balances. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate fluctuations on the underlying foreign currency denominated accounts receivables and restricted cash, and therefore, do not subject the Company to material balance sheet risk. As of June 27, 2020 , and December 28, 2019, the Company posted $0.9 million and 0.9 million , respectively, of collateral on its derivative instruments to cover potential credit risk exposure. This amount is classified as other long-term restricted cash on the accompanying condensed consolidated balance sheets. For the three months ended June 27, 2020 and June 29, 2019 , the before-tax effect of the foreign currency exchange forward contracts was a net gain of $0.1 million and immaterial, respectively, and for the six months ended June 27, 2020 and June 29, 2019 , the before-tax effect of the foreign currency exchange forward contracts was a net gain of $0.2 million and $0.7 million , respectively, included in other gain (loss), net in the condensed consolidated statements of operations. In each of these periods, the impact of the gross gains and losses was offset by foreign exchange rate fluctuations on the underlying foreign currency denominated amounts. As of June 27, 2020 , the Company did not designate foreign currency exchange forward contracts as hedges for accounting purposes and accordingly, changes in the fair value are recorded in the accompanying condensed consolidated statements of operations. These contracts were entered into with one high-quality institution and the Company consistently monitors the creditworthiness of the counterparties. The fair value of derivative instruments not designated as hedging instruments in the Company’s condensed consolidated balance sheets was as follows (in thousands): As of June 27, 2020 As of December 28, 2019 Gross Notional (1) Other Accrued Liabilities Gross (1) Other Foreign currency exchange forward contracts Related to euro denominated receivables $ 542 $ (32 ) $ 27,566 $ (159 ) $ 542 $ (32 ) $ 27,566 $ (159 ) (1) Represents the face amounts of forward contracts that were outstanding as of the end of the period noted. Accounts Receivable Factoring The Company sells certain designated trade account receivables based on factoring arrangements to a large international banking institution. Pursuant to the terms of the arrangements, the Company accounts for these transactions in accordance with ASC 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 are reflected as cash provided by operating activities in the condensed consolidated statements of cash flow. The difference between the fair value of the Company's trade receivables and the proceeds received is recorded as interest expense in the Company's condensed consolidated statements of operations. For the three and six months ended June 27, 2020 , the Company's recognized factoring related interest expense was approximately $0.1 million and $0.2 million , respectively, and for the three and six months ended June 29, 2019 was approximately $0.2 million and $0.4 million , respectively. For the three and six months ended June 27, 2020 , the Company's gross amount of trade accounts receivables sold was approximately $18.7 million and $45.2 million , respectively, and for the three and six months ended June 29, 2019 was approximately $21.2 million and $45.6 million |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 (in thousands): Balance as of December 28, 2019 $ 249,848 Foreign currency translation adjustments 1,202 Balance as of June 27, 2020 $ 251,050 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 June 27, 2020 and December 28, 2019 (in thousands, except for weighted average data): June 27, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (1,000 ) $ — *NMF* Customer relationships and backlog 156,256 (77,524 ) 78,732 5.4 Developed technology 180,303 (115,273 ) 65,030 3.4 Total intangible assets with finite lives $ 337,559 $ (193,797 ) $ 143,762 *NMF = Not meaningful December 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (1,000 ) $ — *NMF* Customer relationships and backlog 155,942 (68,119 ) 87,823 5.8 179,593 (97,070 ) 82,523 3.5 Total intangible assets with finite lives $ 336,535 $ (166,189 ) $ 170,346 *NMF = Not meaningful The gross carrying amount of intangible assets and the related amortization expense of intangible assets may change due to the effects of foreign currency fluctuations as a portion of these assets are denominated in foreign currency. Amortization expense was $13.3 million and $26.5 million for the three and six months ended June 27, 2020 , respectively and was $14.8 million and $30.1 million for the three and six months ended June 29, 2019, respectively. Intangible assets are carried at cost less accumulated amortization. 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 June 27, 2020 (in thousands): Fiscal Years Total Remainder of 2020 2021 2022 2023 2024 2025 and Thereafter Total future amortization expense $ 143,762 $ 20,934 $ 35,332 $ 32,808 $ 26,911 $ 11,983 $ 15,794 |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 27, 2020 | |
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 rollforward of the allowance for doubtful accounts for accounts receivable for the six months ended June 27, 2020. Balance as of December 28, 2019 $ 4,005 Adjustment for adoption of new standard 650 Additions (1) 962 Write offs (2) (2,418 ) Recoveries during the period (39 ) Other (3) 23 Balance as of June 27, 2020 $ 3,183 (1) The new additions during the six months ended June 27, 2020 are primarily due to specific reserves. (2) The write offs during the six months ended June 27, 2020 are primarily of amounts fully reserved previously. (3) Primarily represents translation adjustments. The following table provides details of selected balance sheet items (in thousands): June 27, December 28, Inventory Raw materials $ 43,364 $ 47,474 Work in process 50,899 48,842 Finished goods 193,896 244,113 Total inventory $ 288,159 $ 340,429 Property, plant and equipment, net Computer hardware $ 33,723 $ 36,086 Computer software (1) 43,619 45,428 Laboratory and manufacturing equipment (2) 312,626 313,081 Land and building 12,349 12,349 Furniture and fixtures 3,261 2,845 Leasehold and building improvements (3) 52,976 52,263 Construction in progress 41,247 27,946 Subtotal 499,801 489,998 Less accumulated depreciation and amortization (4) (354,691 ) (339,205 ) Total property, plant and equipment, net $ 145,110 $ 150,793 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 24,426 $ 25,410 Taxes payable 67,585 65,815 Short-term operating lease liability 17,014 18,106 Short-term financing lease obligation 1,104 1,380 Restructuring accrual 14,222 26,706 Other accrued expenses and other current liabilities 47,749 55,751 Total accrued expenses $ 172,100 $ 193,168 (1) Included in computer software at June 27, 2020 and December 28, 2019 were $23.8 million and $23.3 million , respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at June 27, 2020 and December 28, 2019 were $10.4 million and $11.3 million , respectively. (2) Included in laboratory and manufacturing equipment at June 27, 2020 was $2.0 million related to an equipment finance lease entered by the Company for a term of three years with an option to purchase at the end of the three-year term. The finance lease was recorded at $2.0 million using a discount rate of 8.2% and was included in property, plant and equipment, net. (3) Included in leasehold improvements at June 27, 2020 was an equipment finance lease entered into by the Company for a term of five years with an option to purchase at the end of five-year term. The finance lease was recorded at $2.3 million using a discount rate of 5% and was included in property, plant and equipment, net. (4) Depreciation expense was $24.9 million , which includes depreciation of capitalized ERP cost of $1.3 million for the six months ended June 27, 2020 . |
Restructuring and Related Costs
Restructuring and Related Costs | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring and Related Costs In December of 2018, the Company implemented a restructuring initiative (the “2018 Restructuring Plan”) as part of a comprehensive review of the Company's operations and ongoing integration activities in order to optimize resources for future growth, improve efficiencies and address redundancies following the acquisition of Telecom Holding Parent LLC (“Coriant”), a privately held global supplier of open network solutions for the largest global network operators (the “Acquisition”). As part of the 2018 Restructuring Plan, the Company made several changes to help its research and development efficiency, with consolidation of its manufacturing and development sites, including closure of its Berlin, Germany site, reduction of headcount at its Munich, Germany site, process changes to leverage the Company's engineering and product line development resources across regions and prioritization of research and development initiatives. As of June 27, 2020, the Berlin and Munich initiatives were substantially completed, with some remaining payments to be made in 2020. During the three months ended June 27, 2020, the Company implemented another restructuring initiative (the "2020 Restructuring Plan") primarily intended to reduce costs. As of June 27, 2020, the cost reduction initiatives under this plan have been substantially completed, with payments to be made by the first half of 2021. Additional restructuring initiatives may continue as the Company shifts to transformation initiatives. In connection with the Acquisition, the Company assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans consisting of termination benefits primarily comprised of severance payments. These costs are recorded at estimated fair value. The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2020 Restructuring Plan, the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the Company's earlier restructuring initiatives (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 27, 2020 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 1,574 $ 3,321 $ 2,676 $ 5,951 Lease related impairment charges 15 1,398 59 4,343 Asset impairment 2 378 14 383 Total $ 1,591 $ 5,097 $ 2,749 $ 10,677 Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 1,264 $ 2,390 $ 21,961 $ 8,240 Lease related impairment charges — 1,081 — 12,419 Asset impairment 600 — 1,369 — Total $ 1,864 $ 3,471 $ 23,330 $ — $ 20,659 Restructuring liabilities are reported within accrued expenses, operating lease liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands): December 28, 2019 Charges Cash Non-cash Settlements and Other June 27, 2020 Severance and related expenses $ 28,565 $ 8,627 $ (20,947 ) $ (874 ) $ 15,371 Lease related impairment charges — 4,402 (2,820 ) (1,582 ) — Asset impairment — 397 (28 ) (369 ) — Others 838 — (252 ) 7 593 Total $ 29,403 $ 13,426 $ (24,047 ) $ (2,818 ) $ 15,964 As of June 27, 2020 , the Company's restructuring liability was comprised of $15.4 million of severance and related expenses, of which $5.0 million is related to assumed restructuring liabilities associated with Coriant's previous restructuring and reorganization plans and is expected to be paid by 2022. Out of the remaining, $7.4 million is primarily related to the 2018 Restructuring Plan and is expected to be substantially paid by the end of 2020 and $3.0 million is related to the 2020 Restructuring Plan expected to be substantially paid by the first half of 2021. The Company's restructuring liability as of June 27, 2020 also comprised of $0.6 million related to service agreements that were determined to have no future use. The Company expects the payments related to the service agreements to be fully paid by the second quarter of 2021. Other and non-cash settlements primarily include foreign exchange impact on settlement of restructuring liability and impairment of right of use asset. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 27, 2020 | |
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 six months ended June 27, 2020 (in thousands): Foreign Currency Translation Accumulated Tax Effect Actuarial Gain (Loss) on Pension Total Balance at December 28, 2019 $ (28,308 ) $ (964 ) $ (5,367 ) $ (34,639 ) Other comprehensive income (loss) before reclassifications 6,962 — (808 ) 6,154 Amounts reclassified from accumulated other comprehensive loss — — 919 919 Net current-period other comprehensive income 6,962 — 111 7,073 Balance at June 27, 2020 $ (21,346 ) $ (964 ) $ (5,256 ) $ (27,566 ) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using net loss and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding in-the-money stock options, assumed release of outstanding restricted stock units (“RSUs”) and performance shares (referred to herein as the “PSUs”), and assumed issuance of common stock under the Company’s 2007 Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method. Potentially dilutive common shares also include the assumed conversion of $402.5 million in aggregate principal amount of its 2.125% convertible senior notes due September 1, 2024 (the “2024 Notes”) from the conversion spread (as further discussed in Note 12, “Debt” to the Notes to Condensed Consolidated Financial Statements) and $200 million in aggregate principal amount of its 2.50% convertible senior notes due March 1, 2027 (the “2027 Notes”) from the conversion spread (as further discussed in Note 12, “Debt” to the Notes to Condensed Consolidated Financial Statements). The Company would include the dilutive effects of the 2024 Notes and 2027 Notes in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the 2024 Notes and 2027 Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the 2024 Notes and 2027 Notes being converted, therefore, only the conversion spread relating to the 2024 Notes and 2027 Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. The Company includes the common shares underlying PSUs in the calculation of diluted net income per common share only when they become contingently issuable. The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Net loss $ (61,635 ) $ (113,656 ) $ (160,903 ) $ (235,257 ) Weighted average common shares outstanding - basic and diluted 185,596 178,677 183,810 177,542 Net loss per common share - basic and diluted $ (0.33 ) $ (0.64 ) $ (0.88 ) $ (1.33 ) The Company incurred net losses during the three months ended June 27, 2020 and June 29, 2019 , and as a result, potential common shares from stock options, RSUs, PSUs and the assumed release of outstanding shares under the ESPP were not included in the diluted shares used to calculate net loss per share, as their inclusion would have been anti-dilutive. Additionally, due to the net loss position during these periods, the Company excluded the potential shares issuable upon conversion of the 2024 Notes and the 2027 Notes in the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. 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 Six Months Ended June 27, June 29, June 27, June 29, Stock options outstanding 605 970 605 970 RSUs 13,431 11,148 15,323 11,810 PSUs 3,582 2,196 3,820 2,398 ESPP shares — — 263 663 Total 17,618 14,314 20,011 15,841 |
