CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
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Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 4,129 | $ 3,680 |
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) | 179,339,000 | 175,452,000 |
Common stock, shares outstanding (in shares) | 179,339,000 | 175,452,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Revenue: | ||||
Total revenue | $ 296,250 | $ 208,227 | $ 588,957 | $ 410,908 |
Cost of revenue: | ||||
Amortization of intangible assets | 8,098 | 4,943 | 16,350 | 10,284 |
Acquisition and integration costs | 10,700 | 0 | 12,764 | 0 |
Restructuring and related | 1,864 | 26 | 23,330 | 43 |
Total cost of revenue | 234,994 | 123,922 | 461,269 | 244,435 |
Gross profit | 61,256 | 84,305 | 127,688 | 166,473 |
Operating expenses: | ||||
Research and development | 73,937 | 56,158 | 147,597 | 114,839 |
Sales and marketing | 37,651 | 28,234 | 77,688 | 57,119 |
General and administrative | 35,672 | 18,365 | 68,716 | 36,201 |
Amortization of intangible assets | 6,745 | 1,487 | 13,802 | 3,094 |
Acquisition and integration costs | 12,164 | 0 | 19,298 | 0 |
Restructuring and related | 3,471 | 1,680 | 20,659 | 1,517 |
Total operating expenses | 169,640 | 105,924 | 347,760 | 212,770 |
Loss from operations | (108,384) | (21,619) | (220,072) | (46,297) |
Other income (expense), net: | ||||
Interest income | 183 | 629 | 949 | 1,526 |
Interest expense | (7,280) | (2,501) | (14,843) | (6,184) |
Other gain (loss), net | 3,210 | 1,429 | 287 | 1,935 |
Total other income (expense), net | (3,887) | (443) | (13,607) | (2,723) |
Loss before income taxes | (112,271) | (22,062) | (233,679) | (49,020) |
Provision for (benefit from) income taxes | 1,385 | (124) | 1,578 | (802) |
Net loss | $ (113,656) | $ (21,938) | $ (235,257) | $ (48,218) |
Net loss per common share: | ||||
Basic (in usd per share) | $ (0.64) | $ (0.14) | $ (1.33) | $ (0.32) |
Diluted (in usd per share) | $ (0.64) | $ (0.14) | $ (1.33) | $ (0.32) |
Weighted average shares used in computing net loss per common share: | ||||
Basic (in shares) | 178,677 | 152,259 | 177,542 | 151,296 |
Diluted (in shares) | 178,677 | 152,259 | 177,542 | 151,296 |
Product | ||||
Revenue: | ||||
Revenue | $ 226,866 | $ 175,288 | $ 449,873 | $ 346,917 |
Cost of revenue: | ||||
Cost of revenue | 177,501 | 105,914 | 335,318 | 208,238 |
Services | ||||
Revenue: | ||||
Revenue | 69,384 | 32,939 | 139,084 | 63,991 |
Cost of revenue: | ||||
Cost of revenue | $ 36,831 | $ 13,039 | $ 73,507 | $ 25,870 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (113,656) | $ (21,938) | $ (235,257) | $ (48,218) |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gain (loss) on available-for-sale investments | 24 | 224 | 89 | 99 |
Foreign currency translation adjustment | (1,949) | (23,495) | (7,506) | (28,311) |
Tax related to available-for-sale investment | 0 | (26) | 0 | (26) |
Actuarial gain on pension liabilities | 403 | 0 | 481 | 0 |
Net change in accumulated other comprehensive loss | (1,522) | (23,297) | (6,936) | (28,238) |
Comprehensive loss | $ (115,178) | $ (45,235) | $ (242,193) | $ (76,456) |
Basis of Presentation and Significant Accounting Policies |
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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 29, 2018. 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. To the extent there are material differences between these estimates and actual results, the Company’s condensed consolidated financial statements will be affected. The interim financial information is unaudited, but reflects all adjustments that are, in management’s opinion, necessary to provide a fair presentation of results for the interim periods presented. All adjustments are of a normal recurring nature. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. 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 29, 2018. The Company reclassified certain amounts reported in previous periods to conform to the current presentation. Effective in the fourth quarter of 2018, the Company elected to present amortization of intangible assets and acquisition and integration costs as separate line items within cost of revenue and operating expenses. As a result, the costs previously reflected in cost of revenue and operating expenses were reclassified to amortization of intangible assets and acquisition and integration costs within total cost of revenue and total operating expenses. Prior period amounts have been revised to conform to the current period presentation. This change in presentation does not affect the Company's total cost of revenue or total operating expenses. The following tables show reclassified amounts to conform to the current period's presentation (in thousands):
To date, a few of the Company’s customers have accounted for a significant portion of its revenue. For the three months ended June 29, 2019, one customer accounted for 13% of the Company's total revenue and for the corresponding period in 2018, two customers individually accounted for 23% and 13% of the Company's total revenue, respectively. For the six months ended June 29, 2019, one customer accounted for 12% of the Company's total revenue and for the corresponding period in 2018, two customers individually accounted for 26% and 12% of the Company's total revenue, respectively. There have been no material changes in the Company’s significant accounting policies for the six months ended June 29, 2019 as compared to those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018, with the exception of the Company's lease accounting policy. Effective December 30, 2018, the Company adopted Accounting Standards Update 2016-02, “Leases (Topic 842)” ("Topic 842"). See Note 3, “Leases” to the Notes to Condensed Consolidated Financial Statements for discussion on the impact of the adoption of these standards on the Company's policy for leases.
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Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2018-15, “Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). The update provides guidance for determining if a cloud computing arrangement is within the scope of internal-use software guidance, and would require capitalization of certain implementation costs. The Company adopted ASU 2018-15 in the first quarter of 2019. The Company's adoption of ASU 2018-15 did not have a significant impact on its consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update No. 2018-07, “Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under ASU 2018-07, certain guidance on such payments to non-employees is aligned with the requirements for share-based payments granted to employees. The Company's adoption of ASU 2017-09 during its first quarter of 2019 did not have a significant impact on its consolidated financial statements. In February 2016, the FASB issued Topic 842, which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. The Company adopted Topic 842 in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for leases that existed prior to December 30, 2018. The Company also elected to combine its lease and non-lease components and not recognize right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of 12 months or less. The Company did not elect to apply the hindsight practical expedient when determining lease terms and assessing impairment of ROU assets. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The guidance eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The Company elected to early adopt the standard prospectively during its first quarter of 2019 and the adoption of the standard did not have any impact on its consolidated financial statements. Accounting Pronouncements Not Yet Effective 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”). The 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 2020, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 would have on its consolidated financial statements. 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”). The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 is effective for the Company in its first quarter of 2020 and early adoption is permitted of the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact the adoption of ASU 2018-13 would have on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) further amended by Accounting Standards Update No. 2019-04 issued in April 2019 and 2019-05 issued in May 2019, which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for the Company in its first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-13 and 2019-04 would have on its consolidated financial statements.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Effective December 30, 2018, the Company adopted Topic 842 using the alternative modified transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 10 years and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to five years. The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses and operating lease liabilities on the Company's consolidated balance sheets. The Company does not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company rents or subleases certain real estate under agreements that are classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs). Adoption of Topic 842 The primary impact for the Company was the balance sheet recognition of operating lease ROU asset and operating lease liabilities. In addition, the Company's financing lease obligations that historically did not qualify for sale leaseback accounting under ASC 840-40, “Leases - Sale-Leaseback Transactions” (“ASC 840-40”) now meet the criteria for sale under Topic 842 and are recorded as operating leases. As a result, the Company reclassified financing liabilities of $198.3 million from accrued expenses and long-term financing lease obligations and assets of $174.6 million from property, plant and equipment, net, to $23.8 million accumulated deficit adjustment reflecting the cumulative effect of an accounting change related to the sale-leasebacks. The following table summarizes the impacts of adopting Topic 842 on the Company's condensed consolidated balance sheet as of December 29, 2018 (in thousands):
The Company has operating leases for real estate and automobiles. During the three months ended June 29, 2019, operating lease expense was approximately $6.7 million. During the six months ended June 29, 2019, operating lease expense was approximately $23.4 million (including $10.2 million of accelerated rent expense due to restructuring resulting in abandonment of lease facilities). Variable lease cost, short-term lease cost and sublease income were immaterial during the three and six months ended June 29, 2019.
The following table presents supplemental information for the six months ended June 29, 2019 (in thousands, except for weighted average and percentage data):
In addition, the Company has an operating lease for office space that had not commenced as of June 29, 2019. The legally binding minimum lease payment for this lease is $7.1 million. The term of this lease is seven years. ASC 840-40 Disclosures The following table presents future minimum lease payments related to the non-cancelable portion of operating leases as of December 29, 2018 (in thousands):
Financing Lease Obligations The Company evaluated two sale-leaseback transactions that were executed by Coriant in the past and assumed by the Company in the Acquisition (as defined in Note 7, "Business Combination" to the Notes to Condensed Consolidated Financial Statements). It was determined that these transactions did not qualify for sale-leaseback accounting under ASC 840-40. The Company leases a facility (land and all attached real property) in Naperville, Illinois that was sold to a third party and subsequently leased back. This was determined to be a failed sale-leaseback due to a $31.5 million imposition reimbursement payment to be made over 10 years, which was linked to the total building income generated each year. As a result of purchase accounting, the financing lease obligation was recorded at the present value of the remaining lease payments and expected value of the facility at the end of the occupancy period. The financing lease obligation will continue to be amortized over the remaining period of the lease term under ASC 840-40. The assets will continue to be depreciated over their remaining useful lives under ASC 840-40. Additionally, the Company leases a facility (land and all attached real property) in Finland, which was sold to a third party and subsequently leased back. The lease was determined to be a failed sale-leaseback due to the deposit being considered a form of collateral. The amount of the deposit was equal to one year of rental payments, whereas typical deposits are approximately two to three months of rental payments. As a result of purchase accounting, the financing lease obligation was recorded at the present value of the remaining lease payments and expected value of the facility at the end of the occupancy period. The financing lease obligation will continue to be amortized over the remaining period of the lease term under ASC 840-40. The assets will continue to be depreciated over their remaining useful lives. In conjunction with the adoption of the new lease accounting standard in the first quarter of 2019, the transactions qualified for sale-leaseback accounting under Topic 842, as control of the underlying assets was transferred to the lessor. As such, the balances of fixed assets, accrued expenses and other long-term liabilities as of the transition date related to the Naperville, Illinois and Finland leases were reclassified to accumulated deficit as a cumulative effect of an accounting change.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Capitalization of Costs to Obtain a Contract The ending balance of the Company’s capitalized costs to obtain a contract as of June 29, 2019 and December 29, 2018 were $0.3 million and $0.4 million, respectively. The Company's amortization expense was not material for the three and six months ended June 29, 2019 and June 30, 2018, respectively. Disaggregation of Revenue The following table presents the Company's revenue disaggregated by revenue source (in thousands):
The following tables present the Company's revenue disaggregated by geography, based on the shipping address of the customer and by sales channel (in thousands):
The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf.
Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):
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 29, 2019 were not materially impacted by other factors. Transaction Price Allocated to the Remaining Performance Obligation The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) at the end of the reporting period (in thousands):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Valuation techniques used by the Company are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about market participant assumptions based on the best information available. Observable inputs are the preferred source of values. These two types of inputs create the following fair value hierarchy:
The Company measures its cash equivalents, foreign currency exchange forward contracts and marketable debt securities at fair value and classifies its investments in accordance with the fair value hierarchy. The Company’s money market funds and U.S. treasuries are classified within Level 1 of the fair value hierarchy and are valued based on quoted prices in active markets for identical securities. The Company classifies its certificates of deposit, commercial paper, U.S. agency notes, corporate bonds and foreign currency exchange forward contracts within Level 2 of the fair value hierarchy as follows: Certificates of Deposit The Company reviews market pricing and other observable market inputs for the same or similar securities obtained from a number of industry standard data providers. In the event that a transaction is observed for the same or similar security in the marketplace, the price on that transaction reflects the market price and fair value on that day. In the absence of any observable market transactions for a particular security, the fair market value at period end would be equal to the par value. These inputs represent quoted prices for similar assets or these inputs have been derived from observable market data. Commercial Paper The Company reviews market pricing and other observable market inputs for the same or similar securities obtained from a number of industry standard data providers. In the event that a transaction is observed for the same or similar security in the marketplace, the price on that transaction reflects the market price and fair value on that day and then follows a revised accretion schedule to determine the fair market value at period end. In the absence of any observable market transactions for a particular security, the fair market value at period end is derived by accreting from the last observable market price. These inputs represent quoted prices for similar assets or these inputs have been derived from observable market data accreted mathematically to par. U.S. Agency Notes The Company reviews trading activity and pricing for its U.S. agency notes as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from a number of industry standard data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. Corporate Bonds The Company reviews trading activity and pricing for each of the corporate bond securities in its portfolio as of the measurement date and determines if pricing data of sufficient frequency and volume in an active market exists in order to support Level 1 classification of these securities. If sufficient quoted pricing for identical securities is not available, the Company obtains market pricing and other observable market inputs for similar securities from a number of industry standard data providers. In instances where multiple prices exist for similar securities, these prices are used as inputs into a distribution-curve to determine the fair market value at period end. Foreign Currency Exchange Forward Contracts As discussed in Note 6, “Derivative Instruments” to the Notes to Condensed Consolidated Financial Statements, the Company mainly holds non-speculative foreign exchange forward contracts to hedge certain foreign currency exchange exposures. The Company estimates the fair values of derivatives based on quoted market prices or pricing models using current market rates. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands):
During the three and six months ended June 29, 2019, there were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy. As of June 29, 2019 and December 29, 2018, none of the Company’s existing securities were classified as Level 3 securities. Cash, Cash Equivalents and Investments Cash, cash equivalents and investments were as follows (in thousands):
As of June 29, 2019, the Company’s available-for-sale investments have contractual maturity terms of up to 3 months. Gross realized gains and losses on investments were insignificant in all periods. The specific identification method is used to account for gains and losses on available-for-sale investments. As of June 29, 2019, the Company had $110.5 million of cash, cash equivalents and short-term investments, including $64.3 million of cash and cash equivalents held by its foreign subsidiaries. In addition, the Company had $29.5 million of restricted cash as of June 29, 2019. The Company's cash in foreign locations is used for operational and investing activities in those locations, and the Company does not currently have the need or the intent to repatriate those funds to the United States.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Foreign Currency Exchange Forward Contracts The Company transacts business in various foreign currencies and has international sales, cost of sales, and expenses denominated in foreign currencies, and carries foreign-currency-denominated monetary assets and liabilities, subjecting the Company to foreign currency risk. The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows and minimize the volatility of reported earnings. The Company utilizes foreign currency exchange forward contracts, primarily short term in nature. The Company periodically enters into foreign currency exchange forward contracts to manage its exposure to fluctuation in foreign exchange rates that arise from its euro and British pound denominated receivables and restricted cash balances. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate fluctuations on the underlying foreign currency denominated accounts receivables and restricted cash, and therefore, do not subject the Company to material balance sheet risk. The Company also enters into foreign currency exchange forward contracts to reduce the volatility of cash flows primarily related to forecasted revenues and expenses denominated in euros, British pounds and Swedish kronors (“SEK”). The contracts are settled at maturity and at rates agreed to at inception of the contracts. The gains and losses on these foreign currency derivatives are recorded to the consolidated statement of operations line item, in the current period, to which the item that is being economically hedged is recorded. For the three months ended June 29, 2019 and June 30, 2018, the before-tax effect of the foreign currency exchange forward contracts was an immaterial net gain and a net gain of $1.2 million, respectively, and for the six months ended June 29, 2019 and June 30, 2018, the before-tax effect of the foreign currency exchange forward contracts was a net gain of $0.7 million and $0.5 million, respectively. 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 29, 2019, 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):
Accounts Receivable Factoring The Company has sold certain designated trade account receivables based on factoring arrangements to a large international banking institution. Pursuant to the terms of the arrangements, the Company accounts for these transactions in accordance with ASC 860, “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 consolidated balance sheets and cash received are reflected as cash provided by operating activities in the consolidated statements of cash flow. The difference between the fair value of the Company's trade receivables and the proceeds received is recorded as interest expense in the Company's condensed consolidated statements of operations, and for the three and six months ended June 29, 2019, the Company's recognized factoring related interest expense was approximately $0.2 million and $0.4 million, respectively. The gross amount of trade accounts receivables sold during the three and six months ended June 29, 2019, totaled approximately $21.2 million and $45.6 million, respectively. The Company did not enter into any factoring arrangements during the three and six months ended June 29, 2018.
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Business Combination |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination | Business Combination On October 1, 2018 (the “Acquisition Date”), the Company completed the acquisition of all the outstanding limited liability company interests of Telecom Holding Parent LLC (“Coriant”), a Delaware limited liability company (the “Acquisition”). The Acquisition positions the Company as one of the largest providers of vertically integrated transport networking solutions in the world, enhances the Company's ability to serve a global customer base and accelerates delivery of the innovative solutions its customers demand. The Acquisition also positions the Company to expand the breadth of customer applications it can address, including metro aggregation and switching, disaggregated transport and routing, and software-enabled multi-layer network management and control. The Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations” and consisted of the following (in thousands):
The Company financed the cash portion of the purchase price of the Acquisition with the net proceeds from its offering of $402.5 million in aggregate principal amount of its 2.125% convertible senior notes due September 1, 2024 (the “2024 Notes”). See Note 13, “Debt” to the Notes to Condensed Consolidated Financial Statements for more information regarding the 2024 Notes. The Company allocated the fair value of the purchase price of the Acquisition to the tangible and intangible assets acquired as well as liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities was recorded as goodwill. The Company prepared an initial determination of the fair value of assets acquired and liabilities assumed as of the Acquisition Date using preliminary information. In accordance with "Topic 805", during the measurement period an acquirer retrospectively adjusts the provisional amounts recognized at the Acquisition Date to reflect information obtained about facts and circumstances that existed as of the Acquisition Date that, if known, would have affected the measurement of the amounts recognized as of the Acquisition Date. Accordingly, the Company has recognized measurement period adjustments made during the first half of 2019 to the fair value of certain assets acquired and liabilities assumed as a result of additional information obtained. None of the adjustments had a material impact on the Company's financial results. The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Acquisition Date (in thousands):
The Company expects to finalize the allocation of the purchase consideration as soon as practicable, pending finalization of income taxes and any other adjustments related to acquired assets or liabilities, but no later than 12 months from the Acquisition Date. The measurement period adjustments were primarily related to adjustments to acquired liabilities, receivables, inventory, deferred revenue, tax effects of these purchase accounting adjustments and changes in assessment of certain tax positions. The Company does not believe that the measurement period adjustments had a material impact on its consolidated statements of operations, balance sheets or cash flows in any periods previously reported. The following table presents details of the identifiable assets acquired at the Acquisition Date (in thousands, except estimated useful life data):
Goodwill generated from this business combination is primarily attributable to the synergies from combining the operations of Coriant with that of the Company, which resulted in strengthening the Company's ability to serve a global customer base and accelerate delivery of product solutions. The goodwill recorded in the Acquisition is not expected to be deductible for income tax purposes.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. The following table presents details of the Company’s goodwill during the six months ended June 29, 2019 (in thousands):
The gross carrying amount of goodwill may change due to the effects of foreign currency fluctuations as a portion of these assets are denominated in foreign currency. To date, the Company has zero accumulated impairment loss on goodwill. Intangible Assets The following tables present details of the Company’s intangible assets as of June 29, 2019 and December 29, 2018 (in thousands, except for weighted average data):
*NMF = Not meaningful
*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 $14.8 million and $30.1 million for the three and six months ended June 29, 2019, respectively, and was $6.5 million and $13.4 million, respectively, for the corresponding periods in 2018. 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 29, 2019 (in thousands):
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Balance Sheet Details |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Details | Balance Sheet Details Restricted Cash The Company’s restricted cash balance is primarily comprised of certificates of deposit and money market funds, of which the majority is not insured by the Federal Deposit Insurance Corporation. These amounts primarily collateralize the Company’s issuances of standby letters of credit and bank guarantees. Additionally, the Company's restricted cash balance includes amounts pledged as collateral on its derivative instruments. The following table provides details of selected balance sheet items (in thousands):
(2) Included in laboratory and manufacturing equipment at June 29, 2019 was $2 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 million using a discount rate of 8.2% and was included in property, plant and equipment. As of June 29, 2019 $0.6 million was included in accrued expenses and other current liabilities and $1.4 million as long term finance lease obligation.
