Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HLIT | ||
Entity Registrant Name | HARMONIC INC | ||
Entity Central Index Key | 851,310 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 88,678,700 | ||
Entity Public Float | $ 106,193,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 65,989 | $ 57,024 |
Short-term investments | 0 | 0 |
Accounts receivable, net | 81,795 | 69,844 |
Inventories | 25,638 | 25,976 |
Prepaid expenses and other current assets | 23,280 | 18,931 |
Total current assets | 196,702 | 171,775 |
Property and equipment, net | 22,321 | 29,265 |
Goodwill | 240,618 | 242,827 |
Intangibles, net | 12,817 | 21,279 |
Other long-term assets | 38,377 | 42,913 |
Total assets | 510,835 | 508,059 |
Current liabilities: | ||
Other debts and capital lease obligations, current | 7,175 | 7,610 |
Accounts payable | 33,778 | 33,112 |
Income taxes payable | 1,099 | 233 |
Deferred revenue | 41,592 | 52,429 |
Accrued and other current liabilities | 52,761 | 48,705 |
Total current liabilities | 136,405 | 142,089 |
Convertible notes, long-term | 114,808 | 108,748 |
Other debts and capital lease obligations, long-term | 12,684 | 15,336 |
Income taxes payable, long-term | 460 | 917 |
Other non-current liabilities | 18,228 | 22,626 |
Total liabilities | 282,585 | 289,716 |
Commitments and contingencies (Note 18) | ||
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; 87,057 and 82,554 shares issued and outstanding at December 31, 2018 and 2017, respectively | 87 | 83 |
Additional paid-in capital | 2,296,795 | 2,272,690 |
Accumulated deficit | (2,067,416) | (2,057,812) |
Accumulated other comprehensive income (loss) | (1,216) | 3,382 |
Total stockholders’ equity | 228,250 | 218,343 |
Total liabilities and stockholders’ equity | $ 510,835 | $ 508,059 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 87,057,000 | 82,554,000 |
Common stock, shares outstanding | 87,057,000 | 82,554,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Revenue | [1] | $ 403,558 | $ 358,246 | $ 405,911 | ||
Total cost of revenue | 194,349 | 188,426 | 205,161 | |||
Total gross profit | 209,209 | 169,820 | 200,750 | |||
Operating expenses: | ||||||
Research and development | 89,163 | 95,978 | 98,401 | |||
Selling, general and administrative | 118,952 | 136,270 | 144,381 | |||
Amortization of intangibles | 3,187 | 3,142 | 10,402 | |||
Restructuring and related charges | 2,918 | 5,307 | 14,602 | [2] | ||
Total operating expenses | 214,220 | 240,697 | 267,786 | |||
Loss from operations | (5,011) | (70,877) | [3] | (67,036) | [3] | |
Interest expense, net | (11,401) | (11,078) | (10,628) | |||
Other expense, net | (536) | (2,222) | (31) | |||
Loss on impairment of long-term investments | 0 | (530) | (2,735) | |||
Loss before income taxes | (16,948) | (84,707) | [3] | (80,430) | [3] | |
Provision for (benefit from) income taxes | 4,087 | (1,752) | (8,116) | |||
Net loss | $ (21,035) | $ (82,955) | $ (72,314) | |||
Net loss per share: | ||||||
Basic and diluted | $ (0.25) | $ (1.02) | $ (0.93) | |||
Shares used in per share calculations: | ||||||
Basic and diluted | 85,615 | 80,974 | 77,705 | |||
Product [Member] | ||||||
Revenue | $ 252,067 | $ 224,645 | $ 285,260 | |||
Total cost of revenue | 127,268 | 119,802 | 145,714 | |||
Service [Member] | ||||||
Revenue | 151,491 | 133,601 | 120,651 | |||
Total cost of revenue | $ 67,081 | $ 68,624 | $ 59,447 | |||
[1] | Revenue is attributed to countries based on the location of the customer. | |||||
[2] | The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. | |||||
[3] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net loss | $ (21,035) | $ (82,955) | $ (72,314) |
Other comprehensive income (loss), before tax: | |||
Unrealized gain, net arising during the period | 0 | 0 | 202 |
Loss reclassified into earnings | 0 | 0 | 44 |
Other Comprehensive Income (Loss) before tax, Cash Flow Hedges | 0 | 0 | 246 |
Unrealized loss, net arising during the period | 0 | (658) | (903) |
Loss reclassified into earnings | 0 | 384 | 2,735 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax | 0 | (274) | 1,832 |
Adjustment to pension benefit plan | 202 | 528 | (279) |
Unrealized foreign exchange gain (loss), net on intercompany long-term loans arising during the period | 667 | (1,705) | 0 |
Translation gain (loss) arising during the period | (5,100) | 11,471 | (4,633) |
Loss reclassified into earnings | 11 | 106 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (5,089) | 11,577 | (4,633) |
Other comprehensive income (loss) before tax | (4,220) | 10,126 | (2,834) |
Provision for (benefit from) income taxes | 378 | (526) | 18 |
Other comprehensive income (loss), net of tax | (4,598) | 10,652 | (2,852) |
Total comprehensive loss | $ (25,633) | $ (72,303) | $ (75,166) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]Accumulated Deficit [Member] | [1] | |
Balance at Dec. 31, 2015 | $ 328,168 | $ 76 | $ 2,236,418 | $ (1,903,908) | $ (4,418) | ||||
Balance, Shares at Dec. 31, 2015 | 76,015 | ||||||||
Net loss | (72,314) | (72,314) | |||||||
Other comprehensive loss, net of tax | (2,852) | (2,852) | |||||||
Issuance of Common Stock under option, stock award and purchase plans | 2,800 | $ 2 | 2,798 | ||||||
Issuance of Common Stock under option, stock award and purchase plans, Shares | 2,441 | ||||||||
Stock-based compensation | 13,242 | 13,242 | |||||||
Issuance of warrant | 1,597 | 1,597 | |||||||
Balance at Dec. 31, 2016 | 270,641 | $ 78 | 2,254,055 | (1,976,222) | (7,270) | ||||
Balance, Shares at Dec. 31, 2016 | 78,456 | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2016-09 [Member] | 69 | (69) | |||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2016-16 [Member] | 1,434 | 1,434 | |||||||
Balance at Jan. 01, 2017 | 272,075 | $ 78 | 2,254,124 | (1,974,857) | (7,270) | ||||
Balance, Shares at Jan. 01, 2017 | 78,456 | ||||||||
Balance at Dec. 31, 2016 | 270,641 | $ 78 | 2,254,055 | (1,976,222) | (7,270) | ||||
Balance, Shares at Dec. 31, 2016 | 78,456 | ||||||||
Net loss | (82,955) | (82,955) | |||||||
Other comprehensive loss, net of tax | 10,652 | 10,652 | |||||||
Issuance of Common Stock under option, stock award and purchase plans | 1,959 | $ 5 | 1,954 | ||||||
Issuance of Common Stock under option, stock award and purchase plans, Shares | 4,098 | ||||||||
Stock-based compensation | 16,612 | 16,612 | |||||||
Balance at Dec. 31, 2017 | 218,343 | $ 83 | 2,272,690 | (2,057,812) | 3,382 | ||||
Balance, Shares at Dec. 31, 2017 | 82,554 | ||||||||
Accumulated deficit | (2,057,812) | (2,057,812) | |||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2014-09 [Member] | [1] | $ 11,431 | |||||||
Balance at Jan. 01, 2018 | 229,774 | $ 83 | 2,272,690 | (2,046,381) | 3,382 | ||||
Balance, Shares at Jan. 01, 2018 | 82,554 | ||||||||
Balance at Dec. 31, 2017 | 218,343 | $ 83 | 2,272,690 | (2,057,812) | 3,382 | ||||
Balance, Shares at Dec. 31, 2017 | 82,554 | ||||||||
Net loss | (21,035) | (21,035) | |||||||
Net loss | Accounting Standards Update 2014-09 [Member] | 959 | ||||||||
Other comprehensive loss, net of tax | (4,598) | (4,598) | |||||||
Issuance of Common Stock under option, stock award and purchase plans | 4,717 | $ 4 | 4,713 | ||||||
Issuance of Common Stock under option, stock award and purchase plans, Shares | 4,503 | ||||||||
Stock-based compensation | 17,097 | 17,097 | |||||||
Issuance of warrant | 2,295 | 2,295 | |||||||
Balance at Dec. 31, 2018 | 228,250 | $ 87 | $ 2,296,795 | (2,067,416) | $ (1,216) | ||||
Balance, Shares at Dec. 31, 2018 | 87,057 | ||||||||
Accumulated deficit | Accounting Standards Update 2014-09 [Member] | (2,046,381) | $ 11,431 | |||||||
Accumulated deficit | $ (2,067,416) | $ (2,067,416) | |||||||
Accumulated deficit | Accounting Standards Update 2014-09 [Member] | $ 12,390 | ||||||||
[1] | See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cash flows from operating activities: | |||||
Net loss | $ (21,035) | $ (82,955) | $ (72,314) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Amortization of intangibles | 8,367 | 8,322 | [1] | 14,836 | [1] |
Depreciation | 12,971 | 14,599 | 18,819 | ||
Stock-based compensation | 17,289 | 16,610 | 13,060 | ||
Amortization of discount on convertible debt | 6,060 | 5,489 | 4,964 | ||
Provision for non-cash warrant | 1,178 | 153 | 434 | ||
Restructuring, asset impairment and loss on retirement of fixed assets | 1,491 | 1,906 | 2,305 | ||
Loss on impairment of long-term investments | 0 | 530 | 2,735 | ||
Unrealized foreign exchange (gain) loss | (1,906) | 2,369 | (856) | ||
Gain on pension curtailment | 0 | 0 | (1,955) | ||
Deferred income taxes, net | 661 | 2,189 | (10,085) | ||
Provision for doubtful accounts, returns and discounts | 2,521 | 4,912 | 2,589 | ||
Provision for excess and obsolete inventories | 1,649 | 6,005 | 6,871 | ||
Other non-cash adjustments, net | 407 | 445 | 408 | ||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||
Accounts receivable | (14,700) | 12,598 | (2,563) | ||
Inventories | (2,045) | 11,687 | (4,107) | ||
Prepaid expenses and other assets | 3,227 | 6,642 | (1,892) | ||
Accounts payable | 1,018 | 3,432 | 5,793 | ||
Deferred revenues | (4,808) | (392) | 18,106 | ||
Income taxes payable | 440 | (2,978) | (133) | ||
Accrued and other liabilities | (501) | (8,499) | 3,423 | ||
Net cash provided by operating activities | 12,284 | 3,064 | 438 | ||
Cash flows from investing activities: | |||||
Acquisition of business, net of cash and restricted cash acquired | 0 | 0 | (74,334) | ||
Proceeds from maturities of investments | 0 | 3,106 | 19,707 | ||
Proceeds from sales of investments | 104 | 3,792 | 0 | ||
Purchases of property and equipment | (7,044) | (11,399) | (15,107) | ||
Net cash used in investing activities | (6,940) | (4,501) | (69,734) | ||
Cash flows from financing activities: | |||||
Payment of convertible debt issuance cost | 0 | 0 | (582) | ||
Proceeds from other debts and capital leases | 5,066 | 6,344 | 5,968 | ||
Repayment of other debts and capital leases | (7,132) | (7,408) | (8,338) | ||
Proceeds from common stock issued to employees | 4,947 | 4,716 | 4,444 | ||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (230) | (2,757) | (1,644) | ||
Net cash provided by (used in) financing activities | 2,651 | 895 | (152) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (763) | 1,879 | (415) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,232 | 1,337 | (69,863) | ||
Cash, cash equivalents and restricted cash at beginning of period | 58,757 | 57,420 | 127,283 | ||