Debt
Debt | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2.50% Convertible Senior Notes due March 1, 2027 In March 2020, the Company issued the 2027 Notes due on March 1, 2027, unless earlier repurchased, redeemed or converted. The 2027 Notes are governed by an indenture dated as of March 9, 2020 (the “2027 Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2027 Notes are unsecured, and the 2027 Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of the Company's other securities by the Company. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2020. The net proceeds to the Company were approximately $193.3 million after deducting initial purchasers' fee and other debt issuance costs. The Company intends to use the net proceeds for general corporate purposes, including working capital to fund growth and potential strategic projects. Upon conversion, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the 2027 Notes. For any remaining conversion obligation, the Company intends to pay or deliver, as the case may be, either cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election. The initial conversion rate is 130.5995 shares of common stock per $1,000 principal amount of 2027 Notes, subject to anti-dilution adjustments, which is equivalent to a conversion price of approximately $7.66 per share of common stock. Throughout the term of the 2027 Notes, the conversion rate may be adjusted upon the occurrence of certain events, including for any cash dividends. Holders of the 2027 Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a 2027 Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Prior to December 1, 2026, holders may convert their 2027 Notes under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ended on June 27, 2020 (and only during such fiscal quarter) if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls any or all of the 2027 Notes for redemption, such 2027 Notes called for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; • upon the occurrence of specified corporate events described under the 2027 Indenture, such as a consolidation, merger or binding share exchange; or • at any time on or after December 1, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2027 Notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change as defined in the 2027 Indenture governing the 2027 Notes, holders may require the Company to repurchase for cash all or any portion of their 2027 Notes at a repurchase price equal to 100% of the principal amount of the 2027 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, upon the occurrence of a “make-whole fundamental change” (as defined in the 2027 Indenture), the Company may, in certain circumstances, be required to increase the conversion rate by a number of additional shares for a holder that elects to convert its 2027 Notes in connection with such make-whole fundamental change. The net carrying amounts of the debt obligation were as follows (in thousands): June 27, Principal $ 200,000 Unamortized discount (1) (67,915 ) Unamortized issuance cost (1) (4,191 ) Net carrying amount $ 127,894 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2027 Notes, which is approximately 80 months. As of June 27, 2020, the carrying amount of the equity component of the 2027 Notes was $67.8 million . In accounting for the issuance of the 2027 Notes, the Company separated the 2027 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2027 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the 2027 Notes. The Company allocated the total issuance costs incurred to the liability and equity components of the 2027 Notes based on their relative values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the 2027 Notes and will be amortized as interest expense over the term of the 2027 Notes. The issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The Company recorded a deferred tax liability of $16.2 million in connection with the issuance of the 2027 Notes, and a corresponding reduction in valuation allowance. The impact of both was recorded to stockholders' equity. The Company determined that the embedded conversion option in the 2027 Notes does not require separate accounting treatment as a derivative instrument because it is both indexed to the Company’s own stock and would be classified in stockholders’ equity if freestanding. The following table sets forth total interest expense recognized related to the 2027 Notes (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 27, 2020 Contractual interest expense $ 1,250 $ 1,524 Amortization of debt issuance costs 110 137 Amortization of debt discount 1,778 2,218 Total interest expense $ 3,138 $ 3,879 For the three and six months ended June 27, 2020, the debt discount and debt issuance costs for the 2027 Notes were amortized, using an annual effective interest rate of 9.92% , to interest expense over the term of the 2027 Notes. As of June 27, 2020, the fair value of the 2027 Notes was $195.5 million . The fair value was determined based on the quoted bid price of the 2027 Notes in an over-the-counter market on June 27, 2020 (the last trading day of the fiscal quarter). The 2027 Notes are classified as Level 2 of the fair value hierarchy. Based on the closing price of the Company’s common stock of $5.96 per share as reported on the Nasdaq Stock Market on June 26, 2020 (the last trading day of the fiscal quarter), the if-converted value of the 2027 Notes did not exceed their principal amount. Asset-based revolving credit facility On August 1, 2019, the Company entered into a Credit Agreement (the "Credit Agreement") with Wells Fargo Bank. The Credit Agreement provides for a senior secured asset-based revolving credit facility of up to $100 million (the "Credit Facility"), which the Company may draw upon from time to time. The Company may increase the total commitments under the Credit Facility by up to an additional $50 million , subject to certain conditions. The Credit Agreement provides for a $50 million letter of credit sub-facility and a $10 million swing loan sub-facility. On December 23, 2019, the Company exercised its option to increase the total commitments under the Credit Facility and entered into an Increase Joinder and Amendment Number One to Credit Agreement (the “Amendment”), with BMO Harris Bank N.A. and Wells Fargo Bank, National Association, as administrative agent. The Amendment increased the total commitments under the Credit Facility to $150 million . The proceeds of the loans under the Credit Agreement, as amended by the Amendment (the “Amended Credit Agreement”) may be used to pay the fees, costs and expenses incurred in connection with the Amended Credit Agreement and for working capital and general corporate purposes. The Credit Facility matures, and all outstanding loans become due and payable, on March 5, 2024. Availability under the Credit Facility is based upon periodic borrowing base certifications valuing certain inventory and accounts receivable, as reduced by certain reserves. The Credit Facility is secured by first-priority security interest (subject to certain exceptions) in inventory, certain related assets, specified deposit accounts, and certain other accounts in certain domestic subsidiaries. Loans under the Amended Credit Agreement bear interest, at the Company's option, at either a rate based on LIBOR for the applicable interest period or a base rate, in each case plus a margin. The margin ranges from 2.00% to 2.50% for LIBOR rate loans and 1.00% to 1.50% for base rate loans, depending on the utilization of the Credit Facility. The commitment fee payable on the unused portion of the Credit Facility ranges from 0.375% to 0.625% per annum, also based on the current utilization of the Credit Facility. The letter of credit will accrue a fee at a per annum rate equal to the applicable LIBOR rate margin times the average amount of the letter of credit usage during the immediately preceding quarter in addition to the fronting fees, commissions and other fees. The Amended Credit Agreement contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates. The Amended Credit Agreement also contains customary covenants that limit the ability of the Company and its subsidiaries to, among other things, incur debt, create liens and encumbrances, engage in certain fundamental changes, dispose of assets, prepay certain indebtedness, make restricted payments, make investments, and engage in transactions with affiliates. The Amended Credit Agreement also contains a financial covenant that requires the Company to maintain a minimum amount of liquidity and customary events of default. In connection with the Credit Facility, the Company incurred lender and other third-party costs of approximately $5.1 million for the period ended December 28, 2019, which are recorded as a deferred asset and are amortized to interest expense using a straight-line method over the term of the Credit Facility. For the three and six months ended June 27, 2020 , the Company recorded $0.3 million and $0.6 million , respectively, as amortization of deferred debt issuance cost and $1.0 million and $2.1 million , respectively, as contractual interest expense and related charges. As of June 27, 2020, $77.0 million was outstanding under the Credit Facility, which was included in long-term debt. As of June 27, 2020 , the Company had availability of $57.3 million under the Credit Facility and had letters of credit outstanding of approximately $15.7 million . Finance Assistance Agreement During March 2019, the Company signed an agreement with a third-party contract manufacturer that governs the transfer of the activities from the legacy Coriant manufacturing facility in Berlin, Germany to a third-party contract manufacturer. Subsequently in May 2019, the Company entered into a financing assistance agreement with the contract manufacturer whereby the contract manufacturer agreed to provide funding of up to $40.0 million to cover severance, retention and other costs associated with the transfer. The funding is secured against certain foreign assets, carries a fixed interest rate of 6% and is repayable in 12 months from the date of each draw down. As of June 27, 2020 , $27.3 million w as outstanding, which was included in short-term debt. 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 approximately $0.1 million eac h with the remaining unpaid principal balance plus accrued unpaid interest due five years from the date of the loan. As of June 27, 2020 , $8.2 million remained outstanding, of which $0.4 million was included in short-term debt and $7.8 million was included in long-term debt. 2.125% Convertible Senior Notes due September 1, 2024 In September 2018, the Company issued the 2024 Notes due on September 1, 2024, unless earlier repurchased, redeemed or converted. The 2024 Notes are governed by a base indenture dated as of September 11, 2018 and a first supplemental indenture dated as of September 11, 2018 (together, the “2024 Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2024 Notes are unsecured, and the 2024 Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of the Company's other securities by the Company. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, which commenced on March 1, 2019. The net proceeds to the Company were approximately $391.4 million , of which approximately $48.9 million was used to pay the cost of the capped call transactions with certain financial institutions (“Capped Calls”). The Company also used a portion of the remaining net proceeds to fund the cash portion of the purchase price of the Acquisition, including fees and expenses relating thereto, and intends to use the remaining net proceeds for general corporate purposes. The Capped Calls have an initial strike price of $9.87 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2024 Notes. The Capped Calls have initial cap prices of $15.19 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 40.8 million shares of common stock. The Capped Calls transactions are expected generally to reduce or offset potential dilution to the Company's common stock upon any conversion of the 2024 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2024 Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls expire on various dates between July 5, 2024 and August 29, 2024. The Capped Calls were recorded as a reduction of the Company’s stockholders’ equity in the accompanying condensed consolidated balance sheets. Upon conversion, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the 2024 Notes. For any remaining conversion obligation, the Company intends to pay or deliver, as the case may be, either cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election. The initial conversion rate is 101.2812 shares of common stock per $1,000 principal amount of 2024 Notes, subject to anti-dilution adjustments, which is equivalent to a conversion price of approximately $9.87 per share of common stock. Throughout the term of the 2024 Notes, the conversion rate may be adjusted upon the occurrence of certain events, including for any cash dividends. Holders of the 2024 Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a 2024 Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Prior to June 1, 2024, holders may convert their 2024 Notes under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ended on December 29, 2018 (and only during such fiscal quarter) if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls the 2024 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; • upon the occurrence of specified corporate events described under the 2024 Indenture, such as a consolidation, merger or binding share exchange; or • at any time on or after June 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2024 Notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change as defined in the 2024 Indenture governing the 2024 Notes, holders may require the Company to repurchase for cash all or any portion of their 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, upon the occurrence of a “make-whole fundamental change” (as defined in the 2024 Indenture), the Company may, in certain circumstances, be