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Restructuring and Related Costs |
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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. As part of the 2018 Restructuring Plan, the Company hopes to reduce selected ongoing expenses, streamline the organization, and eliminate fixed costs to align more closely with its needs going forward. The Company expects to incur additional restructuring during 2019 as it progresses with the 2018 Restructuring Plan. The Company expects to substantially complete activities under the 2018 Restructuring Plan by the end of 2019. In the fourth quarter of 2017, the Company implemented a plan to restructure its worldwide operations (the "2017 Restructuring Plan") in order to reduce expenses and establish a more cost-effective structure that better aligns the Company's operations with its long-term strategies. The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the 2017 Restructuring Plan (in thousands):
Restructuring liabilities are reported within accrued expenses, operating lease liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheets (in thousands):
As of June 29, 2019, the Company's restructuring liability was comprised of $36.4 million of severance and related expenses, primarily due to the planned closure of the Company's Berlin, Germany manufacturing facility, which is being transitioned to a third-party manufacturer. The Company has committed funding from a third party to cover the costs associated with the planned closure of this facility.
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Accumulated Other Comprehensive Loss |
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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 income (loss) by component for the six months ended June 29, 2019 (in thousands):
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Basic and Diluted Net Loss Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using net loss and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding stock options, assumed release of outstanding restricted stock units (“RSUs”) and performance stock units (“PSUs”), and assumed issuance of common stock under the Company's 2007 Employee Stock Purchase Plan (“ESPP”) using the treasury stock method. Potentially dilutive common shares also include the assumed conversion of the 2024 Notes from the conversion spread (as further discussed in Note 13, “Debt” to the Notes to Condensed Consolidated Financial Statements). The Company would include the dilutive effects of the 2024 Notes in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the 2024 Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the 2024 Notes being converted, therefore, only the conversion spread relating to the 2024 Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. The Company includes the common shares underlying PSUs in the calculation of diluted net income per common share only when they become contingently issuable. The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts):
The Company incurred net losses during the three and six months ended June 29, 2019 and June 30, 2018, 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 $150.0 million in aggregate principal amount of its 1.75% convertible senior notes due June 1, 2018 (the “2018 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):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Finance Assistance Agreement During 2019 the Company signed an agreement with a third party contract manufacturer which governs the transfer of the activities from the legacy Coriant manufacturing facility in 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 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 29, 2019, $3.3 million was outstanding, which was included in accrued expenses and other current liabilities. 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 each with the remaining unpaid principal balance plus accrued unpaid interest due five years from the date of the loan. As of June 29, 2019, $8.6 million remained outstanding, of which $0.4 million was included in accrued expenses and other current liabilities and $8.2 million was included in long-term debt. 2024 Notes In September 2018, the Company issued the 2024 Notes due on September 1, 2024, unless earlier repurchased, redeemed or converted. The 2024 Notes are governed by a base indenture dated as of September 11, 2018 and a first supplemental indenture dated as of September 11, 2018 (together, the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2024 Notes are unsecured, and the Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of the Company's other securities by the Company. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, 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 call transactions are expected generally to reduce or offset potential dilution to the Company's common stock upon any conversion of the 2024 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2024 Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls expire on various dates between July 5, 2024 and August 29, 2024. The Capped Calls were recorded as a reduction of the Company’s stockholders’ equity in the accompanying 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:
If the Company undergoes a fundamental change as defined in the Indenture governing the 2024 Notes, holders may require the Company to repurchase for cash all or any portion of their 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, upon the occurrence of a “make-whole fundamental change” (as defined in the Indenture), the Company may, in certain circumstances, be required to increase the conversion rate by a number of additional shares for a holder that elects to convert its 2024 Notes in connection with such make-whole fundamental change. The net carrying amounts of the debt obligation were as follows (in thousands):
As of June 29, 2019, 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 (in thousands):
For the three and six months ended June 29, 2019, the debt discount and debt issuance costs were amortized, using an annual effective interest rate of 10.07%, to interest expense over the term of the 2024 Notes. As of June 29, 2019, the fair value of the 2024 Notes was $273.2 million. The fair value was determined based on the quoted bid price of the 2024 Notes in an over-the-counter market on June 29, 2019. 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 $2.91 per share on June 29, 2019 (last trading day of the fiscal quarter), the if-converted value of the 2024 Notes did not exceed their principal amount. 2018 Notes In May 2013, the Company issued the 2018 Notes, which matured on June 1, 2018. Upon maturity of the 2018 Notes, the Company repaid in full all $150.0 million in aggregate principal amount and the final coupon interest of $1.3 million. The following table sets forth total interest expense recognized related to the 2018 Notes (in thousands):
The coupon rate was 1.75%. For the three and six months ended June 30, 2018, the debt discount and debt issuance costs were amortized, using an annual effective interest rate of 10.23%, to interest expense over the term of the 2018 Notes.
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Stockholders' Equity |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Stock-based Compensation Plans The Company has stock-based compensation plans pursuant to which the Company has granted stock options, RSUs and PSUs. The Company also has an ESPP for all eligible employees. In February 2016, the Company's board of directors adopted the 2016 Equity Incentive Plan (“2016 Plan”) and the Company's stockholders approved the 2016 Plan in May 2016. In May 2019, 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 7.3 million shares. As of June 29, 2019, the Company has reserved a total of 22.7 million shares of common stock for issuance of stock options, RSUs and PSUs to employees, non-employees, consultants and members of the Company's board of directors, pursuant to the 2016 Plan, plus any shares subject to awards granted under the Company’s 2007 Equity Incentive Plan (the “2007 Plan”) that, after the effective date of the 2016 Plan, expire, are forfeited or otherwise terminate without having been exercised in full to the extent such awards were exercisable, and shares issued pursuant to awards granted under the 2007 Plan that, after the effective date of the 2016 Plan, are forfeited to or repurchased by the Company due to failure to vest. The 2016 Plan has a maximum term of 10 years from the date of adoption, or it can be earlier terminated by the Company's board of directors. The 2007 Plan was canceled; however, it continues to govern outstanding grants under the 2007 Plan. The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data):
The aggregate intrinsic value of unexercised stock options is calculated as the difference between the closing price of the Company’s common stock of $2.91 at June 28, 2019 (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 $2.91 at June 28, 2019 (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 29, 2019. 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):
Employee Stock Options The Company did not grant any stock options during the three and six months ended June 29, 2019. Amortization of stock-based compensation related to stock options in the three and six months ended June 29, 2019 and the corresponding periods in 2018 was insignificant. Employee Stock Purchase Plan The fair value of the shares was estimated at the date of grant using the following assumptions (expense amounts in thousands):
Restricted Stock Units During the three and six months ended June 29, 2019, the Company granted RSUs to employees, consultants and members of the Company's board of directors representing the right to receive 6.2 million and 7.1 million shares of the Company’s common stock, respectively. All RSUs awarded are subject to each individual's continued service to the Company through each applicable vesting date. The Company accounted for the fair value of the RSUs using the closing market price of the Company’s common stock on the date of grant. Amortization of stock-based compensation related to RSUs in the three and six months ended June 29, 2019 was approximately $10.1 million and $16.1 million, respectively, and was approximately $8.0 million and $15.4 million in the corresponding periods of 2018, respectively. Performance Stock Units Pursuant to the 2007 Plan and the 2016 Plan, the Company has granted PSUs to certain of the Company’s executive officers, senior management and other employees. All PSUs awarded are subject to each individual's continued service to the Company through each applicable vesting date and if the performance metrics are not met within the time limits specified in the award agreements, the PSUs will be canceled. PSUs granted to the Company’s executive officers and senior management under the 2007 Plan during 2016 are based on the total stockholder return (“TSR”) of the Company's common stock price as compared to the TSR of the S&P North American Technology Multimedia Networking Index (“SPGIIPTR”) over the span of one year, two years and three years. The number of shares to be issued upon vesting of these PSUs range from zero to two times the target number of PSUs granted depending on the Company’s performance against the SPGIIPTR. PSUs granted to the Company’s executive officers and senior management under the 2016 Plan during 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 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:
PSUs granted to the Company's executive officers and senior management under the 2016 Plan during the first and second quarter of 2019 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 is capped at one time the target number of PSUs granted. In addition, 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 following table summarizes by grant year, the Company’s PSU activity for the six months ended June 29, 2019 (in thousands):
Amortization of stock-based compensation related to PSUs in the three and six months ended June 29, 2019 was approximately $2.4 million and $4.1 million, respectively, and was approximately $2.6 million and $4.7 million in the corresponding periods of 2018, respectively. Stock-Based Compensation The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): -
(1) Stock-based compensation expense deferred to inventory in prior periods and recognized in the current period.
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Income Taxes |
6 Months Ended |
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Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the three and six months ended June 29, 2019 were a tax expense of $1.4 million and $1.6 million, respectively, on pre-tax losses of $112.3 million and $233.7 million, respectively. This compared to a tax benefit of $0.1 million and $0.8 million, respectively, on pre-tax losses of $22.1 million and $49.0 million for the three and six months ended June 30, 2018, respectively. Provision for income taxes increased by approximately $1.5 million in the three months ended June 29, 2019 as a result of higher foreign tax expense as compared to the corresponding period in 2018. Provision for income taxes increased by approximately $2.4 million during the six months ended June 29, 2019 compared to the corresponding period in 2018, as a result of additional foreign tax expense from the acquired entities. The tax expense and benefit projected in the Company's effective tax rate primarily represents foreign taxes of the Company's overseas profitable subsidiaries, as well as the results of the Company's Swedish operations, inclusive of purchase accounting amortization and other charges for the three and six months ended June 29, 2019. 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 29, 2019, 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 net deferred tax assets continued to be 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.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer (“CEO”). The Company’s CEO reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity as a provider of optical transport networking equipment, software and services. Accordingly, the Company is considered to be in a single reporting segment and operating unit structure. The following table sets forth long-lived assets by geographic region (in thousands):
For information regarding revenue disaggregated by geography, see Note 4, “Revenue Recognition” to the Notes to Condensed Consolidated Financial Statements.
