Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 26, 2014 | Oct. 17, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 26-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'HLIT | ' |
Entity Registrant Name | 'HARMONIC INC | ' |
Entity Central Index Key | '0000851310 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 88,059,028 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $42,028 | $90,329 |
Short-term investments | 55,151 | 80,252 |
Accounts receivable, net | 75,640 | 75,052 |
Inventories | 32,512 | 36,926 |
Deferred income taxes | 2,631 | 24,650 |
Prepaid expenses and other current assets | 26,852 | 21,521 |
Total current assets | 234,814 | 328,730 |
Property and equipment, net | 30,814 | 34,945 |
Goodwill | 198,007 | 198,022 |
Intangibles, net | 12,740 | 31,119 |
Other assets | 13,347 | 13,268 |
Total assets | 489,722 | 606,084 |
Current liabilities: | ' | ' |
Accounts payable | 21,377 | 22,380 |
Income taxes payable | 307 | 331 |
Deferred revenue | 35,095 | 27,020 |
Accrued liabilities | 31,043 | 35,349 |
Total current liabilities | 87,822 | 85,080 |
Income taxes payable, long-term | 4,199 | 15,165 |
Other non-current liabilities | 17,554 | 11,673 |
Total liabilities | 109,575 | 111,918 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 150,000 shares authorized; 88,408 and 99,413 shares issued and outstanding at September 26, 2014 and December 31, 2013, respectively | 88 | 99 |
Additional paid-in capital | 2,264,422 | 2,336,275 |
Accumulated deficit | -1,883,393 | -1,841,999 |
Accumulated other comprehensive loss | -970 | -209 |
Total stockholders’ equity | 380,147 | 494,166 |
Total liabilities and stockholders’ equity | $489,722 | $606,084 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 88,408,000 | 99,413,000 |
Common stock, shares outstanding | 88,408,000 | 99,413,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Product revenue | $84,583 | $98,713 | $259,371 | $277,965 |
Service revenue | 23,478 | 24,205 | 66,311 | 63,753 |
Net revenue | 108,061 | 122,918 | 325,682 | 341,718 |
Product cost of revenue | 41,802 | 52,747 | 134,336 | 146,916 |
Service cost of revenue | 12,831 | 13,379 | 35,789 | 33,953 |
Total cost of revenue | 54,633 | 66,126 | 170,125 | 180,869 |
Gross profit | 53,428 | 56,792 | 155,557 | 160,849 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 22,803 | 24,560 | 70,176 | 75,631 |
Selling, general and administrative | 32,114 | 32,527 | 98,640 | 100,220 |
Amortization of intangibles | 1,661 | 2,001 | 5,329 | 6,099 |
Restructuring and related charges | 388 | 259 | 821 | 925 |
Total operating expenses | 56,966 | 59,347 | 174,966 | 182,875 |
Loss from operations | -3,538 | -2,555 | -19,409 | -22,026 |
Interest income, net | 47 | 47 | 191 | 141 |
Other income (expense), net | -261 | 230 | -376 | -70 |
Loss from continuing operations before income taxes | -3,752 | -2,278 | -19,594 | -21,955 |
Provision for (benefit from) income taxes | -4,830 | -38,953 | 21,800 | -45,723 |
Income (loss) from continuing operations | 1,078 | 36,675 | -41,394 | 23,768 |
Income from discontinued operations, net of taxes (including gain on disposal of $14,813, net of taxes, for the nine months ended September 27, 2013) | 0 | 91 | 0 | 15,619 |
Net income (loss) | $1,078 | $36,766 | ($41,394) | $39,387 |
Basic net income (loss) per share from: | ' | ' | ' | ' |
Continuing operations | $0.01 | $0.36 | ($0.44) | $0.22 |
Discontinued operations | $0 | $0 | $0 | $0.14 |
Net income (loss) | $0.01 | $0.36 | ($0.44) | $0.36 |
Diluted net income (loss) per share from: | ' | ' | ' | ' |
Continuing operations | $0.01 | $0.36 | ($0.44) | $0.22 |
Discontinued operations | $0 | $0 | $0 | $0.14 |
Net income (loss) | $0.01 | $0.36 | ($0.44) | $0.36 |
Shares used in per share calculation: | ' | ' | ' | ' |
Basic | 90,618 | 101,144 | 94,113 | 108,695 |
Diluted | 91,800 | 102,723 | 94,113 | 109,879 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Income Statement [Abstract] | ' | ' |
Gain on disposal, net of taxes | $0 | $14,813 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Net income (loss) | $1,078 | $36,766 | ($41,394) | $39,387 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -670 | 462 | -440 | -8 |
Gain (loss) on investments | -308 | 52 | -333 | 11 |
Other comprehensive income (loss) before tax | -978 | 514 | -773 | 3 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | -7 | 17 | -12 | 5 |
Other comprehensive income (loss), net of tax | -971 | 497 | -761 | -2 |
Comprehensive income (loss) | $107 | $37,263 | ($42,155) | $39,385 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($41,394) | $39,387 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Amortization of intangibles | 18,378 | 20,569 |
Depreciation | 12,641 | 12,365 |
Stock-based compensation | 12,720 | 11,953 |
Gain on sale of discontinued operations, net of tax | 0 | -14,813 |
Loss on impairment of fixed assets | 0 | 149 |
Deferred income taxes | 31,782 | -10,647 |
Provision for excess and obsolete inventories | 2,013 | 2,813 |
Allowance for doubtful accounts, returns and discounts | -116 | 1,161 |
Excess tax benefits from stock-based compensation | -194 | 0 |
Other non-cash adjustments, net | 1,108 | 1,220 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -472 | -310 |
Inventories | 2,401 | 10,509 |
Prepaid expenses and other assets | -5,321 | 8,522 |
Accounts payable | -786 | -5,418 |
Deferred revenue | 7,770 | 5,127 |
Income taxes payable | -8,292 | -39,209 |
Accrued and other liabilities | -4,717 | -8,244 |
Net cash provided by operating activities | 27,521 | 35,134 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -26,599 | -54,773 |
Proceeds from maturities of investments | 43,236 | 50,681 |
Proceeds from sales of investments | 7,408 | 31,506 |
Purchases of property and equipment | -8,859 | -11,249 |
Purchases of long-term investments | -5,867 | 0 |
Proceeds from sale of discontinued operations, net of selling costs | 0 | 43,527 |
Net cash provided by investing activities | 9,319 | 59,692 |
Cash flows from financing activities: | ' | ' |
Payments for repurchase of common stock | -86,407 | -103,496 |
Proceeds from common stock issued to employees | 1,241 | 5,355 |
Excess tax benefits from stock-based compensation | 194 | 0 |
Net cash used in financing activities | -84,972 | -98,141 |
Effect of exchange rate changes on cash and cash equivalents | -169 | -25 |
Net decrease in cash and cash equivalents | -48,301 | -3,340 |
Cash and cash equivalents at beginning of period | 90,329 | 96,670 |
Cash and cash equivalents at end of period | $42,028 | $93,330 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) which Harmonic Inc. (“Harmonic,” or the “Company”) considers necessary for a fair statement of the results of operations for the interim periods covered and the consolidated financial condition of the Company at the date of the balance sheets. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 28, 2014 (“2013 Form 10-K”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2014, or any other future period. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter, which ends on December 31. | |
The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The year-end condensed balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“US GAAP”). | |
Discontinued Operations | |
In the first quarter of fiscal 2013, the Company completed the sale of its cable access hybrid-fiber coaxial ("HFC") business to Aurora Networks (“Aurora”). The results of operations associated with the cable access HFC business were presented as discontinued operations in its unaudited condensed consolidated financial statements as described in Note 3, "Discontinued Operations". There were no operating activities associated with the cable access HFC business after December 31, 2013. Unless noted otherwise, all discussions herein with respect to the Company’s unaudited condensed consolidated financial statements relate to the Company’s continuing operations. | |
Use of Estimates | |
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Variable Interest Entities | |
From time to time, the Company may enter into investments in entities that are considered variable interest entities under Accounting Standards Codification (ASC) Topic 810. If the Company is the primary beneficiary of a variable interest entity ("VIE"), it is required to consolidate it. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE requires significant assumptions and judgments. | |
Investments in Equity Securities | |
The Company accounts for its investments in entities that it does not have significant influence under the cost method. Investments in equity securities are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as long-term investments and included in "Other assets" in the Company's Condensed Consolidated Balance Sheet. Unrealized gains and losses, net of taxes, on the long-term investments are included in the Company's Condensed Consolidated Balance Sheet as a component of accumulated other comprehensive income (loss). Investments in equity securities that do not qualify for fair value accounting or equity method accounting are accounted for under the cost method. In accordance with the cost method, the Company's initial investment is recorded at cost and the Company reviews all of its cost method investments quarterly to determine if impairment indicators exist. Cost method investments are classified as long-term investments and included in "Other assets" in the Company's Condensed Consolidated Balance Sheet. | |
Segment Reporting | |
The Company operates its business in one reportable segment, which is the design, manufacture and sale of versatile and high performance video infrastructure products and system solutions. Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the chief operating decision maker (which for Harmonic is the Chief Executive Officer) in deciding how to allocate resources and assess performance. More recently, the Company has started to view its business through two market segments: Video and Cable Edge. As part of its annual year-end financial planning process, the Company expects to develop internal processes, policies and controls to enable timely and reliable measuring of operating profits by these segments. The Company expects the chief operating decision maker will apply this information in deciding how to allocate resources and assess the Company's performance. As such, the Company anticipates reporting the operating results for the Video and Cable Edge business in its segment reporting in the fourth quarter of 2014. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in its 2013 Form 10-K. There have been no significant changes to these policies during the nine months ended September 26, 2014. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 26, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. The ASU addresses accounting for a cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new guidance became effective for the Company beginning in the first quarter of fiscal 2014 and it did not have a material impact on the Company’s Consolidated Financial Statements. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. Under certain circumstances, unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The new guidance became effective for the Company beginning in the first quarter of fiscal 2014 and it did not have a material impact on the Company’s Consolidated Financial Statements. | |
On April 10, 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". This guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for the Company beginning in the first quarter of fiscal 2015. The Company does not expect the adoption of ASU 2014-08 will have a material impact on its financial position, results of operations or cash flows. | |
On May 28, 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", requiring an entity to recognize the amount of revenue that reflects the consideration to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
DISCONTINUED OPERATIONS | ||||||||
In February 2013, the Company entered into an Asset Purchase Agreement with Aurora pursuant to which the Company agreed to sell its cable access HFC business for $46.0 million in cash. On March 5, 2013, the sale transaction closed and the Company received gross proceeds of $46.0 million from the sale and recorded a net gain of $15.0 million in connection with the sale in the first quarter of fiscal 2013, adjusted by ($0.2) million in the second quarter of fiscal 2013, primarily related to adjustments on inventory and fixed assets sold to Aurora, for a net gain of $14.8 million. The gain was included in income from discontinued operations, net of tax in the Condensed Consolidated Statement of Operations for the nine months ended September 27, 2013. | ||||||||
In March 2013, the Company entered into a transition services agreement (‘TSA”) with Aurora to provide contract manufacturing and other various support, including providing order fulfillment, taking warranty calls, attending to product returns from customers, providing cost accounting analysis, receiving payments from customers and remitting such payments to Aurora. The TSA fees were a fixed amount per month and were determined based on the Company’s estimated cost of delivering the transition services. In addition, in April 2013, the Company and Aurora signed a sublease agreement for the Company’s Milpitas warehouse for the remaining period of the lease. | ||||||||
The TSA ended in October 2013 and the billing to Aurora was recorded in the Condensed Consolidated Statements of Operations under income from continuing operations as an offset to the expenses incurred to deliver the transition services. The table below provides details on the income statement caption under which the TSA billing was recorded (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
27-Sep-13 | ||||||||
Product cost of revenue | $ | 41 | $ | 577 | ||||
Research and development | — | 21 | ||||||
Selling, general and administrative | 7 | 379 | ||||||
Total TSA billing to Aurora | $ | 48 | $ | 977 | ||||
The Company recorded a gain of $14.8 million in the nine months ended September 27, 2013 , in connection with the sale of the cable access HFC business, calculated as follows (in thousands): | ||||||||
Gross Proceeds | $ | 46,000 | ||||||
Less : Carrying value of net assets | ||||||||
Inventories, net | $ | 10,579 | ||||||
Prepaid expenses and other current assets | 612 | |||||||
Property and equipment, net | 1,180 | |||||||
Goodwill de-recognized | 14,547 | |||||||
Deferred revenue | (4,499 | ) | ||||||
Accrued liabilities | (939 | ) | ||||||
Total net assets sold and de-recognized | $ | 21,480 | ||||||
Less : Selling cost | 2,473 | |||||||
Less : Tax effect | 7,234 | |||||||
Gain on disposal, net of taxes | $ | 14,813 | ||||||
Since the Company has one reporting unit, upon the sale of the cable access HFC business, approximately $14.5 million of the carrying value of goodwill was allocated to the cable access HFC business based on the relative fair value of the cable access HFC business to the fair value of the Company. The remaining carrying value of goodwill was tested for impairment, and the Company determined that goodwill was not impaired as of March 29, 2013. | ||||||||