required to increase the conversion rate by a number of additional shares for a holder that elects to convert its 2024 Notes in connection with such make-whole fundamental change. The net carrying amounts of the debt obligation were as follows (in thousands): June 27, December 28, 2019 Principal $ 402,500 $ 402,500 Unamortized discount (1) (100,173 ) (109,652 ) Unamortized issuance cost (1) (6,539 ) (7,158 ) Net carrying amount $ 295,788 $ 285,690 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2024 Notes, which is approximately 51 months . As of June 27, 2020 , the carrying amount of the equity component of the 2024 Notes was $128.7 million . In accounting for the issuance of the 2024 Notes, the Company separated the 2024 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2024 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the 2024 Notes. The Company allocated the total issuance costs incurred to the liability and equity components of the 2024 Notes based on their relative values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the 2024 Notes and will be amortized as interest expense over the term of the 2024 Notes. The issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The Company recorded a deferred tax liability of $30.9 million in connection with the issuance of the 2024 Notes, and a corresponding reduction in valuation allowance. The impact of both was recorded to stockholders' equity. The Company determined that the embedded conversion option in the 2024 Notes does not require separate accounting treatment as a derivative instrument because it is both indexed to the Company’s own stock and would be classified in stockholders’ equity if freestanding. The following table sets forth total interest expense recognized related to the 2024 Notes for the three and six months ended June 27, 2020 and June 29, 2019 (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Contractual interest expense $ 2,138 $ 2,138 $ 4,276 $ 4,277 Amortization of debt issuance costs 313 284 619 561 Amortization of debt discount 4,799 4,348 9,479 8,589 Total interest expense $ 7,250 $ 6,770 $ 14,374 $ 13,427 For the three and six months ended June 27, 2020 , the debt discount and debt issuance costs were amortized, using an annual effective interest rate of 9.92% , to interest expense over the term of the 2024 Notes. As of June 27, 2020 , the fair value of the 2024 Notes was $344.6 million . The fair value was determined based on the quoted bid price of the 2024 Notes in an over-the-counter market on June 27, 2020 (the last trading day of the fiscal quarter). The 2024 Notes are classified as Level 2 of the fair value hierarchy. Based on the closing price of the Company’s common stock of $5.96 per share as reported on the Nasdaq Stock Market on June 26, 2020 (the last trading day of the fiscal quarter), the if-converted value of the 2024 Notes did not exceed their principal amount. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "Debt" to the Notes to Condensed Consolidated Financial Statements for more information. Legal Matters Oyster Optics LLC I On November 23, 2016, Oyster Optics, LLP (“Oyster Optics”) filed a complaint against the Company in the United States District Court for the Eastern District of Texas. The complaint asserts infringement of U.S. Patent Nos. 6,469,816, 6,476,952, 6,594,055, 7,099,592, 7,620,327 (the “’327 patent”), 8,374,511 (the “’511 patent”) and 8,913,898 (the “’898 patent”). Collectively, the asserted patents are referred to herein as the “Oyster Optics patents in suit.” The complaint seeks unspecified damages and a permanent injunction. The Company filed its answer to Oyster Optics’ complaint on February 3, 2017. The Company filed two petitions for Inter Partes Review (“IPR”) of the ‘898 patent with the U.S. Patent and Trademark Office (“USPTO”). Other defendants have filed IPR petitions in connection with the remaining Oyster Optics patents in suit. The USPTO instituted two IPRs of the ‘511 patent and two IPRs of the ‘898 patent but denied IPR petitions in connection with the ‘327 patent. A first Markman decision issued on December 5, 2017 and fact discovery closed on December 22, 2017. Oyster Optics dropped the ‘511 and ‘898 patents, leaving only a few claims in the ‘327 patent at issue in the case. Oyster Optics LLC II On May 15, 2018, Oyster Optics filed a second patent infringement complaint in the United States District Court for the Eastern District of Texas, naming the Company as a defendant. In its new complaint, Oyster Optics alleges infringement of the ‘327 patent, ‘898 patent and U.S. Patent No. 9,749,040. On June 8, 2018, the court granted the parties’ joint motion to sever and consolidate the first-filed lawsuit with the later filed case. The Company filed its answer to the new complaint on July 16, 2018. On October 26, 2018, the Company filed an amended answer to include a license defense based on a license agreement dated June 28, 2018 by and between Oyster Optics and several subsidiaries of Coriant (now one of the Company’s affiliated subsidiaries). The Company also filed a motion for summary judgment based on the license defense on November 29, 2018. On June 25, 2019, the court granted the Company’s motion for summary judgment and on June 28, 2019, the court entered a final judgment for the Company. On July 22, 2019, Oyster Optics filed an appeal of the court’s decision with the Court of Appeals for the Federal Circuit. Oyster filed its opening brief on November 20, 2019. The Company filed its responsive brief on January 29, 2020, and Oyster filed its reply brief on March 13, 2020. Oral argument in connection with Oyster’s appeal is scheduled for September 2, 2020. The Company believes that it does not infringe any valid and enforceable claim of the Oyster Optics patents in suit and intends to defend this action vigorously. The Company is currently unable to predict the outcome of this litigation at this time and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. Oyster Optics LLC III On July 29, 2019, Oyster Optics filed a third complaint against the Company, Coriant (USA) Inc., Coriant North America, LLC and Coriant Operations, Inc. in the United States District Court for the Eastern District of Texas. The complaint asserts infringement of U.S. Patent No. 6,665,500 (the “Oyster III patent in suit”). The complaint seeks unspecified damages and a permanent injunction. On October 7, 2019, the Company filed its answer to the complaint asserting among other things, counterclaims and defenses based on non-infringement, invalidity, and a license to the Oyster III patent in suit. On October 28, 2019, Oyster filed an amended complaint. On December 3, 2019, the Company filed a motion to dismiss certain claims based on certain allegations made by Oyster in their amended complaint. On December 27, 2019, the Company filed petitions IPR petitions with the USPTO, in which the Company requested the USPTO to invalidate the asserted claims of the Oyster III patent in suit , and the Company filed on January 17, 2020, a motion to stay to the case pending a decision of the validity of the Oyster III patent in suit by the USPTO. Oyster Optics submitted its response to the Company’s IPR petitions on April 13, 2020, and the Company filed its answer to Oyster’s amended complaint on April 14, 2020. In connection with the Company’s IPR petitions, the USPTO issued an order on June 8, 2020, requesting additional briefing on the issue of why the Company filed two IPR petitions instead of one. The Company filed its reply to the USPTO order on June 16, 2020, and Oyster submitted its sur-reply on June 18, 2020. On June 26, 2020, the USPTO instituted some of the Company’s IPR claims and rejected others. On July 17, 2020. the Court denied the Company's motion to stay the proceedings. The Company believes that it does not infringe any valid and enforceable claim of the Oyster III patent in suit and intends to defend this action vigorously. The Company is unable to predict the outcome of this litigation at this time and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. Civil Investigative Demand On June 8, 2017, a Civil Investigative Demand was issued to Coriant pursuant to a False Claims Act investigation by the U.S. government as to whether there has been any violation of 31 U.S.C. §3729. Coriant provided documents and other responses to the U.S. government, and the Company will continue to cooperate in the ongoing investigation. On June 17, 2020, representatives from the Department of Justice and the U.S. Attorney’s Office for the District of Columbia confirmed that they have closed their investigation files relating to this matter. Capella Photonics, Inc. On March 17, 2020, Capella Photonics, Inc. ("Capella") filed a complaint in the U.S. District Court for the Eastern District of Texas against the Company, Tellabs, Inc., Coriant Operations, Inc., Coriant America Inc., and Coriant (USA) Inc.), alleging infringement of Capella U.S. Reissue Patent Nos. RE47,905 and RE47,906 (the "Capella Patents," which are reissued versions of the patents Capella previously asserted in a prior lawsuit). The complaint alleges infringement of the Capella Patents against certain legacy Coriant platforms. The complaint seeks unspecified damages and a permanent injunction. The Company filed answers to the complaint on May 29, 2020. On July 6, 2020, the Company filed a motion seeking to transfer the case to the Northern District of California, which motion remains pending at this time. The Company believes that it does not infringe any valid and enforceable claim of the Capella Patents, and intends to defend this action vigorously. The Company is unable to predict the outcome of this litigation at this time and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. In addition to the matters described above, the Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material effect on its consolidated financial position, results of operations or cash flows. Loss Contingencies The Company is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. In the preparation of its quarterly and annual financial statements, the Company considers the likelihood of loss or the incurrence of a liability, including whether it is probable, reasonably possible or remote that a liability has been incurred, as well as the Company’s ability to reasonably estimate the amount of loss, in determining loss contingencies. In accordance with U.S. GAAP, an estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. As of June 27, 2020 and December 28, 2019, 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 | 6 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2007 Equity Incentive Plan, 2016 Equity Incentive Plan, 2019 Inducement Equity Incentive Plan and Employee Stock Purchase Plan In February 2007, the Company’s board of directors adopted the 2007 Equity Incentive Plan (the “2007 Plan”) and the Company’s stockholders approved the 2007 Plan in May 2007. The Company reserved a total of 46.8 million shares of common stock for issuance under the 2007 Plan. Upon stockholder approval of the 2016 Equity Incentive Plan (the “2016 Plan”), the Company has ceased granting equity awards under the 2007 Plan, however the 2007 Plan will continue to govern the terms and conditions of the outstanding options and awards previously granted under the 2007 Plan. As of June 27, 2020 , options to purchase 0.6 million shares of the Company's common stock were outstanding and an insignificant number of RSUs were outstanding under the 2007 Plan. In February 2016, the Company's board of directors adopted the 2016 Plan and the Company's stockholders approved the 2016 Plan in May 2016. In May 2018, May 2019 and May 2020, the Company's stockholders approved an amendment to the 2016 Plan to increase the number of shares authorized for issuance under the 2016 Plan by 1.5 million shares, 7.3 million shares and 8.1 million shares, respectively. As of June 27, 2020 , the Company reserved a total of 30.8 million shares of common stock for the award of stock options, RSUs and PSUs to employees, non-employees, consultants and members of the Company's board of directors, pursuant to the 2016 Plan, plus any shares subject to awards granted under the 2007 Plan that, after the effective date of the 2016 Plan, expire, are forfeited or otherwise terminate without having been exercised in full to the extent such awards were exercisable, and shares issued pursuant to awards granted under the 2007 Plan that, after the effective date of the 2016 Plan, are forfeited to or repurchased by the Company due to failure to vest. The 2016 Plan has a maximum term of 10 years from the date of adoption, or it can be earlier terminated by the Company's board of directors. The 2007 Plan was canceled; however, it continues to govern outstanding grants under the 2007 Plan. The ESPP was adopted by the board of directors in February 2007 and approved by the stockholders in May 2007. The ESPP was last amended by the stockholders in May 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 15% of the employee’s compensation and employees may not purchase more than 3,000 shares per purchase period and $25,000 of stock during any calendar year. Stock-based Compensation Plans The Company has stock-based compensation plans pursuant to which the Company has granted stock options, RSUs and PSUs. The Company also has an ESPP for all eligible employees. The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 730 $ 8.41 $ — Options granted — $ — Options exercised — $ — $ — Options canceled (125 ) $ 8.81 Outstanding at June 27, 2020 605 $ 8.33 $ — Exercisable at June 27, 2020 605 $ 8.33 Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 11,600 $ 6.20 $ 90,254 RSUs granted 6,611 $ 5.85 RSUs released (4,275 ) $ 6.48 $ 25,037 RSUs canceled (505 ) $ 6.59 Outstanding at June 27, 2020 13,431 $ 5.96 $ 80,051 Number of Performance Stock Units Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 2,505 $ 6.48 $ 19,485 PSUs granted 1,628 $ 5.89 PSUs released (273 ) $ 9.23 $ 1,606 PSUs canceled (278 ) $ 7.67 Outstanding at June 27, 2020 3,582 $ 5.96 $ 21,352 Expected to vest at June 27, 2020 3,545 $ 21,128 The aggregate intrinsic value of unexercised stock options is calculated as the difference between the closing price of the Company’s common stock of $5.96 at June 26, 2020 (the last trading day of the fiscal quarter) and the exercise prices of the underlying stock options. The aggregate intrinsic value of the stock options that have been exercised is calculated as the difference between the fair market value of the common stock at the date of exercise and the exercise price of the underlying stock options. The aggregate intrinsic value of unreleased RSUs and unreleased PSUs is calculated using the closing price of the Company's common stock of $5.96 at June 26, 2020 (the last trading day of the fiscal quarter). The aggregate intrinsic value of RSUs and PSUs released is calculated using the fair market value of the common stock at the date of release. The following table presents total stock-based compensation cost for instruments granted but not yet amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of June 27, 2020 . 