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Stockholders' Equity (Tables)
 3 Months Ended
Mar. 28, 2020
Share-based Payment Arrangement [Abstract]  
Summary of Company's Equity Award Activity - Options
The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data): 
 
Number of Stock
Options
 
Weighted Average
Exercise
Price
  Per Share  
 
  Aggregate  
Intrinsic
Value
Outstanding at December 28, 2019
730

 
$
8.41

 
$
—

Options granted
—

 
$
—

 
 
Options exercised
—

 
$
—

 
$
—

Options canceled
(125
)
 
$
8.81

 


Outstanding at March 28, 2020
605

 
$
8.33

 
$
—

Exercisable at March 28, 2020
605

 
$
8.33

 
Summary of Company's Equity Award Activity - RSUs
 
Number of
Restricted
Stock Units
 
Weighted
Average
 Grant Date 
Fair Value
Per Share
 
  Aggregate  
Intrinsic
Value
Outstanding at December 28, 2019
11,600

 
$
6.20

 
$
90,254

RSUs granted
5,978

 
$
5.90

 


RSUs released
(165
)
 
$
7.45

 
$
848

RSUs canceled
(200
)
 
$
6.87

 


Outstanding at March 28, 2020
17,213

 
$
6.08

 
$
88,478
Summary of Company's Equity Award Activity - PSUs
 
Number of
Performance
Stock Units
 
Weighted
Average
 Grant Date 
Fair Value
Per Share
 
  Aggregate  
Intrinsic
Value
Outstanding at December 28, 2019
2,505

 
$
6.48

 
$
19,485

PSUs granted
1,628

 
$
5.89

 

PSUs released
(60
)
 
$
4.98

 
$
308

PSUs canceled
(16
)
 
$
5.19

 

Outstanding at March 28, 2020
4,057

 
$
5.77

 
$
20,853

Expected to vest at March 28, 2020
3,946

 

 
$
20,282
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 March 28, 2020. These costs are expected to be amortized on a straight-line basis over the following weighted-average periods (in thousands, except for weighted average period data):
 
Unrecognized
Compensation
Expense, Net
 
Weighted
Average Period
(in Years)
RSUs
$
76,045

 
2.40
PSUs
$
15,416

 
2.69
Estimated Fair Value of ESPP Shares
The fair value of the ESPP shares was estimated at the date of grant using the following assumptions:
 
Three Months Ended
 
March 28, 2020
 
March 30, 2019
Volatility
42%
 
72%
Risk-free interest rate
1.56%
 
2.48%
Expected life
0.5 years
 
0.5 years
Estimated fair value
$2.17
 
$1.77
Total stock-based compensation expense
$1,513
 
$1,316
Schedule of PSUs Valuation Assumptions
The ranges of estimated values of the PSUs granted that are compared to the SPGIIPTR, as well as the assumptions used in calculating these values were based on estimates as follows:
 
 
2018
 
2017
Index volatility
 
33%
 
33% - 34%
Infinera volatility
 
58% - 59%
 
55% - 56%
Risk-free interest rate
 
2.37% - 2.40%
 
1.41% - 1.63%
Correlation with index/index component
 
0.04 - 0.48
 
0.10 - 0.49
Estimated fair value
 
$14.99 - $19.46
 
$15.23 - $17.35

The assumptions used in calculating the estimated values of this award granted in fiscal 2019 were based upon Monte Carlo Model Assumptions and estimates as follows:
 
 
2019
Index volatility
 
N/A
Infinera volatility
 
64% - 68%
Risk-free interest rate
 
2.17% - 2.48%
Correlation with index/index component
 
N/A
Estimated fair value
 
$2.08 - $2.89
Schedule of Nonvested Performance Based Units Activity by Grant Year
The following table summarizes by grant year, the Company’s PSU activity for the three months ended March 28, 2020 (in thousands):
 
 
 
 
 
 
 
Total Number of Performance Stock Units
 
2017
 
2018
 
2019
 
2020
Outstanding at December 28, 2019
 
2,505

 
199

 
270

 
2,036

 
—

PSUs granted
 
1,628

 
—

 
—

 
—

 
1,628

PSUs released
 
(60
)
 
—

 
—

 
(60
)
 
—

PSUs canceled
 
(16
)
 
(1
)
 
—

 
(15
)
 
—

Outstanding at March 28, 2020
 
4,057

 
198

 
270

 
1,961

 
1,628
Summary of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations
The following tables summarize the effects of stock-based compensation on the Company’s consolidated balance sheets and statements of operations for the periods presented (in thousands):
 
March 28,
2020
 
December 28,
2019
Stock-based compensation effects in inventory
$
4,506

 
$
4,798

 
Three Months Ended
 
March 28,
2020
 
March 30,
2019
Stock-based compensation effects included in net loss before income taxes
 
 
 
Cost of revenue
$
624

 
$
538

Research and development
3,774

 
3,603

Sales and marketing
2,644

 
1,547

General and administration
3,183

 
2,235

 
10,225

 
7,923

Cost of revenue – amortization from balance sheet (1)
1,478

 
790

Total stock-based compensation expense
$
11,703

 
$
8,713

(1) 
Stock-based compensation expense deferred to inventory in prior periods and recognized in the current period.