The results of operations associated with the cable access HFC business are presented as discontinued operations in the Company’s Condensed Consolidated Statements of Operations for fiscal 2013. There were no operating activities associated with the cable access HFC business after December 31, 2013. Revenue and the components of net income related to the discontinued operations for the three and nine months ended September 27, 2013 were as follows (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
27-Sep-13 | ||||||||
Revenue | $ | 161 | $ | 9,717 | ||||
Operating income | $ | 154 | $ | 669 | ||||
Less : Provision for (benefit from) income taxes | 57 | (137 | ) | |||||
Add : Gain (loss) on disposal, net of taxes | (6 | ) | 14,813 | |||||
Income from discontinued operations, net of taxes | $ | 91 | $ | 15,619 | ||||
Investments_in_Equity_Securiti
Investments in Equity Securities Investments in Equity Securities | 9 Months Ended |
Sep. 26, 2014 | |
Investments, All Other Investments [Abstract] | ' |
Investments in Equity Securities | ' |
INVESTMENTS IN EQUITY SECURITIES | |
On September 26, 2014, the Company acquired a 19.8% interest in VJU iTV Development GmbH ("VJU"), a software company based in Austria, for $2.5 million. Since VJU's equity is deemed not sufficient to permit it to finance its activities without additional support from its shareholders, VJU is considered a variable interest entity ("VIE"). The Company determined that it is not the primary beneficiary of VJU because its financial interest in VJU's equity and its research and development agreement with VJU do not empower the Company to direct VJU's activities that will most significantly impact VJU's economic performance. VJU is accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of VJU. As of September 26, 2014, the carrying value of VJU was $2.5 million and it is included in “Other assets" in the Condensed Consolidated Balance Sheet. As of September 26, 2014, the Company's maximum exposure to loss from investment in VJU was limited to the investment cost and research and development fees paid to VJU in the amount of $2.5 million and $0.1 million, respectively. | |
On September 2, 2014, the Company acquired a 3.3% interest in Vislink plc ("Vislink"), a U.K. public company listed on the AIM exchange, for $3.3 million, and also made $3.3 million prepayment for future software license purchases. The investment in Vislink is being accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of Vislink. The Vislink investment is marked to market for the difference in fair value at period end, and as of September 26, 2014, the carrying value of Vislink was $3.1 million and is included in “Other assets" in the Condensed Consolidated Balance Sheet. The $3.3 million prepayment for future software license purchases is included in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheet. | |
The Company reviews all of its cost method investments quarterly to determine if impairment indicators exist. |
ShortTerm_Investments
Short-Term Investments | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||||||||||
Short-Term Investments | ' | |||||||||||||||
SHORT-TERM INVESTMENTS | ||||||||||||||||
The following table summarizes the Company’s short-term investments (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
As of September 26, 2014 | ||||||||||||||||
State, municipal and local government agencies bonds | $ | 25,719 | $ | 26 | $ | (31 | ) | $ | 25,714 | |||||||
Corporate bonds | 26,150 | 5 | (17 | ) | 26,138 | |||||||||||
Commercial paper | 3,299 | — | — | 3,299 | ||||||||||||
U.S. federal government bonds | — | — | — | — | ||||||||||||
Total short-term investments | $ | 55,168 | $ | 31 | $ | (48 | ) | $ | 55,151 | |||||||
As of December 31, 2013 | ||||||||||||||||
State, municipal and local government agencies bonds | $ | 40,426 | $ | 38 | $ | (15 | ) | $ | 40,449 | |||||||
Corporate bonds | 33,483 | 20 | (7 | ) | 33,496 | |||||||||||
Commercial paper | 2,299 | — | — | 2,299 | ||||||||||||
U.S. federal government bonds | 4,004 | 4 | — | 4,008 | ||||||||||||
Total short-term investments | $ | 80,212 | $ | 62 | $ | (22 | ) | $ | 80,252 | |||||||
The following table summarizes the maturities of the Company’s short-term investments (in thousands): | ||||||||||||||||
26-Sep-14 | 31-Dec-13 | |||||||||||||||
Less than one year | $ | 44,452 | $ | 55,278 | ||||||||||||
Due in 1 - 2 years | 10,699 | 24,974 | ||||||||||||||
Total short-term investments | $ | 55,151 | $ | 80,252 | ||||||||||||
These available-for-sale investments are presented as Current Assets as they are available for current operations. Realized gains and losses from the sale of investments for the three and nine months ended September 26, 2014 and September 27, 2013 were not material. | ||||||||||||||||
Impairment of Investments | ||||||||||||||||
The Company monitors its investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. A decline of fair value below amortized costs of debt securities is considered other-than-temporary if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. At the present time, the Company does not intend to sell its investments that have unrealized losses in accumulated other comprehensive loss. In addition, the Company does not believe that it is more likely than not that it will be required to sell its investments that have unrealized losses in accumulated other comprehensive loss before the Company recovers the principal amounts invested. The Company believes that the unrealized losses are temporary and do not require an other-than-temporary impairment, based on its evaluation of available evidence as of September 26, 2014. | ||||||||||||||||
As of September 26, 2014, there were no individual available-for-sale securities in a material unrealized loss position and the amount of unrealized losses on the total investment balance was insignificant. |
Derivative_and_Hedgiing_Activi
Derivative and Hedgiing Activities Derivative and Hedging Activities | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | ' | ||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||||||||||||||
The Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on cash and certain trade and inter-company receivables and payables, primarily denominated in Euro, British pound, Japanese yen and Israeli shekel. These contracts reduce the exposure to fluctuations in foreign currency exchange rate movements as the gains and losses associated with foreign currency balances are generally offset with the gains and losses on the forward contracts. These contracts are not designated as hedges that are eligible for hedge accounting treatment and are marked to market through earnings every period and generally range from one to three months in original maturity. The Company does not enter into foreign currency forward contacts for trading purposes. The balance sheet location and net fair value of each of the Company’s derivatives are as follows (in thousands): | |||||||||||||||||
Fair Value of Asset (Liability) | |||||||||||||||||
Derivatives not designated as hedging instruments | Balance Sheet Location | 26-Sep-14 | 31-Dec-13 | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | 19 | $ | 196 | ||||||||||||
Foreign currency contracts | Accrued liabilities | (331 | ) | (195 | ) | ||||||||||||
The effects of the changes in the fair values of non-designated foreign currency forward contracts are summarized as follows (in thousands) : | |||||||||||||||||
Three Months Ended | Nine months ended | ||||||||||||||||
26-Sep-14 | 27-Sep-13 | 26-Sep-14 | 27-Sep-13 | ||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (95 | ) | $ | (157 | ) | $ | (201 | ) | $ | 658 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. | ||||||||||||||||
The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. | ||||||||||||||||
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value: | ||||||||||||||||
• | Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. | |||||||||||||||
• | Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market. | |||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||
The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. During the nine months ended September 26, 2014, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. | ||||||||||||||||
The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value based on the three-tier fair value hierarchy (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of September 26, 2014 | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 4,292 | $ | — | $ | — | $ | 4,292 | ||||||||
Short-term investments | ||||||||||||||||
State, municipal and local government agencies bonds | — | 25,714 | — | 25,714 | ||||||||||||
Corporate bonds | — | 26,138 | — | 26,138 | ||||||||||||
Commercial paper | — | 3,299 | — | 3,299 | ||||||||||||
U.S. federal government bonds | — | — | — | |||||||||||||
Prepaids and other current assets | ||||||||||||||||
Derivative assets (1) | — | 19 | — | 19 | ||||||||||||
Other assets | ||||||||||||||||
Long-term investment | 3,101 | 3,101 | ||||||||||||||
Total assets measured and recorded at fair value | $ | 7,393 | $ | 55,170 | $ | — | $ | 62,563 | ||||||||
Accrued liabilities | ||||||||||||||||
Derivative liabilities (1) | $ | — | $ | 331 | $ | — | $ | 331 | ||||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 331 | $ | — | $ | 331 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2013 | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 51,014 | $ | — | $ | — | $ | 51,014 | ||||||||
Short-term investments | ||||||||||||||||
State, municipal and local government agencies bonds | — | 40,449 | — | 40,449 | ||||||||||||
Corporate bonds | — | 33,496 | — | 33,496 | ||||||||||||
Commercial paper | — | 2,299 | — | 2,299 | ||||||||||||
U.S. federal government bonds | 4,008 | — | — | 4,008 | ||||||||||||
Prepaids and other current assets | ||||||||||||||||
Derivative assets (1) | — | 196 | — | 196 | ||||||||||||
Total assets measured and recorded at fair value | $ | 55,022 | $ | 76,440 | $ | — | $ | 131,462 | ||||||||
Accrued liabilities | ||||||||||||||||
Derivative liabilities (1) | $ | — | $ | 195 | $ | — | $ | 195 | ||||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 195 | $ | — | $ | 195 | ||||||||
(1) Derivative assets and liabilities represent forward currency exchange contracts. The Company enters into these contracts to minimize the short-term impact of foreign currency exchange rates fluctuations primarily from trade and inter-company receivables and payables. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Balance Sheet Components | ' | |||||||
BALANCE SHEET COMPONENTS | ||||||||
The following tables provide details of selected balance sheet components (in thousands): | ||||||||
26-Sep-14 | 31-Dec-13 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 81,988 | $ | 83,266 | ||||
Less: allowances for doubtful accounts, returns and discounts | (6,348 | ) | (8,214 | ) | ||||
Accounts receivable, net | $ | 75,640 | $ | 75,052 | ||||
Inventories: | ||||||||
Raw materials | $ | 1,805 | $ | 2,389 | ||||
Work-in-process | 1,780 | 976 | ||||||
Finished goods | 28,927 | 33,561 | ||||||
$ | 32,512 | $ | 36,926 | |||||
Property and equipment, net: | ||||||||
Furniture and fixtures | $ | 8,796 | $ | 8,227 | ||||
Machinery and equipment | 117,765 | 114,178 | ||||||
Leasehold improvements | 8,386 | 7,888 | ||||||
Property and equipment, gross | 134,947 | 130,293 | ||||||
Less: accumulated depreciation and amortization | (104,133 | ) | (95,348 | ) | ||||
$ | 30,814 | $ | 34,945 | |||||
Goodwill_and_Identified_Intang
Goodwill and Identified Intangible Assets | 9 Months Ended | |||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Goodwill and Identified Intangible Assets | ' | |||||||||||||||||||||||||
GOODWILL AND IDENTIFIED INTANGIBLE ASSETS | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 26, 2014 are as follows (in thousands): | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 198,022 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (15 | ) | ||||||||||||||||||||||||
Balance at end of period | $ | 198,007 | ||||||||||||||||||||||||
The following is a summary of identified intangible assets (in thousands): | ||||||||||||||||||||||||||
26-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Range of Useful Lives | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
Identifiable intangibles: | ||||||||||||||||||||||||||
Developed core technology | 4-6 years | $ | 136,145 | $ | (134,731 | ) | $ | 1,414 | $ | 136,145 | $ | (121,681 | ) | $ | 14,464 | |||||||||||
Customer relationships/contracts | 5-6 years | 67,098 | (57,568 | ) | 9,530 | 67,098 | (53,772 | ) | 13,326 | |||||||||||||||||
Trademarks and tradenames | 4-5 years | 11,361 | (11,361 | ) | — | 11,361 | (10,565 | ) | 796 | |||||||||||||||||
Maintenance agreements and related relationships | 6-7 years | 7,100 | (5,304 | ) | 1,796 | 7,100 | (4,567 | ) | 2,533 | |||||||||||||||||
Total identifiable intangibles | $ | 221,704 | $ | (208,964 | ) | $ | 12,740 | $ | 221,704 | $ | (190,585 | ) | $ | 31,119 | ||||||||||||
Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 26, 2014 and September 27, 2013 was allocated as follows (in thousands): | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Included in cost of revenue | $ | 3,851 | $ | 4,763 | $ | 13,049 | $ | 14,470 | ||||||||||||||||||
Included in operating expenses | 1,661 | 2,001 | 5,329 | 6,099 | ||||||||||||||||||||||
Total amortization expense | $ | 5,512 | $ | 6,764 | $ | 18,378 | $ | 20,569 | ||||||||||||||||||
The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands): | ||||||||||||||||||||||||||
Cost of Revenue | Operating | Total | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2014 (remaining 3 months) | $ | 695 | $ | 1,446 | $ | 2,141 | ||||||||||||||||||||
2015 | 719 | 5,783 | 6,502 | |||||||||||||||||||||||
2016 | — | 4,097 | 4,097 | |||||||||||||||||||||||
Total future amortization expense | $ | 1,414 | $ | 11,326 | $ | 12,740 | ||||||||||||||||||||
Restructuring_and_Related_Char
Restructuring and Related Charges | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Charges | ' | |||||||||||||||
RESTRUCTURING AND RELATED CHARGES | ||||||||||||||||
The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The restructuring and related charges are included in “Product cost of revenue” and "Operating expenses-restructuring and related charges” in the Condensed Consolidated Statements of Operations. The following table summarizes the restructuring and related charges (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restructuring and related charges in: | ||||||||||||||||
Product cost of revenue | $ | 15 | $ | 324 | $ | 94 | $ | 530 | ||||||||
Operating expenses-Restructuring and related charges | 388 | 259 | 821 | 925 | ||||||||||||
$ | 403 | $ | 583 | $ | 915 | $ | 1,455 | |||||||||
Harmonic 2013 Restructuring | ||||||||||||||||
In the first quarter of fiscal 2013, the Company committed to a restructuring plan to reduce costs and improve efficiencies. This restructuring plan extended to actions taken through fiscal 2014. In fiscal 2013, the Company recorded $2.2 million of restructuring charges under this plan consisting of worldwide workforce reductions, writing down leasehold improvements and furniture related to its Milpitas warehouse to estimated net realizable value, and obsolete inventory at its Israel facilities. Of the $2.2 million restructuring charges in fiscal 2013, $1.5 million was recorded in the nine months ended September 27, 2013. For a complete discussion of the restructuring actions related to the 2013 restructuring plan, please refer to Note 9 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | ||||||||||||||||