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 Compensation Expense, Net Weighted Average Period (in Years) RSUs $ 67,833 2.24 PSUs $ 12,819 2.54 Employee Stock Options The Company did no t grant any stock options during the six months ended June 27, 2020 and June 29, 2019. Unamortized expense at the beginning of both periods was zero. 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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Volatility 42% 72% 42% 72% Risk-free interest rate 1.56% 2.48% 1.56% 2.48% Expected life 0.5 years 0.5 years 0.5 years 0.5 years Estimated fair value $2.17 $1.77 $2.17 $1.77 Total stock-based compensation expense $1,348 $796 $2,861 $2,112 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 and six months ended June 27, 2020 was approximately $9.8 million and $18.1 million , respectively, and for the three and six months ended June 29, 2019 was approximately $10.1 million and $16.1 million , respectively. Performance Stock Units Pursuant to the 2016 Plan, the Company has granted PSUs to certain of the Company’s executive officers, senior management and certain employees. All PSUs awarded are subject to each individual's continued service to the Company through each applicable vesting date and if the performance metrics are not met within the time limits specified in the award agreements, the PSUs will be canceled. PSUs granted to the Company’s executive officers and senior management under the 2016 Plan during 2017 and the first half of 2018 are based on the TSR of the Company's common stock price relative to the TSR of the individual companies listed in the S&P North American Technology Multimedia Networking Index (“SPGIIPTR”) over the span of one year , two years and three years . The number of shares to be issued upon vesting of these PSUs range from zero to two times the target number of PSUs granted depending on the Company’s performance against the individual companies listed in the SPGIIPTR. The ranges of estimated values of the PSUs granted that are compared to the SPGIIPTR, as well as the assumptions used in calculating these values were based on estimates as follows: 2018 2017 Index volatility 33% 33% - 34% Infinera volatility 58% - 59% 55% - 56% Risk-free interest rate 2.37% - 2.40% 1.41% - 1.63% Correlation with index/index component 0.04 - 0.48 0.10 - 0.49 Estimated fair value $14.99 - $19.46 $15.23 - $17.35 PSUs granted to the Company's executive officers and senior management under the 2016 Plan during 2019 and the first quarter of 2020 are based on performance criteria related to a specific financial target over the span of a three-year performance period. These PSUs may become eligible for vesting to begin before the end of the three-year performance period, if the applicable financial target is met. The number of shares to be issued upon vesting of these PSUs are capped at the target number of PSUs granted. Certain other employees were awarded PSUs that will only vest upon the achievement of specific financial and operational performance criteria. In addition, in 2019, one of the Company's executive officers was awarded a PSU that will be eligible to vest if the market price condition is met. The assumptions used in calculating the estimated values of this award granted in fiscal 2019 were based upon Monte Carlo Model Assumptions and estimates as follows: 2019 Index volatility N/A Infinera volatility 64% - 68% Risk-free interest rate 2.17% - 2.48% Correlation with index/index component N/A Estimated fair value $2.08 - $2.89 The following table summarizes by grant year, the Company’s PSU activity for the six months ended June 27, 2020 (in thousands): Total Number of Performance Stock Units 2017 2018 2019 2020 Outstanding at December 28, 2019 2,505 199 270 2,036 — PSUs granted 1,628 — — — 1,628 PSUs released (273 ) (104 ) (109 ) (60 ) — PSUs canceled (278 ) (95 ) (36 ) (119 ) (28 ) Outstanding at June 27, 2020 3,582 — 125 1,857 1,600 Amortization of stock-based compensation expense related to PSUs for the three and six months ended June 27, 2020 was approximately $1.4 million and $3.0 million , respectively, and for the three and six months ended June 29, 2019 was approximately $2.4 million and $4.1 million , respectively. Stock-Based Compensation The following tables summarize the effects of stock-based compensation on the Company’s consolidated balance sheets and statements of operations for the periods presented (in thousands): June 27, December 28, Stock-based compensation effects in inventory $ 4,242 $ 4,798 Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Stock-based compensation effects included in net loss before income taxes Cost of revenue $ 779 $ 663 $ 1,403 $ 1,201 Research and development 4,379 6,127 8,153 9,730 Sales and marketing 2,786 2,099 5,430 3,646 General and administration 3,548 3,230 6,731 5,465 11,492 12,119 21,717 20,042 Cost of revenue – amortization from balance sheet (1) 1,284 928 2,762 1,718 Total stock-based compensation expense $ 12,776 $ 13,047 $ 24,479 $ 21,760 (1) Stock-based compensation expense deferred to inventory in prior periods and recognized in the current period. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the three and six months ended June 27, 2020 represented a tax expense of $2.6 million and $3.6 million on pre-tax losses of $59.0 million and $157.3 million , respectively. This compared to a tax expense of $1.4 million and $1.6 million , on pre-tax losses of $112.3 million and $233.7 million for the three and six months ended June 29, 2019 , respectively. Provision for income taxes increased by approximately $2.0 million during the six months ended June 27, 2020 , compared to the corresponding period in 2019 as a result of additional foreign tax expense. The Company must assess the likelihood that some portion or all of its deferred tax assets will be recovered from future taxable income within the respective jurisdictions. In the past, the Company established a valuation allowance against its deferred tax assets as it determined that its ability to recover the value of these assets did not meet the “more-likely-than-not” standard. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management judgment is required on an on-going basis to determine whether it needs to maintain the valuation allowance recorded against its net deferred tax assets. The Company must consider all positive and negative evidence, including its forecasts of taxable income over the applicable carryforward periods, its current financial performance, its market environment and other factors in evaluating the need for a valuation allowance against its net U.S. deferred tax assets. At June 27, 2020, 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. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act includes several provisions for corporations including increasing the amount of deductible interest, allowing companies to carryback certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. The CARES Act did not have a material impact on the Company's provision for income taxes for the six months ended June 27, 2020. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer (“the CEO”). The CEO reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity as a provider of optical transport networking equipment, software and services. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. Revenue by geographic region is based on the shipping address of the customer. The following tables set forth long-lived assets by geographic region (in thousands): June 27, December 28, 2019 United States $ 116,863 $ 118,656 Other Americas 2,811 2,798 Europe, Middle East and Africa 20,070 21,536 Asia Pacific and Japan 5,366 7,803 Total property, plant and equipment, net $ 145,110 $ 150,793 For more information regarding revenue disaggregated by geography, see Note 4, “Revenue Recognition” to the Notes to Condensed Consolidated Financial Statements. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 27, 2020 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Product Warranties Activity related to product warranty was as follows (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Beginning balance $ 39,462 $ 39,751 $ 43,348 $ 41,021 Charges to operations 6,246 5,277 12,558 10,697 Utilization (7,479 ) (5,786 ) (15,814 ) (11,589 ) Change in estimate (1) (1,146 ) 4,904 (3,009 ) 4,017 Balance at the end of the period $ 37,083 $ 44,146 $ 37,083 $ 44,146 (1) The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair including 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 $37.1 million of standby letters of credit and bank guarantees outstanding as of June 27, 2020 that consisted of $16.9 million related to customer performance guarantees, $0.3 million related to value added tax and customs licenses, $4.6 million related to property leases, $14.6 million related to restructuring plans, $0.6 million related to credit cards and $0.1 million related to suppliers. The Company had $27.9 million of standby letters of credit and bank guarantees outstanding as of December 28, 2019 that consisted of $14.2 million related to customer performance guarantees, $0.4 million related to a value added tax license, $5.9 million related to property leases, $6.8 million related to Coriant's pre-Acquisition restructuring plans, $0.5 million related to credit cards and $0.1 million for other liabilities. As of June 27, 2020 , and December 28, 2019 , the Company had a Credit Facility, which included a $50.0 million letter of credit sub-facility, pursuant to which letters of credit in the amount of $15.7 million and $4.1 million had been issued and outstanding for both periods, respectively. Approximately $180.3 million and $180.9 million of assets of certain Company subsidiaries have been pledged to secure this Credit Facility and other obligations as of June 27, 2020 and December 28, 2019 , respectively. |
Pension and Post-Retirement Ben
Pension and Post-Retirement Benefit Plans | 6 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Post-Retirement Benefit Plans | Pension and Post-Retirement Benefit Plans As a result of the Acquisition, the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as, investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal and economic requirements. 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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 198 $ 874 $ 550 $ 1,230 Interest cost 451 662 816 1,033 Expected return on plan assets (555 ) (1,193 ) (1,224 ) (1,797 ) Amortization of actuarial loss 505 409 918 827 Total net periodic benefit cost $ 599 $ 752 $ 1,060 $ 1,293 The components of net periodic benefit costs other than the service cost component are included in interest and other, 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. All components of net periodic benefit cost are recorded in operating expense of the Company's condensed consolidated statements of operations. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Topic 326, in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. Topic 326 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior U.S. GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted Topic 326 on a modified retrospective basis in the first quarter of 2020 through a cumulative-effect adjustment at the beginning of the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of the Company’s customers, and external market factors. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). This update eliminates, adds and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 was effective for the Company in its first quarter of 2020. The Company adopted ASU 2018-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements. Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (Topic 848), "Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides temporary optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The standard was effective upon issuance and may generally be applied through December 31, 2022 to any new or amended contracts, hedging relationships, and other transactions that reference LIBOR. The Company is currently evaluating the impact the adoption of ASU 2020-04 would have on its consolidated financial statements. In December 2019, FASB issued Accounting Standards Update No. 2019-12, "Simplifying the Accounting for Income Taxes" (“ASU 2019-12”), as part of its simplification initiative. ASU 2019-12 removes certain exceptions from Accounting Standards Codification ("ASC") 740, "Income Taxes" ("ASC 740"), including (i) the exception to the incremental approach for intra period tax allocation when there is a loss from continuing operations and income or a gain from other items such as discontinued operations or other comprehensive income; (ii) the exception to accounting for outside basis differences of equity method investments and foreign subsidiaries; and (iii) the exception to limit tax benefit recognized in interim period in cases when the year-to-date losses exceeds anticipated losses. ASU 2019-12 also simplifies U.S. GAAP in several other areas of ASC 740 such as (i) franchise taxes and other taxes partially based on income; (ii) step-up in tax basis goodwill considered part of a business combination in which the book goodwill was originally recognized or should be considered a separate transaction; (iii) separate financial statements of entities not subject to tax; and (iv) interim recognition of enactment of tax laws or rate changes. ASU 2019-12 is effective for the Company for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2020, with early adoption permitted. The Company elected not to early adopt ASU 2019-12 as of June 27, 2020. The Company is currently evaluating the impact the adoption of ASU 2019-12 would have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). This update eliminates, adds and modifies certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. ASU 2018-14 is effective for the Company in its first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 would have on its consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable operating leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 13,162 2021 19,454 2022 16,040 2023 12,919 2024 10,890 Thereafter 36,613 Total lease payments 109,078 Less: interest (1) 28,245 Present value of lease liabilities $ 80,833 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "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 operating leases for the six months ended June 27, 2020 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 6.89 years Weighted average discount rate 9.12 % Cash paid for amounts included in the measurement of lease liabilities $ 12,919 Operating cash flow from operating leases $ 12,919 Leased assets obtained in exchange for new operating lease liabilities $ 4,501 The following table presents supplemental information for the Company's finance leases for the six months ended June 27, 2020 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 2.63 years Weighted average discount rate 7.00 % Cash paid for amounts included in the measurement of lease liabilities $ 922 Cash flow from finance leases $ 922 Leased assets obtained in exchange for new finance lease liabilities $ — |