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Guarantees |
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Guarantees | Guarantees Product Warranties Activity related to product warranty was as follows (in thousands):
Letters of Credit and Bank Guarantees The Company had $27.6 million of standby letters of credit and bank guarantees outstanding as of June 29, 2019 that consisted of $22.1 million related to customer performance guarantees, $1.4 million related to value added tax and customs licenses, $2.6 million related to property leases, $0.8 million related to restructuring plans, $0.5 million related to credit cards and $0.2 million related to suppliers. The Company had $30.0 million of standby letters of credit and bank guarantees outstanding as of December 29, 2018 that consisted of $23.4 million related to customer performance guarantees, $1.4 million related to a value added tax license, $2.9 million related to property leases, $1.8 million related to Coriant's pre-Acquisition restructuring plans and $0.5 million related to credit cards. As of June 29, 2019 and December 29, 2018, the Company had a line of credit for approximately $1.6 million to support the issuance of letters of credit, of which zero been issued and outstanding for both periods. The Company has pledged approximately $4.9 million of assets of a subsidiary to secure this line of credit and other obligations as of each period ended June 29, 2019 and December 29, 2018.
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Pension and Post-Retirement Benefit Plans |
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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 for the three and six months ended June 29, 2019 consisted of the following (in thousands):
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.
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Litigation and Contingencies |
6 Months Ended |
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Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies Legal Matters On November 23, 2016, Oyster Optics, LLC (“Oyster Optics”) filed a complaint against the Company in the United States District Court for the Eastern District of Texas. The complaint asserts 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 “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 Markman decision was issued on December 5, 2017 and fact discovery closed on December 22, 2017. Oyster Optics dropped the ‘511 and ‘898 patents, leaving only a few claims in the ‘327 patent at issue in the case. On May 15, 2018, Oyster Optics filed a new patent infringement complaint with the court, naming the Company as a defendant. In its new complaint, Oyster Optics alleges infringement of the ‘327 patent, U.S. Patent No. 9,749,040 and the ‘898 patent. On June 8, 2018, the court granted the parties’ joint motion to sever and consolidate the first-filed lawsuit with the later filed case. The Company filed its answer to the new complaint on July 16, 2018. A case management conference was held on September 11, 2018, and the court set a trial date for November 4, 2019. On October 26, 2018, the Company filed an amended answer to include a license defense. On November 29, 2018, the Company filed a motion for summary judgment based on the license defense. The court issued a second Markman decision on May 3, 2019, in which the parties were ordered to schedule a mediation within 30 days of the decision. The parties participated in a mediation on May 16, 2019, but no settlement agreement was agreed upon. On June 12, 2019, the court held a hearing in connection with the license defense. On June 25, 2019, the court granted our Motion for Summary Judgment and on June 28, 2019, the court entered a final judgment for the Company. On July 22, 2019, Oyster filed an appeal of the court’s decision with the Court of Appeals for the Federal Circuit. The Company is currently unable to predict the outcome of this litigation and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. On 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. 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. Because this action is in the very preliminary stages, the Company is unable to predict the outcome of this litigation at this time and therefore cannot reasonably estimate the possible loss or range of loss, if any, arising from this matter. On March 24, 2017, Core Optical Technologies, LLC (“Core Optical”) filed a complaint against the Company in the United States District Court for the Central District of California. The complaint asserts infringement of U.S. Patent No. 6,782,211 (the “Core Optical patent in suit”). The complaint seeks unspecified damages and a permanent injunction. The Company believes that it does not infringe any valid and enforceable claim of the Core Optical patent in suit, and intends to defend this action vigorously. The Company filed its answer to Core Optical's complaint on September 25, 2017. A Markman hearing was held on May 9, 2018 and the court has set a trial for March 2019. On June 14, 2018, the Company filed a petition for IPR of the Core Optical patent in suit in the USPTO. Core Optical contacted the Company on July 19, 2018 to propose that the case be stayed pending the IPR. The Company agreed to Core Optical’s proposal, and the parties filed a joint motion to stay, which the court granted on July 31, 2018. On October 17, 2018, Core Optical filed a response to the Company's IPR petition. On January 14, 2019, the USPTO denied the Company's IPR petition, and on February 13, 2019, the Company filed a request for rehearing in the USPTO requesting reconsideration of the dismissal of the Company's IPR petition. The parties participated in mediation on March 15, 2019 and May 28, 2019. During the May 28 mediation, the Company agreed with Core Optical on the preliminary terms to settle the lawsuit and grant the Company a license to the Core Optical patent in suit and release of claims of past infringement. The parties are currently in the process of drafting a final settlement agreement. The Company has recorded a loss accrual during the three months ended June 29, 2019 based on the preliminary legal settlement with Core Optical. On June 8, 2017, a Civil Investigative Demand was issued to Coriant pursuant to a False Claims Act investigation by the U.S. government as to whether there has been any violation of 31 U.S.C. §3729. Coriant provided documents and other responses to the U.S. government, and the Company will continue to cooperate in the ongoing investigation. In addition to the matters described above, the Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material effect on its consolidated financial position, results of operations or cash flows. Loss Contingencies The Company is subject to the possibility of various losses arising in the ordinary course of business. These may relate to disputes, litigation and other legal actions. In the preparation of its quarterly and annual financial statements, the Company considers the likelihood of loss or the incurrence of a liability, including whether it is probable, reasonably possible or remote that a liability has been incurred, as well as the Company’s ability to reasonably estimate the amount of loss, in determining loss contingencies. In accordance with U.S. GAAP, an estimated loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. As of June 29, 2019 and December 29, 2018, the Company has accrued the estimated liabilities associated with certain loss contingencies. During the three months ended June 29, 2019, the Company recorded a reduction in revenue related to a loss accrual made for certain claims made by one of the Company’s customers. 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.
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Subsequent Events |
6 Months Ended |
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Jun. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 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. The proceeds of the loans under the Credit Agreement may be used to pay the fees, costs, and expenses incurred in connection with the 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 will be based upon periodic borrowing base certifications valuing certain inventory and accounts receivable, as reduced by certain reserves. Outstanding borrowings accrue interest at floating rates plus an applicable margin of 2.00% to 2.50% for LIBOR rate loans and 1.00% to 1.50% for base rate loans. The commitment fee payable on the unused portion of the Credit Facility is equal to 0.375% to 0.625% per annum based on utilization of the Credit Facility. The Credit Agreement contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates. The 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 Credit Agreement also contains a financial covenant that requires the Company to maintain a minimum amount of liquidity and customary events of default.
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Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2018-15, “Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). The update provides guidance for determining if a cloud computing arrangement is within the scope of internal-use software guidance, and would require capitalization of certain implementation costs. The Company adopted ASU 2018-15 in the first quarter of 2019. The Company's adoption of ASU 2018-15 did not have a significant impact on its consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update No. 2018-07, “Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under ASU 2018-07, certain guidance on such payments to non-employees is aligned with the requirements for share-based payments granted to employees. The Company's adoption of ASU 2017-09 during its first quarter of 2019 did not have a significant impact on its consolidated financial statements. In February 2016, the FASB issued Topic 842, which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. The Company adopted Topic 842 in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for leases that existed prior to December 30, 2018. The Company also elected to combine its lease and non-lease components and not recognize right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of 12 months or less. The Company did not elect to apply the hindsight practical expedient when determining lease terms and assessing impairment of ROU assets. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The guidance eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The Company elected to early adopt the standard prospectively during its first quarter of 2019 and the adoption of the standard did not have any impact on its consolidated financial statements. Accounting Pronouncements Not Yet Effective 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”). The 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 2020, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 would have on its consolidated financial statements. 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”). The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 is effective for the Company in its first quarter of 2020 and early adoption is permitted of the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact the adoption of ASU 2018-13 would have on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) further amended by Accounting Standards Update No. 2019-04 issued in April 2019 and 2019-05 issued in May 2019, which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for the Company in its first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-13 and 2019-04 would have on its consolidated financial statements.
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Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prior Period Adjustments | The following tables show reclassified amounts to conform to the current period's presentation (in thousands):
(1) These lines were not previously reported in the consolidated statements of operations.
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Leases (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements | The following table summarizes the impacts of adopting Topic 842 on the Company's condensed consolidated balance sheet as of December 29, 2018 (in thousands):
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Lease costs | The following table presents supplemental information for the six months ended June 29, 2019 (in thousands, except for weighted average and percentage data):
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Operating lease liabilities | (1) Operating lease payments exclude $7.1 million of legally binding minimum lease payments for lease signed but not yet commenced. (2) Calculated using the interest rate for each lease.
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Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents future minimum lease payments related to the non-cancelable portion of operating leases as of December 29, 2018 (in thousands):
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by revenue source (in thousands):
The following tables present the Company's revenue disaggregated by geography, based on the shipping address of the customer and by sales channel (in thousands):
The Company sells its products directly to customers who are predominantly service providers and to channel partners that sell on its behalf.
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Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) at the end of the reporting period (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables represent the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis (in thousands):
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Investments at Fair Value | Cash, cash equivalents and investments were as follows (in thousands):
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments not Designated as Hedging Instruments | The fair value of derivative instruments not designated as hedging instruments in the Company’s condensed consolidated balance sheets was as follows (in thousands):
(1) Represents the face amounts of forward contracts that were outstanding as of the end of the period noted.
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Business Combination (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business acquisitions | The Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations” and consisted of the following (in thousands):
(2) Based on the closing price of the Company's common stock of $6.18 on October 1, 2018, the $129.6 million equity consideration represents the fair value of approximately 21 million shares of the Company's common stock issued to Coriant shareholders in accordance with the Purchase Agreement.