The Company recorded restructuring charges of $403,000 and $915,000 under this plan, in the three and nine months ended September 26, 2014, respectively. The restructuring charges in the nine months ended September 26, 2014 consisted of severance and benefits related to the termination of twenty-five employees worldwide, costs associated with exiting from a research and development project, as well as costs associated with vacating from an excess facility in France. The following table summarizes the activity in the restructuring accrual under this plan during the nine months ended September 26, 2014 (in thousands): | ||||||||||||||||
Severance | Termination of a research & development project | Excess facilities | Total | |||||||||||||
Balance at December 31, 2013 | $ | 179 | $ | — | $ | — | $ | 179 | ||||||||
2013 Plan restructuring charges | 829 | 63 | 32 | 924 | ||||||||||||
Adjustments to restructuring provisions | (9 | ) | — | — | (9 | ) | ||||||||||
Cash payments | (715 | ) | — | (32 | ) | (747 | ) | |||||||||
Balance at September 26, 2014 | $ | 284 | 63 | $ | — | $ | 347 | |||||||||
The Company anticipates that the remaining restructuring accrual balance of $347,000 will be substantially paid out by the end of the fourth quarter of fiscal 2014. | ||||||||||||||||
HFC Restructuring | ||||||||||||||||
As a result of the sale of the cable access HFC business in March 2013, the Company recorded $600,000 of restructuring charges under "Income from discontinued operations" in fiscal 2013 consisting of severance and benefits and contract termination costs. For a complete discussion of the restructuring actions related to the HFC restructuring plan, please refer to Note 9 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | ||||||||||||||||
The remaining restructuring accrual balance of $13,000 as of December 31, 2013 was fully paid in the first quarter of fiscal 2014. |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 26, 2014 | |
Debt Disclosure [Abstract] | ' |
Credit Facilities | ' |
CREDIT FACILITIES | |
Harmonic has a bank line of credit facility with Silicon Valley Bank that provides for borrowings of up to $10.0 million and matures on December 31, 2014. This facility, which became effective in August 2011 and was amended in August 2012, and further amended in August 2013, contains a financial covenant that requires Harmonic to maintain a ratio of unrestricted cash, accounts receivable and short term investments to current liabilities (less deferred revenue) of at least 1.75 to 1.00. On August 22, 2014, a third amendment was made to extend the maturity date to December 31, 2014 and the LIBOR margin was reduced from 1.75% to 1.50%. | |
There were no borrowings during the nine months ended September 26, 2014. As of September 26, 2014, the amount available for borrowing under this facility, net of $0.2 million of standby letters of credit, was $9.8 million. | |
As of September 26, 2014, the Company’s ratio under that covenant was 3.26 to 1. In the event of noncompliance by Harmonic with the covenants under the facility, including the financial covenant referenced above, Silicon Valley Bank would be entitled to exercise its remedies under the facility, including declaring all obligations immediately due and payable. As of September 26, 2014, Harmonic was in compliance with the covenants under the line of credit facility. Borrowings pursuant to the line would bear interest at the bank’s prime rate (3.25% at September 26, 2014,) or at LIBOR for the desired borrowing period (an annualized rate of 0.15% for a one month borrowing period at September 26, 2014) plus 1.50%, or 1.65%. Borrowings are not collateralized. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Postemployment Benefits [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | |||||||||||||||||
Harmonic grants stock options and restricted stock units (“RSUs”) pursuant to stockholder approved equity incentive plans. These equity incentive plans are described in detail in Note 12, “Employee Benefit Plans”, of Notes to Consolidated Financial Statements in the 2013 Form 10-K. | |||||||||||||||||
Stock Options and Restricted Stock Units | |||||||||||||||||
The following table summarizes the Company’s stock option and RSU unit activity during the nine months ended September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Stock Options Outstanding | Restricted Stock Units Outstanding | ||||||||||||||||
Shares | Number | Weighted | Number | Weighted | |||||||||||||
Available for | of | Average | of | Average | |||||||||||||
Grant | Shares | Exercise Price | Units | Grant | |||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Balance at December 31, 2013 | 8,752 | 7,885 | $ | 6.92 | 3,018 | $ | 6.34 | ||||||||||
Authorized | 350 | — | — | — | — | ||||||||||||
Granted | (3,477 | ) | 1,450 | 6.52 | 1,352 | 6.55 | |||||||||||
Options exercised | — | (329 | ) | 4.91 | — | — | |||||||||||
Shares released | — | — | — | (1,589 | ) | 6.32 | |||||||||||
Forfeited or cancelled | 1,753 | (1,592 | ) | 8.15 | (232 | ) | 6.13 | ||||||||||
Balance at September 26, 2014 | 7,378 | 7,414 | $ | 6.67 | 2,549 | $ | 6.49 | ||||||||||
The following table summarizes information about stock options outstanding as of September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term (Years) | |||||||||||||||||
Vested and expected to vest | 7,095 | $ | 6.68 | 3.6 | $ | 3,118 | |||||||||||
Exercisable | 4,760 | 6.84 | 2.5 | 2,519 | |||||||||||||
The intrinsic value of options vested and expected to vest and exercisable as of September 26, 2014 is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of September 26, 2014. The intrinsic value of options exercised is calculated based on the difference between the exercise price and the fair value of the Company's common stock as of the exercise date. The intrinsic value of options exercised during the three and nine months ended September 26, 2014 was $0.3 million and $0.7 million, respectively. The intrinsic value of options exercised during the three and nine months ended September 27, 2013 was $1.1 million and $2.0 million, respectively. | |||||||||||||||||
The following table summarizes information about restricted stock units outstanding as of September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Shares | Average | Fair | |||||||||||||||
Underlying | Remaining | Value | |||||||||||||||
Restricted | Vesting | ||||||||||||||||
Stock | Period | ||||||||||||||||
Units | (Years) | ||||||||||||||||
Vested and expected to vest | 2,365 | 0.7 | $ | 15,114 | |||||||||||||
The fair value of restricted stock units vested and expected to vest as of September 26, 2014 is calculated based on the fair value of the Company's common stock as of September 26, 2014. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The 2002 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of common stock purchase rights to employees of the Company. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. The ESPP enables employees to purchase shares at 85% of the fair market value of the common stock at the beginning or end of the offering period, whichever is lower. Offering periods generally begin on the first trading day on or after January 1 and July 1 of each year. Employees may participate through payroll deductions of 1% to 10% of their earnings. In the event that there are insufficient shares in the plan to fully fund the issuance, the available shares will be allocated across all participants based on their contributions relative to the total contributions received for the offering period. | |||||||||||||||||
There was a shortage of approved shares in the ESPP to fund the total employee contributions from January 2, 2013 to June 30, 2013. The shares available in the plan were sufficient to fund approximately 53% of the total contributions. As a result, the shares available were issued ratably to the participants based on each of their contributions during the offering period, relative to the total contributions received from all participants. The participants were refunded the remaining 47% of their contributions and the ESPP was suspended for the second half of 2013. The Company’s stockholders approved a 1,000,000 share increase in the authorized shares for the ESPP during the Company’s annual meeting on August 14, 2013, and contributions under the ESPP resumed in January 2014. In anticipation of another potential future shortfall of approved shares in the ESPP, the Company’s stockholders approved an additional 1,000,000 share increase in the authorized shares for the ESPP during the Company’s annual meeting on July 29, 2014. | |||||||||||||||||
401(k) Plan | |||||||||||||||||
Harmonic has a retirement/savings plan which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. Harmonic has made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. Harmonic contributed $354,000 and $387,000 for the nine months ended September 26, 2014 and September 27, 2013, respectively. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
Stock-based compensation expense consists primarily of expenses for stock options and restricted stock units granted to employees and shares issued under the ESPP. The following table summarizes stock-based compensation expense (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock-based compensation in: | ||||||||||||||||
Cost of revenue | $ | 612 | $ | 605 | $ | 1,751 | $ | 1,838 | ||||||||
Research and development expense | 1,219 | 1,076 | 3,589 | 3,400 | ||||||||||||
Selling, general and administrative expense | 2,521 | 2,264 | 7,380 | 6,628 | ||||||||||||
Total stock-based compensation in operating expense | 3,740 | 3,340 | 10,969 | 10,028 | ||||||||||||
Total stock-based compensation | $ | 4,352 | $ | 3,945 | $ | 12,720 | $ | 11,866 | ||||||||
Stock Options | ||||||||||||||||
The Company estimated the fair value of all employee stock options using a Black-Scholes valuation model with the following weighted average assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (years) | 4.7 | 4.7 | 4.7 | 4.7 | ||||||||||||
Volatility | 40 | % | 46 | % | 40 | % | 51 | % | ||||||||
Risk-free interest rate | 1.8 | % | 1.5 | % | 1.7 | % | 0.8 | % | ||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
The expected term represents the weighted-average period that the stock options are expected to remain outstanding. The computation of the expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. | ||||||||||||||||
The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. | ||||||||||||||||
The weighted-average fair value per share of options granted was $2.48 and $3.02 for the three months ended September 26, 2014 and September 27, 2013, respectively. The weighted-average fair value per share of options granted was $2.36 and $2.51 for the nine months ended September 26, 2014 and September 27, 2013, respectively. | ||||||||||||||||
The fair value of all stock options vested during the three months ended September 26, 2014 and September 27, 2013 was $0.6 million and $0.8 million respectively. The fair value of all stock options vested during the nine months ended September 26, 2014 and September 27, 2013 was $2.6 million and $2.8 million respectively. | ||||||||||||||||
The total realized tax benefit attributable to stock options exercised during the nine months ended September 26, 2014, in jurisdictions where this expense is deductible for tax purposes, was $194,000. The Company did not recognize any tax benefit attributable to stock options exercised during the nine months ended September 27, 2013. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
The aggregate fair value of all restricted stock units issued during the three months ended September 26, 2014 and September 27, 2013 was $2.7 million and $2.8 million respectively. The estimated fair value of all restricted stock units issued during the nine months ended September 26, 2014 and September 27, 2013 were $10.0 million and $10.2 million respectively. | ||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model. The weighted average fair value of the Company's ESPP shares at purchase dates was estimated using the following weighted average assumptions during the nine months ended September 26, 2014 and September 27, 2013: | ||||||||||||||||
Purchase Period Ending | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||
Expected term (years) | 0.5 | 0.5 | 0.49 | |||||||||||||
Volatility | 33 | % | 28 | % | 30 | % | ||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||||||
Estimated weighted average fair value per share at purchase date | $1.84 | $1.70 | $1.23 | |||||||||||||
The expected term represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. | ||||||||||||||||
The ESPP was suspended for the second half of 2013 due to all authorized shares under the plan having been issued through the offering period ended June 30, 2013. The Company’s stockholders approved a 1,000,000 share increase in the authorized shares for the ESPP during the Company’s annual meeting on August 14, 2013, and contributions under the ESPP resumed in January 2014. As a result, the Company did not have any stock-based compensation expense in the second half of fiscal 2013 related to the ESPP. | ||||||||||||||||
Unrecognized Stock-Based Compensation | ||||||||||||||||
As of September 26, 2014, total unamortized stock-based compensation cost related to unvested stock options and restricted stock units was $17.1 million. This amount will be recognized as expense using the straight-line attribution method over the remaining weighted-average vesting period of 1.7 years. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
INCOME TAXES | ||||||||||||||||
The Company reported the following operating results for the periods presented (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Loss from continuing operations before income taxes | $ | (3,752 | ) | $ | (2,278 | ) | $ | (19,594 | ) | $ | (21,955 | ) | ||||
Provision for (benefit from) income taxes | (4,830 | ) | (38,953 | ) | 21,800 | (45,723 | ) | |||||||||
Effective income tax rate | 128.7 | % | 1,710.00 | % | (111.3 | )% | 208.3 | % | ||||||||
The Company's quarterly income taxes reflect an estimate of the corresponding fiscal year's annual effective tax rate and include, where applicable, adjustments for discrete tax items. | ||||||||||||||||
The Company's effective rate for the nine months ended September 26, 2014 was different from the U.S. federal statutory rate of 35%, primarily due to a $28.7 million increase in the valuation allowance against both U.S. federal, California and other state deferred tax assets, as a result of a history of operating losses in recent years that has led to uncertainty with respect to the Company’s ability to realize certain of its net deferred tax assets, of which $4.2 million and $24.5 million were recorded in the third and second quarter of 2014, respectively. This unfavorable impact was offset partially by $8.5 million of net tax benefit, recorded in the third quarter of 2014, associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statues of limitations. | ||||||||||||||||