Schedule of Finance Lease Liabilities | The following table presents maturity of lease liability under the Company's finance leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 646 2021 1,210 2022 942 2023 411 Thereafter — Total lease payments 3,209 Less: interest 236 Present value of lease liabilities $ 2,973 The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "Debt" to the Notes to Condensed Consolidated Financial Statements for more information. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Product $ 261,227 $ 226,866 $ 516,419 $ 449,873 Services 70,360 69,384 145,441 139,084 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 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 geography, based on the shipping address of the customer (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, United States $ 166,223 $ 133,213 $ 336,749 $ 265,735 Other Americas 25,832 29,535 45,520 44,667 Europe, Middle East and Africa 97,168 90,467 185,746 189,459 Asia Pacific 42,364 43,035 93,845 89,096 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 The following table presents the Company's revenue disaggregated by sales channel (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Direct $ 268,326 $ 241,017 $ 512,677 $ 489,213 Indirect 63,261 55,233 149,183 99,744 Total revenue $ 331,587 $ 296,250 $ 661,860 $ 588,957 |
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): June 27, December 28, 2019 Accounts receivable, net $ 289,107 $ 349,645 Contract assets $ 28,262 $ 22,814 Deferred revenue $ 127,232 $ 139,820 |
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) on contracts that are not subject to cancellation without penalty at the end of the reporting period (in thousands): Remainder of 2020 2021 2022 2023 2024 Thereafter Total Revenue expected to be recognized in the future as of June 27, 2020 $ 401,347 $ 40,971 $ 8,662 $ 3,107 $ 1,449 $ 193 $ 455,729 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands): As of June 27, 2020 As of December 28, 2019 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Total Level 1 Level 2 Total Liabilities Foreign currency exchange forward contracts $ — $ (32 ) $ (32 ) $ — $ (159 ) $ (159 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments not Designated as Hedging Instruments | The fair value of derivative instruments not designated as hedging instruments in the Company’s condensed consolidated balance sheets was as follows (in thousands): As of June 27, 2020 As of December 28, 2019 Gross Notional (1) Other Accrued Liabilities Gross (1) Other Foreign currency exchange forward contracts Related to euro denominated receivables $ 542 $ (32 ) $ 27,566 $ (159 ) $ 542 $ (32 ) $ 27,566 $ (159 ) (1) Represents the face amounts of forward contracts that were outstanding as of the end of the period noted. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents details of the Company’s goodwill during the three months ended June 27, 2020 (in thousands): Balance as of December 28, 2019 $ 249,848 Foreign currency translation adjustments 1,202 Balance as of June 27, 2020 $ 251,050 |
Schedule of Finite-Lived Intangible Assets | The following tables present details of the Company’s intangible assets as of June 27, 2020 and December 28, 2019 (in thousands, except for weighted average data): June 27, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (1,000 ) $ — *NMF* Customer relationships and backlog 156,256 (77,524 ) 78,732 5.4 Developed technology 180,303 (115,273 ) 65,030 3.4 Total intangible assets with finite lives $ 337,559 $ (193,797 ) $ 143,762 *NMF = Not meaningful December 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Trade names $ 1,000 $ (1,000 ) $ — *NMF* Customer relationships and backlog 155,942 (68,119 ) 87,823 5.8 179,593 (97,070 ) 82,523 3.5 Total intangible assets with finite lives $ 336,535 $ (166,189 ) $ 170,346 *NMF = Not meaningful |
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 June 27, 2020 (in thousands): Fiscal Years Total Remainder of 2020 2021 2022 2023 2024 2025 and Thereafter Total future amortization expense $ 143,762 $ 20,934 $ 35,332 $ 32,808 $ 26,911 $ 11,983 $ 15,794 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Credit Losses | The following table provides rollforward of the allowance for doubtful accounts for accounts receivable for the six months ended June 27, 2020. Balance as of December 28, 2019 $ 4,005 Adjustment for adoption of new standard 650 Additions (1) 962 Write offs (2) (2,418 ) Recoveries during the period (39 ) Other (3) 23 Balance as of June 27, 2020 $ 3,183 (1) The new additions during the six months ended June 27, 2020 are primarily due to specific reserves. (2) The write offs during the six months ended June 27, 2020 are primarily of amounts fully reserved previously. (3) Primarily represents translation adjustments. |
Schedule of Details of Selected Balance Sheet Items | The following table provides details of selected balance sheet items (in thousands): June 27, December 28, Inventory Raw materials $ 43,364 $ 47,474 Work in process 50,899 48,842 Finished goods 193,896 244,113 Total inventory $ 288,159 $ 340,429 Property, plant and equipment, net Computer hardware $ 33,723 $ 36,086 Computer software (1) 43,619 45,428 Laboratory and manufacturing equipment (2) 312,626 313,081 Land and building 12,349 12,349 Furniture and fixtures 3,261 2,845 Leasehold and building improvements (3) 52,976 52,263 Construction in progress 41,247 27,946 Subtotal 499,801 489,998 Less accumulated depreciation and amortization (4) (354,691 ) (339,205 ) Total property, plant and equipment, net $ 145,110 $ 150,793 Accrued expenses and other current liabilities Loss contingency related to non-cancelable purchase commitments $ 24,426 $ 25,410 Taxes payable 67,585 65,815 Short-term operating lease liability 17,014 18,106 Short-term financing lease obligation 1,104 1,380 Restructuring accrual 14,222 26,706 Other accrued expenses and other current liabilities 47,749 55,751 Total accrued expenses $ 172,100 $ 193,168 (1) Included in computer software at June 27, 2020 and December 28, 2019 were $23.8 million and $23.3 million , respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at June 27, 2020 and December 28, 2019 were $10.4 million and $11.3 million , respectively. (2) Included in laboratory and manufacturing equipment at June 27, 2020 was $2.0 million related to an equipment finance lease entered by the Company for a term of three years with an option to purchase at the end of the three-year term. The finance lease was recorded at $2.0 million using a discount rate of 8.2% and was included in property, plant and equipment, net. (3) Included in leasehold improvements at June 27, 2020 was an equipment finance lease entered into by the Company for a term of five years with an option to purchase at the end of five-year term. The finance lease was recorded at $2.3 million using a discount rate of 5% and was included in property, plant and equipment, net. (4) Depreciation expense was $24.9 million , which includes depreciation of capitalized ERP cost of $1.3 million for the six months ended June 27, 2020 . |
Restructuring and Related Cos_2
Restructuring and Related Costs (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2020 Restructuring Plan, the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the Company's earlier restructuring initiatives (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 27, 2020 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 1,574 $ 3,321 $ 2,676 $ 5,951 Lease related impairment charges 15 1,398 59 4,343 Asset impairment 2 378 14 383 Total $ 1,591 $ 5,097 $ 2,749 $ 10,677 Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Cost of Revenue Operating Expenses Cost of Revenue Operating Expenses Severance and related expenses $ 1,264 $ 2,390 $ 21,961 $ 8,240 Lease related impairment charges — 1,081 — 12,419 Asset impairment 600 — 1,369 — Total $ 1,864 $ 3,471 $ 23,330 $ — $ 20,659 |
Schedule of Restructuring Reserve by Type of Cost | Restructuring liabilities are reported within accrued expenses, operating lease liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands): December 28, 2019 Charges Cash Non-cash Settlements and Other June 27, 2020 Severance and related expenses $ 28,565 $ 8,627 $ (20,947 ) $ (874 ) $ 15,371 Lease related impairment charges — 4,402 (2,820 ) (1,582 ) — Asset impairment — 397 (28 ) (369 ) — Others 838 — (252 ) 7 593 Total $ 29,403 $ 13,426 $ (24,047 ) $ (2,818 ) $ 15,964 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the changes in accumulated other comprehensive loss by component for the six months ended June 27, 2020 (in thousands): Foreign Currency Translation Accumulated Tax Effect Actuarial Gain (Loss) on Pension Total Balance at December 28, 2019 $ (28,308 ) $ (964 ) $ (5,367 ) $ (34,639 ) Other comprehensive income (loss) before reclassifications 6,962 — (808 ) 6,154 Amounts reclassified from accumulated other comprehensive loss — — 919 919 Net current-period other comprehensive income 6,962 — 111 7,073 Balance at June 27, 2020 $ (21,346 ) $ (964 ) $ (5,256 ) $ (27,566 ) |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Net Income (Loss) Per Common Share Basic and Diluted | The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Net loss $ (61,635 ) $ (113,656 ) $ (160,903 ) $ (235,257 ) Weighted average common shares outstanding - basic and diluted 185,596 178,677 183,810 177,542 Net loss per common share - basic and diluted $ (0.33 ) $ (0.64 ) $ (0.88 ) $ (1.33 ) |
Schedule of Antidilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share | The following sets forth the potentially dilutive shares excluded from the computation of the diluted net loss per share because their effect was anti-dilutive (in thousands): Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Stock options outstanding 605 970 605 970 RSUs 13,431 11,148 15,323 11,810 PSUs 3,582 2,196 3,820 2,398 ESPP shares — — 263 663 Total 17,618 14,314 20,011 15,841 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Convertible Senior Notes | e. The net carrying amounts of the debt obligation were as follows (in thousands): June 27, Principal $ 200,000 Unamortized discount (1) (67,915 ) Unamortized issuance cost (1) (4,191 ) Net carrying amount $ 127,894 (1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2027 Notes, which is approximately 80 The net carrying amounts of the debt obligation were as follows (in thousands): June 27, December 28, 2019 Principal $ 402,500 $ 402,500 Unamortized discount (1) (100,173 ) (109,652 ) Unamortized issuance cost (1) (6,539 ) (7,158 ) Net carrying amount $ 295,788 $ 285,690 (1) |
Schedule of Interest Expense Recognized Related To Notes | The following table sets forth total interest expense recognized related to the 2024 Notes for the three and six months ended June 27, 2020 and June 29, 2019 (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Contractual interest expense $ 2,138 $ 2,138 $ 4,276 $ 4,277 Amortization of debt issuance costs 313 284 619 561 Amortization of debt discount 4,799 4,348 9,479 8,589 Total interest expense $ 7,250 $ 6,770 $ 14,374 $ 13,427 The following table sets forth total interest expense recognized related to the 2027 Notes (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 27, 2020 Contractual interest expense $ 1,250 $ 1,524 Amortization of debt issuance costs 110 137 Amortization of debt discount 1,778 2,218 Total interest expense $ 3,138 $ 3,879 |
(Tables)
(Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Liabilities | The following table presents maturity of lease liabilities under the Company's non-cancelable operating leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 13,162 2021 19,454 2022 16,040 2023 12,919 2024 10,890 Thereafter 36,613 Total lease payments 109,078 Less: interest (1) 28,245 Present value of lease liabilities $ 80,833 (1) Calculated using the interest rate for each lease. The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "Debt" to the Notes to Condensed Consolidated Financial Statements for more information. |
Schedule of Finance Lease Liabilities | The following table presents maturity of lease liability under the Company's finance leases as of June 27, 2020 (in thousands): Remainder of 2020 $ 646 2021 1,210 2022 942 2023 411 Thereafter — Total lease payments 3,209 Less: interest 236 Present value of lease liabilities $ 2,973 The following table sets forth commitments and contingencies related to our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "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 our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "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 our various obligations (in thousands): Payments Due by Period (In thousands) Total Remainder of 2020 2021 2022 2023 2024 Thereafter Operating leases (1)(2) 109,078 13,162 19,454 16,040 12,919 10,890 36,613 Financing lease obligations (3) 3,209 646 1,210 942 411 — — 2027 Notes, including interest (4) 234,889 2,389 5,000 5,000 5,000 5,000 212,500 2024 Notes, including interest (4) 440,989 4,277 8,553 8,553 8,553 411,053 — Asset-based revolving credit facility (4) 77,327 327 — — — 77,000 — Financing assistance agreement, including interest (4) 28,953 28,953 — — — — — Mortgage Payable, including interest (4) 9,739 421 841 912 841 6,724 — Total contractual obligations $ 904,184 $ 50,175 $ 35,058 $ 31,447 $ 27,724 $ 510,667 $ 249,113 (1) The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 11 years. The Company has contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, the Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Asset retirement obligations were $4.9 million and $4.7 million as of June 27, 2020 and December 28, 2019, respectively. Of the $4.9 million as of June 27, 2020, $0.3 million is included in accrued expenses and other current liabilities and the remainder is classified as other long-term liabilities on the accompanying condensed consolidated balance sheets. (2) The Company has two finance leases for manufacturing and other equipment. (3) See Note 3, "Leases" to the Notes to Condensed Consolidated Financial Statements for more information. (4) See Note 12, "Debt" to the Notes to Condensed Consolidated Financial Statements for more information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company's Equity Award Activity - Options | The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): Number of Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 730 $ 8.41 $ — Options granted — $ — Options exercised — $ — $ — Options canceled (125 ) $ 8.81 Outstanding at June 27, 2020 605 $ 8.33 $ — Exercisable at June 27, 2020 605 $ 8.33 |