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Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Acquisition Date (in thousands):
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Schedule of Intangible Assets Acquired | The following table presents details of the identifiable assets acquired at the Acquisition Date (in thousands, except estimated useful life data):
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Goodwill and Intangible Assets (Tables) |
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table presents details of the Company’s goodwill during the six months ended June 29, 2019 (in thousands):
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Schedule of Finite-Lived Intangible Assets | The following tables present details of the Company’s intangible assets as of June 29, 2019 and December 29, 2018 (in thousands, except for weighted average data):
*NMF = Not meaningful
*NMF = Not meaningful
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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 29, 2019 (in thousands):
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Balance Sheet Details (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Selected Balance Sheet Items | The following table provides details of selected balance sheet items (in thousands):
(2) Included in laboratory and manufacturing equipment at June 29, 2019 was $2 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 million using a discount rate of 8.2% and was included in property, plant and equipment. As of June 29, 2019 $0.6 million was included in accrued expenses and other current liabilities and $1.4 million as long term finance lease obligation.
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Restructuring and Related Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table presents restructuring and other related costs included in cost of revenue and operating expenses in the accompanying consolidated statements of operations under the 2018 Restructuring Plan, Coriant's previous restructuring and reorganization plans, and the 2017 Restructuring Plan (in thousands):
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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):
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Accumulated Other Comprehensive Loss (Tables) |
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the changes in accumulated other comprehensive income (loss) by component for the six months ended June 29, 2019 (in thousands):
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Basic and Diluted Net Loss Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Net Income (Loss) Per Common Share Basic and Diluted | The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts):
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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):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Convertible Senior Notes | The net carrying amounts of the debt obligation were as follows (in thousands):
(1) Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the 2024 Notes, which is approximately 63 months.
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Interest Expense Recognized Related To Notes | The following table sets forth total interest expense recognized related to the 2018 Notes (in thousands):
The following table sets forth total interest expense recognized related to the 2024 Notes (in thousands):
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Stockholders' Equity (Tables) |
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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):
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Summary of Company's Equity Award Activity - RSUs |
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Summary of Company's Equity Award Activity - PSUs |
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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 29, 2019. 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):
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Estimated Fair Value of ESPP Shares | The fair value of the shares was estimated at the date of grant using the following assumptions (expense amounts in thousands):
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Schedule of Share-based Payment Award, 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:
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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 29, 2019 (in thousands):
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Summary of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations | The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands): -
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table of Long Lived Assets | The following table sets forth long-lived assets by geographic region (in thousands):
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Guarantees (Tables) |
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Product Warranty | Activity related to product warranty was as follows (in thousands):
(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.
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Pension and Post-Retirement Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Net periodic benefit cost for the Company's pension and other post-retirement benefit plans for the three and six months ended June 29, 2019 consisted of the following (in thousands):
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Basis of Presentation and Significant Accounting Policies - Restatement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Cost of revenue: | ||||
Amortization of intangible assets | $ 8,098 | $ 4,943 | $ 16,350 | $ 10,284 |
Restructuring and related | 1,864 | 26 | 23,330 | 43 |
Total cost of revenue | 234,994 | 123,922 | 461,269 | 244,435 |
Operating expenses: | ||||
Research and development | 73,937 | 56,158 | 147,597 | 114,839 |
Sales and marketing | 37,651 | 28,234 | 77,688 | 57,119 |
General and administrative | 35,672 | 18,365 | 68,716 | 36,201 |
Amortization of intangible assets | 6,745 | 1,487 | 13,802 | 3,094 |
Restructuring and related | 3,471 | 1,680 | 20,659 | 1,517 |
Total operating expenses | 169,640 | 105,924 | 347,760 | 212,770 |
Product | ||||
Cost of revenue: | ||||
Cost of revenue | 177,501 | 105,914 | 335,318 | 208,238 |
Services | ||||
Cost of revenue: | ||||
Cost of revenue | $ 36,831 | 13,039 | $ 73,507 | 25,870 |
Previously Reported | ||||
Cost of revenue: | ||||
Amortization of intangible assets | 0 | |||
Restructuring and related | 26 | 43 | ||
Total cost of revenue | 123,922 | 244,435 | ||
Operating expenses: | ||||
Research and development | 56,158 | 114,839 | ||
Sales and marketing | 29,721 | 60,213 | ||
General and administrative | 18,365 | 36,201 | ||
Amortization of intangible assets | 0 | |||
Restructuring and related | 1,680 | 1,517 | ||
Total operating expenses | 105,924 | 212,770 | ||
Previously Reported | Product | ||||
Cost of revenue: | ||||
Cost of revenue | 110,857 | 218,522 | ||
Previously Reported | Services | ||||
Cost of revenue: | ||||
Cost of revenue | 13,039 | 25,870 | ||
Change in Presentation Reclassification | ||||
Cost of revenue: | ||||
Amortization of intangible assets | 4,943 | 10,284 | ||
Restructuring and related | 0 | 0 | ||
Total cost of revenue | 0 | 0 | ||
Operating expenses: | ||||
Research and development | 0 | 0 | ||
Sales and marketing | (1,487) | (3,094) | ||
General and administrative | 0 | 0 | ||
Amortization of intangible assets | 1,487 | 3,094 | ||
Restructuring and related | 0 | 0 | ||
Total operating expenses | 0 | 0 | ||
Change in Presentation Reclassification | Product | ||||
Cost of revenue: | ||||
Cost of revenue | (4,943) | (10,284) | ||
Change in Presentation Reclassification | Services | ||||
Cost of revenue: | ||||
Cost of revenue | $ 0 | $ 0 |
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - Sales revenue, net - Customer concentration risk |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Customer One | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 13.00% | 23.00% | 12.00% | 26.00% |
Customer Two | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 13.00% | 12.00% |
Leases - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 29, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
transaction
|
|
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | 5 years |
Leases not yet commenced | $ 7.1 | $ 7.1 |
Leases not yet commenced, term | 7 years | 7 years |
Rent expense | $ 6.7 | $ 23.4 |
Accelerated rent expense | $ 10.2 | |
Number of sale lease back transactions | transaction | 2 | |
Reimbursement expense | $ 31.5 | |
Reimbursement term | 10 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 10 years | 10 years |
Leases - Topic 842 Adjustments (Details) - USD ($) $ in Thousands |
Dec. 29, 2018 |
Jun. 29, 2019 |
Jan. 01, 2019 |
Jan. 01, 2018 |
---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment from adoption of ASU | $ 23,697 | $ 15,406 | ||
Property, plant and equipment, net | $ 342,820 | $ 159,210 | 168,434 | |
Operating lease right-of-use assets | 0 | 64,740 | 78,855 | |
Other non-current assets | 14,849 | 10,817 | 9,965 | |
Accrued expenses and other current liabilities | 131,891 | 158,617 | 124,548 | |
Long-term financing lease obligation | 193,538 | 1,413 | 0 | |
Other long-term liabilities | 68,082 | 62,817 | 63,175 | |
Operating lease liabilities - short-term | 0 | 19,210 | 19,209 | |
Operating lease liabilities - long-term | 0 | 58,631 | 62,467 | |
Accumulated deficit | 956,970 | $ 1,168,530 | 933,273 | |
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Financing liabilities | 198,300 | |||
Decrease in property, plant and equipment | 174,600 | |||
Property, plant and equipment, net | (174,386) | |||
Operating lease right-of-use assets | 78,855 | |||
Other non-current assets | (4,884) | |||
Accrued expenses and other current liabilities | (7,343) | |||
Long-term financing lease obligation | (193,538) | |||
Other long-term liabilities | (4,907) | |||
Operating lease liabilities - short-term | 19,209 | |||
Operating lease liabilities - long-term | 62,467 | |||
Accumulated deficit | (23,697) | |||
Accumulated Deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment from adoption of ASU | $ 23,697 | $ 15,406 | ||
Accumulated Deficit | ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect adjustment from adoption of ASU | $ 23,800 |
Leases - Operating Lease Maturity (Details) $ in Thousands |
Jun. 29, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of 2019 | $ 13,403 |
2020 | 22,789 |
2021 | 14,540 |
2022 | 12,044 |
2023 | 9,036 |
Thereafter | 29,255 |
Total lease payments | 101,067 |
Less: interest | 23,226 |
Present value of lease liabilities | $ 77,841 |
Leases - Lease Costs (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
| |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years 10 months 28 days |
Weighted average discount rate | 8.60% |
Operating cash flow from operating leases | $ 13,183 |
Leased assets obtained in exchange for new operating lease liabilities | $ 6,007 |
Leases - Payments Under Topic 840 (Details) $ in Thousands |
Dec. 29, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 18,352 |
2020 | 14,047 |
2021 | 7,888 |
2022 | 5,926 |
2023 | 4,905 |
Thereafter | 18,303 |
Total | $ 69,421 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 29, 2019 |
Jun. 29, 2019 |
Dec. 29, 2018 |
|
Revenue from Contract with Customer [Abstract] | |||
Capitalized cost to obtain contract | $ 0.3 | $ 0.3 | $ 0.4 |