The Company's effective rate for the nine months ended September 27, 2013 was different from the U.S. federal statutory rate of 35%, primarily attributable to the net of various discrete items, non-deductible amortization on foreign intangibles, the differential in foreign tax rates, federal research and development tax credit, and non-deductible stock-based compensation expense. The discrete items included primarily the $38.4 million tax benefit associated with the reversal of previously recorded federal and, to a lesser extent, foreign income taxes as a result of the expiration of the applicable statues of limitations in the U.S. for 2008 and 2009 and in foreign jurisdictions for various years, and the benefit associated with the reinstatement of the prior year's federal research and development tax credit, offset partially by a higher valuation allowance on California research and development tax credit and accrued interest on uncertain tax positions. | ||||||||||||||||
The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations during which such tax returns may be audited and adjusted by the relevant tax authorities. The U.S. Internal Revenue Service has concluded its audit for the 2008, 2009 and 2010 tax years. The statute of limitations on the Company's 2008 and 2009 U.S. corporate income tax returns expired in September 2013, and the 2010 corporate income tax return expired in September 2014. As a result, the Company released $38.4 million of related tax reserves, including accrued interest and penalties, for the 2008 and 2009 tax years in the third quarter of 2013 and, additionally, the Company released $8.5 million of related tax reserves, including accrued interest and penalties, for the 2010 tax year in the third quarter of 2014. | ||||||||||||||||
The 2011 through 2013 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In significant foreign jurisdictions, the 2006 through 2013 tax years generally remain subject to examination by their respective tax authorities. | ||||||||||||||||
The Company's operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland. The Company has met these various thresholds and the Switzerland tax holiday is effective through the end of 2018. | ||||||||||||||||
As of September 26, 2014, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $16.8 million, that if recognized, would affect the Company's effective tax rate. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $0.3 million of gross interest and penalties accrued as of September 26, 2014. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of September 26, 2014, the Company anticipates that the balance of gross unrecognized tax benefits will decrease up to approximately $0.6 million due to expiration of the applicable statues of limitations over the next twelve months. |
Income_Loss_Per_Share
Income (Loss) Per Share | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Income (Loss) Per Share | ' | |||||||||||||||
INCOME (LOSS) PER SHARE | ||||||||||||||||
The following table sets forth the computation of the basic and diluted net income (loss) per share (in thousands, except per share amounts): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Income (loss) from continuing operations | $ | 1,078 | $ | 36,675 | $ | (41,394 | ) | $ | 23,768 | |||||||
Income from discontinued operations | — | 91 | — | 15,619 | ||||||||||||
Net income (loss) | $ | 1,078 | $ | 36,766 | $ | (41,394 | ) | $ | 39,387 | |||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic | 90,618 | 101,144 | 94,113 | 108,695 | ||||||||||||
Effect of dilutive securities from stock options, restricted stock units and ESPP | 1,182 | 1,579 | — | 1,184 | ||||||||||||
Diluted | 91,800 | 102,723 | 94,113 | 109,879 | ||||||||||||
Basic net income (loss) per share from: | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.22 | |||||||
Discontinued operations | $ | 0 | 0 | $ | 0 | $ | 0.14 | |||||||||
Net Income (loss) | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.36 | |||||||
Diluted net income (loss) per share from: | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.22 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 0.14 | ||||||||
Net Income (loss) | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.36 | |||||||
The following table sets forth the potentially dilutive shares from stock options, restricted stock units and the ESPP, for the periods presented, that were excluded from the net income (loss) per share computations because their effect was anti-dilutive (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Potentially dilutive equity awards outstanding | 5,196 | 6,144 | 9,321 | 10,681 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Leases | ||||||||||||||||
Future minimum lease payments under non-cancelable operating leases as of September 26, 2014, after giving effect to $0.3 million of future sublease income from Aurora, are as follows (in thousands): | ||||||||||||||||
Years ending December 31, | ||||||||||||||||
2014 (remaining three months) | $ | 2,622 | ||||||||||||||
2015 | 10,307 | |||||||||||||||
2016 | 8,600 | |||||||||||||||
2017 | 7,795 | |||||||||||||||
2018 | 7,650 | |||||||||||||||
Thereafter | 13,731 | |||||||||||||||
Total | $ | 50,705 | ||||||||||||||
Warranties | ||||||||||||||||
The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Activity for the Company’s warranty accrual, which is included in accrued liabilities, is summarized below (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 3,532 | $ | 3,228 | $ | 3,606 | $ | 4,292 | ||||||||
Transfer to Aurora as part of the sale of discontinued operations | — | — | — | (939 | ) | |||||||||||
Accrual for current period warranties | 2,028 | 1,991 | 5,383 | 5,333 | ||||||||||||
Warranty costs incurred | (1,629 | ) | (1,705 | ) | (5,058 | ) | (5,172 | ) | ||||||||
Balance at end of period | $ | 3,931 | $ | 3,514 | $ | 3,931 | $ | 3,514 | ||||||||
Purchase Commitments with Contract Manufacturers and Other Suppliers | ||||||||||||||||
The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. In addition, some components, sub-assemblies and modules are obtained from a sole supplier or limited group of suppliers. During the normal course of business, in order to reduce manufacturing lead times and ensure adequate component supply, the Company enters into agreements with certain contract manufacturers and suppliers that allow them to procure inventory based upon criteria defined by the Company. The Company had approximately $17.6 million of non-cancelable purchase commitments with contract manufacturers and other suppliers as of September 26, 2014. | ||||||||||||||||
Standby Letters of Credit | ||||||||||||||||
As of September 26, 2014, the Company’s financial guarantees consisted of standby letters of credit outstanding, which were principally related to performance bonds and state requirements imposed on employers. The maximum amount of potential future payments under these arrangements was $0.2 million as of September 26, 2014. | ||||||||||||||||
Indemnification | ||||||||||||||||
Harmonic is obligated to indemnify its officers and the members of its Board of Directors pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of these indemnification provisions through September 26, 2014. | ||||||||||||||||
Guarantees | ||||||||||||||||
The Company has $0.4 million of guarantees in Israel as of September 26, 2014, with the majority relating to rent obligations for buildings used by its Israeli subsidiaries. | ||||||||||||||||
Legal proceedings | ||||||||||||||||
From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. | ||||||||||||||||
In October 2011, Avid Technology, Inc. (“Avid”) filed a complaint in the United States District Court for the District of Delaware alleging that Harmonic’s Media Grid product infringes two patents held by Avid. A jury trial on this complaint commenced on January 23, 2014 and, on February 4, 2014, the jury returned a unanimous verdict in favor of Harmonic, rejecting Avid's infringement allegations in their entirety. Avid filed a post-trial motion asking the court to set aside the jury’s verdict. Briefing is complete and the parties are awaiting an order on Avid’s motion. Harmonic believes it is unlikely the judge will grant Avid’s motion. Avid has indicated it intends to appeal the verdict if its motion is not granted. | ||||||||||||||||
In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that Harmonic’s Spectrum product infringes one patent held by Avid. The complaint seeks injunctive relief and unspecified damages. In September 2013, the U.S. Patent Trial and Appeal Board ("PTAB") authorized an inter partes review to be instituted as to claims 1-16 of the patent asserted in this second complaint. A hearing before the PTAB was conducted on May 20, 2014. On July 10, 2014, the PTAB issued a decision finding claims 1 - 10 invalid and claims 11 - 16 not invalid. Harmonic filed an appeal with respect to the PTAB’s decision on claims 11 - 16 and the appeal has been docketed with the Federal Circuit. | ||||||||||||||||
An unfavorable outcome on any litigation matter could require that Harmonic pay substantial damages, or, in connection with any intellectual property infringement claims, could require that the Company pay ongoing royalty payments or could prevent the Company from selling certain of its products. As a result, a settlement of, or an unfavorable outcome on, any of the matters referenced above or other litigation matters could have a material adverse effect on Harmonic’s business, operating results, financial position and cash flows. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Stockholders' Equity | ' | |||||||
STOCKHOLDERS’ EQUITY | ||||||||
Accumulated Other Comprehensive Loss | ||||||||
The components of accumulated other comprehensive loss were as follows (in thousands): | ||||||||
26-Sep-14 | 31-Dec-13 | |||||||
Foreign currency translation adjustments | $ | (682 | ) | $ | (242 | ) | ||
Unrealized gain (loss) on investments | (288 | ) | 33 | |||||
Accumulated other comprehensive loss | $ | (970 | ) | $ | (209 | ) | ||
Common Stock Repurchases | ||||||||
On April 24, 2012, our Board of Directors (the "Board") approved a stock repurchase program that provided for the repurchase of up to $25 million of our outstanding common stock. During 2013, the Board approved $195 million of increases to the program, increasing the aggregate authorized amount of the program to $220 million. On February 6, 2013, the Board approved a modification to the program that permits the Company to also repurchase its common stock pursuant to a plan that meets the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934. On May 14, 2014, the Board approved an increase to the aggregate amount authorized under the repurchase program of $80 million and extended the repurchase period through the end of 2016. | ||||||||
As of September 26, 2014, we had purchased 36.3 million shares of common stock under this program at a weighted average price of $6.19 per share for an aggregate purchase price of $224.6 million, excluding fees. The remaining authorized amount for stock repurchases under this program was $75.4 million as of September 26, 2014. For additional information, see "Item2 - Unregistered sales of equity securities and use of proceeds" of this Form 10-Q. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 26, 2014 | |
Subsequent Event [Line Items] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENT | |
On October 22, 2014, the Company acquired an approximately 18.4% ownership interest on a fully diluted basis in Encoding.com, Inc., a San Francisco-based provider of cloud-based transcoding and other media processing services, through an investment in Encoding.com's Series B financing round. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
In the first quarter of fiscal 2013, the Company completed the sale of its cable access hybrid-fiber coaxial ("HFC") business to Aurora Networks (“Aurora”). The results of operations associated with the cable access HFC business were presented as discontinued operations in its unaudited condensed consolidated financial statements as described in Note 3, "Discontinued Operations". There were no operating activities associated with the cable access HFC business after December 31, 2013. Unless noted otherwise, all discussions herein with respect to the Company’s unaudited condensed consolidated financial statements relate to the Company’s continuing operations. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Variable Interest Entities | ' | |||||||||||
Variable Interest Entities | ||||||||||||
From time to time, the Company may enter into investments in entities that are considered variable interest entities under Accounting Standards Codification (ASC) Topic 810. If the Company is the primary beneficiary of a variable interest entity ("VIE"), it is required to consolidate it. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE requires significant assumptions and judgments. | ||||||||||||
Investment in Equity Securities | ' | |||||||||||
Investments in Equity Securities | ||||||||||||
The Company accounts for its investments in entities that it does not have significant influence under the cost method. Investments in equity securities are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as long-term investments and included in "Other assets" in the Company's Condensed Consolidated Balance Sheet. Unrealized gains and losses, net of taxes, on the long-term investments are included in the Company's Condensed Consolidated Balance Sheet as a component of accumulated other comprehensive income (loss). Investments in equity securities that do not qualify for fair value accounting or equity method accounting are accounted for under the cost method. In accordance with the cost method, the Company's initial investment is recorded at cost and the Company reviews all of its cost method investments quarterly to determine if impairment indicators exist. Cost method investments are classified as long-term investments and included in "Other assets" in the Company's Condensed Consolidated Balance Sheet. | ||||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting | ||||||||||||
The Company operates its business in one reportable segment, which is the design, manufacture and sale of versatile and high performance video infrastructure products and system solutions. Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the chief operating decision maker (which for Harmonic is the Chief Executive Officer) in deciding how to allocate resources and assess performance. More recently, the Company has started to view its business through two market segments: Video and Cable Edge. As part of its annual year-end financial planning process, the Company expects to develop internal processes, policies and controls to enable timely and reliable measuring of operating profits by these segments. The Company expects the chief operating decision maker will apply this information in deciding how to allocate resources and assess the Company's performance. As such, the Company anticipates reporting the operating results for the Video and Cable Edge business in its segment reporting in the fourth quarter of 2014. | ||||||||||||
Significant Accounting Policies | ' | |||||||||||
Significant Accounting Policies | ||||||||||||