Cash, cash equivalents and restricted cash at end of period | 65,989 | 58,757 | 57,420 | ||
Supplemental disclosures of cash flow information: | |||||
Income tax payments (refunds), net | 2,031 | 2,141 | (54) | ||
Interest payments, net | 5,273 | 5,515 | 5,275 | ||
Supplemental schedule of non-cash investing and financing activities: | |||||
Capital expenditures incurred but not yet paid | 148 | 337 | 394 | ||
Issuance of warrant | 2,295 | 1,597 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | |||||
Cash and cash equivalents | 65,989 | 57,024 | 55,635 | ||
Total cash, cash equivalents and restricted cash | $ 58,757 | $ 57,420 | $ 127,283 | ||
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Harmonic Inc. (“Harmonic” or the “Company”) is a leading global provider of (i) versatile and high performance video delivery software, products, system solutions and services that enable our customers to efficiently create, prepare, store, playout and deliver a full range of high-quality broadcast and “over-the-top” (OTT) video services to consumer devices, including televisions, personal computers, laptops, tablets and smart phones and (ii) cable access solutions that enable cable operators to more efficiently and effectively deploy high-speed internet, for data, voice and video services to consumers’ homes. The Company operates in two segments, Video and Cable Access. The Video business sells video processing and production and playout solutions and services worldwide to cable operators and satellite and telecommunications (telco) pay-TV service providers, which are collectively referred to as “service providers,” and to broadcast and media companies, including streaming media companies. The Video business infrastructure solutions are delivered either through shipment of our products, software licenses or as software-as-a-service (“SaaS”) subscriptions. The Cable Access business sells cable access solutions and related services, including our CableOS software-based cable access solution, primarily to cable operators globally. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of Harmonic include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter which ends on December 31. On February 29, 2016, the Company completed the acquisition of Thomson Video Networks (“TVN”) and its results of operations are included in the Company’s Consolidated Statements of Operations beginning March 1, 2016. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not have material impact on previously reported financial statements. Cash and Cash Equivalents Cash and cash equivalents include all cash and highly liquid investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments. Restricted Cash The Company had no restricted cash balance as of December 31, 2018. The restricted cash balance as of December 31, 2017 was $1.7 million . The restricted cash serves as collateral for certain bank guarantees and they are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. As of December 31, 2017 , $0.5 million of the restricted cash balance was reported as a component of “Prepaid expenses and other current assets” and the remaining balance of $1.2 million was reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets. Short-Term Investments The Company did not have any outstanding short-term investments as of December 31, 2018 and 2017. Investments in Equity Securities From time to time, the Company may acquire certain equity investments for the promotion of business and strategic objectives and these investments may be in marketable equity securities or non-marketable equity securities. Effective January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for its equity investments ( except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, the Company measure these investments at cost minus impairment, if any, The Company’s equity investments are classified as long-term investments and reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets. Prior to January 1, 2018, the Company accounted for its investments in entities that it did not have significant influence under the cost method. Investments in equity securities were carried at fair value if the fair value of the security is readily determinable. Unrealized gains and losses, net of taxes, on the long-term investments were included in the Company’s Consolidated Balance Sheet as a component of accumulated other comprehensive loss. Investments in equity securities that did not qualify for fair value accounting or equity method accounting were accounted for under the cost method. The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2018 and 2017, respectively. Liquidity As of December 31, 2018 , the Company’s principal sources of liquidity consisted of cash and cash equivalents of $66.0 million , net accounts receivable of $81.8 million , its $15 million line of credit with Silicon Valley Bank and financing from French government agencies. As of December 31, 2018, the Company had $128.25 million in aggregate principal amount convertible senior notes outstanding (the “Notes”), which are due on December 1, 2020. The Notes bear interest at a fixed rate of 4.00% per year, payable semiannually in arrears on June 1 and December 1 of each year. The Company also had debts with French government agencies and to a lesser extent, with other financial institutions, primarily in France, in the aggregate of $19.9 million at December 31, 2018. The Company’s principal uses of cash will include repayments of debt and related interest, purchases of inventory, payroll, restructuring expenses, and other operating expenses related to the development and marketing of our products, purchases of property and equipment and other contractual obligations for the foreseeable future. The Company believes that its cash and cash equivalents of $66.0 million at December 31, 2018 will be sufficient to fund its principal uses of cash for at least the next 12 months. However, if its expectations are incorrect, it may need to raise additional funds to fund our operations, to take advantage of unanticipated strategic opportunities or to strengthen our financial position. Additional funds may not be available on terms favorable to us or at all. Credit Risk and Major Customers/Supplier Concentration Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Cash, cash equivalents and short-term investments are invested in short-term, highly liquid, investment-grade obligations of commercial or governmental issuers, in accordance with the Company’s investment policy. The investment policy limits the amount of credit exposure to any one financial institution, commercial or governmental issuer. The Company’s accounts receivable are derived from sales to worldwide cable, satellite, telco, and broadcast and media companies. The Company generally does not require collateral from its customers, and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. Two customers had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2018 . No customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2017 . During the year ended December 31, 2018 , Comcast accounted for more than 10% of the Company’s revenue. No customer accounted for more than 10% of the Company’s net revenue for the year ended December 31, 2017. Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those sole source and limited source suppliers, the partial or complete loss of certain of these sources could have at least a temporary adverse effect on the Company’s results of operations and damage customer relationships. Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for the reporting period beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (“Topic 605”). (See “Recently Adopted Accounting Pronouncements” for additional information.) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The cost of inventories is comprised of material, labor and manufacturing overhead. The Company’s manufacturing overhead standards for product costs are calculated assuming full absorption of forecasted spending over projected volumes. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations. Capitalized Software Development Costs External-use software. Research and development costs are generally charged to expense as incurred. The Company has not capitalized any such development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product is available for general release to customers has been insignificant. Internal-use software. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. These capitalized costs are amortized on a straight-line basis, generally three years . During the years ended December 31, 2018 and December 31, 2017 , the Company capitalized $0.9 million and $1.1 million , respectively, of its software development costs related to the development of its SaaS offerings. During the year ended December 31, 2016 , research and development costs capitalized for internal use software was not significant. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally, five years for furniture and fixtures, three years for software and four years for machinery and equipment. Depreciation for leasehold improvements are computed using the shorter of the remaining useful lives of the assets or the lease term of the respective assets . Business Combination The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and the liabilities assumed. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received in a sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measurements that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. Goodwill As of December 31, 2018 , the Company had goodwill of $240.6 million which represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has two reporting units, which are the same as its operating segments. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. There was no impairment of goodwill resulting from the Company’s fiscal 2018 annual impairment testing in the fourth quarter of 2018 . (See Note 7, “Goodwill and Identified Intangible Assets,” for additional information). Long-lived Assets Long-lived assets represent property and equipment and purchased intangible assets. Purchased intangible assets from business combinations and asset acquisitions include customer contracts, trademarks and trade names, and maintenance agreements and related relationships, the amortization of which is charged to general and administrative expenses, and core technology and developed technology, the amortization of which is charged to cost of revenue. The Company evaluates the recoverability of intangible assets and other long-lived assets when indicators of impairment are present. When impairment indicators are present, the Company evaluates the recoverability of intangible assets and other long-lived assets on the basis of undiscounted cash flows expected to result from the use of each asset group and its eventual disposition. If the undiscounted expected future cash flows are less than the carrying amount of the asset, an impairment loss is recognized in order to write down the carrying value of the asset to its estimated fair market value. There were no impairment charges for long-lived assets in the years ended December 31, 2018 , 2017 and 2016 . Foreign Currency The functional currency of the Company’s Israeli, Cayman and Swiss operations is the U.S. dollar. All other foreign subsidiaries use the respective local currency as the functional currency. When the local currency is the functional currency, gains and losses from translation of these foreign currency financial statements into U.S. dollars are recorded as a separate component of other comprehensive income (loss) in stockholders’ equity. The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its subsidiaries in their nonfunctional currencies. These monetary assets and monetary liabilities are being remeasured into the functional currencies of the subsidiaries using exchange rates prevailing on the balance sheet date. Such remeasurement gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2018 , 2017 and 2016 , the Company recorded remeasurement losses of approximately $0.6 million , $2.2 million and $0.2 million , respectively. Derivative Instruments The Company enters into derivative instruments, primarily foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities as well as certain foreign currencies denominated expenses. The Company does not enter into derivative instruments for trading purposes and these derivatives generally have maturities within twelve months. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheet. For derivative instruments designated and qualifying as cash flow hedges of forecasted foreign currency denominated transactions expected to occur within twelve months, the effective portion of the gain or loss on these hedges is reported as a component of “Accumulated other comprehensive loss” in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is (or becomes) ineffective, the gain or loss on the associated financial instrument is recorded immediately in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged. The Company did not enter into any cash flow hedges during the year ended December 31, 2018 . Research and Development Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products. R&D expense was $89.2 million , $96.0 million and $98.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company’s TVN French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D tax credits receivable from the French government for spending on innovative R&D under the CIR program is recorded as an offset to R&D expenses. In the years ended December 31, 2018 , 2017 and 2016, the R&D expenses were net of $5.9 million , $5.9 million and $6.1 million of R&D tax credits, respectively. Restructuring and Related Charges The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, lease exit costs, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements. Costs to terminate a lease before the end of its term are recognized when the entity terminates the contract in accordance with the contract terms. The Company determines the excess facilities accrual based on expected cash payments, under the applicable facility lease, reduced by any estimated sublease rental income for such facility. S ee Note 10, “Restructuring and related Charges” for additional information. Warranty The Company accrues for estimated warranty costs at the time of revenue recognition and records such accrued liabilities as part of cost of revenue. Management periodically reviews its warranty liability and adjusts the accrued liability 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. Advertising Expenses All advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations. Advertising expense was $1.0 million , $0.7 million and $1.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based compensation awards made to employees, including stock options, restricted stock units (“RSUs”) and awards related to the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. Prior to January 1, 2017, stock-based compensation was recorded net of estimated forfeitures over the requisite service period and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. Upon the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), issued by the Financial Accounting Standards Board (“FASB”), the Company changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective approach with a cumulative effect adjustment of $69,000 to retained earnings as of January 1, 2017 (which increased the accumulated deficit). The fair value of the Company’s stock options and ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs is calculated based on the market value of the Company’s stock at the grant date. The fair value of the Company’s market-based RSUs (“MRSUs”) is estimated using the Monte-Carlo valuation model with market vesting conditions. The Company recognizes the stock-based compensation for performance-based RSUs (“PRSUs”) based on the probability of achieving certain performance criteria, as defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next. Pension Plan Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, is obligated to provide for a defined benefit plan to its employees upon their retirement from the Company. The Company’s defined benefit pension plan in France is unfunded. The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its pension plan are reasonable based on its experience, market conditions and input from its actuaries. The Company accounts for the actuarial gains (losses) in accordance with ASC 715, “Compensation - Retirement Benefits”. If the net accumulated gain or loss exceeds 10% of the projected plan benefit obligation, a portion of the net gain or loss is amortized and included in expense for the following year based upon the average remaining service period of active plan participants, unless the Company’s policy is to recognize all actuarial gains (losses) when they occur. The Company elected to defer actuarial gains (losses) in accumulated other comprehensive income (loss). As of December 31, 2018, the Company did not meet the 10% requirement, and therefore no amortization of 2018 actuarial gain would be recorded in 2019. S ee Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information. Income Taxes In preparing the Company’s financial statements, the Company estimates the income taxes for each of the jurisdictions in which the Company operates. This involves estimating the Company’s current tax expense and assessing temporary and permanent differences resulting from differing treatment of items, such as reserves and accruals, for tax and accounting purposes. These temporary differences result in deferred tax assets and liabilities, which are included within the Company’s Consolidated Balance Sheet. The Company’s income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the Company’s accompanying Consolidated Balance Sheets, as well as operating loss and tax credit carryforwards. The Company follows the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the Consolidated Balance Sheet and provides any necessary allowances as required. Determining necessary allowances requires the Company to make assessments about the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. A history of operating losses in recent years has led to uncertainty with respect to our ability to realize certain of our net deferred tax assets, and as a result we applied a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2018. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected. The Company is subject to examination of its income tax returns by various tax authorities on a periodic basis. The Company regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of its provision for income taxes. The Company has applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes, which requires application of a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the Company to recognize a tax benefit measured at the largest amount of tax benefit that, in the Company’s judgment, is more than 50% likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. The Company files annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves and penalties, as well as the related interest, in light of changing facts and circumstances. Changes in the Company’s assessment of its uncertain tax positions or settlement of any particular position could materially and adversely impact the Company’s income tax rate, operating results, financial position and cash flows. Segment Reporting Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and is evaluated by the Chief Operating Decision Maker (“CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has two operating segments: Video and Cable Access. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes cumulative translation adjustments, unrealized foreign exchange gains and losses on intercompany long-term loans, unrealized gains and losses on certain foreign currency forward contracts that qualify as cash flow hedges and available-for-sale securities, as well as actuarial gains and losses on pension plan. Recently Adopted Accounting Pronouncements ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for the reporting period beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (“Topic 605”). Under Topic 606, the Company began to recognize a contract asset for satisfied performance obligations that do not provide the Company with an unconditional right to consideration, which was restricted under the previous standard. In addition, the Company changed its revenue recognition for professional services from a completed contract method to a percentage of completion method. The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands): CONSOLIDATED BALANCE SHEETS Balance as of December 31, 2017 Cumulative Impact from Adopting Topic 606 Balance as of January 1, 2018 ASSETS Accounts receivable, net $ 69,844 $ 1,781 $ 71,625 Prepaid expenses and other current assets 18,931 3,578 22,509 Other long-term assets 42,913 773 43,686 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue $ 52,429 $ (4,826 ) $ 47,603 Other non-current liabilities 22,626 (473 ) 22,153 Accumulated deficit (2,057,812 ) 11,431 (2,046,381 ) The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands): Year ended December 31, 2018 CONSOLIDATED STATEMENTS OF OPERATIONS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 Total net revenue $ 403,558 $ 402,550 $ 1,008 Total cost of revenue 194,349 194,101 248 Total gross profit 209,209 208,449 760 Operating expenses: Selling, general and administrative 118,952 119,151 (199 ) Loss from operations (5,011 ) (5,970 ) 959 Loss before income taxes (16,948 ) (17,907 ) 959 Net loss (21,035 ) (21,994 ) 959 As of December 31, 2018 CONSOLIDATED BALANCE SHEETS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 ASSETS Accounts receivable, net 81,795 79,954 $ 1,841 Prepaid expenses and other current assets 23,280 19,067 4,213 Other long-term assets 38,377 37,872 505 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 41,592 47,117 (5,525 ) Other non-current liabilities 18,228 18,534 (306 ) Accumulated deficit (2,067,416 ) (2,079,806 ) 12,390 Revenue Recognition The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions. Revenue from contracts with customers is recognized using the following five steps: a) Identify the contract(s) with a customer; b) Identify the performance obligations in the contract; c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract; and e) Recognize revenue when (or as) the Company satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of prom |
Investments in Other Equity Sec
Investments in Other Equity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Cost-method Investments | INVESTMENTS IN EQUITY SECURITIES Unconsolidated Variable Interest Entities (“VIE”) 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 a primary beneficiary of a variable interest entity (“VIE”), it is required to consolidate the entity. 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. EDC In 2014, the Company acquired an 18.4% interest in Encoding.com, Inc. (“EDC”), a privately held video transcoding service company headquartered in San Francisco, California, for $3.5 million by purchasing EDC’s Series B preferred stock. EDC is considered a VIE but the Company determined that it is not the primary beneficiary of EDC. As a result, EDC is measured at its cost minus impairment, if any. The Company determined that there were no indicators at December 31, 2018 and 2017 that EDC investment was impaired. |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | DERIVATIVES AND HEDGING ACTIVITIES Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges) The Company’s balance sheet hedges consist of foreign currency forward contracts which mature generally within three months, These forward contracts are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the Company’s A OCI and Consolidated Statements of Operations are as follows (in thousands): Year ended December 31, Financial Statement Location 2018 2017 2016 Derivatives not designated as hedging instruments: Gains (losses) recognized in income Other expense, net $ (2,325 ) $ 155 $ 343 Derivatives designated as hedging instruments (1) : Gains in AOCI on derivatives (effective portion) AOCI $ — $ — $ 202 Losses reclassified from AOCI into income (effective portion) Cost of Revenue $ — $ — $ (6 ) Operating Expense — — (38 ) Total $ — $ — $ (44 ) Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) Other expense, net $ — $ — $ (63 ) (1) The Company did not enter into any new cash flow hedge contracts since December 31, 2016. The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands): December 31, 2018 2017 Derivatives not designated as hedging instruments: Purchase $ 28,975 $ 12,875 Sell $ — $ 1,509 The locations and fair value amounts of the Company’s derivative instruments reported in its Consolidated Balance Sheets are as follows (in thousands): Asset Derivatives Liability Derivatives Balance Sheet Location December 31, 2018 December 31, 2017 Balance Sheet Location December 31, 2018 December 31, 2017 Derivatives not designated as hedging instruments: Foreign currency contracts Prepaid expenses and other current assets $ — $ 33 Accrued and other current liabilities $ 333 $ 4 $ — $ 33 $ 333 $ 4 Offsetting of Derivative Assets and Liabilities The Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of December 31, 2018 , information related to the offsetting arrangements was as follows (in thousands): Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets Net Amounts of Derivatives Presented in the Consolidated Balance Sheets Derivative assets $ — $ — $ — Derivative liabilities $ 333 $ — $ 333 In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of December 31, 2018 and 2017, the total compensating balance maintained was $1.0 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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 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 carrying value of the Company’s financial instruments, including cash equivalents, restricted cash, accounts receivable, accounts payable and accrued and other current liabilities, approximate fair value due to their short maturities. 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. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The fair values of the Company’s convertible notes as of December 31, 2018 and 2017 was $136.5 million and $129.9 million , based on the bond’s quoted market price as of December 31, 2018 and 2017 , respectively, and represents a Level 2 valuation. The Company’s other debts assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities, therefore, the carrying value of these debts approximate its fair value. The other debts, excluding capital leases, outstanding as of December 31, 2018 and 2017 were in the aggregate of $19.7 million and $21.8 million , respectively. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information. The fair value of the Company’s TVN defined pension benefit plan liability as of December 31, 2018 and 2017 was $4.9 million and $5.0 million , respectively. See Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information. During the years ended December 31, 2018 , 2017 and 2016 there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. The following tables provide the fair value measurement amounts for other financial assets and liabilities recorded in the Company’s Consolidated Balance Sheets based on the three-tier fair value hierarchy (in thousands): Level 1 Level 2 Level 3 ) Total As of December 31, 2018 Accrued and other current liabilities Derivative liabilities $ — $ 333 $ — $ 333 Total liabilities measured and recorded at fair value $ — $ 333 $ — $ 333 Level 1 Level 2 Level 3 Total As of December 31, 2017 Cash equivalents Money market funds $ 22 $ — $ — $ 22 Prepaid expenses and other current assets Derivative assets — 33 — 33 Total assets measured and recorded at fair value $ 22 $ 33 $ — $ 55 Accrued and other current liabilities Derivative liabilities $ — $ 4 $ — $ 4 Total liabilities measured and recorded at fair value $ — $ 4 $ — $ 4 The Company’s liability for the TVN VDP (as defined below) at December 31, 2018 and 2017 was $2.4 million and $5.1 million , respectively. This amount is not included in the table above because its fair value at inception, based on Level 3 inputs, was determined during the fourth quarter of fiscal 2016. Subsequently there is no recurring fair value remeasurement for this liability based on the applicable accounting guidance. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS ACQUISITION On February 29, 2016, the Company completed its acquisition of TVN, a global leader in advanced video compression solutions headquartered in Rennes, France, for $82.5 million in cash. The acquisition strengthened the Company’s competitive position in the video infrastructure market and enhanced the depth and scale of the Company’s research and development and service and support capabilities in the video arena. During the fourth quarter of 2016, the Company completed the accounting for this business combination. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. The Company’s allocation of TVN purchase consideration is as follows (in thousands): Assets: Cash and cash equivalents $ 6,843 Accounts receivable, net 14,933 Inventories 3,462 Prepaid expenses and other current assets 2,412 Property and equipment, net 9,942 French R&D tax credit receivables (1) 26,421 Other long-term assets 2,134 Total assets $ 66,147 Liabilities: Other debts and capital lease obligations, current 8,362 Accounts payable 12,494 Deferred revenue 2,504 Accrued and other current liabilities 18,365 Other debts and capital lease obligations, long-term 16,087 Other non-current liabilities 6,467 Deferred tax liabilities 2,126 Total liabilities $ 66,405 Goodwill 41,670 Intangibles 41,100 Total purchase consideration $ 82,512 (1) See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables. The following table presents details of the intangible assets acquired through this business combination (in thousands, except years): Estimated Useful Life Fair Value Backlog 6 months $ 3,600 Developed technology 4 years 21,700 Customer relationships 5 years 15,200 Trade name 4 years 600 $ 41,100 Acquired identifiable intangible assets were valued using the income method and are amortized on a straight line basis over their respective estimated useful lives. Goodwill of $41.7 million arising from the acquisition was derived from expected benefits from the business synergies to be derived from the combined entities and the experienced workforce who joined the Company in connection with the acquisition. The goodwill is not expected to be deductible for income tax purposes but the intangibles assets acquired are expected to be deductible for income tax purposes in certain jurisdictions. Both goodwill and intangibles assets acquired were assigned to the Company’s video reporting unit. Acquisition-and integration-related expenses As a result of the TVN acquisition, the Company incurred acquisition-and integration-related expenses and these costs are expensed as incurred. Acquisition-related costs include outside legal, accounting and other professional services. The following table summarizes the acquisition-and integration-related expenses for the TVN acquisition (in thousands): Acquisition-related Integration-related (1) Year ended December 31, 2016 Year ended December 31, 2017 (unaudited) Year ended December 31, 2016 (unaudited) Cost of revenue $ — $ 342 $ 1,049 Research and development — 7 974 Selling, general and administrative 3,855 2,469 11,058 Total acquisition- and integration-related expenses $ 3,855 $ 2,818 $ 13,081 (1) Integration-related costs include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. All integration efforts were completed by 2017 and the Company does not expect any more such expenses to continue after 2017. |