Summary of Company's Equity Award Activity - RSUs | Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 11,600 $ 6.20 $ 90,254 RSUs granted 6,611 $ 5.85 RSUs released (4,275 ) $ 6.48 $ 25,037 RSUs canceled (505 ) $ 6.59 Outstanding at June 27, 2020 13,431 $ 5.96 $ 80,051 |
Summary of Company's Equity Award Activity - PSUs | Number of Performance Stock Units Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding at December 28, 2019 2,505 $ 6.48 $ 19,485 PSUs granted 1,628 $ 5.89 PSUs released (273 ) $ 9.23 $ 1,606 PSUs canceled (278 ) $ 7.67 Outstanding at June 27, 2020 3,582 $ 5.96 $ 21,352 Expected to vest at June 27, 2020 3,545 $ 21,128 |
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 amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of June 27, 2020 . 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 Compensation Expense, Net Weighted Average Period (in Years) RSUs $ 67,833 2.24 PSUs $ 12,819 2.54 |
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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Volatility 42% 72% 42% 72% Risk-free interest rate 1.56% 2.48% 1.56% 2.48% Expected life 0.5 years 0.5 years 0.5 years 0.5 years Estimated fair value $2.17 $1.77 $2.17 $1.77 Total stock-based compensation expense $1,348 $796 $2,861 $2,112 |
Schedule of PSUs Valuation Assumptions | The ranges of estimated values of the PSUs granted that are compared to the SPGIIPTR, as well as the assumptions used in calculating these values were based on estimates as follows: 2018 2017 Index volatility 33% 33% - 34% Infinera volatility 58% - 59% 55% - 56% Risk-free interest rate 2.37% - 2.40% 1.41% - 1.63% Correlation with index/index component 0.04 - 0.48 0.10 - 0.49 Estimated fair value $14.99 - $19.46 $15.23 - $17.35 2019 Index volatility N/A Infinera volatility 64% - 68% Risk-free interest rate 2.17% - 2.48% Correlation with index/index component N/A Estimated fair value $2.08 - $2.89 |
Schedule of Nonvested Performance Based Units Activity by Grant Year | The following table summarizes by grant year, the Company’s PSU activity for the six months ended June 27, 2020 (in thousands): Total Number of Performance Stock Units 2017 2018 2019 2020 Outstanding at December 28, 2019 2,505 199 270 2,036 — PSUs granted 1,628 — — — 1,628 PSUs released (273 ) (104 ) (109 ) (60 ) — PSUs canceled (278 ) (95 ) (36 ) (119 ) (28 ) Outstanding at June 27, 2020 3,582 — 125 1,857 1,600 |
Summary of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations | The following tables summarize the effects of stock-based compensation on the Company’s consolidated balance sheets and statements of operations for the periods presented (in thousands): June 27, December 28, Stock-based compensation effects in inventory $ 4,242 $ 4,798 Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Stock-based compensation effects included in net loss before income taxes Cost of revenue $ 779 $ 663 $ 1,403 $ 1,201 Research and development 4,379 6,127 8,153 9,730 Sales and marketing 2,786 2,099 5,430 3,646 General and administration 3,548 3,230 6,731 5,465 11,492 12,119 21,717 20,042 Cost of revenue – amortization from balance sheet (1) 1,284 928 2,762 1,718 Total stock-based compensation expense $ 12,776 $ 13,047 $ 24,479 $ 21,760 (1) Stock-based compensation expense deferred to inventory in prior periods and recognized in the current period. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Long Lived Assets | The following tables set forth long-lived assets by geographic region (in thousands): June 27, December 28, 2019 United States $ 116,863 $ 118,656 Other Americas 2,811 2,798 Europe, Middle East and Africa 20,070 21,536 Asia Pacific and Japan 5,366 7,803 Total property, plant and equipment, net $ 145,110 $ 150,793 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Guarantees [Abstract] | |
Schedule of Activity Related to Product Warranty | Activity related to product warranty was as follows (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Beginning balance $ 39,462 $ 39,751 $ 43,348 $ 41,021 Charges to operations 6,246 5,277 12,558 10,697 Utilization (7,479 ) (5,786 ) (15,814 ) (11,589 ) Change in estimate (1) (1,146 ) 4,904 (3,009 ) 4,017 Balance at the end of the period $ 37,083 $ 44,146 $ 37,083 $ 44,146 (1) The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair including 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. |
Pension and Post-Retirement B_2
Pension and Post-Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 198 $ 874 $ 550 $ 1,230 Interest cost 451 662 816 1,033 Expected return on plan assets (555 ) (1,193 ) (1,224 ) (1,797 ) Amortization of actuarial loss 505 409 918 827 Total net periodic benefit cost $ 599 $ 752 $ 1,060 $ 1,293 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Sales revenue, net | Customer concentration risk | Customer One | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 13.00% | 13.00% | 12.00% | 12.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Rent expense | $ 6,500,000 | $ 6,700,000 | $ 15,000,000 | $ 23,400,000 | |
Accelerated rent expense | 1,400,000 | 10,200,000 | |||
Short-term operating lease liability | 17,014,000 | 17,014,000 | $ 18,106,000 | ||
Operating lease liabilities - long-term | 63,819,000 | 63,819,000 | 64,210,000 | ||
Finance lease, cost | 200,000 | $ 0 | 500,000 | $ 0 | |
Short-term financing lease obligation | 1,104,000 | 1,104,000 | 1,380,000 | ||
Long-term financing lease obligation | $ 1,869,000 | $ 1,869,000 | $ 2,394,000 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of finance lease | 3 years | 3 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of finance lease | 5 years | 5 years |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 13,162 |
2021 | 19,454 |
2022 | 16,040 |
2023 | 12,919 |
2024 | 10,890 |
Thereafter | 36,613 |
Total lease payments | 109,078 |
Less: interest | 28,245 |
Present value of lease liabilities | $ 80,833 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Leases [Abstract] | ||
Weighted average remaining lease term | 6 years 10 months 20 days | |
Weighted average discount rate | 9.12% | |
Operating cash flow from operating leases | $ 12,919 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 4,501 | |
Weighted average remaining lease term | 2 years 7 months 17 days | |
Weighted average discount rate | 7.00% | |
Cash paid for amounts included in the measurement of lease liabilities | $ 922 | $ 0 |
Leased assets obtained in exchange for new finance lease liabilities | $ 0 |
Leases - Financing Lease Maturi
Leases - Financing Lease Maturity (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 646 |
2021 | 1,210 |
2022 | 942 |
2023 | 411 |
Thereafter | 0 |
Total lease payments | 3,209 |
Less: interest | 236 |
Present value of lease liabilities | $ 2,973 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized cost to obtain contract | $ 0 | $ 0 | $ 200,000 | ||
Amortization expenses | 200,000 | $ 0 | 200,000 | $ 0 | |
Deferred revenue recognized | $ 50,900,000 | $ 30,900,000 | $ 89,500,000 | $ 67,700,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 331,587 | $ 296,250 | $ 661,860 | $ 588,957 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 166,223 | 133,213 | 336,749 | 265,735 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,832 | 29,535 | 45,520 | 44,667 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 97,168 | 90,467 | 185,746 | 189,459 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 42,364 | 43,035 | 93,845 | 89,096 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 261,227 | 226,866 | 516,419 | 449,873 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 70,360 | 69,384 | 145,441 | 139,084 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 268,326 | 241,017 | 512,677 | 489,213 |
Indirect | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 63,261 | $ 55,233 | $ 149,183 | $ 99,744 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 289,107 | $ 349,645 |
Contract assets | 28,262,000 | 22,814 |
Deferred revenue | $ 127,232 | $ 139,820 |
Revenue Recognition - Revenue,
Revenue Recognition - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 455,729 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 401,347 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 40,971 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 8,662 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 3,107 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 1,449 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 27, 2020 | $ 193 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Foreign currency exchange forward contracts - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Liabilities | ||
Derivative liability | $ (32) | $ (159) |
Level 1 | ||
Liabilities | ||
Derivative liability | 0 | 0 |
Level 2 | ||
Liabilities | ||
Derivative liability | $ (32) | $ (159) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 27, 2020 | Dec. 28, 2019 | Jun. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Facilities-related charges | $ 1,400 | $ 4,300 | ||
Cash and cash equivalents held by foreign subsidiaries | 202,782 | 202,782 | $ 109,201 | $ 109,034 |
Foreign Subsidiary | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents held by foreign subsidiaries | $ 66,400 | $ 66,400 | $ 68,700 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Derivative [Line Items] | |||||
Collateral on derivative instruments | $ 900 | $ 900 | $ 900 | ||
Before-tax effect of foreign currency exchange forward contracts not designated as hedging instruments, gain (loss) | 100 | 200 | $ 700 | ||
Interest expense | 12,436 | $ 7,280 | 21,230 | 14,843 | |
Trade Accounts Receivable | |||||
Derivative [Line Items] | |||||
Interest expense | 100 | 200 | 200 | 400 | |
Receivables sold | $ 18,700 | $ 21,200 | $ 45,200 | $ 45,600 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments Not Designated as Hedging Activities (Details) - Not designated as hedging instrument - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Derivative [Line Items] | ||
Gross Notional | $ 542 | $ 27,566 |
Other Accrued Liabilities | (32) | (159) |
Related to euro denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 542 | 27,566 |
Other Accrued Liabilities | $ (32) | $ (159) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Roll Forward (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 28, 2019 | $ 249,848 |
Foreign currency translation adjustments | 1,202 |
Balance as of June 27, 2020 | $ 251,050 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 27, 2020 | Dec. 28, 2019 | |
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 337,559 | $ 336,535 |
Accumulated Amortization | (193,797) | (166,189) |
Net Carrying Amount | 143,762 | 170,346 |
Trade names | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | (1,000) | (1,000) |
Net Carrying Amount | 0 | 0 |
Customer relationships and backlog | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 156,256 | 155,942 |
Accumulated Amortization | (77,524) | (68,119) |
Net Carrying Amount | $ 78,732 | $ 87,823 |
Weighted average remaining useful life (in years) | 5 years 4 months 24 days | 5 years 9 months 18 days |
Developed technology | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 180,303 | $ 179,593 |
Accumulated Amortization | (115,273) | (97,070) |
Net Carrying Amount | $ 65,030 | $ 82,523 |
Weighted average remaining useful life (in years) | 3 years 4 months 24 days | 3 years 6 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 13.3 | $ 14.8 | $ 26.5 | $ 30.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Net Carrying Amount | $ 143,762 | $ 170,346 |
Remainder of 2020 | 20,934 | |
2021 | 35,332 | |
2022 | 32,808 | |
2023 | 26,911 | |
2024 | 11,983 | |
2025 and Thereafter | $ 15,794 |
Balance Sheet Details - Allowan
Balance Sheet Details - Allowance for credit losses (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 28, 2019 | $ 4,005 |
Additions | 962 |
Write offs | (2,418) |
Recoveries during the period | (39) |
Other | 23 |
Balance as of June 27, 2020 | 3,183 |
Cumulative Effect, Period of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 28, 2019 | $ 650 |
Restructuring and Related Cos_3
Restructuring and Related Costs - Restructuring and Other Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | $ 13,426 | |||
Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | $ 1,591 | $ 1,864 | 2,749 | $ 23,330 |
Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 5,097 | 3,471 | 10,677 | 20,659 |
Severance and related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 8,627 | |||
Severance and related expenses | Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 1,574 | 1,264 | 2,676 | 21,961 |
Severance and related expenses | Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 3,321 | 2,390 | 5,951 | 8,240 |
Lease related impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 4,402 | |||
Lease related impairment charges | Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 15 | 0 | 59 | 0 |
Lease related impairment charges | Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 1,398 | 1,081 | 4,343 | 12,419 |
Asset impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 397 | |||
Asset impairment | Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | 2 | 600 | 14 | 1,369 |
Asset impairment | Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related costs | $ 378 | $ 0 | $ 383 | $ 0 |
Balance Sheet Details - Selecte
Balance Sheet Details - Selected Balance Sheet Items (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Dec. 28, 2019 | |
Inventory | ||
Raw materials | $ 43,364 | $ 47,474 |
Work in process | 50,899 | 48,842 |
Finished goods | 193,896 | 244,113 |