The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in its 2013 Form 10-K. There have been no significant changes to these policies during the nine months ended September 26, 2014. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. The ASU addresses accounting for a cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new guidance became effective for the Company beginning in the first quarter of fiscal 2014 and it did not have a material impact on the Company’s Consolidated Financial Statements. | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. Under certain circumstances, unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The new guidance became effective for the Company beginning in the first quarter of fiscal 2014 and it did not have a material impact on the Company’s Consolidated Financial Statements. | ||||||||||||
On April 10, 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". This guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for the Company beginning in the first quarter of fiscal 2015. The Company does not expect the adoption of ASU 2014-08 will have a material impact on its financial position, results of operations or cash flows. | ||||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", requiring an entity to recognize the amount of revenue that reflects the consideration to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. | ||||||||||||
Impairment of Investments | ' | |||||||||||
Impairment of Investments | ||||||||||||
The Company monitors its investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. A decline of fair value below amortized costs of debt securities is considered other-than-temporary if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. At the present time, the Company does not intend to sell its investments that have unrealized losses in accumulated other comprehensive loss. In addition, the Company does not believe that it is more likely than not that it will be required to sell its investments that have unrealized losses in accumulated other comprehensive loss before the Company recovers the principal amounts invested. The Company believes that the unrealized losses are temporary and do not require an other-than-temporary impairment, based on its evaluation of available evidence as of September 26, 2014. | ||||||||||||
As of September 26, 2014, there were no individual available-for-sale securities in a material unrealized loss position and the amount of unrealized losses on the total investment balance was insignificant. | ||||||||||||
Derivatives and Hedging Activities | ' | |||||||||||
The Company enters into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on cash and certain trade and inter-company receivables and payables, primarily denominated in Euro, British pound, Japanese yen and Israeli shekel. These contracts reduce the exposure to fluctuations in foreign currency exchange rate movements as the gains and losses associated with foreign currency balances are generally offset with the gains and losses on the forward contracts. These contracts are not designated as hedges that are eligible for hedge accounting treatment and are marked to market through earnings every period and generally range from one to three months in original maturity. The Company does not enter into foreign currency forward contacts for trading purposes. | ||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||
The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. | ||||||||||||
The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. | ||||||||||||
Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value: | ||||||||||||
• | Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. | |||||||||||
• | Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market. | |||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||
The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. During the nine months ended September 26, 2014, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. | ||||||||||||
Share-based Compensation Expense | ' | |||||||||||
Stock Options | ||||||||||||
The Company estimated the fair value of all employee stock options using a Black-Scholes valuation model with the following weighted average assumptions: | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Expected term (years) | 4.7 | 4.7 | 4.7 | 4.7 | ||||||||
Volatility | 40 | % | 46 | % | 40 | % | 51 | % | ||||
Risk-free interest rate | 1.8 | % | 1.5 | % | 1.7 | % | 0.8 | % | ||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | ||||
The expected term represents the weighted-average period that the stock options are expected to remain outstanding. The computation of the expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. | ||||||||||||
The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. | ||||||||||||
The weighted-average fair value per share of options granted was $2.48 and $3.02 for the three months ended September 26, 2014 and September 27, 2013, respectively. The weighted-average fair value per share of options granted was $2.36 and $2.51 for the nine months ended September 26, 2014 and September 27, 2013, respectively. | ||||||||||||
The fair value of all stock options vested during the three months ended September 26, 2014 and September 27, 2013 was $0.6 million and $0.8 million respectively. The fair value of all stock options vested during the nine months ended September 26, 2014 and September 27, 2013 was $2.6 million and $2.8 million respectively. | ||||||||||||
The total realized tax benefit attributable to stock options exercised during the nine months ended September 26, 2014, in jurisdictions where this expense is deductible for tax purposes, was $194,000. The Company did not recognize any tax benefit attributable to stock options exercised during the nine months ended September 27, 2013. | ||||||||||||
Restricted Stock Units | ||||||||||||
The aggregate fair value of all restricted stock units issued during the three months ended September 26, 2014 and September 27, 2013 was $2.7 million and $2.8 million respectively. The estimated fair value of all restricted stock units issued during the nine months ended September 26, 2014 and September 27, 2013 were $10.0 million and $10.2 million respectively. | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||
The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model. The weighted average fair value of the Company's ESPP shares at purchase dates was estimated using the following weighted average assumptions during the nine months ended September 26, 2014 and September 27, 2013: | ||||||||||||
Purchase Period Ending | ||||||||||||
December 31, | June 30, | June 30, | ||||||||||
2014 | 2014 | 2013 | ||||||||||
Expected term (years) | 0.5 | 0.5 | 0.49 | |||||||||
Volatility | 33 | % | 28 | % | 30 | % | ||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||
Estimated weighted average fair value per share at purchase date | $1.84 | $1.70 | $1.23 | |||||||||
The expected term represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. | ||||||||||||
The ESPP was suspended for the second half of 2013 due to all authorized shares under the plan having been issued through the offering period ended June 30, 2013. The Company’s stockholders approved a 1,000,000 share increase in the authorized shares for the ESPP during the Company’s annual meeting on August 14, 2013, and contributions under the ESPP resumed in January 2014. As a result, the Company did not have any stock-based compensation expense in the second half of fiscal 2013 related to the ESPP. | ||||||||||||
Unrecognized Stock-Based Compensation | ||||||||||||
As of September 26, 2014, total unamortized stock-based compensation cost related to unvested stock options and restricted stock units was $17.1 million. This amount will be recognized as expense using the straight-line attribution method over the remaining weighted-average vesting period of 1.7 years. | ||||||||||||
Income Tax | ' | |||||||||||
As of September 26, 2014, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $16.8 million, that if recognized, would affect the Company's effective tax rate. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $0.3 million of gross interest and penalties accrued as of September 26, 2014. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of September 26, 2014, the Company anticipates that the balance of gross unrecognized tax benefits will decrease up to approximately $0.6 million due to expiration of the applicable statues of limitations over the next twelve months. | ||||||||||||
Warranties and Indemnification | ' | |||||||||||
The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. | ||||||||||||
Harmonic is obligated to indemnify its officers and the members of its Board of Directors pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule of Discontinued Operations, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | ' | |||||||
Revenue and the components of net income related to the discontinued operations for the three and nine months ended September 27, 2013 were as follows (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
27-Sep-13 | ||||||||
Revenue | $ | 161 | $ | 9,717 | ||||
Operating income | $ | 154 | $ | 669 | ||||
Less : Provision for (benefit from) income taxes | 57 | (137 | ) | |||||
Add : Gain (loss) on disposal, net of taxes | (6 | ) | 14,813 | |||||
Income from discontinued operations, net of taxes | $ | 91 | $ | 15,619 | ||||
The table below provides details on the income statement caption under which the TSA billing was recorded (in thousands): | ||||||||
Three months ended | Nine months ended | |||||||
27-Sep-13 | ||||||||
Product cost of revenue | $ | 41 | $ | 577 | ||||
Research and development | — | 21 | ||||||
Selling, general and administrative | 7 | 379 | ||||||
Total TSA billing to Aurora | $ | 48 | $ | 977 | ||||
The Company recorded a gain of $14.8 million in the nine months ended September 27, 2013 , in connection with the sale of the cable access HFC business, calculated as follows (in thousands): | ||||||||
Gross Proceeds | $ | 46,000 | ||||||
Less : Carrying value of net assets | ||||||||
Inventories, net | $ | 10,579 | ||||||
Prepaid expenses and other current assets | 612 | |||||||
Property and equipment, net | 1,180 | |||||||
Goodwill de-recognized | 14,547 | |||||||
Deferred revenue | (4,499 | ) | ||||||
Accrued liabilities | (939 | ) | ||||||
Total net assets sold and de-recognized | $ | 21,480 | ||||||
Less : Selling cost | 2,473 | |||||||
Less : Tax effect | 7,234 | |||||||
Gain on disposal, net of taxes | $ | 14,813 | ||||||
ShortTerm_Investments_Tables
Short-Term Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||||||||||
Summary of Short-Term Investments | ' | |||||||||||||||
The following table summarizes the Company’s short-term investments (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
As of September 26, 2014 | ||||||||||||||||
State, municipal and local government agencies bonds | $ | 25,719 | $ | 26 | $ | (31 | ) | $ | 25,714 | |||||||
Corporate bonds | 26,150 | 5 | (17 | ) | 26,138 | |||||||||||
Commercial paper | 3,299 | — | — | 3,299 | ||||||||||||
U.S. federal government bonds | — | — | — | — | ||||||||||||
Total short-term investments | $ | 55,168 | $ | 31 | $ | (48 | ) | $ | 55,151 | |||||||
As of December 31, 2013 | ||||||||||||||||
State, municipal and local government agencies bonds | $ | 40,426 | $ | 38 | $ | (15 | ) | $ | 40,449 | |||||||
Corporate bonds | 33,483 | 20 | (7 | ) | 33,496 | |||||||||||
Commercial paper | 2,299 | — | — | 2,299 | ||||||||||||
U.S. federal government bonds | 4,004 | 4 | — | 4,008 | ||||||||||||
Total short-term investments | $ | 80,212 | $ | 62 | $ | (22 | ) | $ | 80,252 | |||||||
Maturities of Short-Term Investments | ' | |||||||||||||||
The following table summarizes the maturities of the Company’s short-term investments (in thousands): | ||||||||||||||||
26-Sep-14 | 31-Dec-13 | |||||||||||||||
Less than one year | $ | 44,452 | $ | 55,278 | ||||||||||||
Due in 1 - 2 years | 10,699 | 24,974 | ||||||||||||||
Total short-term investments | $ | 55,151 | $ | 80,252 | ||||||||||||
Derivative_and_Hedging_Activit
Derivative and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments, Balance Sheet Location | ' | ||||||||||||||||
The balance sheet location and net fair value of each of the Company’s derivatives are as follows (in thousands): | |||||||||||||||||
Fair Value of Asset (Liability) | |||||||||||||||||
Derivatives not designated as hedging instruments | Balance Sheet Location | 26-Sep-14 | 31-Dec-13 | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | 19 | $ | 196 | ||||||||||||
Foreign currency contracts | Accrued liabilities | (331 | ) | (195 | ) | ||||||||||||
Changes in fair values of non-designated foreign currency forward contracts | ' | ||||||||||||||||
The effects of the changes in the fair values of non-designated foreign currency forward contracts are summarized as follows (in thousands) : | |||||||||||||||||
Three Months Ended | Nine months ended | ||||||||||||||||
26-Sep-14 | 27-Sep-13 | 26-Sep-14 | 27-Sep-13 | ||||||||||||||
Gain (loss) recorded in other income (expense), net | $ | (95 | ) | $ | (157 | ) | $ | (201 | ) | $ | 658 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy | ' | |||||||||||||||
The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value based on the three-tier fair value hierarchy (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of September 26, 2014 | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 4,292 | $ | — | $ | — | $ | 4,292 | ||||||||
Short-term investments | ||||||||||||||||
State, municipal and local government agencies bonds | — | 25,714 | — | 25,714 | ||||||||||||
Corporate bonds | — | 26,138 | — | 26,138 | ||||||||||||
Commercial paper | — | 3,299 | — | 3,299 | ||||||||||||
U.S. federal government bonds | — | — | — | |||||||||||||
Prepaids and other current assets | ||||||||||||||||
Derivative assets (1) | — | 19 | — | 19 | ||||||||||||
Other assets | ||||||||||||||||
Long-term investment | 3,101 | 3,101 | ||||||||||||||
Total assets measured and recorded at fair value | $ | 7,393 | $ | 55,170 | $ | — | $ | 62,563 | ||||||||
Accrued liabilities | ||||||||||||||||
Derivative liabilities (1) | $ | — | $ | 331 | $ | — | $ | 331 | ||||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 331 | $ | — | $ | 331 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2013 | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 51,014 | $ | — | $ | — | $ | 51,014 | ||||||||
Short-term investments | ||||||||||||||||
State, municipal and local government agencies bonds | — | 40,449 | — | 40,449 | ||||||||||||
Corporate bonds | — | 33,496 | — | 33,496 | ||||||||||||
Commercial paper | — | 2,299 | — | 2,299 | ||||||||||||
U.S. federal government bonds | 4,008 | — | — | 4,008 | ||||||||||||
Prepaids and other current assets | ||||||||||||||||
Derivative assets (1) | — | 196 | — | 196 | ||||||||||||
Total assets measured and recorded at fair value | $ | 55,022 | $ | 76,440 | $ | — | $ | 131,462 | ||||||||
Accrued liabilities | ||||||||||||||||
Derivative liabilities (1) | $ | — | $ | 195 | $ | — | $ | 195 | ||||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 195 | $ | — | $ | 195 | ||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Accounts Receivable, Net | ' | |||||||
26-Sep-14 | 31-Dec-13 | |||||||
Accounts receivable, net: | ||||||||
Accounts receivable | $ | 81,988 | $ | 83,266 | ||||
Less: allowances for doubtful accounts, returns and discounts | (6,348 | ) | (8,214 | ) | ||||
Accounts receivable, net | $ | 75,640 | $ | 75,052 | ||||
Inventories | ' | |||||||
Inventories: | ||||||||
Raw materials | $ | 1,805 | $ | 2,389 | ||||
Work-in-process | 1,780 | 976 | ||||||