Goodwill and Identified Intangi
Goodwill and Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identified Intangible Assets | GOODWILL AND IDENTIFIED INTANGIBLE ASSETS Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has two reporting units, Video and Cable Access. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. The changes in the Company’s carrying amount of goodwill are as follows (in thousands): Video Cable Access Total Balance as of December 31, 2016 $ 176,519 $ 60,760 $ 237,279 Foreign currency translation adjustment 5,493 55 5,548 Balance as of December 31, 2017 $ 182,012 $ 60,815 $ 242,827 Foreign currency translation adjustment (2,173 ) (36 ) (2,209 ) Balance as of December 31, 2018 $ 179,839 $ 60,779 $ 240,618 The Company has not recorded any impairment charges related to goodwill for any prior periods. If future economic conditions are different than those projected by management, future impairment charges may be required. Intangible Assets, Net The following table provides a summary of the Company’s identified intangible assets (in thousands): December 31, 2018 December 31, 2017 Weighted Average Remaining Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed core technology 1.2 $ 31,707 $ (25,576 ) $ 6,131 $ 31,707 $ (20,396 ) $ 11,311 Customer relationships/contracts 2.2 44,650 (38,146 ) 6,504 44,819 (35,205 ) 9,614 Trademarks and tradenames 1.2 623 (441 ) 182 654 (300 ) 354 Maintenance agreements and related relationships N/A 5,500 (5,500 ) — 5,500 (5,500 ) — Order Backlog N/A 3,112 (3,112 ) — 3,177 (3,177 ) — Total identifiable intangibles $ 85,592 $ (72,775 ) $ 12,817 $ 85,857 $ (64,578 ) $ 21,279 Amortization expense for the identifiable intangible assets was allocated as follows (in thousands): Year Ended December 31, 2018 2017 2016 Included in cost of revenue $ 5,180 $ 5,180 $ 4,434 Included in operating expenses 3,187 3,142 10,402 Total amortization expense $ 8,367 $ 8,322 $ 14,836 The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2018 is as follows (in thousands): Cost of Revenue Operating Expenses Total Year ended December 31, 2019 $ 5,180 $ 3,158 $ 8,338 2020 951 3,028 3,979 2021 — 500 500 Total future amortization expense $ 6,131 $ 6,686 $ 12,817 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable, net of allowances, consisted of the following (in thousands): December 31, 2018 2017 Accounts receivable, net: Accounts receivable $ 85,292 $ 74,475 Less: allowance for doubtful accounts and sales returns (3,497 ) (4,631 ) Total $ 81,795 $ 69,844 Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. The expectation of collectability is based on the Company’s review of credit profiles of customers, contractual terms and conditions, current economic trends and historical payment experience. The Company offers return rights which are specifically identified and accrued for as sales returns at the end of the period. The following table is a summary of activities in allowances for doubtful accounts and sales returns (in thousands): Balance at Beginning of Period Charges to Revenue Charges (Credits) to Expense Additions to (Deductions from) Reserves Balance at End of Period Year ended December 31, 2018 $ 4,631 $ 1,949 $ 572 $ (3,655 ) $ 3,497 2017 $ 4,831 $ 4,030 $ 881 $ (5,111 ) $ 4,631 2016 $ 4,340 $ 1,488 $ 1,100 $ (2,097 ) $ 4,831 |
Certain Balance Sheet Component
Certain Balance Sheet Components | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Certain Balance Sheet Components | CERTAIN BALANCE SHEET COMPONENTS The following tables provide details of selected balance sheet components (in thousands): December 31, 2018 2017 Inventories: Raw materials $ 1,705 $ 2,881 Work-in-process 991 933 Finished goods 12,267 10,130 Service-related spares 10,675 12,032 Total $ 25,638 $ 25,976 December 31, 2018 2017 Prepaid expenses and other current assets: French R&D tax credits receivable (1) $ 7,305 $ 6,609 Contract assets (2) 3,834 — Deferred cost of revenue 3,671 4,440 Prepaid maintenance, royalty, rent, property taxes and VAT 3,497 3,867 Capitalized commission 1,098 — Restricted cash — 530 Other 3,875 3,485 Total $ 23,280 $ 18,931 (1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017 , the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets. (2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. December 31, 2018 2017 Property and equipment, net: Machinery and equipment $ 75,094 $ 87,121 Capitalized software 32,696 35,139 Leasehold improvements 14,951 15,051 Furniture and fixtures 6,049 6,534 Property and equipment, gross 128,790 143,845 Less: accumulated depreciation and amortization (106,469 ) (114,580 ) Total $ 22,321 $ 29,265 December 31, 2018 2017 Other long-term assets: French R&D tax credits receivable $ 19,249 $ 22,322 Deferred tax assets 8,695 10,462 Equity investment 3,593 3,593 Other 6,840 6,536 Total $ 38,377 $ 42,913 December 31, 2018 2017 Accrued and other current liabilities: Accrued employee compensation and related expenses $ 21,451 $ 16,414 Accrued warranty 4,869 4,381 Customer deposits 4,642 5,020 Contingent inventory reserves 2,500 3,806 Accrued TVN VDP, current (1) 1,585 3,186 Accrued royalty payments 1,998 2,195 Accrued Avid litigation settlement fees, current 1,500 — Other 14,216 13,703 Total $ 52,761 $ 48,705 (1) See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities. |
Restructuring and Excess Facili
Restructuring and Excess Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Excess Facilities | RESTRUCTURING AND RELATED CHARGES The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenues, while simultaneously implementing extensive company-wide expense control programs. The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The restructuring and asset impairment charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges” in the Consolidated Statements of Operations. The following table summarizes the restructuring and related charges (in thousands): Year ended December 31, Restructuring and related charges in: 2018 2017 2016 (1) Cost of revenue $ 857 $ 1,279 $ 3,400 Operating expenses - Restructuring and related charges 2,918 5,307 14,602 Total restructuring and related charges $ 3,775 $ 6,586 $ 18,002 (1) The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million , in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. As of December 31, 2018 and December 31, 2017, the Company’s total restructuring liability was $5.3 million and $8.0 million , respectively, of which $3.3 million and $4.4 million , respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $2.0 million and $3.6 million , respectively, were reported as a component of “Other non-current liabilities” on the Company’s Consolidated Balance Sheets. The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2018 (in thousands): Harmonic 2016 Restructuring Plan Harmonic 2017 Restructuring Plan Harmonic 2018 Restructuring Plan Excess facilities TVN VDP Excess facilities Severance and benefits Excess facilities Severance and benefits Total Balance at December 31, 2017 $ 2,426 $ 5,128 $ 296 $ 193 $ — $ — $ 8,043 Charges for current period — — — — 932 2,124 3,056 Adjustments to restructuring provisions 132 531 167 — 5 (116 ) 719 Reclassification of deferred rent — — — — 332 — 332 Cash payments (1,015 ) (3,066 ) (146 ) (193 ) (203 ) (2,052 ) (6,675 ) Foreign exchange effect — (184 ) — — — 44 (140 ) Balance at December 31, 2018 $ 1,543 $ 2,409 $ 317 $ — $ 1,066 $ — $ 5,335 Harmonic 2018 Restructuring In the first quarter of 2018, the Company approved and implemented a restructuring plan (the “Harmonic 2018 Restructuring Plan”). The restructuring activities under this plan primarily include worldwide workforce reductions of the Company. As of December 31, 2018 , the Company recorded an aggregate amount of $2.1 million of restructuring and related charges for severance and employee benefits for 59 employees worldwide, primarily in the United States and across all functions. The Company made $2.1 million in payments for this plan during the fiscal year ended December 31, 2018 . The activities under this plan were completed in 2018. Excess Facility in San Jose, California In August 2018, the Company exited an additional excess facility at its U.S. headquarters in San Jose, California and recorded $0.9 million in facility exit costs. The Company accounts for facility exit costs in accordance with ASC 420, “Exit or Disposal Cost Obligations”, which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. The fair value of these liabilities is based on a net present value model using a credit-adjusted, risk-free rate. Actual sublease terms may differ from the estimates originally made by the Company. Any future changes in the estimates or in the actual sublease income could require future adjustments to the liabilities, which would impact net income in the period the adjustment is recorded. As of the cease-use date, the fair value of this restructuring liability totaled $1.2 million . Offsetting these charges was an adjustment for deferred rent liability relating to this space of $0.3 million . As of December 31, 2018, the remaining liability for the additional excess facility exited in August 2018 was $1.1 million , which will be paid out over the remainder of the leased properties’ term through August 2020. Harmonic 2017 Restructuring In the third quarter of 2017, the Company implemented a restructuring plan (the “Harmonic 2017 Restructuring Plan”) to better align its operating costs with the continued decline in its net revenues. In 2017, the Company recorded $2.5 million of restructuring and related charges under this plan, consisting of $2.1 million of employee severance and $0.4 