Total inventory | 288,159 | 340,429 |
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 499,801 | 489,998 |
Less accumulated depreciation and amortization(4) | (354,691) | (339,205) |
Total property, plant and equipment, net | 145,110 | 150,793 |
Accrued expenses and other current liabilities | ||
Loss contingency related to non-cancelable purchase commitments | 24,426 | 25,410 |
Taxes payable | 67,585 | 65,815 |
Short-term operating lease liability | 17,014 | 18,106 |
Short-term financing lease obligation | 1,104 | 1,380 |
Restructuring accrual | 14,222 | 26,706 |
Other accrued expenses and other current liabilities | 47,749 | 55,751 |
Total accrued expenses | 172,100 | $ 193,168 |
Depreciation | $ 24,900 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Computer hardware | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 33,723 | $ 36,086 |
Computer software | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 43,619 | 45,428 |
Laboratory and manufacturing equipment | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 312,626 | 313,081 |
Accrued expenses and other current liabilities | ||
Finance lease, right-of-use asset | $ 2,000 | |
Term of finance lease | 3 years | |
Finance lease discount rate | 8.20% | |
Land and building | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 12,349 | 12,349 |
Furniture and fixtures | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 3,261 | 2,845 |
Leasehold and building improvements | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 52,976 | 52,263 |
Accrued expenses and other current liabilities | ||
Finance lease, right-of-use asset | $ 2,300 | |
Term of finance lease | 5 years | |
Finance lease discount rate | 5.00% | |
Construction in progress | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 41,247 | 27,946 |
Enterprise resource planning systems | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 23,800 | 23,300 |
Total property, plant and equipment, net | 10,400 | $ 11,300 |
Accrued expenses and other current liabilities | ||
Depreciation | $ 1,300 |
Restructuring and Related Cos_4
Restructuring and Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 29,403 |
Charges | 13,426 |
Cash | (24,047) |
Non-cash Settlements and Other | (2,818) |
Ending balance | 15,964 |
Severance and related expenses | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 28,565 |
Charges | 8,627 |
Cash | (20,947) |
Non-cash Settlements and Other | (874) |
Ending balance | 15,371 |
Lease related impairment charges | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 4,402 |
Cash | (2,820) |
Non-cash Settlements and Other | (1,582) |
Ending balance | 0 |
Accelerated depreciation and other asset impairment charges | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 397 |
Cash | (28) |
Non-cash Settlements and Other | (369) |
Ending balance | 0 |
Others | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 838 |
Charges | 0 |
Cash | (252) |
Non-cash Settlements and Other | 7 |
Ending balance | $ 593 |
Restructuring and Related Cos_5
Restructuring and Related Costs - Narrative (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 15,964 | $ 29,403 |
2018 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 7,400 | |
2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 3,000 | |
Severance and related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 15,371 | 28,565 |
Severance and related expenses | Telecom Holding Parent LLC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | 5,000 | |
Others | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 593 | $ 838 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 386,535 |
Other comprehensive income (loss) before reclassifications | 6,154 |
Amounts reclassified from accumulated other comprehensive loss | 919 |
Net current-period other comprehensive income | 7,073 |
Ending balance | 329,854 |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (28,308) |
Other comprehensive income (loss) before reclassifications | 6,962 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current-period other comprehensive income | 6,962 |
Ending balance | (21,346) |
Accumulated Tax Effect | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (964) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current-period other comprehensive income | 0 |
Ending balance | (964) |
Actuarial Gain (Loss) on Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (5,367) |
Other comprehensive income (loss) before reclassifications | (808) |
Amounts reclassified from accumulated other comprehensive loss | 919 |
Net current-period other comprehensive income | 111 |
Ending balance | (5,256) |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (34,639) |
Ending balance | $ (27,566) |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Common Share - Narrative (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
2.125% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 402,500 | $ 402,500 |
Debt instrument interest percentage | 2.125% | |
2.125% Convertible Senior Notes | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest percentage | 2.125% | |
2.5% Convertible Senior Notes | Senior notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 200,000 | |
Debt instrument interest percentage | 2.50% |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Common Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (61,635) | $ (113,656) | $ (160,903) | $ (235,257) |
Weighted average common shares outstanding - basic and diluted (in shares) | 185,596 | 178,677 | 183,810 | 177,542 |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.33) | $ (0.64) | $ (0.88) | $ (1.33) |
Basic and Diluted Net Loss Pe_5
Basic and Diluted Net Loss Per Common Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 17,618 | 14,314 | 20,011 | 15,841 |
Stock options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 605 | 970 | 605 | 970 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 13,431 | 11,148 | 15,323 | 11,810 |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 3,582 | 2,196 | 3,820 | 2,398 |
ESPP shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 0 | 0 | 263 | 663 |
Debt - 2.5% Convertible Senior
Debt - 2.5% Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | ||||
Mar. 28, 2020USD ($)d | Jun. 27, 2020USD ($)$ / shares | Jun. 26, 2020$ / shares | Mar. 27, 2020$ / shares | Dec. 28, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Deferred tax liability | $ 5,564 | $ 8,700 | |||
Closing price of common stock (in usd per share) | $ / shares | $ 5.96 | $ 5.96 | |||
Senior notes | 2.5% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest percentage | 2.50% | ||||
Proceeds from issuance of long-term debt, net | $ 193,300 | ||||
Conversion price (in dollars per share) | $ / shares | $ 7.66 | ||||
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change | 100.00% | ||||
Carrying amount of equity component | $ 67,800 | ||||
Deferred tax liability | $ 16,200 | ||||
Additional effective rate of interest to be used on amortized carrying value | 9.92% | ||||
Fair value of convertible debt | $ 195,500 | ||||
Senior notes | 2.5% Convertible Senior Notes, Circumstance 1 | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | d | 20 | ||||
Threshold consecutive trading days | d | 30 | ||||
Convertible threshold minimum percentage | 130.00% | ||||
Senior notes | 2.5% Convertible Senior Notes, Circumstance 2 | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | d | 5 | ||||
Threshold consecutive trading days | d | 5 | ||||
Convertible, threshold maximum percentage | 98.00% |
Debt - Asset-Based Revolving Cr
Debt - Asset-Based Revolving Credit Facility (Details) - Credit Agreement - USD ($) | Aug. 01, 2019 | Jun. 27, 2020 | Jun. 27, 2020 | Dec. 28, 2019 | Dec. 23, 2019 |
Line of Credit Facility [Line Items] | |||||
Debt issuance costs, net | $ 5,100,000 | ||||
Amortization of debt issuance costs | $ 300,000 | $ 600,000 | |||
Contractual interest expense | 1,000,000 | 2,100,000 | |||
Debt available borrowing capacity | 57,300,000 | 57,300,000 | |||
Letters of credit outstanding | 15,700,000 | 15,700,000 | |||
Long-term debt | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, outstanding | $ 77,000,000 | $ 77,000,000 | |||
Minimum | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.00% | ||||
Minimum | Base rate | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.00% | ||||
Maximum | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.50% | ||||
Maximum | Base rate | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.50% | ||||
Revolving Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.375% | ||||
Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.625% | ||||
Revolving Credit Facility | Line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | $ 150,000,000 | |||
Additional borrowing capacity | 50,000,000 | ||||
Letter of credit | Line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 50,000,000 | ||||
Swing loan sub-facility | Line of credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 |
Debt - Finance Assistance Agree
Debt - Finance Assistance Agreement (Details) - USD ($) | May 30, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | May 31, 2019 |
Short-term Debt [Line Items] | ||||
Short-term debt | $ 27,726,000 | $ 31,673,000 | ||
Loans payable | ||||
Short-term Debt [Line Items] | ||||
Short-term debt | 28,953,000 | |||
Loans payable | Fabrinet | ||||
Short-term Debt [Line Items] | ||||
Principal amount | $ 40,000,000 | |||
Debt instrument interest percentage | 6.00% | |||
Debt term | 12 months | |||
Short-term debt | $ 27,300,000 |
Debt - Mortgage Payable (Detail
Debt - Mortgage Payable (Details) $ in Thousands | 1 Months Ended | ||
Mar. 30, 2019USD ($) | Jun. 27, 2020USD ($)installment | Dec. 28, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Debt outstanding in long term debt | $ 508,459 | $ 323,678 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Proceeds from debt | $ 8,700 | ||
Debt instrument interest percentage | 5.25% | ||
Debt payment installments | installment | 59 | ||
Debt payment | $ 100 | ||
Debt term | 5 years | ||
Debt issuance costs, net | $ 8,200 | ||
Debt outstanding in short term debt | 400 | ||
Debt outstanding in long term debt | $ 7,800 |
Debt - 2.125% Convertible Senio
Debt - 2.125% Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | |||||
Mar. 28, 2020 | Sep. 30, 2018USD ($)d | Jun. 27, 2020USD ($)$ / sharesshares | Jun. 26, 2020$ / shares | Mar. 27, 2020$ / shares | Dec. 28, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Deferred tax liability | $ 5,564 | $ 8,700 | ||||
Closing price of common stock (in usd per share) | $ / shares | $ 5.96 | $ 5.96 | ||||
2.125% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest percentage | 2.125% | |||||
Conversion ratio | 0.1012812 | |||||
2.125% Convertible Senior Notes, Circumstance 1 | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | d | 20 | |||||
Threshold consecutive trading days | d | 30 | |||||
Convertible threshold minimum percentage | 130.00% | |||||
2.125% Convertible Senior Notes, Circumstance 2 | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | d | 5 | |||||
Threshold consecutive trading days | d | 5 | |||||
Convertible, threshold maximum percentage | 98.00% | |||||
Senior notes | 2.125% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest percentage | 2.125% | |||||
Proceeds from issuance of debt, net | $ 391,400 | |||||
Payment of capped call | $ 48,900 | |||||
Strike price (in dollars per share) | $ / shares | $ 9.87 | |||||
Cap price (in dollars per share) | $ / shares | $ 15.19 | |||||
Number of shares covered by capped transactions (in shares) | shares | 40.8 | |||||
Conversion price (in dollars per share) | $ / shares | $ 9.87 | |||||
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change | 100.00% | |||||
Convertible debt, remaining discount amortization period | 51 months | |||||
Carrying amount of equity component | $ 128,700 | |||||
Deferred tax liability | $ 30,900 | |||||
Additional effective rate of interest to be used on amortized carrying value | 9.92% | |||||
Fair value of convertible debt | $ 344,600 |
Debt - Components of Convertibl
Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Mar. 28, 2020 | Jun. 27, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 508,459 | $ 323,678 | |
2.125% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | 402,500 | 402,500 | |
Unamortized discount | (100,173) | (109,652) | |
Unamortized issuance cost | (6,539) | (7,158) | |
Net carrying amount | 295,788 | $ 285,690 | |
Senior notes | 2.5% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | 200,000 | ||
Unamortized discount | (67,915) | ||
Unamortized issuance cost | (4,191) | ||
Net carrying amount | $ 127,894 | ||
Convertible debt, remaining discount amortization period | 80 months | ||
Senior notes | 2.125% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Convertible debt, remaining discount amortization period | 51 months |
Debt - Interest Expense Recogni
Debt - Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
2.125% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 2,138 | $ 2,138 | $ 4,276 | $ 4,277 |
Amortization of debt issuance costs | 313 | 284 | 619 | 561 |
Amortization of debt discount | 4,799 | 4,348 | 9,479 | 8,589 |
Total interest expense | 7,250 | $ 6,770 | 14,374 | $ 13,427 |
Senior notes | 2.5% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,250 | 1,524 | ||
Amortization of debt issuance costs | 110 | 137 | ||
Amortization of debt discount | 1,778 | 2,218 | ||
Total interest expense | $ 3,138 | $ 3,879 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 27,726 | $ 31,673 |
Operating leases [Abstract] | ||
Total lease payments | 109,078 | |
Remainder of 2020 | 13,162 | |
2021 | 19,454 | |
2022 | 16,040 | |
2023 | 12,919 | |
2024 | 10,890 | |
Thereafter | 36,613 | |
Financing lease obligations | ||
Total lease payments | 3,209 | |
Remainder of 2020 | 646 | |
2021 | 1,210 | |
2022 | 942 | |
2023 | 411 | |
2024 | 0 | |
Thereafter | 0 | |
Total Contractual Obligations [Abstract] | ||
Total contractual obligations | 904,184 | |
Remainder of 2020 | 50,175 | |
2021 | 35,058 | |
2022 | 31,447 | |
2023 | 27,724 | |
2024 | 510,667 | |
Thereafter | 249,113 | |
Loans payable | ||
Short-term Debt [Line Items] | ||
Short-term debt | 28,953 | |
Senior notes | 2.5% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Total | 234,889 | |
Remainder of 2020 | 2,389 | |
2021 | 5,000 | |
2022 | 5,000 | |
2023 | 5,000 | |
2024 | 5,000 | |
Thereafter | 212,500 | |
Senior notes | 2.125% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Total | 440,989 | |
Remainder of 2020 | 4,277 | |
2021 | 8,553 | |
2022 | 8,553 | |