Finished goods | 28,927 | 33,561 | ||||||
$ | 32,512 | $ | 36,926 | |||||
Property and Equipment, Net | ' | |||||||
Property and equipment, net: | ||||||||
Furniture and fixtures | $ | 8,796 | $ | 8,227 | ||||
Machinery and equipment | 117,765 | 114,178 | ||||||
Leasehold improvements | 8,386 | 7,888 | ||||||
Property and equipment, gross | 134,947 | 130,293 | ||||||
Less: accumulated depreciation and amortization | (104,133 | ) | (95,348 | ) | ||||
$ | 30,814 | $ | 34,945 | |||||
Goodwill_and_Identified_Intang1
Goodwill and Identified Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 26, 2014 are as follows (in thousands): | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 198,022 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (15 | ) | ||||||||||||||||||||||||
Balance at end of period | $ | 198,007 | ||||||||||||||||||||||||
Summary of Goodwill and Identified Intangible Assets | ' | |||||||||||||||||||||||||
The following is a summary of identified intangible assets (in thousands): | ||||||||||||||||||||||||||
26-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Range of Useful Lives | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
Identifiable intangibles: | ||||||||||||||||||||||||||
Developed core technology | 4-6 years | $ | 136,145 | $ | (134,731 | ) | $ | 1,414 | $ | 136,145 | $ | (121,681 | ) | $ | 14,464 | |||||||||||
Customer relationships/contracts | 5-6 years | 67,098 | (57,568 | ) | 9,530 | 67,098 | (53,772 | ) | 13,326 | |||||||||||||||||
Trademarks and tradenames | 4-5 years | 11,361 | (11,361 | ) | — | 11,361 | (10,565 | ) | 796 | |||||||||||||||||
Maintenance agreements and related relationships | 6-7 years | 7,100 | (5,304 | ) | 1,796 | 7,100 | (4,567 | ) | 2,533 | |||||||||||||||||
Total identifiable intangibles | $ | 221,704 | $ | (208,964 | ) | $ | 12,740 | $ | 221,704 | $ | (190,585 | ) | $ | 31,119 | ||||||||||||
Amortization Expense for Identifiable Purchased Intangible Assets | ' | |||||||||||||||||||||||||
Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 26, 2014 and September 27, 2013 was allocated as follows (in thousands): | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Included in cost of revenue | $ | 3,851 | $ | 4,763 | $ | 13,049 | $ | 14,470 | ||||||||||||||||||
Included in operating expenses | 1,661 | 2,001 | 5,329 | 6,099 | ||||||||||||||||||||||
Total amortization expense | $ | 5,512 | $ | 6,764 | $ | 18,378 | $ | 20,569 | ||||||||||||||||||
Estimated Future Amortization Expense of Purchased Intangible Assets | ' | |||||||||||||||||||||||||
The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands): | ||||||||||||||||||||||||||
Cost of Revenue | Operating | Total | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||
2014 (remaining 3 months) | $ | 695 | $ | 1,446 | $ | 2,141 | ||||||||||||||||||||
2015 | 719 | 5,783 | 6,502 | |||||||||||||||||||||||
2016 | — | 4,097 | 4,097 | |||||||||||||||||||||||
Total future amortization expense | $ | 1,414 | $ | 11,326 | $ | 12,740 | ||||||||||||||||||||
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Summary of restructuring activities | ' | |||||||||||||||
The following table summarizes the restructuring and related charges (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restructuring and related charges in: | ||||||||||||||||
Product cost of revenue | $ | 15 | $ | 324 | $ | 94 | $ | 530 | ||||||||
Operating expenses-Restructuring and related charges | 388 | 259 | 821 | 925 | ||||||||||||
$ | 403 | $ | 583 | $ | 915 | $ | 1,455 | |||||||||
Harmonic Two Thousand And Thirteen Restructuring [Member] | ' | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||
The following table summarizes the activity in the restructuring accrual under this plan during the nine months ended September 26, 2014 (in thousands): | ||||||||||||||||
Severance | Termination of a research & development project | Excess facilities | Total | |||||||||||||
Balance at December 31, 2013 | $ | 179 | $ | — | $ | — | $ | 179 | ||||||||
2013 Plan restructuring charges | 829 | 63 | 32 | 924 | ||||||||||||
Adjustments to restructuring provisions | (9 | ) | — | — | (9 | ) | ||||||||||
Cash payments | (715 | ) | — | (32 | ) | (747 | ) | |||||||||
Balance at September 26, 2014 | $ | 284 | 63 | $ | — | $ | 347 | |||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Postemployment Benefits [Abstract] | ' | ||||||||||||||||
Summary of Company's Stock Option and Restricted Stock Unit Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option and RSU unit activity during the nine months ended September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Stock Options Outstanding | Restricted Stock Units Outstanding | ||||||||||||||||
Shares | Number | Weighted | Number | Weighted | |||||||||||||
Available for | of | Average | of | Average | |||||||||||||
Grant | Shares | Exercise Price | Units | Grant | |||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Balance at December 31, 2013 | 8,752 | 7,885 | $ | 6.92 | 3,018 | $ | 6.34 | ||||||||||
Authorized | 350 | — | — | — | — | ||||||||||||
Granted | (3,477 | ) | 1,450 | 6.52 | 1,352 | 6.55 | |||||||||||
Options exercised | — | (329 | ) | 4.91 | — | — | |||||||||||
Shares released | — | — | — | (1,589 | ) | 6.32 | |||||||||||
Forfeited or cancelled | 1,753 | (1,592 | ) | 8.15 | (232 | ) | 6.13 | ||||||||||
Balance at September 26, 2014 | 7,378 | 7,414 | $ | 6.67 | 2,549 | $ | 6.49 | ||||||||||
Summary of Stock Options Outstanding | ' | ||||||||||||||||
The following table summarizes information about stock options outstanding as of September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term (Years) | |||||||||||||||||
Vested and expected to vest | 7,095 | $ | 6.68 | 3.6 | $ | 3,118 | |||||||||||
Exercisable | 4,760 | 6.84 | 2.5 | 2,519 | |||||||||||||
Summary of Restricted Stock Units Outstanding | ' | ||||||||||||||||
The following table summarizes information about restricted stock units outstanding as of September 26, 2014 (in thousands, except per share amounts): | |||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Shares | Average | Fair | |||||||||||||||
Underlying | Remaining | Value | |||||||||||||||
Restricted | Vesting | ||||||||||||||||
Stock | Period | ||||||||||||||||
Units | (Years) | ||||||||||||||||
Vested and expected to vest | 2,365 | 0.7 | $ | 15,114 | |||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of Stock-Based Compensation Expense | ' | |||||||||||||||
The following table summarizes stock-based compensation expense (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock-based compensation in: | ||||||||||||||||
Cost of revenue | $ | 612 | $ | 605 | $ | 1,751 | $ | 1,838 | ||||||||
Research and development expense | 1,219 | 1,076 | 3,589 | 3,400 | ||||||||||||
Selling, general and administrative expense | 2,521 | 2,264 | 7,380 | 6,628 | ||||||||||||
Total stock-based compensation in operating expense | 3,740 | 3,340 | 10,969 | 10,028 | ||||||||||||
Total stock-based compensation | $ | 4,352 | $ | 3,945 | $ | 12,720 | $ | 11,866 | ||||||||
Valuation Assumptions for Stock Options | ' | |||||||||||||||
The Company estimated the fair value of all employee stock options using a Black-Scholes valuation model with the following weighted average assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (years) | 4.7 | 4.7 | 4.7 | 4.7 | ||||||||||||
Volatility | 40 | % | 46 | % | 40 | % | 51 | % | ||||||||
Risk-free interest rate | 1.8 | % | 1.5 | % | 1.7 | % | 0.8 | % | ||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Employee Stock Purchase Plan | ' | |||||||||||||||
The call option and put option were valued using the Black-Scholes option pricing model. The weighted average fair value of the Company's ESPP shares at purchase dates was estimated using the following weighted average assumptions during the nine months ended September 26, 2014 and September 27, 2013: | ||||||||||||||||
Purchase Period Ending | ||||||||||||||||
December 31, | June 30, | June 30, | ||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||
Expected term (years) | 0.5 | 0.5 | 0.49 | |||||||||||||
Volatility | 33 | % | 28 | % | 30 | % | ||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||||||
Estimated weighted average fair value per share at purchase date | $1.84 | $1.70 | $1.23 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule of income before income tax | ' | |||||||||||||||
The Company reported the following operating results for the periods presented (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Loss from continuing operations before income taxes | $ | (3,752 | ) | $ | (2,278 | ) | $ | (19,594 | ) | $ | (21,955 | ) | ||||
Provision for (benefit from) income taxes | (4,830 | ) | (38,953 | ) | 21,800 | (45,723 | ) | |||||||||
Effective income tax rate | 128.7 | % | 1,710.00 | % | (111.3 | )% | 208.3 | % | ||||||||
Income_Loss_Per_Share_Tables
Income (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations | ' | |||||||||||||||
The following table sets forth the computation of the basic and diluted net income (loss) per share (in thousands, except per share amounts): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Income (loss) from continuing operations | $ | 1,078 | $ | 36,675 | $ | (41,394 | ) | $ | 23,768 | |||||||
Income from discontinued operations | — | 91 | — | 15,619 | ||||||||||||
Net income (loss) | $ | 1,078 | $ | 36,766 | $ | (41,394 | ) | $ | 39,387 | |||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic | 90,618 | 101,144 | 94,113 | 108,695 | ||||||||||||
Effect of dilutive securities from stock options, restricted stock units and ESPP | 1,182 | 1,579 | — | 1,184 | ||||||||||||
Diluted | 91,800 | 102,723 | 94,113 | 109,879 | ||||||||||||
Basic net income (loss) per share from: | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.22 | |||||||
Discontinued operations | $ | 0 | 0 | $ | 0 | $ | 0.14 | |||||||||
Net Income (loss) | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.36 | |||||||
Diluted net income (loss) per share from: | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.22 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 0.14 | ||||||||
Net Income (loss) | $ | 0.01 | $ | 0.36 | $ | (0.44 | ) | $ | 0.36 | |||||||
Anti-dilutive Securities | ' | |||||||||||||||
The following table sets forth the potentially dilutive shares from stock options, restricted stock units and the ESPP, for the periods presented, that were excluded from the net income (loss) per share computations because their effect was anti-dilutive (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Potentially dilutive equity awards outstanding | 5,196 | 6,144 | 9,321 | 10,681 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Future Minimum Lease Payments Under Non-cancelable Operating Leases | ' | |||||||||||||||
Future minimum lease payments under non-cancelable operating leases as of September 26, 2014, after giving effect to $0.3 million of future sublease income from Aurora, are as follows (in thousands): | ||||||||||||||||
Years ending December 31, | ||||||||||||||||
2014 (remaining three months) | $ | 2,622 | ||||||||||||||
2015 | 10,307 | |||||||||||||||
2016 | 8,600 | |||||||||||||||
2017 | 7,795 | |||||||||||||||
2018 | 7,650 | |||||||||||||||
Thereafter | 13,731 | |||||||||||||||
Total | $ | 50,705 | ||||||||||||||
Summary of Warranty Accrual Included in Accrued Liabilities | ' | |||||||||||||||
Activity for the Company’s warranty accrual, which is included in accrued liabilities, is summarized below (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 3,532 | $ | 3,228 | $ | 3,606 | $ | 4,292 | ||||||||
Transfer to Aurora as part of the sale of discontinued operations | — | — | — | (939 | ) | |||||||||||
Accrual for current period warranties | 2,028 | 1,991 | 5,383 | 5,333 | ||||||||||||
Warranty costs incurred | (1,629 | ) | (1,705 | ) | (5,058 | ) | (5,172 | ) | ||||||||
Balance at end of period | $ | 3,931 | $ | 3,514 | $ | 3,931 | $ | 3,514 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||
Sep. 26, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Components of Accumulated Other Comprehensive Loss | ' | |||||||
The components of accumulated other comprehensive loss were as follows (in thousands): | ||||||||
26-Sep-14 | 31-Dec-13 | |||||||
Foreign currency translation adjustments | $ | (682 | ) | $ | (242 | ) | ||
Unrealized gain (loss) on investments | (288 | ) | 33 | |||||
Accumulated other comprehensive loss | $ | (970 | ) | $ | (209 | ) |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies Summary of Presentation and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2014 | Sep. 26, 2014 | |
segment | segment | Scenario, Forecast [Member] | Cable Access Business [Member] | |||
segment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | ($3,538,000) | ($2,555,000) | ($19,409,000) | ($22,026,000) | ' | $0 |
Number of Reportable Segments | ' | 1 | 1 | ' | 2 | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Mar. 05, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | |
segment | segment | HFC business [Member] | HFC business [Member] | HFC business [Member] | HFC business [Member] | Aurora [Member] | Aurora [Member] | Aurora [Member] | |||
HFC business [Member] | HFC business [Member] | HFC business [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from sale of cable access HFC business | ' | ' | ' | ' | ' | ' | ' | $46,000,000 | $46,000,000 | ' | ' |
Gain on disposal, net of taxes | ' | ' | 0 | 14,813,000 | -6,000 | ' | ' | 14,813,000 | ' | 14,800,000 | 15,000,000 |
Adjustment to prior period gain (loss) on disposal, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 |
Number of reporting units (in segment) | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of goodwill based on the fair value | ' | ' | ' | ' | 14,547,000 | ' | ' | 14,547,000 | ' | ' | ' |
Goodwill impairment | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Operating Income (Loss) | ($3,538,000) | ($2,555,000) | ($19,409,000) | ($22,026,000) | ' | ' | $0 | ' | ' | ' | ' |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Details on Income Statement Caption on TSA Billing (Detail) (Aurora [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total TSA billing to Aurora | $48 | $977 |
Product cost of revenue [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total TSA billing to Aurora | 41 | 577 |
Research and development expense [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total TSA billing to Aurora | 0 | 21 |
Selling, general and administrative expenses [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total TSA billing to Aurora | $7 | $379 |
Discontinued_Operations_Record
Discontinued Operations - Recorded Gain With the Sale of Cable Access HFC Business (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
HFC business [Member] | HFC business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Gross Proceeds | ' | ' | ' | $46,000 |
Inventories, net | ' | ' | 10,579 | 10,579 |
Prepaid expenses and other current assets | ' | ' | 612 | 612 |
Property and equipment, net | ' | ' | 1,180 | 1,180 |
Goodwill de-recognized | ' | ' | 14,547 | 14,547 |
Deferred revenue | ' | ' | -4,499 | -4,499 |
Accrued liabilities | ' | ' | -939 | -939 |
Total net assets sold and de-recognized | ' | ' | 21,480 | 21,480 |
Less : Selling cost | ' | ' | ' | 2,473 |
Less : Tax effect | ' | ' | ' | 7,234 |
Gain on disposal, net of taxes | $0 | $14,813 | ($6) | $14,813 |
Discontinued_Operations_Revenu
