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Stockholders' Equity (Tables)
 12 Months Ended
Dec. 27, 2014
Text Block [Abstract]  
Common Stock Reserved for Future Issuance
Shares Reserved for Future Issuances
Common stock reserved for future issuance was as follows (in thousands):
 
 
 
December 27,
2014
Outstanding stock options and awards
11,217

Reserved for future option and award grants
17,256

Reserved for future ESPP
7,262

Total common stock reserved for stock options and awards
35,735
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
Options
 
Weighted-Average
Exercise Price
Per Share
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2011
9,873

 
$
7.03

 
$
7,924

Options granted
127

 
$
7.18

 

Options exercised
(582
)
 
$
4.39

 
$
1,484

Options canceled
(410
)
 
$
8.50

 

Outstanding at December 29, 2012
9,008

 
$
7.13

 
$
5,726

Options granted
—

 
$
—

 

Options exercised
(2,217
)
 
$
6.59

 
$
7,583

Options canceled
(424
)
 
$
8.04

 

Outstanding at December 28, 2013
6,367

 
$
7.26

 
$
17,452

Options granted
25

 
$
9.02

 
 
Options exercised
(2,001
)
 
$
6.99

 
$
8,182

Options canceled
(93
)
 
$
12.38

 
 
Outstanding at December 27, 2014
4,298

 
$
7.29

 
$
32,833

Vested and expected to vest as of December 27, 2014
4,296

 
 
 
$
32,814

Exercisable at December 27, 2014
4,219

 
$
7.28

 
$
32,261
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 31, 2011
5,957

 
$
8.77

 
$
37,407

RSUs granted
3,620

 
$
7.51

 

RSUs released
(2,495
)
 
$
9.07

 
$
17,742

RSUs canceled
(379
)
 
$
8.27

 

Outstanding at December 29, 2012
6,703

 
$
8.01

 
$
38,873

RSUs granted
3,602

 
$
7.63

 

RSUs released
(3,070
)
 
$
8.26

 
$
25,028

RSUs canceled
(652
)
 
$
7.63

 

Outstanding at December 28, 2013
6,583

 
$
7.72

 
$
64,443

RSUs granted
2,705

 
$
8.80

 


RSUs released
(2,797
)
 
$
7.84

 
$
24,858

RSUs canceled
(449
)
 
$
7.85

 
 
Outstanding at December 27, 2014
6,042

 
$
8.14

 
$
90,085

Expected to vest as of December 27, 2014
5,850

 
 
 
$
87,221
Summary of Company's Equity Award Activity - PSUs
The ranges of estimated values of the PSUs granted, as well as assumptions used in calculating these values were based on estimates as follows:

 
 
Year Ended
 
 
December 27, 2014
Infinera Volatility
 
49% - 50%
IGN Index Volatility
 
25%
Risk-free interest rate
 
0.66% - 0.71%
Correlation with IGN Index
 
0.60
Estimated fair value
 
$6.59 - $7.60
 
Number of
Performance
Stock Units
 
Weighted-Average
Grant Date
Fair Value Per Share
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2011
2,595

 
$
10.51

 
$
16,304

PSUs granted
515

 
$
7.85

 

PSUs released
(883
)
 
$
9.40

 
$
5,448

PSUs canceled
(859
)
 
$
10.04

 

Outstanding at December 29, 2012
1,368

 
$
10.53

 
$
7,933

PSUs granted
552

 
$
6.63

 

PSUs released
(684
)
 
$
10.53

 
$
4,284

PSUs canceled
(515
)
 
$
11.31

 

Outstanding at December 28, 2013
721

 
$
7.04

 
$
7,054

PSUs granted
508

 
$
8.34

 


PSUs released
(255
)
 
$
6.36

 
$
2,097

PSUs canceled
(98
)
 
$
7.18

 
 
Outstanding at December 27, 2014
876

 
$
7.49

 
$
13,067

Expected to vest as of December 27, 2014
663

 
 
 
$
9,884
Summary of stock-based compensation cost for instruments granted but not yet amortized
The following table presents total stock-based compensation cost for instruments granted but not yet amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of December 27, 2014. These costs are expected to be amortized on a straight-line basis over the following weighted-average periods (in thousands, except for weighted-average period):
 
 
Unrecognized
Compensation
Expense, Net
 
Weighted-
Average Period
(in years)
Stock options
$
239

 
1.5
RSUs
$
28,287

 
2.3
PSUs
$
2,055

 
1.5
Summary of Options Outstanding
The following table summarizes information about options outstanding at December 27, 2014.
 