2023 | 8,553 | |
2024 | 411,053 | |
Thereafter | 0 | |
Asset-based revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total | 77,327 | |
Remainder of 2020 | 327 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 77,000 | |
Thereafter | 0 | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Total | 9,739 | |
Remainder of 2020 | 421 | |
2021 | 841 | |
2022 | 912 | |
2023 | 841 | |
2024 | 6,724 | |
Thereafter | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | Feb. 03, 2017petition | Jun. 27, 2020USD ($) | Dec. 28, 2019USD ($)lease |
Loss Contingencies [Line Items] | |||
Asset retirement obligations | $ 4.9 | $ 4.7 | |
Number of finance leases | lease | 2 | ||
Oyster Optics LLC I | |||
Loss Contingencies [Line Items] | |||
Number of petitions filed | petition | 2 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Operating lease term | 1 year | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Operating lease term | 11 years | ||
Accrued Expense and Other Current Liabilities | |||
Loss Contingencies [Line Items] | |||
Asset retirement obligations | $ 0.3 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
May 31, 2019USD ($)shares | Jun. 27, 2020USD ($)shares | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)shares | Jun. 29, 2019USD ($)shares | Jun. 26, 2020$ / shares | May 31, 2020shares | Mar. 27, 2020$ / shares | Dec. 28, 2019shares | May 31, 2018shares | Feb. 28, 2007shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Closing price of common stock (in usd per share) | $ / shares | $ 5.96 | $ 5.96 | |||||||||
Stock options, granted (in shares) | 0 | 0 | |||||||||
Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options to purchase shares, outstanding (in shares) | 605,000 | 605,000 | 730,000 | ||||||||
Closing price of common stock (in usd per share) | $ / shares | 5.96 | ||||||||||
Stock options, granted (in shares) | 0 | ||||||||||
ESPP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized to be issued (in shares) | 31,600,000 | ||||||||||
Payroll deduction price as a percentage of market value | 85.00% | ||||||||||
Maximum employee subscription rate | 15.00% | ||||||||||
Maximum annual purchases per employee, amount | $ | $ 25,000 | ||||||||||
Maximum number of shares per employee (in shares) | 3,000 | ||||||||||
Plan maximum term | 20 years | ||||||||||
RSUs and PSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Closing price of common stock (in usd per share) | $ / shares | $ 5.96 | ||||||||||
Restricted stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Amortization of stock-based compensation | $ | $ 9,800,000 | $ 10,100,000 | $ 18,100,000 | $ 16,100,000 | |||||||
Number of units granted (in shares) | 6,611,000 | ||||||||||
PSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Amortization of stock-based compensation | $ | $ 1,400,000 | $ 2,400,000 | $ 3,000,000 | $ 4,100,000 | |||||||
Number of units granted (in shares) | 1,628,000 | ||||||||||
2007 Equity Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Reserved common stock for issuance of options (in shares) | 46,800,000 | ||||||||||
2007 Equity Incentive Plan | Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options to purchase shares, outstanding (in shares) | 600,000 | 600,000 | |||||||||
2016 Equity Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Reserved common stock for issuance of options (in shares) | 30,800,000 | 30,800,000 | |||||||||
Increase in number of shares authorized (in shares) | 7,300,000 | 8,100,000 | 1,500,000 | ||||||||
Plan maximum term | 10 years | ||||||||||
2016 Equity Incentive Plan | PSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance period | 3 years | ||||||||||
2016 Equity Incentive Plan | PSUs | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ranges of number of shares issued on vesting of PSUs | 0 | ||||||||||
2016 Equity Incentive Plan | PSUs | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ranges of number of shares issued on vesting of PSUs | 2 | ||||||||||
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 1 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Duration of grants based on shareholder return of common stock price versus designated index | 1 year | ||||||||||
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 2 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Duration of grants based on shareholder return of common stock price versus designated index | 2 years | ||||||||||
2016 Equity Incentive Plan | PSUs | Existing employees | Vesting 3 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Duration of grants based on shareholder return of common stock price versus designated index | 3 years |
Stockholders' Equity - Equity A
Stockholders' Equity - Equity Award Activity - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Number of Stock Options | ||
Stock options, granted (in shares) | 0 | 0 |
Stock options | ||
Number of Stock Options | ||
Stock options, beginning balance (in shares) | 730,000 | |
Stock options, granted (in shares) | 0 | |
Stock options, exercised (in shares) | 0 | |
Stock options, canceled (in shares) | (125,000) | |
Stock options, ending balance (in shares) | 605,000 | |
Stock options, exercisable (in shares) | 605,000 | |
Weighted-Average Exercise Price Per Share | ||
Weighted-average exercise price per share, beginning balance (in usd per share) | $ 8.41 | |
Weighted-average exercise per share, options granted (in usd per share) | 0 | |
Weighted-average exercise price per share, options exercised (in usd per share) | 0 | |
Weighted-average exercise price per share, options canceled (in usd per share) | 8.81 | |
Weighted-average exercise price per share, ending balance (in usd per share) | 8.33 | |
Average exercise price per share, exercisable (in usd per share) | $ 8.33 | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, beginning balance | $ 0 | |
Aggregate intrinsic value, options exercised | 0 | |
Aggregate intrinsic value, ending balance | 0 | |
Aggregate intrinsic value, exercisable |
Stockholders' Equity - Equity_2
Stockholders' Equity - Equity Award Activity - RSUs (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Number of units, beginning balance (in shares) | shares | 11,600 |
Number of units granted (in shares) | shares | 6,611 |
Number of units released (in shares) | shares | (4,275) |
Number units canceled (in shares) | shares | (505) |
Number of units, ending balance (in shares) | shares | 13,431 |
Weighted- Average Grant Date Fair Value Per Share | |
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ / shares | $ 6.20 |
Weighted-average grant date fair value per share, granted (in usd per share) | $ / shares | 5.85 |
Weighted-average grant date fair value per share, released (in usd per share) | $ / shares | 6.48 |
Weighted-average grant date fair value per share, canceled (in usd per share) | $ / shares | 6.59 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ / shares | $ 5.96 |
Aggregate Intrinsic Value | |
Aggregate intrinsic value, beginning balance | $ | $ 90,254 |
Aggregate intrinsic value, RSUs released | $ | 25,037 |
Aggregate intrinsic value, ending balance | $ | $ 80,051 |
Stockholders' Equity - Equity_3
Stockholders' Equity - Equity Award Activity - PSUs (Details) - PSUs $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($)$ / sharesshares | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 2,505 |
Number of units granted (in shares) | 1,628 |
Number of units released (in shares) | (273) |
Number units canceled (in shares) | (278) |
Number of units, ending balance (in shares) | 3,582 |
Number of restricted stock units, expected to vest (in shares) | 3,545 |
Weighted- Average Grant Date Fair Value Per Share | |
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ / shares | $ 6.48 |
Weighted-average grant date fair value per share, granted (in usd per share) | $ / shares | 5.89 |
Weighted-average grant date fair value per share, released (in usd per share) | $ / shares | 9.23 |
Weighted-average grant date fair value per share, canceled (in usd per share) | $ / shares | 7.67 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ / shares | $ 5.96 |
Aggregate Intrinsic Value | |
Aggregate intrinsic value, beginning balance | $ | $ 19,485 |
Aggregate Intrinsic Value, PSUs released | $ | 1,606 |
Aggregate intrinsic value, ending balance | $ | 21,352 |
Aggregate intrinsic value, expected to vest | $ | $ 21,128 |
Stockholders' Equity - Total St
Stockholders' Equity - Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net | $ 67,833 |
Weighted-average period | 2 years 2 months 26 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net | $ 12,819 |
Weighted-average period | 2 years 6 months 14 days |
Stockholders' Equity - Estimate
Stockholders' Equity - Estimated Fair Value of ESPP, Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 12,776 | $ 13,047 | $ 24,479 | $ 21,760 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 42.00% | 72.00% | 42.00% | 72.00% |
Risk-free interest rate | 1.56% | 2.48% | 1.56% | 2.48% |
Expected life | 6 months | 6 months | 6 months | 6 months |
Estimated fair value (in usd per share) | $ 2.17 | $ 1.77 | $ 2.17 | $ 1.77 |
Total stock-based compensation expense | $ 1,348 | $ 796 | $ 2,861 | $ 2,112 |
Stockholders' Equity - Estima_2
Stockholders' Equity - Estimated Fair Value of PSUs, Valuation Assumptions (Details) - PSUs | 6 Months Ended | 12 Months Ended | ||
Jun. 27, 2020$ / shares | Dec. 28, 2019$ / shares | Dec. 29, 2018$ / shares | Dec. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Index volatility | 33.00% | 33.00% | ||
Infinera volatility, minimum | 64.00% | 58.00% | 55.00% | |
Infinera volatility, maximum | 68.00% | 59.00% | 56.00% | |
Estimated fair value (in dollars per share) | $ 5.89 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 2.17% | 2.37% | 1.41% | |
Correlation with index/index component | 0.04 | 0.10 | ||
Estimated fair value (in dollars per share) | $ 2.08 | $ 14.99 | $ 15.23 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Index volatility | 34.00% | |||
Risk-free interest rate | 2.48% | 2.40% | 1.63% | |
Correlation with index/index component | 0.48 | 0.49 | ||
Estimated fair value (in dollars per share) | $ 2.89 | $ 19.46 | $ 17.35 |
Stockholders' Equity - Nonveste
Stockholders' Equity - Nonvested Performance Based Units Activity By Grant Year (Details) - PSUs shares in Thousands | 6 Months Ended |
Jun. 27, 2020shares | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 2,505 |
Number of units granted (in shares) | 1,628 |
Number of units released (in shares) | (273) |
Number units canceled (in shares) | (278) |
Number of units, ending balance (in shares) | 3,582 |
2017 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 199 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | (104) |
Number units canceled (in shares) | (95) |
Number of units, ending balance (in shares) | 0 |
2018 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 270 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | (109) |
Number units canceled (in shares) | (36) |
Number of units, ending balance (in shares) | 125 |
2019 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 2,036 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | (60) |
Number units canceled (in shares) | (119) |
Number of units, ending balance (in shares) | 1,857 |
2020 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 0 |
Number of units granted (in shares) | 1,628 |
Number of units released (in shares) | 0 |
Number units canceled (in shares) | (28) |
Number of units, ending balance (in shares) | 1,600 |
Stockholders' Equity - Balance
Stockholders' Equity - Balance Sheet and Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | $ 11,492 | $ 12,119 | $ 21,717 | $ 20,042 | |
Cost of revenue – amortization from balance sheet | 1,284 | 928 | 2,762 | 1,718 | |
Total stock-based compensation expense | 12,776 | 13,047 | 24,479 | 21,760 | |
Cost of revenue | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 779 | 663 | 1,403 | 1,201 | |
Research and development | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 4,379 | 6,127 | 8,153 | 9,730 | |
Sales and marketing | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 2,786 | 2,099 | 5,430 | 3,646 | |
General and administration | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 3,548 | $ 3,230 | 6,731 | $ 5,465 | |
Stock-based compensation effects in inventory | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects in inventory | $ 4,242 | $ 4,242 | $ 4,798 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 2,635 | $ 1,385 | $ 3,571 | $ 1,578 |
Pre-tax loss | $ 59,000 | $ 112,271 | 157,332 | $ 233,679 |
Increase of income tax provision | $ 2,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020USD ($)segment | Dec. 28, 2019USD ($) | |
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 | $ 145,110 | $ 150,793 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 116,863 | 118,656 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 2,811 | 2,798 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 20,070 | 21,536 |
Asia Pacific and Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 5,366 | $ 7,803 |
Guarantees - Activity Related t
Guarantees - Activity Related to Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 39,462 | $ 39,751 | $ 43,348 | $ 41,021 |
Charges to operations | 6,246 | 5,277 | 12,558 | 10,697 |
Utilization | (7,479) | (5,786) | (15,814) | (11,589) |
Change in estimate | (1,146) | 4,904 | (3,009) | 4,017 |
Balance at the end of the period | $ 37,083 | $ 44,146 | $ 37,083 | $ 44,146 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Guarantor Obligations [Line Items] | ||
Outstanding standby letters of credit | $ 37,100 | $ 27,900 |
Restructuring plans | 15,964 | 29,403 |
Debt instrument, collateral amount | 180,300 | 180,900 |
Letter of credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantee | 16,900 | 14,200 |
Value added tax license | 300 | 400 |
Property leases | 4,600 | 5,900 |
Restructuring plans | 14,600 | |
Credit cards | 600 | 500 |
Suppliers | 100 | |
Pre-Acquisition restructuring plans | 6,800 | |
Other liabilities | 100 | |
Letter of credit | Banker's guarantees or performance bonds | ||
Guarantor Obligations [Line Items] | ||
Maximum borrowing capacity | 50,000 | 50,000 |
Line of credit, outstanding | $ 15,700 | $ 4,100 |
Pension and Post-Retirement B_3
Pension and Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 198 | $ 874 | $ 550 | $ 1,230 |
Interest cost | 451 | 662 | 816 | 1,033 |
Expected return on plan assets | (555) | (1,193) | (1,224) | (1,797) |
Amortization of actuarial loss | 505 | 409 | 918 | 827 |
Total net periodic benefit cost | $ 599 | $ 752 | $ 1,060 | $ 1,293 |