Discontinued Operations - Revenues and Components of Net Income Related to Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Add : Gain (loss) on disposal, net of taxes | ' | ' | $0 | $14,813 |
Income from discontinued operations, net of taxes | 0 | 91 | 0 | 15,619 |
HFC business [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Revenue | ' | 161 | ' | 9,717 |
Operating income | ' | 154 | ' | 669 |
Less : Provision for (benefit from) income taxes | ' | 57 | ' | -137 |
Add : Gain (loss) on disposal, net of taxes | ' | -6 | ' | 14,813 |
Income from discontinued operations, net of taxes | ' | $91 | ' | $15,619 |
Investments_in_Equity_Securiti1
Investments in Equity Securities (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 02, 2014 | Sep. 26, 2014 | Sep. 26, 2014 |
VJU GmbH [Member] | Vislink plc [Member] | Cost-method Investments [Member] | Research and development expense [Member] | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
VJU GmbH [Member] | VJU GmbH [Member] | |||||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | 19.80% | 3.30% | ' | ' |
Cost Method Investments Original Cost | ' | ' | $2,500,000 | $3,300,000 | ' | ' |
Prepaid expenses and other current assets | 26,852,000 | 21,521,000 | ' | 3,300,000 | ' | ' |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | ' | ' | ' | ' | 2,500,000 | 100,000 |
Cost Method Investments Carrying Value | ' | ' | ' | $3,100,000 | ' | ' |
ShortTerm_Investments_Summary_
Short-Term Investments - Summary of Short-Term Investments (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | $55,168 | $80,212 |
Gross Unrealized Gains | 31 | 62 |
Gross Unrealized Losses | -48 | -22 |
Total short-term investments, Estimated Fair Value | 55,151 | 80,252 |
State, municipal and local government agencies bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 25,719 | 40,426 |
Gross Unrealized Gains | 26 | 38 |
Gross Unrealized Losses | -31 | -15 |
Total short-term investments, Estimated Fair Value | 25,714 | 40,449 |
Corporate bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 26,150 | 33,483 |
Gross Unrealized Gains | 5 | 20 |
Gross Unrealized Losses | -17 | -7 |
Total short-term investments, Estimated Fair Value | 26,138 | 33,496 |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 3,299 | 2,299 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Total short-term investments, Estimated Fair Value | 3,299 | 2,299 |
U.S. federal government bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amortized Cost | 0 | 4,004 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | 0 | 0 |
Total short-term investments, Estimated Fair Value | $0 | $4,008 |
ShortTerm_Investments_Maturiti
Short-Term Investments - Maturities of Short-Term Investments (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Less than one year | $44,452 | $55,278 |
Due in 1 - 2 years | 10,699 | 24,974 |
Total short-term investments, Estimated Fair Value | $55,151 | $80,252 |
ShortTerm_Investments_Addition
Short-Term Investments - Additional Information (Detail) (USD $) | Sep. 26, 2014 |
In Thousands, unless otherwise specified | |
Investments, Debt and Equity Securities [Abstract] | ' |
Available-for-sale securities in a material unrealized loss position | $0 |
Derivative_and_Hedgiing_Activi1
Derivative and Hedgiing Activities Derivative and Hedging Activities (Details) (Foreign Exchange Forward [Member], Not Designated as Hedging Instrument [Member], USD $) | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
In Thousands, unless otherwise specified | Prepaid Expenses and Other Current Assets [Member] | Prepaid Expenses and Other Current Assets [Member] | Accrued Liabilities [Member] | Accrued Liabilities [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency contracts | $19 | $196 | ' | ' | ' | ' | ' | ' |
Foreign currency contracts | ' | ' | -331 | -195 | ' | ' | ' | ' |
Gain (loss) recorded in other income (expense), net | ' | ' | ' | ' | ($95) | ($157) | ($201) | $658 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure, Nonrecurring | $0 | ' | ||
Liabilities, Fair Value Disclosure, Nonrecurring | 0 | ' | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 7,393,000 | 55,022,000 | ||
Total liabilities measured and recorded at fair value | 0 | 0 | ||
Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 55,170,000 | 76,440,000 | ||
Total liabilities measured and recorded at fair value | 331,000 | 195,000 | ||
Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Total liabilities measured and recorded at fair value | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 62,563,000 | 131,462,000 | ||
Total liabilities measured and recorded at fair value | 331,000 | 195,000 | ||
Cash equivalents [Member] | Level 1 [Member] | Money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 4,292,000 | 51,014,000 | ||
Cash equivalents [Member] | Level 2 [Member] | Money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Cash equivalents [Member] | Level 3 [Member] | Money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Cash equivalents [Member] | Estimate of Fair Value Measurement [Member] | Money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 4,292,000 | 51,014,000 | ||
Short-term investments [Member] | Level 1 [Member] | State, municipal and local government agencies bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 1 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 1 [Member] | Commercial paper [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 1 [Member] | U.S. federal government bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | ' | 4,008,000 | ||
Short-term investments [Member] | Level 2 [Member] | State, municipal and local government agencies bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 25,714,000 | 40,449,000 | ||
Short-term investments [Member] | Level 2 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 26,138,000 | 33,496,000 | ||
Short-term investments [Member] | Level 2 [Member] | Commercial paper [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 3,299,000 | 2,299,000 | ||
Short-term investments [Member] | Level 2 [Member] | U.S. federal government bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 3 [Member] | State, municipal and local government agencies bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 3 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 3 [Member] | Commercial paper [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Level 3 [Member] | U.S. federal government bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 0 | ||
Short-term investments [Member] | Estimate of Fair Value Measurement [Member] | State, municipal and local government agencies bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 25,714,000 | 40,449,000 | ||
Short-term investments [Member] | Estimate of Fair Value Measurement [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 26,138,000 | 33,496,000 | ||
Short-term investments [Member] | Estimate of Fair Value Measurement [Member] | Commercial paper [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 3,299,000 | 2,299,000 | ||
Short-term investments [Member] | Estimate of Fair Value Measurement [Member] | U.S. federal government bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | 4,008,000 | ||
Prepaids and other current assets [Member] | Level 1 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | [1] | 0 | [1] |
Prepaids and other current assets [Member] | Level 2 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 19,000 | [1] | 196,000 | [1] |
Prepaids and other current assets [Member] | Level 3 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 0 | [1] | 0 | [1] |
Prepaids and other current assets [Member] | Estimate of Fair Value Measurement [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 19,000 | [1] | 196,000 | [1] |
Other Long-term Investments [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 3,101,000 | ' | ||
Other Long-term Investments [Member] | Level 1 [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets measured and recorded at fair value | 3,101,000 | ' | ||
Accrued Liabilities [Member] | Level 1 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total liabilities measured and recorded at fair value | 0 | [1] | 0 | [1] |
Accrued Liabilities [Member] | Level 2 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total liabilities measured and recorded at fair value | 331,000 | [1] | 195,000 | [1] |
Accrued Liabilities [Member] | Level 3 [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total liabilities measured and recorded at fair value | 0 | [1] | 0 | [1] |
Accrued Liabilities [Member] | Estimate of Fair Value Measurement [Member] | Foreign exchange forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total liabilities measured and recorded at fair value | $331,000 | [1] | $195,000 | [1] |
[1] | Derivative assets and liabilities represent forward currency exchange contracts. The Company enters into these contracts to minimize the short-term impact of foreign currency exchange rates fluctuations primarily from trade and inter-company receivables and payables. |
Balance_Sheet_Components_Accou
Balance Sheet Components - Accounts Receivable, Net, Prepaid Expenses and Other Current Assets, Inventories, Property and Equipment, Net (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net: | ' | ' |
Accounts receivable | $81,988 | $83,266 |
Less: allowances for doubtful accounts, returns and discounts | -6,348 | -8,214 |
Accounts receivable, net | 75,640 | 75,052 |
Inventories: | ' | ' |
Raw materials | 1,805 | 2,389 |
Work-in-process | 1,780 | 976 |
Finished goods | 28,927 | 33,561 |
Total inventories, net | 32,512 | 36,926 |
Property and equipment, net: | ' | ' |
Furniture and fixtures | 8,796 | 8,227 |
Machinery and equipment | 117,765 | 114,178 |
Leasehold improvements | 8,386 | 7,888 |
Property and equipment, gross | 134,947 | 130,293 |
Less: accumulated depreciation and amortization | -104,133 | -95,348 |
Property and equipment, net | $30,814 | $34,945 |
Goodwill_and_Identified_Intang2
Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 26, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Balance at beginning of period | $198,022 |
Foreign currency translation adjustment | -15 |
Balance at end of period | $198,007 |
Goodwill_and_Identified_Intang3
Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 |
In Thousands, unless otherwise specified | Developed core technology [Member] | Developed core technology [Member] | Developed core technology [Member] | Developed core technology [Member] | Customer relationships/contracts [Member] | Customer relationships/contracts [Member] | Customer relationships/contracts [Member] | Customer relationships/contracts [Member] | Trademarks and tradenames [Member] | Trademarks and tradenames [Member] | Trademarks and tradenames [Member] | Trademarks and tradenames [Member] | Maintenance agreements and related relationships [Member] | Maintenance agreements and related relationships [Member] | Maintenance agreements and related relationships [Member] | Maintenance agreements and related relationships [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful Life | ' | ' | ' | ' | '4 years | '6 years | ' | ' | '5 years | '6 years | ' | ' | '4 years | '5 years | ' | ' | '6 years | '7 years |
Gross Carrying Amount | $221,704 | $221,704 | $136,145 | $136,145 | ' | ' | $67,098 | $67,098 | ' | ' | $11,361 | $11,361 | ' | ' | $7,100 | $7,100 | ' | ' |
Accumulated Amortization | -208,964 | -190,585 | -134,731 | -121,681 | ' | ' | -57,568 | -53,772 | ' | ' | -11,361 | -10,565 | ' | ' | -5,304 | -4,567 | ' | ' |
Total future amortization expense | $12,740 | $31,119 | $1,414 | $14,464 | ' | ' | $9,530 | $13,326 | ' | ' | $0 | $796 | ' | ' | $1,796 | $2,533 | ' | ' |
Goodwill_and_Identified_Intang4
Goodwill and Identified Intangible Assets - Amortization Expense for Identifiable Purchased Intangible Assets (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Total amortization expense | $5,512 | $6,764 | $18,378 | $20,569 |
Included in cost of revenue [Member] | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Total amortization expense | 3,851 | 4,763 | 13,049 | 14,470 |
Included in operating expenses [Member] | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Total amortization expense | $1,661 | $2,001 | $5,329 | $6,099 |
Goodwill_and_Identified_Intang5
Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Purchased Intangible Assets (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining 3 months) | $2,141 | ' |
2015 | 6,502 | ' |
2016 | 4,097 | ' |
Total future amortization expense | 12,740 | 31,119 |
Product cost of revenue [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining 3 months) | 695 | ' |
2015 | 719 | ' |
2016 | 0 | ' |
Total future amortization expense | 1,414 | ' |
Operating Expenses [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining 3 months) | 1,446 | ' |
2015 | 5,783 | ' |
2016 | 4,097 | ' |
Total future amortization expense | $11,326 | ' |
Restructuring_and_Related_Char2
Restructuring and Related Charges - Activities in Restructuring Accrual (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | |
Harmonic Two Thousand And Thirteen Restructuring [Member] | Harmonic Two Thousand And Thirteen Restructuring [Member] | Harmonic Two Thousand And Thirteen Restructuring [Member] | Harmonic Two Thousand And Thirteen Restructuring [Member] | Harmonic Two Thousand And Thirteen Restructuring [Member] | Harmonic Two Thousand And Thirteen Restructuring [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Product cost of revenue [Member] | Operating Expense [Member] | Operating Expense [Member] | Operating Expense [Member] | Operating Expense [Member] | |||||
Severance [Member] | Termination of a research and development project [Member] | Excess Facilities [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | $403,000 | $583,000 | $915,000 | $1,455,000 | ' | ' | ' | ' | ' | ' | $15,000 | $324,000 | $94,000 | $530,000 | $388,000 | $259,000 | $821,000 | $925,000 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | 179,000 | ' | ' | 179,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and related charges | 388,000 | 259,000 | 821,000 | 925,000 | 924,000 | 1,455,000 | 2,200,000 | 829,000 | 63,000 | 32,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to restructuring provisions | ' | ' | ' | ' | -9,000 | ' | ' | -9,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments | ' | ' | ' | ' | -747,000 | ' | ' | -715,000 | 0 | -32,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | $347,000 | ' | $179,000 | $284,000 | $63,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Related_Char3
Restructuring and Related Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Harmonic 2013 Restructuring [Member] | Harmonic 2013 Restructuring [Member] | Harmonic 2013 Restructuring [Member] | Harmonic 2013 Restructuring [Member] | HFC business [Member] | HFC business [Member] | |||||
Employees | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $388,000 | $259,000 | $821,000 | $925,000 | ' | $924,000 | $1,455,000 | $2,200,000 | $600,000 | ' |
Restructuring Costs | ' | ' | ' | ' | 403,000 | 915,000 | ' | ' | ' | ' |
Restructuring Reserve | ' | ' | ' | ' | $347,000 | $347,000 | ' | $179,000 | ' | $13,000 |
Number of positions eliminated | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 9 Months Ended | 8 Months Ended | 9 Months Ended | 4 Months Ended | |||||