million related to the closure of one of the Company’s offices in New York. The activities under this plan were completed in 2017. During 2018, as a result of a change in the estimate of the sublease income, the restructuring liability related to the New York excess facility was increased by $0.2 million . As of December 31, 2018 , the remaining $0.3 million liability under the Harmonic 2017 Restructuring Plan relates to the accrual for the New York excess facility, which will be paid out over the remainder of the leased properties’ term through August 2020. Harmonic 2016 Restructuring In the first quarter of 2016, the Company implemented a restructuring plan (the “Harmonic 2016 Restructuring Plan”) to reduce operating costs by consolidating duplicative resources in connection with the acquisition of TVN. The planned activities included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France (the “TVN VDP”). In 2016, the Company recorded an aggregate of $20.0 million of restructuring and related charges under the Harmonic 2016 Restructuring Plan, of which $2.2 million was primarily related to the exit from the excess facility at its U.S. headquarters and the remaining $17.8 million was related to severance and benefits for the termination of 118 employees worldwide, including 83 employees in France who participated in the TVN VDP. The restructuring and related charges under this plan were partially offset by approximately $2.0 million of gain from TVN pension curtailment. For the employees who participated in the TVN VDP, their pension benefit will be funded by the TVN VDP and as a result, the TVN defined benefit pension plan was remeasured at December 31, 2016, which resulted in a non-cash curtailment gain. TVN VDP The Company recorded 0.5 million , $1.8 million and $13.1 million of TVN VDP costs in the years ended December 31, 2018 , 2017 and 2016, respectively. In aggregate, in 2018, 2017 and 2016, the Company had paid $13.8 million of TVN VDP costs. The TVN VDP liability balance as of December 31, 2018 was $2.4 million , payable from 2019 through 2020. Excess Facility in San Jose, California In January 2016, the Company exited an excess facility at its U.S. headquarters in San Jose, California and recorded $1.4 million in facility exit costs. The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate. The liability will be paid out over the remainder of the leased properties’ term, which continues through August 2020. As of the cease-use date, the fair value of this restructuring liability totaled $2.5 million . Offsetting these charges was an adjustment for deferred rent liability relating to this space of $1.1 million . As a result of a change in the estimate of the sublease income, the restructuring liability was increased by $1.2 million as of December 31, 2017. As of December 31, 2018, the remaining liability for the excess facility exited in January 2016 was $1.5 million , which will be paid out over the remainder of the leased properties’ term through August 2020. |
Convertible Notes and Credit Fa
Convertible Notes and Credit Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facilities | CONVERTIBLE NOTES, OTHER DEBTS AND CAPITAL LEASES 4.00% Convertible Senior Notes In December 2015, the Company issued $128.25 million aggregate principal amount of 4.00% Senior Convertible Notes due 2020 (the “offering” or “Notes”, as applicable) pursuant to an indenture (the “Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The Notes bear interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year and the Notes will mature on December 1, 2020 unless earlier repurchased or converted. The Notes will be convertible into cash, shares of the Company’s common stock, par value $0.001 (“ Common Stock ”), or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances, in each case, as set forth in the Indenture. Prior to the close of business on the business day immediately preceding September 1, 2020, the Notes will be convertible only under the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any 5 consecutive trading day period (the “ measurement period ”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances. If a fundamental change occurs, holders of the Notes may require the Company to purchase all or any portion of their Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Concurrent with the closing of the offering, the Company used $49.9 million of the net proceeds to repurchase 11.1 million shares of the Company’s common stock from purchasers of Notes in the offering in privately negotiated transactions. In addition, the Company incurred approximately $4.1 million of debt issuance cost, resulting in net proceeds to the Company of approximately $74.2 million , which was used to fund the TVN acquisition. In accordance with accounting guidance on embedded conversion features, the conversion feature associated with the Notes was valued at $26.1 million and bifurcated from the host debt instrument and recorded in stockholders’ equity. The resulting debt discount on the Notes is being amortized to interest expense at the effective interest rate over the contractual terms of the Notes. The following table presents the components of the Notes as of December 31, 2018 and December 31, 2017 (in thousands, except for years and percentages): December 31, 2018 2017 Liability: Principal amount $ 128,250 $ 128,250 Less: Debt discount, net of amortization (11,996 ) (17,404 ) Less: Debt issuance costs, net of amortization (1,446 ) (2,098 ) Carrying amount $ 114,808 $ 108,748 Remaining amortization period (years) 1.9 years 2.9 years Effective interest rate on liability component 9.94 % 9.94 % Carrying amount of equity component $ 26,062 $ 26,062 The following table presents interest expense recognized related to the Notes (in thousands): Year ended December 31, 2018 2017 2016 Contractual interest expense $ 5,130 $ 5,130 $ 5,130 Amortization of debt discount 5,408 4,898 4,430 Amortization of debt issuance costs 652 591 534 Total interest expense recognized $ 11,190 $ 10,619 $ 10,094 Other Debts and Capital Leases The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands): December 31, 2018 2017 Financing from French government agencies related to various government incentive programs (1) $ 18,783 $ 20,565 Term loans 914 1,282 Obligations under capital leases 162 1,099 Total debt obligations 19,859 22,946 Less: current portion (7,175 ) (7,610 ) Long-term portion $ 12,684 $ 15,336 (1) Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6% , plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025. Future minimum repayments The table below presents the future minimum repayments of other debts and capital lease obligations as of December 31, 2018 (in thousands): Years ending December 31, Capital lease obligations Other Debt obligations 2019 91 7,084 2020 49 6,607 2021 22 5,333 2022 — 452 2023 — 155 Thereafter — 66 Total $ 162 $ 19,697 Line of Credit On September 27, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”). The Loan Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $15.0 million . Under the terms of the Loan Agreement, the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time cannot exceed up to 85% of the Company’s eligible receivables. Under the terms of the Loan Agreement, the Company may also request letters of credit from the Bank. The proceeds of any loans under the Loan Agreement will be used for working capital and general corporate purposes. Loans under the Loan Agreement will bear interest, at the Company’s option, and subject to certain conditions, at an annual rate of either a prime rate or a LIBOR rate plus an applicable margin of 2.25% . There will be no applicable margin for prime rate advances when the Company is in compliance with the liquidity requirement of at least $20.0 million in the aggregate of consolidated cash plus availability under the Loan Agreement (the “Liquidity Requirement”) and a 0.25% margin for prime rate advances when the Company is not in compliance with the Liquidity Requirement. The Company may not request LIBOR advances when it is not in compliance with the Liquidity Requirement. Interest on each advance is due and payable monthly and the principal balance is due at maturity. The Company’s obligations under the revolving credit facility are secured by a security interest on substantially all of its assets, excluding intellectual property. The Loan Agreement contains customary affirmative and negative covenants. The Company must comply with financial covenants requiring it to maintain (i) minimum a short-term asset to short-term liabilities ratio and (ii) minimum adjusted EBITDA, in the amounts and for the periods as set forth in the Loan Agreement. The Company must also maintain a minimum liquidity amount, comprised of unrestricted cash held at accounts with the Bank plus proceeds available to be drawn under the Loan Agreement, equal to $10.0 million at all times. As of December 31, 2018 , the Company was in compliance with the covenants under the Loan Agreement. As of December 31, 2018, the Company committed $1.8 million towards security for letters of credit issued under the Loan Agreement. There were no borrowings under the Loan Agreement from the closing of the Loan Agreement through December 31, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION Equity Award Plans 1995 Stock Plan The 1995 Stock Plan provides for the grant of incentive stock options, non-statutory stock options and RSUs. Incentive stock options may be granted only to employees. All other awards may be granted to employees and consultants. Under the terms of the 1995 Stock Plan, no incentive stock option or non-statutory stock option may be granted in the ordinary course with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Company’s Board of Directors (the “Board”), generally two to four years, and expire seven years from the date of grant. Grants of RSUs decrease the plan reserve by 1.5 shares for every unit or share granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit or share forfeited. As of December 31, 2018 , an aggregate of 9,915,865 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 3,819,736 shares remained available for grant. 