Deferred revenue recognized | $ 30.9 | $ 67.7 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 296,250 | $ 208,227 | $ 588,957 | $ 410,908 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 133,213 | 120,987 | 265,735 | 250,012 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29,535 | 4,877 | 44,667 | 10,092 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 90,467 | 62,162 | 189,459 | 121,361 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 43,035 | 20,201 | 89,096 | 29,443 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 226,866 | 175,288 | 449,873 | 346,917 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69,384 | 32,939 | 139,084 | 63,991 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 241,017 | 195,624 | 489,213 | 384,086 |
Indirect | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 55,233 | $ 12,603 | $ 99,744 | $ 26,822 |
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 260,352 | $ 317,115 |
Contract assets | 25,868 | 24,981 |
Deferred revenue | $ 106,927 | $ 120,302 |
Revenue Recognition - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Thousands |
Jun. 29, 2019
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 29, 2019 | $ 504,478 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 29, 2019 | $ 376,625 |
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]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 29, 2019 | $ 84,948 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized in the future as of June 29, 2019 | $ 30,649 |
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 29, 2019 | $ 7,234 |
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 29, 2019 | $ 3,594 |
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 29, 2019 | $ 1,428 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized in the future, period |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Assets | ||
Total assets | $ 17,138 | $ 60,845 |
Money market funds | ||
Assets | ||
Total assets | 15,641 | 10,347 |
Corporate bonds | ||
Assets | ||
Total assets | 1,497 | 23,512 |
U.S. agency notes | ||
Assets | ||
Total assets | 0 | 2,999 |
U.S. treasuries | ||
Assets | ||
Total assets | 0 | 23,987 |
Level 1 | ||
Assets | ||
Total assets | 15,641 | 34,334 |
Level 1 | Money market funds | ||
Assets | ||
Total assets | 15,641 | 10,347 |
Level 1 | Corporate bonds | ||
Assets | ||
Total assets | 0 | 0 |
Level 1 | U.S. agency notes | ||
Assets | ||
Total assets | 0 | 0 |
Level 1 | U.S. treasuries | ||
Assets | ||
Total assets | 0 | 23,987 |
Level 2 | ||
Assets | ||
Total assets | 1,497 | 26,511 |
Level 2 | Money market funds | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Corporate bonds | ||
Assets | ||
Total assets | 1,497 | 23,512 |
Level 2 | U.S. agency notes | ||
Assets | ||
Total assets | 0 | 2,999 |
Level 2 | U.S. treasuries | ||
Assets | ||
Total assets | 0 | 0 |
Foreign currency exchange forward contracts | ||
Liabilities | ||
Foreign currency exchange forward contracts | (11) | (91) |
Foreign currency exchange forward contracts | Level 1 | ||
Liabilities | ||
Foreign currency exchange forward contracts | 0 | 0 |
Foreign currency exchange forward contracts | Level 2 | ||
Liabilities | ||
Foreign currency exchange forward contracts | $ (11) | $ (91) |
Fair Value Measurements - Investments at Fair Value (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash | $ 93,393 | $ 168,620 |
Adjusted Amortized Cost | 110,533 | 229,556 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (2) | (92) |
Fair Value | 110,531 | 229,465 |
Cash and Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 109,034 | 202,953 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 109,034 | 202,954 |
Cash and Cash Equivalents | Money market funds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 15,641 | 10,347 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15,641 | 10,347 |
Cash and Cash Equivalents | U.S. treasuries | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 23,986 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value | 23,987 | |
Short-term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 1,499 | 26,603 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (92) |
Fair Value | 1,497 | 26,511 |
Short-term Investments | Corporate bonds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 1,499 | 23,603 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (91) |
Fair Value | $ 1,497 | 23,512 |
Short-term Investments | U.S. agency notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Adjusted Amortized Cost | 3,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 2,999 |
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 29, 2019 |
Dec. 29, 2018 |
Jun. 30, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale investments | 3 months | ||
Cash, cash equivalents and short-term investments | $ 110,500 | ||
Cash and cash equivalents held by foreign subsidiaries | 109,034 | $ 202,954 | $ 63,308 |
Restricted cash | 29,500 | ||
Foreign Subsidiary | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents held by foreign subsidiaries | $ 64,300 |
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Derivative [Line Items] | ||||
Before-tax effect of foreign currency exchange forward contracts not designated as hedging instruments, gain (loss) | $ 1,200 | $ 700 | $ 500 | |
Interest expense | $ 7,280 | $ 2,501 | 14,843 | $ 6,184 |
Trade Accounts Receivable | ||||
Derivative [Line Items] | ||||
Interest expense | 200 | 400 | ||
Receivables sold | $ 21,200 | $ 45,600 |
Derivative Instruments - Fair Value of Derivative Instruments Not Designated as Hedging Activities (Details) - Not designated as hedging instrument - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Derivative [Line Items] | ||
Other Accrued Liabilities | $ (11) | $ (91) |
Related to euro denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 15,279 | 40,068 |
Other Accrued Liabilities | (11) | (52) |
Related to British pound denominated receivables | ||
Derivative [Line Items] | ||
Gross Notional | 0 | 6,412 |
Other Accrued Liabilities | 0 | (38) |
Related to euro denominated restricted cash | ||
Derivative [Line Items] | ||
Gross Notional | 239 | 240 |
Other Accrued Liabilities | $ 0 | $ (1) |
Business Combination - Preliminary Purchase Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands |
Oct. 01, 2018 |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Acquisition related funds in escrow | $ 0 | $ 10,000 | |
Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 154,192 | ||
Equity consideration | 129,628 | ||
Total | $ 283,820 | ||
Acquisition related funds in escrow | $ 10,000 | ||
Common Stock | Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Share price (in dollars per share) | $ 6.18 | ||
Number of shares issued (in shares) | 21,000,000 |
Business Combination - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
Oct. 01, 2018 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 229,281 | $ 227,231 | |
Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 15,549 | $ 15,549 | |
Restricted cash | 25,743 | 25,743 | |
Accounts receivable | 168,959 | 170,466 | |
Inventory | 95,183 | 96,067 | |
Property, plant and equipment, net | 217,991 | 217,991 | |
Other assets | 38,883 | 39,145 | |
Intangible assets, net | 200,700 | 200,700 | |
Goodwill | 56,083 | 48,235 | |
Financing lease obligation | (194,700) | (194,700) | |
Deferred revenue | (43,271) | (43,502) | |
Other liabilities | (297,300) | (291,874) | |
Total net assets | 283,820 | $ 283,820 | |
ASU 2017-01 | Telecom Holding Parent LLC | |||
Business Acquisition [Line Items] | |||
Accounts receivable | (1,507) | ||
Inventory | (884) | ||
Other assets | (262) | ||
Goodwill | 7,848 | ||
Deferred revenue | 231 | ||
Other liabilities | $ (5,426) |
Business Combination - Narrative (Details) - 2.125% Convertible Senior Notes Due September 1, 2024 - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Business Acquisition [Line Items] | ||
Principal amount | $ 402,500 | $ 402,500 |
Debt instrument interest percentage | 2.125% |
Business Combination - Intangible Assets Acquired (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Oct. 01, 2018 |
Jun. 29, 2019 |
Dec. 29, 2018 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (In Years) | 4 years 10 months 24 days | 5 years 2 months 12 days | |
Customer relationships and backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (In Years) | 3 years 4 months 24 days | 3 years 6 months | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life (In Years) | 1 year 6 months | 1 year 8 months 12 days | |
Telecom Holding Parent LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 200,700 | $ 200,700 | |
Telecom Holding Parent LLC | Customer relationships and backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 111,400 | ||
Estimated Useful Life (In Years) | 8 years | ||
Telecom Holding Parent LLC | Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 70,550 | ||
Estimated Useful Life (In Years) | 5 years | ||
Telecom Holding Parent LLC | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 1,000 | ||
Estimated Useful Life (In Years) | 1 year | ||
In-process technology | Telecom Holding Parent LLC | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
In-process technology | $ 17,750 |
Goodwill and Intangible Assets - Goodwill Roll Forward (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of December 29, 2018 | $ 227,231 |
Adjustment to goodwill acquired | 7,848 |
Foreign currency translation adjustments | (5,798) |
Balance as of June 29, 2019 | $ 229,281 |
Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 29, 2019 |
Dec. 29, 2018 |
|
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 320,844 | $ 325,465 |
Non-cash Settlements and Other | (18,397) | |
Accumulated Amortization | (137,603) | (110,096) |
Net Carrying Amount | $ 183,241 | $ 215,369 |
Weighted average remaining useful life (in years) | 4 years 10 months 24 days | 5 years 2 months 12 days |
Gross Carrying Amount | $ 338,594 | $ 343,215 |
Net Carrying Amount | 200,991 | 233,119 |
Trade names | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | (750) | (250) |
Net Carrying Amount | 250 | 750 |
Customer relationships | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 156,595 | 158,110 |
Accumulated Amortization | (55,157) | (42,478) |
Net Carrying Amount | $ 101,438 | $ 115,632 |
Weighted average remaining useful life (in years) | 3 years 4 months 24 days | 3 years 6 months |
Developed technology | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 163,249 | $ 166,355 |
Accumulated Amortization | (81,696) | (67,368) |
Net Carrying Amount | $ 81,553 | $ 98,987 |
Weighted average remaining useful life (in years) | 1 year 6 months | 1 year 8 months 12 days |
In-process technology | ||
Intangible assets with finite lives: | ||
Accumulated Amortization | $ 0 | $ 0 |
Gross Carrying Amount | $ 17,750 | $ 17,750 |
Goodwill and Intangible Assets - Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | |||
Amortization expense | $ 14,800 | $ 6,500 | $ 30,100 | $ 13,400 |
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Net Carrying Amount | $ 183,241 | $ 215,369 |
Remainder of 2019 | 29,500 | |
2020 | 39,883 | |
2021 | 27,317 | |
2022 | 24,789 | |
2023 | 18,883 | |
2024 and Thereafter | $ 42,869 |
Balance Sheet Details (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Jan. 01, 2019 |
Dec. 29, 2018 |
---|---|---|---|
Inventory | |||
Raw materials | $ 70,370 | $ 74,435 | |
Work in process | 59,528 | 57,232 | |
Finished goods | 208,895 | 180,221 | |
Total inventory | 338,793 | 311,888 | |
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 471,615 | 630,251 | |
Less accumulated depreciation and amortization | (312,405) | (287,431) | |
Total property, plant and equipment, net | 159,210 | $ 168,434 | 342,820 |