 
 
Options Outstanding
 
Vested and Exercisable
Options
Exercise Price
 
Number of
Shares
 
Weighted-
Average
Remaining
Contractual Life
 
Weighted-
Average
Exercise
Price
 
Number of
Shares
 
Weighted-
Average
Exercise
Price
 
 
(In thousands)
 
(In years)
 
 
 
(In thousands)
 
 
$0.76 - $ 4.04
 
754

 
1.51
 
$
2.06

 
754

 
$
2.06

$6.30 - $ 7.25
 
536

 
5.29
 
$
6.87

 
504

 
$
6.88

$7.45 - $ 7.61
 
706

 
3.72
 
$
7.54

 
704

 
$
7.54

$7.68 - $ 8.19
 
1,069

 
3.91
 
$
8.12

 
1,049

 
$
8.13

$8.39 - $ 8.58
 
627

 
6.01
 
$
8.57

 
627

 
$
8.57

$8.85 - $ 22.36
 
606

 
3.91
 
$
11.05

 
581

 
$
11.14

 
 
4,298

 
3.94
 
$
7.29

 
4,219

 
$
7.28
Ranges of Estimated Values of Stock Options and Performance-Based Stock Options Granted
The estimated values of stock options, as well as assumptions used in calculating these values were based on estimates as follows (expense amounts in thousands):
 
 
Years Ended
Employee and Director Stock Options
December 27,
2014
 
December 28,
2013
 
December 29,
2012
Volatility
52%
 
N/A
 
65% - 68%
Risk-free interest rate
1.3%
 
N/A
 
0.7% - 1.0%
Expected life
4.3 years
 
N/A
 
4.0 - 5.3 years
Estimated fair value
3.85
 
N/A
 
$3.75 - $3.76
Total stock-based compensation expense
$702
 
$2,792
 
$8,436

 
 
 

N/A Not applicable because the Company did not grant any options to employees for the period presented.
Estimated Fair Value of ESPP Shares
The fair value of the ESPP shares was estimated at the date of grant using the following assumptions:
 
Years Ended
 
December 27,
2014
 
December 28,
2013
 
December 29,
2012
Volatility
46% - 51%
 
46% - 49%
 
54% - 57%
Risk-free interest rate
0.02% - 0.11%
 
0.10% - 0.14%
 
0.16% - 0.17%
Expected life
0.3 - 0.5 years
 
0.5 years
 
0.5 years
Estimated fair value
$2.05 - $2.57
 
$1.87 - $3.00
 
$1.73 - $2.63
Summary of Employee Stock Purchase Plan Activity
The Company’s ESPP activity for the following periods was as follows (in thousands):
 
 
Years Ended
 
December 27,
2014
 
December 28,
2013
 
December 29,
2012
Stock-based compensation expense
$
3,760

 
$
3,022

 
$
3,586

Employee contributions
$
10,728

 
$
8,559

 
$
9,030

Shares purchased
1,438

 
1,656

 
1,653
Estimated Fair Value of PSU Granted
The ranges of estimated values of the PSUs granted, as well as assumptions used in calculating these values were based on estimates as follows:
 
Year Ended
 
December 28,
2013
Infinera Volatility
55%
NASDAQ Telecom Composite Index Volatility
23%
Risk-free interest rate
0.42%
Correlation with NASDAQ Telecom Composite Index
0.56
Estimated fair value
$6.27 - $7.06
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):
 
 
Years Ended
 
December 27,
2014
 
December 28,
2013
 
December 29,
2012
Stock-based compensation effects in inventory
$
3,088

 
$
3,189

 
$
4,891

Stock-based compensation effects in deferred inventory cost
$
13

 
$
15

 
$
42

Stock-based compensation effects in fixed assets
$
119

 
$
145

 
$
146

Stock-based compensation effects in net income (loss) before income taxes
 
 
 
 
 
Cost of revenue
$
1,921

 
$
1,871

 
$
2,710

Research and development
8,927

 
10,900

 
13,306

Sales and marketing
7,477

 
7,624

 
10,450

General and administrative
6,383

 
5,956

 
9,529

 
24,708

 
26,351

 
35,995

Cost of revenue—amortization from balance sheet (1)
3,686

 
5,625

 
5,824

Total stock-based compensation expense
$
28,394

 
$
31,976

 
$
41,819

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