2002 Director Plan The 2002 Director Plan provides for the grant of non-statutory stock options and RSUs to non-employee directors of the Company. Under the terms of the 2002 Director Plan, no non-statutory stock option may be granted with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Board, generally three years for the initial grant and one year for subsequent grants to a non-employee director, and expire seven years from the date of grant. Grants of RSUs decrease the plan reserve by 1.5 shares for every unit granted, and any forfeiture of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit forfeited. The Company’s stockholders approved an amendment to the 2002 Director Stock Plan at the Company’s 2018 annual meeting of stockholders (“2018 Annual Meeting”) which increased the number of shares of common stock reserved for issuance under the 2002 Director Stock Plan by 400,000 shares. As of December 31, 2018 , an aggregate of 947,536 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 643,661 shares remained available for grant. Employee Stock Purchase Plan The 2002 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of share 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. The Company’s stockholders approved an amendment to the ESPP at the 2018 Annual Meeting which increased the number of shares of common stock reserved for issuance under the ESPP by 1,300,000 shares. Under the ESPP, 1,132,438 , 1,291,875 and 1,265,458 shares were issued during fiscal 2018 , 2017 and 2016 , respectively, representing $4.0 million , $4.4 million and $3.7 million in contributions. As of December 31, 2018 , 1,282,358 shares were reserved for future purchases by eligible employees. Stock Option Activities The following table summarizes the Company’s stock option activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms): Stock Options Outstanding Number of Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance at December 31, 2017 3,880 $ 6.04 Granted — — Exercised (239 ) 3.79 Forfeited (35 ) 4.76 Canceled or expired (538 ) 8.75 Balance at December 31, 2018 3,068 5.76 2.3 $ 1,148.7 As of December 31, 2018 Vested and expected to vest 3,067 $ 5.76 2.3 $ 1,147.7 Exercisable 2,994 $ 5.78 2.3 $ 1,082.0 Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of the Company’s common stock. The intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was $0.3 million , $0.3 million and $0.1 million , respectively. The Company realized no income tax benefit from stock option exercises for the years ended December 31, 2018 , 2017 and 2016 due to recurring losses and valuation allowances. Restricted Stock Units (“RSUs”) Activities The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms): Restricted Stock Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2017 2,904 $ 5.09 Granted 3,906 3.97 Vested (3,177 ) 4.91 Forfeited (230 ) 4.89 Balance at December 31, 2018 3,403 $ 3.99 The estimated fair value of RSUs is based on the market price of the Company’s common stock on the grant date. The fair value of all restricted stock units vested during the years ended December 31, 2018 , 2017 and 2016 was $15.6 million , $13.0 million and $9.7 million , respectively. Performance- and Market-based awards Starting 2015, the Company began to settle a portion of its incentive bonus payment to eligible employees by issuing PRSUs from the 1995 Stock Plan. The Company granted 1,443,168 , 1,165,685 and 898,533 PRSUs to its employees during the years ended December 31, 2018 , 2017 and 2016 , respectively, of which 1,343,168 , 1,165,685 and 610,579 PRSUs vested during the years ended December 31, 2018 , 2017 and 2016 , respectively, for the purpose of settling amounts earned under the Company’s incentive bonus plans. The vesting of the remaining PRSUs will be based on the achievement of certain financial and non-financial operating goals of the Company, subject to the Board’s approval. The stock-based compensation recognized for PRSUs were $6.1 million , $3.2 million and $2.8 million , for the years ended December 31, 2018 , 2017 and 2016 , respectively. In 2017, the Company granted 344,500 MRSUs under the 1995 Stock Plan to its key executives and certain eligible employees that may vest during a three -year period as part of its long-term incentive program. In 2018, the Company granted 40,000 MRSUs that may vest during an eighteen -month period from the date of grant. The vesting conditions of these awards are based on the market value of the Company's common stock. The fair value of these shares was estimated using a Monte-Carlo simulation and the stock-based compensation recognized in 2018 and 2017 for these MRSUs was $0.2 million and $0.9 million , respectively. No MRSUs had vested as of December 31, 2018. French Retirement Benefit Plan Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, are obligated to make certain payments to their employees upon their retirement from the Company. These payments are based on the retiring employee’s salary for a number of months that varies according to the employee’s period of service and position. Salary used in the calculation is the employee’s average monthly salary for the twelve months prior to retirement. The payments are made in one lump-sum at the time of retirement. The French pension plan is unfunded and there are no contributions to the plan required by related laws or funding regulations. No required contributions are expected in fiscal 2019, but the Company, at its discretion, may make contributions to the defined benefit plan. The company’s defined benefit pension obligations are measured as of December 31. The present value of these lump-sum payments is determined on an actuarial basis and the actuarial valuation takes into account the employees’ age and period of service with the Company, projected mortality rates, mobility rates, increases in salaries and a discount rate. The Company’s pension obligations as of December 31, 2018 and December 31, 2017 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands): December 31, 2018 2017 Projected benefit obligation: Balance at January 1 $ 5,033 $ 4,264 Service cost 243 259 Interest cost 74 71 Actuarial (gains) losses (202 ) (528 ) Benefits paid (13 ) — Adjustment for prior year balance — 343 Foreign currency translation adjustment (254 ) 624 Balance at December 31 $ 4,881 $ 5,033 Presented on the Consolidated Balance Sheets under: Current portion (presented under “Accrued and other current liabilities”) $ 63 34 Long-term portion (presented under “Other non-current liabilities”) $ 4,818 4,999 The table below presents the components of net periodic benefit costs (in thousands): Year ended December 31, 2018 2017 Service cost $ 243 $ 259 Interest cost 74 71 Amortization of net actuarial loss (gain) (1) — — Net periodic benefit cost included in operating loss $ 317 $ 330 (1) The Company uses the allowable 10% corridor approach to determine the amount of actuarial gains or losses subject to amortization in pension cost. Gains or losses are amortized on a straight-line basis over the average future remaining service period of active plan participants. The following assumptions were used in determining the Company’s pension obligation: December 31, 2018 2017 Discount rate 1.7 % 1.5 % Mobility rate 6.0 % 6.0 % Salary progression rate 2.0 % 2.0 % The Company evaluates the discount rate assumption annually. The discount rate is determined using the average yields on high-quality fixed-income securities that have maturities consistent with the timing of benefit payments. The Company also evaluates other assumptions related to demographic factors, such as retirement age, mortality rates and turnover periodically, updating them to reflect experience and expectations for the future. The mortality assumption related to the Company’s defined benefit pension plan used the most current mortality tables published by the French National Institute of Statistics and Economic Studies. As of December 31, 2018 , future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands): Years ending December 31, 2019 $ 63 2020 — 2021 41 2022 80 2023 479 2024 - 2028 2,626 $ 3,289 401(k) Plan The Company has a retirement/savings plan for its U.S. employees, 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. The Company can make 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. The Company’s contributions to the plan were $0.3 million , $0.3 million and $0.4 million for fiscal 2018, 2017 and 2016, respectively. Stock-based Compensation The following table summarizes stock-based compensation expense for all plans (in thousands): Year ended December 31, 2018 2017 2016 Stock-based compensation in: Cost of revenue $ 1,953 $ 2,370 $ 1,554 Research and development expense 5,192 5,313 3,711 Selling, general and administrative expense 10,144 8,927 7,795 Total stock-based compensation in operating expense 15,336 14,240 11,506 Total stock-based compensation recognized in net loss $ 17,289 $ 16,610 $ 13,060 As of December 31, 2018 , total unrecognized stock-based compensation cost related to unvested stock options and RSUs was $0.1 million and $8.5 million , respectively, and is expected to be recognized over a weighted-average period of 0.3 years and 1.5 years , respectively. Valuation Assumptions The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. 