Accrued expenses and other current liabilities | |||
Loss contingency related to non-cancelable purchase commitments | 26,693 | 26,042 | |
Professional and other consulting fees | 13,766 | 10,442 | |
Taxes payable | 20,531 | 23,249 | |
Accrued rebate and customer prepay liability | 12,610 | 13,501 | |
Restructuring accrual | 29,341 | 13,097 | |
Acquisition related funds in escrow | 0 | 10,000 | |
Short-term financing lease obligation | 560 | 4,718 | |
Short-term operating lease liability | 19,210 | 19,209 | 0 |
Short-term debt | 3,720 | 0 | |
Other customer related charges | 8,900 | 800 | |
Other accrued expenses and other current liabilities | 23,286 | 30,042 | |
Total accrued expenses | 158,617 | 131,891 | |
Long-term financing lease obligations | 1,413 | $ 0 | 193,538 |
Computer hardware | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 16,806 | 15,633 | |
Computer software | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 35,949 | 40,923 | |
Laboratory and manufacturing equipment(2) | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 309,759 | 304,889 | |
Accrued expenses and other current liabilities | |||
Short-term financing lease obligation | 600 | ||
Financing liabilities | $ 2,000 | ||
Term of finance lease | 3 years | ||
Finance lease discount rate | 8.20% | ||
Long-term financing lease obligations | $ 1,400 | ||
Land and building | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 12,349 | 187,184 | |
Furniture and fixtures | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 2,655 | 2,587 | |
Leasehold and building improvements | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 46,895 | 46,038 | |
Construction in progress | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 47,202 | 32,997 | |
Enterprise resource planning systems | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 16,500 | 13,100 | |
Total property, plant and equipment, net | $ 5,800 | $ 3,900 |
Restructuring and Related Costs - Restructuring and Other Related Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 43,988 | |||
Cost of Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and related expenses | $ 1,264 | $ 26 | 21,961 | $ 43 |
Facilities | 0 | 0 | 0 | 0 |
Accelerated amortization of lease assets due to cease use | 0 | 0 | ||
Accelerated depreciation and other asset impairment charges | 600 | 1,368 | ||
Asset impairment | 0 | 0 | ||
License impairment | 0 | 0 | ||
Total | 1,864 | 26 | 23,329 | 43 |
Operating Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and related expenses | 2,390 | 900 | 8,240 | 1,845 |
Facilities | 1,081 | 47 | 1,081 | (1,037) |
Accelerated amortization of lease assets due to cease use | 0 | 11,338 | ||
Accelerated depreciation and other asset impairment charges | 0 | 0 | ||
Asset impairment | (50) | (74) | ||
License impairment | 783 | 783 | ||
Total | $ 3,471 | $ 1,680 | $ 20,659 | $ 1,517 |
Restructuring and Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 24,351 |
Charges | 43,988 |
Cash | (13,492) |
Non-cash Settlements and Other | (18,397) |
Ending balance | 36,450 |
Severance and related expenses | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 19,842 |
Charges | 30,201 |
Cash | (12,206) |
Non-cash Settlements and Other | (1,425) |
Ending balance | 36,412 |
Facilities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 4,266 |
Charges | 1,081 |
Cash | (1,081) |
Non-cash Settlements and Other | (4,266) |
Ending balance | 0 |
Accelerated amortization of lease assets due to cease use | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 11,338 |
Cash | 0 |
Non-cash Settlements and Other | (11,338) |
Ending balance | 0 |
Accelerated depreciation and other asset impairment charges | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 243 |
Charges | 1,368 |
Cash | (205) |
Non-cash Settlements and Other | (1,368) |
Ending balance | $ 38 |
Restructuring and Related Costs - Narrative (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
---|---|---|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 36,450 | $ 24,351 |
Severance and related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 36,412 | $ 19,842 |
Accumulated Other Comprehensive Loss (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
| |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ (964) |
Beginning balance | 703,821 |
Net current-period other comprehensive loss | 0 |
Ending balance | (964) |
Ending balance | 515,070 |
Unrealized Loss on Other Available-for-Sale Securities | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (91) |
Net current-period other comprehensive loss | 89 |
Ending balance | (2) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (18,932) |
Net current-period other comprehensive loss | (7,506) |
Ending balance | (26,438) |
Actuarial Gain (Loss) on Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (5,313) |
Net current-period other comprehensive loss | 481 |
Ending balance | (4,832) |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (25,300) |
Net current-period other comprehensive loss | (6,936) |
Ending balance | $ (32,236) |
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. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share [Abstract] | ||||
Net loss | $ (113,656) | $ (21,938) | $ (235,257) | $ (48,218) |
Weighted average common shares outstanding - basic and diluted (in shares) | 178,677 | 152,259 | 177,542 | 151,296 |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.64) | $ (0.14) | $ (1.33) | $ (0.32) |
Basic and Diluted Net Loss Per Common Share - Antidilutive Shares (Details) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 14,314 | 9,939 | 15,841 | 12,180 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 970 | 1,118 | 970 | 1,153 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 11,148 | 7,579 | 11,810 | 8,509 |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share computation (in shares) | 2,196 | 1,242 | 2,398 | 1,394 |
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 | 663 | 1,124 |
1.75% Convertible Senior Notes Due June 1, 2018 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Principal amount | $ 150.0 | $ 150.0 | ||
Debt instrument interest percentage | 1.75% | 1.75% | 1.75% | 1.75% |
Debt - Narrative (Details) $ / shares in Units, shares in Millions |
1 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
May 30, 2019
USD ($)
|
Jun. 01, 2018
USD ($)
|
Mar. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
d
|
Jun. 29, 2019
USD ($)
installment
$ / shares
shares
|
Jun. 30, 2018
USD ($)
|
Jun. 28, 2019
$ / shares
|
Dec. 29, 2018
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Debt outstanding in long term debt | $ 284,270,000 | $ 266,929,000 | ||||||
Proceeds from issuance of debt, net | 8,584,000 | $ 0 | ||||||
Deferred tax liability | $ 10,094,000 | 13,347,000 | ||||||
Closing price of common stock (in usd per share) | $ / shares | $ 2.91 | $ 2.91 | ||||||
2.125% Convertible Senior Notes Due September 1, 2024 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Principal amount | $ 402,500,000 | 402,500,000 | ||||||
Debt instrument interest percentage | 2.125% | |||||||
Debt outstanding in long term debt | $ 276,078,000 | $ 266,929,000 | ||||||
Proceeds from issuance of debt, net | $ 391,400,000 | |||||||
Payment of capped call | $ 48,900,000 | |||||||
Strike price (in dollars per share) | $ / shares | $ 9.87 | |||||||
Cap price (in dollars per share) | $ / shares | $ 15.19 | |||||||
Number of shares covered by capped transactions (in shares) | shares | 40.8 | |||||||
Conversion ratio | 101.2812 | |||||||
Debt instrument, convertible, if-converted value in excess of principal | $ 1,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 9.87 | |||||||
Purchase price as a percentage on principal amount of the notes upon the occurrence of a fundamental change | 100.00% | |||||||
Net equity component carrying amount | $ 128,700,000 | |||||||
Deferred tax liability | $ 30,900,000 | |||||||
Additional effective rate of interest to be used on amortized carrying value | 10.07% | |||||||
Fair value of convertible debt | $ 273,200,000 | |||||||
2.125% Convertible Senior Notes, Circumstance 1 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold trading days | d | 20 | |||||||
Threshold consecutive trading days | d | 30 | |||||||
Convertible threshold minimum percentage | 130.00% | |||||||
2.125% Convertible Senior Notes, Circumstance 2 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Debt instrument, convertible, if-converted value in excess of principal | $ 1,000 | |||||||
Threshold trading days | d | 5 | |||||||
Threshold consecutive trading days | d | 5 | |||||||
Convertible, threshold maximum percentage | 98.00% | |||||||
1.75% Convertible Senior Notes Due June 1, 2018 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Principal amount | $ 150,000,000.0 | |||||||
Debt instrument interest percentage | 1.75% | 1.75% | ||||||
Repayment of debt | $ 150,000,000.0 | |||||||
Additional effective rate of interest to be used on amortized carrying value | 10.23% | |||||||
Repayment of final coupon interest | $ 1,300,000 | |||||||
Mortgage | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Debt instrument interest percentage | 5.25% | |||||||
Debt term | 5 years | |||||||
Debt outstanding | $ 8,600,000 | |||||||
Proceeds from debt | $ 8,700,000 | |||||||
Debt payment installments | installment | 59 | |||||||
Debt payment | $ 100,000 | |||||||
Debt outstanding in short term debt | $ 400,000 | |||||||
Debt outstanding in long term debt | 8,200,000 | |||||||
Fabrinet | Loan | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Principal amount | $ 40,000,000 | |||||||
Debt instrument interest percentage | 6.00% | |||||||
Debt term | 12 months | |||||||
Debt outstanding | $ 3,300,000 |
Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 29, 2019 |
Dec. 29, 2018 |
|
Debt Instrument [Line Items] | ||
Net carrying amount | $ 284,270 | $ 266,929 |
2.125% Convertible Senior Notes Due September 1, 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | 402,500 | 402,500 |
Unamortized discount | (118,675) | (127,264) |
Unamortized issuance cost | (7,747) | (8,307) |
Net carrying amount | $ 276,078 | $ 266,929 |
Debt instrument term | 63 months |
Debt - Interest Expense Recognized Related to Notes Prior to Capitalization of Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
2.125% Convertible Senior Notes Due September 1, 2024 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 2,138 | $ 4,277 | ||
Amortization of debt issuance costs | 284 | 561 | ||
Amortization of debt discount | 4,348 | 8,589 | ||
Total interest expense | $ 6,770 | $ 13,427 | ||
1.75% Convertible Senior Notes Due June 1, 2018 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 438 | $ 1,094 | ||
Amortization of debt issuance costs | 163 | 402 | ||
Amortization of debt discount | 1,892 | 4,671 | ||
Total interest expense | $ 2,493 | $ 6,167 |
Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
May 31, 2019
shares
|
Jun. 29, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2018
USD ($)
|
Jun. 29, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2018
USD ($)
|
Jun. 28, 2019
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Closing price of common stock (in usd per share) | $ / shares | $ 2.91 | $ 2.91 | $ 2.91 | |||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of units granted (in shares) | 6,200 | 7,087 | ||||
Amortization of stock-based compensation | $ | $ 10.1 | $ 8.0 | $ 16.1 | $ 15.4 | ||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of units granted (in shares) | 1,715 | |||||
Performance stock unit grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization of stock-based compensation | $ | $ 2.4 | $ 2.6 | $ 4.1 | $ 4.7 | ||