Sep. 26, 2014 | Aug. 21, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2014 | |
LIBOR [Member] | LIBOR [Member] | Standby letters of credit [Member] | Line of credit facility [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Subsequent Event [Member] | ||
LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant, Certain Assets to Certain Liabilities Less Deferred Revenue Ratio | 3.26 | ' | ' | ' | ' | 1.75 | ' | ' | ' |
Maximum borrowing capacity under bank line of credit facility | $10,000,000 | ' | ' | $200,000 | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | 9,800,000 | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms | '3.26 to 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Bank line of credit facility, maturity date | 31-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrestricted Cash Cash Equivalents And Short Term Investments To Current Liabilities Ratio | 'Harmonic to maintain a ratio of unrestricted cash, accounts receivable and short term investments to current liabilities (less deferred revenue) of at least 1.75 to 1.00. | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit LIBOR margin | ' | 1.75% | ' | ' | ' | ' | 1.50% | 1.65% | 1.50% |
Borrowings under bank line of credit facility | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Bank's Prime Rate | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Annualized rate of LIBOR | ' | ' | 0.15% | ' | ' | ' | ' | ' | ' |
LIBOR rate duration | 'one month borrowing period at September 26, 2014 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility collateral | 'Borrowings are not collateralized | ' | ' | ' | ' | ' | ' | ' | ' |
Covenants under the line of credit facility | 'As of September 26, 2014, Harmonic was in compliance with the covenants under the line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Company's Stock Option and Restricted Stock Unit Activity (Detail) (USD $) | 9 Months Ended |
Sep. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Available for Grant, Beginning balance | 8,752,000 |
Shares Available for Grant, Authorized | 350,000 |
Shares Available for Grant, Granted | -3,477,000 |
Shares Available for Grant, Options exercised | 0 |
Shares Available for Grant, Shares released | 0 |
Shares Available for Grant, Forfeited or cancelled | 1,753,000 |
Shares Available for Grant, Ending balance | 7,378,000 |
Restricted Stock Units Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Units, Beginning balance | 3,018,000 |
Number of Shares, Authorized | 0 |
Number of Units, Granted | 1,352,000 |
Number of Units, exercised | 0 |
Number of Units, Shares released | -1,589,000 |
Number of Units, Forfeited or cancelled | -232,000 |
Number of Units, Ending balance | 2,549,000 |
Weighted Average Grant Date Fair Value, Beginning balance | 6.34 |
Weighted Average Grant Date Fair Value, Authorized | 0 |
Estimated weighted average fair value per share at purchase date | 6.55 |
Weighted Average Grant Date Fair Value, Exercised | 0 |
Weighted Average Grant Date Fair Value, Shares released | 6.32 |
Weighted Average Grant Date Fair Value, Forfeited or cancelled | 6.13 |
Weighted Average Grant Date Fair Value, Ending balance | 6.49 |
Stock Options Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Beginning balance | 7,885,000 |
Number of Shares, Authorized | 0 |
Number of Shares, Granted | 1,450,000 |
Number of Shares, Options exercised | -329,000 |
Number of Shares, Forfeited or cancelled | -1,592,000 |
Number of Shares, Ending balance | 7,414,000 |
Weighted Average Exercise Price, Beginning balance | 6.92 |
Weighted Average Exercise Price, Authorized | 0 |
Weighted Average Exercise Price, Granted | 6.52 |
Weighted Average Exercise Price, Options exercised | 4.91 |
Weighted Average Exercise Price, Forfeited or cancelled | 8.15 |
Weighted Average Exercise Price, Ending balance | 6.67 |
Employee_Benefit_Plans_Summary1
Employee Benefit Plans - Summary of Stock Options Outstanding (Detail) (Stock Options Outstanding [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 |
Stock Options Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Vested and expected to vest | 7,095 |
Weighted Average Exercise Price, Vested and expected to vest | $6.68 |
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest | '3 years 7 months 13 days |
Aggregate Intrinsic Value, Vested and expected to vest | $3,118 |
Number of Shares, Exercisable | 4,760 |
Weighted Average Exercise Price, Exercisable | $6.84 |
Weighted Average Remaining Contractual Term (Years), Exercisable | '2 years 6 months |
Aggregate Intrinsic Value, Exercisable | $2,519 |
Employee_Benefit_Plans_Summary2
Employee Benefit Plans - Summary of Restricted Stock Units Outstanding (Detail) (Restricted Stock Units Outstanding [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 26, 2014 |
Restricted Stock Units Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares Underlying Restricted Stock Units | 2,365 |
Weighted Average Remaining Vesting Period (Years) | '0 years 8 months 15 days |
Aggregate Fair Value | $15,114 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Jul. 29, 2014 | Aug. 14, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | |
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Minimum [Member] | Maximum [Member] | |||||
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | $300,000 | $1,100,000 | $700,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of fair market value of Common Stock to purchase shares | ' | ' | ' | ' | 85.00% | ' | ' | ' | 85.00% | ' | ' |
Employee Stock Purchase Plan Payroll Deductions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 10.00% |
Percentage of shares available to fund for ESPP | ' | ' | ' | ' | ' | 53.00% | ' | ' | ' | ' | ' |
Refunded percentage of employee contribution | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ' |
Increase in authorized shares for ESPP | ' | ' | 350,000 | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' | ' |
Discretionary contributions of plan | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of employees' gross pay eligible for matching | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum contribution amount per participant | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions in period | ' | ' | $354,000 | $387,000 | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan description | ' | ' | 'Harmonic has a retirement/savings plan which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. Harmonic has made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | ' | ' | $12,720 | $11,953 |
Total stock-based compensation in operating expense | 3,740 | 3,340 | 10,969 | 10,028 |
Total stock-based compensation | 4,352 | 3,945 | 12,720 | 11,866 |
Product cost of revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 612 | 605 | 1,751 | 1,838 |
Research and development expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 1,219 | 1,076 | 3,589 | 3,400 |
Selling, general and administrative expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $2,521 | $2,264 | $7,380 | $6,628 |
StockBased_Compensation_Valuat
Stock-Based Compensation - Valuation Assumptions for Stock Options (Detail) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 6 Months Ended | 3 Months Ended | |||
Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Sep. 26, 2014 | |
Employee Stock Purchase Plan [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Purchase Period June 30, 2013 [Member] | Purchase Period June 30, 2014 [Member] | Purchase Period December 31, 2014 [Member] | |
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (years) | ' | '4 years 8 months 13 days | '4 years 8 months 13 days | '4 years 8 months 13 days | '4 years 8 months 13 days | '5 months 27 days | '6 months | '6 months |
Volatility | ' | 40.00% | 46.00% | 40.00% | 51.00% | 30.00% | 28.00% | 33.00% |
Risk-free interest rate | ' | 1.80% | 1.50% | 1.70% | 0.80% | 0.20% | 0.10% | 0.10% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Jul. 29, 2014 | Aug. 14, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Restricted Stock Units Outstanding [Member] | Restricted Stock Units Outstanding [Member] | Restricted Stock Units Outstanding [Member] | Restricted Stock Units Outstanding [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | 0.00% | ' | ' | ' | ' |
Weighted-average fair value per share of options granted | $2.48 | $3.02 | $2.36 | $2.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | $600,000 | $800,000 | $2,600,000 | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total realized tax benefit | ' | ' | 194,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stocks fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | 2,800,000 | 10,000,000 | 10,200,000 |
Discount percentage on purchase of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Fair Value of stock purchase rights percentage of call option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Value of stock purchase rights percentage of put option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Weighted-average fair value per share other than option granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.55 | ' |
Increase in authorized shares for ESPP | ' | ' | 350,000 | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Total unamortized stock-based compensation cost related to unvested stock options and restricted stock units | $17,100,000 | ' | $17,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted-average amortization period | ' | ' | '1 year 8 months 15 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Employ
Stock-Based Compensation - Employee Stock Purchase Plan (Detail) (Employee Stock Purchase Plan [Member], USD $) | 9 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |
Sep. 26, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 26, 2014 | Dec. 31, 2014 | |
Purchase Period June 30, 2014 [Member] | Purchase Period June 30, 2013 [Member] | Purchase Period December 31, 2014 [Member] | Scenario, Forecast [Member] | ||
Purchase Period June 30, 2014 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Expected term (years) | ' | '6 months | '5 months 27 days | '6 months | ' |
Volatility | ' | 28.00% | 30.00% | 33.00% | ' |
Risk-free interest rate | ' | 0.10% | 0.20% | 0.10% | ' |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% | ' |
Estimated weighted average fair value per share at purchase date | ' | $1.70 | $1.23 | ' | $1.84 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Loss from continuing operations before income taxes | ($3,752) | ($2,278) | ($19,594) | ($21,955) |
Provision for (benefit from) income taxes | ($4,830) | ($38,953) | $21,800 | ($45,723) |
Effective income tax rate | 128.70% | 1710.00% | -111.30% | 208.30% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' |
Federal statutory income tax rate | ' | ' | ' | 35.00% | 35.00% |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $4.20 | $24.50 | ' | $28.70 | ' |
Net tax benefit associated with release of tax reserves for uncertain tax positions | ' | ' | ' | 8.5 | 38.4 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 8.5 | ' | 38.4 | ' | ' |
Unrecognized tax benefits that would impact the provision for income taxes | 16.8 | ' | ' | 16.8 | ' |
Interest and possible penalties related to uncertain tax positions | 0.3 | ' | ' | 0.3 | ' |
Potential decrease over the next twelve months for uncertain tax positions due to expiration of applicable statute of limitations | $0.60 | ' | ' | $0.60 | ' |
SWITZERLAND | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' |
Income Tax Holiday, Description | ' | ' | ' | 'The Company's operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland. The Company has met these various thresholds and the Switzerland tax holiday is effective through the end of 2018. | ' |
Income_Loss_Per_Share_Numerato
Income (Loss) Per Share - Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Numerator: | ' | ' | ' | ' |
Income (loss) from continuing operations | $1,078 | $36,675 | ($41,394) | $23,768 |
Income from discontinued operations | 0 | 91 | 0 | 15,619 |
Net income (loss) | $1,078 | $36,766 | ($41,394) | $39,387 |
Denominator: | ' | ' | ' | ' |
Basic | 90,618 | 101,144 | 94,113 | 108,695 |
Effect of dilutive securities from stock options, restricted stock units and ESPP | 1,182 | 1,579 | 0 | 1,184 |
Diluted | 91,800 | 102,723 | 94,113 | 109,879 |
Basic net income (loss) per share from: | ' | ' | ' | ' |
Continuing operations | $0.01 | $0.36 | ($0.44) | $0.22 |
Discontinued operations | $0 | $0 | $0 | $0.14 |
Net income (loss) | $0.01 | $0.36 | ($0.44) | $0.36 |
Diluted net income (loss) per share from: | ' | ' | ' | ' |
Continuing operations | $0.01 | $0.36 | ($0.44) | $0.22 |
Discontinued operations | $0 | $0 | $0 | $0.14 |
Net Income (loss) | $0.01 | $0.36 | ($0.44) | $0.36 |
Income_Loss_Per_Share_Antidilu
Income (Loss) Per Share - Anti-dilutive Securities (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Potentially dilutive equity awards outstanding | 5,196 | 6,144 | 9,321 | 10,681 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | Sep. 26, 2014 | Jun. 29, 2012 | Oct. 31, 2011 |
Patents | Patents | ||
Contingencies And Commitments [Line Items] | ' | ' | ' |
Future sublease income from Aurora | $300,000 | ' | ' |
Non-cancelable purchase commitments | 17,600,000 | ' | ' |
Maximum amount of potential future payments under the company's financial guarantees | 200,000 | ' | ' |
Infringements of number of patents held | ' | 1 | 2 |
Israel [Member] | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' |
Guarantees related to rent obligations | 400,000 | ' | ' |
Indemnification [Member] | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' |
Accrual for indemnification provisions | $0 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) (USD $) | Sep. 26, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 (remaining three months) | $2,622 |
2015 | 10,307 |
2016 | 8,600 |
2017 | 7,795 |
2018 | 7,650 |
Thereafter | 13,731 |
Total | $50,705 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Warranty Accrual Included in Accrued Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $3,532 | $3,228 | $3,606 | $4,292 |
Transfer to Aurora as part of the sale of discontinued operations | 0 | 0 | 0 | -939 |
Accrual for current period warranties | 2,028 | 1,991 | 5,383 | 5,333 |
Warranty costs incurred | -1,629 | -1,705 | -5,058 | -5,172 |
Balance at end of period | $3,931 | $3,514 | $3,931 | $3,514 |
Stockholders_Equity_Components
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Foreign currency translation adjustments | ($682) | ($242) |
Unrealized gain on investments | -288 | 33 |
Accumulated Other Comprehensive Loss | ($970) | ($209) |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 23 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Apr. 24, 2012 | Sep. 26, 2014 | Dec. 31, 2013 | Mar. 28, 2014 |
Equity [Abstract] | ' | ' | ' | ' |
Authorized stock repurchase value | $25 | ' | $220 | ' |
Increase in stock repurchase program | ' | 80 | 195 | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | 36.3 |
Weighted average purchase price per share | ' | ' | ' | $6.19 |
Common stock repurchased and retired, aggregate value | ' | ' | ' | 224.6 |
Remaining authorized repurchase amount | ' | ' | ' | $75.40 |
Subsequent_Event_Details
Subsequent Event (Details) (Encoding Inc [Member], Subsequent Event [Member]) | Oct. 22, 2014 |
Encoding Inc [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 18.40% |