2016 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (in shares) | 7,300 | |||||
Reserved common stock for issuance of options (in shares) | 22,700 | 22,700 | ||||
2016 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 | |||||
2007 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 | |||||
2007 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 | |||||
2007 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 | |||||
2007 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 | |||||
2007 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 Award Activity - Options (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
$ / shares
shares
| |
Number of Stock Options | |
Stock options, beginning balance (in shares) | shares | 1,115 |
Stock options, granted (in shares) | shares | 0 |
Stock options, exercised (in shares) | shares | 0 |
Stock options, canceled (in shares) | shares | (145) |
Stock options, ending balance (in shares) | shares | 970 |
Stock options, exercisable (in shares) | shares | 970 |
Weighted-Average Exercise Price Per Share | |
Weighted-average exercise price per share, beginning balance (in usd per share) | $ / shares | $ 8.09 |
Weighted-average exercise per share, options granted (in usd per share) | $ / shares | 0 |
Weighted-average exercise price per share, options exercised (in usd per share) | $ / shares | 0 |
Weighted-average exercise price per share, options canceled (in usd per share) | $ / shares | 7.05 |
Weighted-average exercise price per share, ending balance (in usd per share) | $ / shares | 8.24 |
Average exercise price per share, exercisable (in usd per share) | $ / shares | $ 8.24 |
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 | $ | $ 0 |
Stockholders' Equity - Equity Award Activity - RSUs (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 29, 2019 |
Jun. 29, 2019 |
|
Number of Restricted Stock Units | ||
Number of units, beginning balance (in shares) | 6,746 | |
Number of units granted (in shares) | 6,200 | 7,087 |
Number of units released (in shares) | (2,043) | |
Number units canceled (in shares) | (643) | |
Number of units, ending balance (in shares) | 11,147 | 11,147 |
Weighted- Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 10.83 | |
Weighted-average grant date fair value per share, granted (in usd per share) | 4.22 | |
Weighted-average grant date fair value per share, released (in usd per share) | 4.45 | |
Weighted-average grant date fair value per share, canceled (in usd per share) | 9.77 | |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 6.59 | $ 6.59 |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, beginning balance | $ 26,446 | |
Aggregate intrinsic value, RSUs released | 9,029 | |
Aggregate intrinsic value, ending balance | $ 32,438 | $ 32,438 |
Stockholders' Equity - Equity Award Activity - PSUs (Details) - PSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 1,129 |
Number of units granted (in shares) | 1,715 |
Number of units released (in shares) | (99) |
Number units canceled (in shares) | (548) |
Number of units, ending balance (in shares) | 2,197 |
Number of restricted stock units, expected to vest (in shares) | 2,196 |
Weighted- Average Grant Date Fair Value Per Share | |
Weighted-average grant date fair value per share, beginning balance (in usd per share) | $ 16.10 |
Weighted-average grant date fair value per share, granted (in usd per share) | 4.44 |
Weighted-average grant date fair value per share, released (in usd per share) | 4.75 |
Weighted-average grant date fair value per share, canceled (in usd per share) | 16.31 |
Weighted-average grant date fair value per share, ending balance (in usd per share) | $ 6.91 |
Aggregate Intrinsic Value | |
Aggregate intrinsic value, beginning balance | $ 4,425 |
Aggregate Intrinsic Value, PSUs released | 472 |
Aggregate intrinsic value, ending balance | 6,393 |
Aggregate intrinsic value, expected to vest | $ 6,393 |
Stockholders' Equity - Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
USD ($)
| |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net | $ 61,658 |
Weighted-average period | 2 years 2 months 4 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net | $ 8,952 |
Weighted-average period | 1 year 6 months 29 days |
Stockholders' Equity - Estimated Fair Value of ESPP, Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 13,047 | $ 12,044 | $ 21,760 | $ 23,027 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 72.00% | 62.00% | 72.00% | 62.00% |
Risk-free interest rate | 2.48% | 1.90% | 2.48% | 1.90% |
Expected life | 15 days | 15 days | 15 days | 15 days |
Estimated fair value (in usd per share) | $ 1.77 | $ 3.13 | $ 1.77 | $ 3.13 |
Total stock-based compensation expense | $ 796 | $ 1,337 | $ 2,112 | $ 2,892 |
Stockholders' Equity - Valuation Assumptions (Details) - PSUs |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 26, 2016
$ / shares
|
Jun. 29, 2019
$ / shares
|
Jun. 30, 2018
$ / shares
|
Jul. 01, 2017
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Index volatility | 18.00% | 33.00% | ||
Infinera volatility | 55.00% | 58.00% | ||
Volatility minimum | 55.00% | |||
Volatility maximum | 59.00% | 56.00% | ||
Estimated fair value (in dollars per share) | $ 4.44 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Index volatility | 33.00% | |||
Risk-free interest rate | 0.95% | 2.37% | 1.41% | |
Correlation with index/index component | 0.58 | 0.04 | 0.10 | |
Estimated fair value (in dollars per share) | $ 10.31 | $ 14.99 | $ 15.23 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Index volatility | 34.00% | |||
Risk-free interest rate | 1.07% | 2.40% | 1.63% | |
Correlation with index/index component | 0.59 | 0.48 | 0.49 | |
Estimated fair value (in dollars per share) | $ 16.62 | $ 19.46 | $ 17.35 |
Stockholders' Equity - Nonvested Performance Based Units Activity By Grant Year (Details) - PSUs shares in Thousands |
6 Months Ended |
---|---|
Jun. 29, 2019
shares
| |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 1,129 |
Number of units granted (in shares) | 1,715 |
Number of units released (in shares) | (99) |
Number units canceled (in shares) | (548) |
Number of units, ending balance (in shares) | 2,197 |
2015 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 210 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | 0 |
Number units canceled (in shares) | (156) |
Number of units, ending balance (in shares) | 54 |
2016 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 481 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | (26) |
Number units canceled (in shares) | (234) |
Number of units, ending balance (in shares) | 221 |
2017 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 437 |
Number of units granted (in shares) | 0 |
Number of units released (in shares) | (25) |
Number units canceled (in shares) | (158) |
Number of units, ending balance (in shares) | 254 |
2018 | |
Number of Performance Stock Units | |
Number of units, beginning balance (in shares) | 0 |
Number of units granted (in shares) | 1,715 |
Number of units released (in shares) | (48) |
Number units canceled (in shares) | 0 |
Number of units, ending balance (in shares) | 1,667 |
Stockholders' Equity - Balance Sheet and Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
Dec. 29, 2018 |
|
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | $ 12,119 | $ 10,629 | $ 20,042 | $ 20,496 | |
Cost of revenue – amortization from balance sheet | 928 | 1,415 | 1,718 | 2,531 | |
Total stock-based compensation expense | 13,047 | 12,044 | 21,760 | 23,027 | |
Cost of revenue | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 663 | 624 | 1,201 | 502 | |
Research and development | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 6,127 | 4,192 | 9,730 | 8,516 | |
Sales and marketing | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 2,099 | 3,046 | 3,646 | 5,944 | |
General and administration | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects included in net loss before income taxes | 3,230 | $ 2,767 | 5,465 | $ 5,534 | |
Stock-based compensation effects in inventory | |||||
Effects Of Stock Based Compensation [Line Items] | |||||
Stock-based compensation effects in inventory | $ 5,349 | $ 5,349 | $ 4,750 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 1,385 | $ (124) | $ 1,578 | $ (802) |
Pre-tax loss | 112,271 | $ 22,062 | 233,679 | $ 49,020 |
Income tax benefit increase | $ 1,500 | $ 2,400 |
Segment Information (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 29, 2019
USD ($)
segment
|
Dec. 29, 2018
USD ($)
|
|
Segment Reporting [Abstract] | ||
Number of business activities | segment | 1 | |
Number of reporting segments | segment | 1 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 159,210 | $ 342,820 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 120,691 | 288,614 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 2,894 | 2,370 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 24,800 | 38,273 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 10,825 | $ 13,563 |
Guarantees - Activity Related to Warranty (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 39,751 | $ 30,848 | $ 41,021 | $ 30,909 |
Charges to operations | 5,277 | 5,166 | 10,697 | 9,523 |
Utilization | (5,786) | (4,067) | (11,589) | (8,505) |
Change in estimate | 4,904 | (1,710) | 4,017 | (1,690) |
Balance at the end of the period | $ 44,146 | $ 30,237 | $ 44,146 | $ 30,237 |
Guarantees - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 29, 2019 |
Dec. 29, 2018 |
|
Guarantor Obligations [Line Items] | ||
Outstanding standby letters of credit | $ 27,600 | $ 30,000 |
Restructuring plans | 36,450 | 24,351 |
Debt instrument, collateral amount | 4,900 | 4,900 |
Banker's guarantees or performance bonds | ||
Guarantor Obligations [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 1,600 | 1,600 |
Proceeds from lines of credit | 0 | 0 |
Letter of credit | ||
Guarantor Obligations [Line Items] | ||
Customer performance guarantee | 22,100 | 23,400 |
Value added tax license | 1,400 | 1,400 |
Property leases | 2,600 | 2,900 |
Restructuring plans | 800 | |
Credit cards | 500 | 500 |
Suppliers | $ 200 | |
Pre-Acquisition restructuring plans | $ 1,800 |
Pension and Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 29, 2019 |
Jun. 29, 2019 |
|
Retirement Benefits [Abstract] | ||
Service cost | $ 874 | $ 1,230 |
Interest cost | 662 | 1,033 |
Expected return on plan assets | (1,193) | (1,797) |
Amortization of actuarial loss | 409 | 827 |
Total net periodic benefit cost | $ 752 | $ 1,293 |
Litigation and Contingencies - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 29, 2019
petition
| |
Commitments and Contingencies Disclosure [Abstract] | |
Number of petitions filed | 2 |
Subsequent Events (Details) - Subsequent event |
Aug. 01, 2019
USD ($)
|
---|---|
Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 100,000,000 |
Additional borrowing capacity | 50,000,000 |
Letter of credit | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | 50,000,000 |
Swing line loan facility | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 10,000,000 |
Minimum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Commitment fee percentage | 0.375% |
Maximum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Commitment fee percentage | 0.625% |
LIBOR | Minimum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Variable rate | 2.00% |
LIBOR | Maximum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Variable rate | 2.50% |
Base rate | Minimum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Variable rate | 1.00% |
Base rate | Maximum | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Variable rate | 1.50% |