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. At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP 2017 2016 2018 2017 2016 Expected term (in years) 4.30 4.30 0.50 0.50 0.50 Volatility 42 % 36 % 55 % 48 % 70 % Risk-free interest rate 1.8 % 1.4 % 1.9 % 1.2 % 0.6 % Expected dividends 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The expected term of the employee stock option represents the weighted-average period that the stock options are expected to remain outstanding. The computation of 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 expected term of the stock purchase right under ESPP 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 not paid and does not plan to pay any cash dividends in the foreseeable future. There were no stock options granted during the year ended December 31, 2018. The weighted-average fair value per share of stock options granted for the years ended December 31, 2017 and 2016 was $1.85 and $0.99 , respectively. The fair value of stock options vested during the years ended December 31, 2018 , 2017 and 2016 was $0.7 million , $1.7 million and $2.3 million , respectively. The estimated weighted-average fair value per share of stock purchase rights under the ESPP, granted for the years ended December 31, 2018 , 2017 and 2016 was $1.33 , $1.50 and $1.04 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Preferred Stock Harmonic has 5,000,000 authorized shares of preferred stock. No shares of preferred stock were issued or outstanding in any of the periods presented. Common Stock Repurchases Our stock repurchase program expired on December 31, 2016. No stock was repurchased during fiscal 2018, 2017 and 2016. Any further stock repurchases would require authorization from the Board. Accumulated Other Comprehensive Income (Loss) (“AOCI”) The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands): December 31, 2018 2017 Foreign currency translation adjustments $ (779 ) $ 4,310 Unrealized foreign exchange loss on intercompany long-term loans, net of taxes (888 ) (1,177 ) Actuarial gain 451 249 Total accumulated other comprehensive income (loss) $ (1,216 ) $ 3,382 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Loss from operations before income taxes consists of the following (in thousands): Year ended December 31, 2018 2017 2016 United States $ (19,780 ) $ (50,041 ) $ (53,833 ) International 2,832 (34,666 ) (26,597 ) Loss before income taxes $ (16,948 ) $ (84,707 ) $ (80,430 ) The components of the benefit from income taxes consist of the following (in thousands): Year ended December 31, 2018 2017 2016 Current: Federal $ (305 ) $ (4,530 ) $ (950 ) State 116 129 181 International 2,958 273 2,738 Deferred: Federal — — (713 ) International 1,318 2,376 (9,372 ) Total provision for (benefit from) income taxes $ 4,087 $ (1,752 ) $ (8,116 ) The differences between the provision for (benefit from) income taxes computed at the U.S. federal statutory rate at 21% and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands): Year ended December 31, 2018 2017 2016 Benefit from for income taxes at U.S. Federal statutory rate $ (3,559 ) $ (29,648 ) $ (28,150 ) Differential in rates on foreign earnings 4,299 15,920 11,741 Non-deductible amortization expense — — 617 Tax Reform tax rate reduction — 14,527 — Change in valuation allowance 1,449 (2,834 ) 4,465 Change in liabilities for uncertain tax positions (250 ) (2,009 ) (960 ) Non-deductible stock-based compensation 1,363 1,934 1,480 Permanent Differences 1,096 380 441 Adjustments related to tax positions taken during prior years 184 (473 ) (163 ) Adjustments made under intercompany transactions — — 1,779 Tax refund (305 ) (834 ) — Other (190 ) 1,285 634 Total provision for (benefit from) income taxes $ 4,087 $ (1,752 ) $ (8,116 ) The Company operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective income tax rate may be affected by changes in its interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net operating loss and tax credit carry forwards, changes in geographical mix of income and expense, and changes in management's assessment of matters such as the ability to realize deferred tax assets. The Company’s effective tax rate varies from year to year primarily due to the absence of several onetime, discrete items that benefited or decremented the tax rates in the previous years. In 2018, the Company had a worldwide consolidated loss before tax of $16.9 million and tax expense of $4.1 million , with an annual effective income tax rate of (24)% . The Company’s 2018 effective income tax rate differed from the U.S. federal statutory rate of 21% primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal, California and other states deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax jurisdictions. On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted which, among other things, lowered the U.S. federal corporate income tax rate from 35% to 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of December 31, 2018, the Company completed the accounting for transition tax and concluded that it had no tax impact because the Company's cumulative unremitted earnings and profits are negative. The TCJA also includes a requirement to pay a minimum tax on foreign earnings for tax years beginning after December 31, 2017. An accounting policy election is allowed to either treat taxes due on future U.S. inclusions as a current period expense or account for the minimum tax in the measurement of deferred tax assets. The Company has elected to treat the minimum tax as a period cost. As such, the Company has not recognized any deferred taxes related to the minimum tax. In 2017, the Company had a worldwide consolidated loss before tax of $84.7 million and tax benefit of $1.8 million , with an annual effective tax rate of 2% . The Company’s 2017 effective income tax rate differed from the U.S. federal statutory rate of 35% primarily due to geographical income mix, favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, tax rate change in foreign jurisdictions, tax benefits associated with the release of tax reserves for uncertain tax positions resulting from the expiration of the statutes of limitations, a one-time benefit of $2.6 million from the reduction of a valuation allowance on alternative minimum tax (“AMT”) credit carryforwards that will be refundable as a result of the TCJA, partially offset by the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, and the net of various other discrete tax adjustments. In 2016, the Company had a worldwide consolidated loss before tax of $80.4 million and tax benefit of $8.1 million , with an annual effective income tax rate of 10% . The Company’s 2016 effective income tax rate differed from the U.S. federal statutory rate of 35% primarily due to geographical income mix and its tax valuation allowance, favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, favorable resolutions of uncertain tax positions, and the tax benefit from the realization of certain deferred tax assets as a result of the TVN acquisition, partially offset by the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, non-deductible amortization of foreign intangibles, and the net of various discrete tax adjustments. The components of net deferred tax assets included in the Consolidated Balance Sheets are as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Reserves and accruals $ 17,090 $ 17,247 Net operating loss carryforwards 29,900 34,915 Research and development credit carryforwards 36,446 34,419 Deferred stock-based compensation 2,201 2,677 Intangibles 2,585 2,062 Other 939 1,441 Gross deferred tax assets 89,161 92,761 Valuation allowance (77,144 ) (77,756 ) Gross deferred tax assets after valuation allowance 12,017 15,005 Deferred tax liabilities: Depreciation and amortization (391 ) (259 ) Convertible notes (2,931 ) (4,284 ) Gross deferred tax liabilities (3,322 ) (4,543 ) Net deferred tax assets $ 8,695 $ 10,462 The following table summarizes the activities related to the Company’s valuation allowance (in thousands): Year ended December 31, 2018 2017 2016 Balance at beginning of period $ 77,756 $ 74,480 $ 64,545 Additions 928 9,028 18,291 Deductions (1,540 ) (5,752 ) (8,356 ) Balance at end of period $ 77,144 $ 77,756 $ 74,480 Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction by jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. In 2018, the Company continued to record a valuation allowance against all of its United States deferred tax assets due to significant cumulative losses in the United States, resulting in a net increase in valuation allowance of $0.9 million . This increase in valuation allowance is offset partially by the release of $1.5 million valuation allowance against one of its Israel subsidiaries due to cumulative income generated in the recent years as well as the analysis of all available positive and negative evidence. As of December 31, 2018 , the Company had a valuation allowance of $77.1 million against all of its U.S. federal, California and other states net deferred tax assets. The Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, using a modified-retrospective transition method, in the first quarter of fiscal 2017. As a result, the Company recorded a cumulative effect of $4.6 million of additional gross deferred tax asset associated with shared-based payment and an offsetting valuation allowance of the same amount, therefore resulting in no net impact to the Company’s beginning retained earnings or effective tax rate for 2017. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires companies to recognize the income tax consequences of all intra-entity sales of assets other than inventory when they occur. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The Company early adopted this ASU during the first quarter of fiscal 2017 on a modified retrospective approach and recorded a cumulative-effect adjustment of $1.4 million to the retained earnings as of January 1, 2017 (which reduced the accumulated deficit). Correspondingly, in the first quarter of fiscal 2017, the Company recognized an additional $1.1 million of net deferred tax assets, after netting with $2.1 million of valuation allowance, and write off the remaining $0.3 million of unamortized tax expenses deferred under the previous guidance to provision for income taxes in the first quarter of fiscal 2017. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner, 145 T.C. No.3 (2015) related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the U.S. Tax Court on December 1, 2015 (the “2015 Decision”). On February 19, 2016, the U.S. Internal Revenue Service filed a notice of appeal in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015), to the Ninth Circuit Court of Appeals. The Ninth Circuit was to decide whether a regulation that mandates that stock-based compensation costs related to the intangible development activity of a qualified cost sharing arrangement (a “QCSA”) must be included in the joint cost pool of the QCSA (the “all costs rule”) is consistent with the arm’s length standard as set forth in Section 482 of the Internal Revenue Code. On July 24, 2018, the Ninth Circuit Court of Appeals issued an opinion in Altera Corp. v. Commissioner (the “Altera Opinion”) requiring related parties in an intercompany cost-sharing arrangement to share expenses related to share-based compensation. This opinion reversed the 2015 Decision of the United States Tax Court. The Ninth Circuit subsequently withdrew the opinion on August 7, 2018. Due to uncertainties surrounding the ultimate resolution of the 2015 Decision, the Company continues to share expenses related to share-based compensation despite the 2015 Decision. As of December 31, 2018 , the Company had $95.9 million , $38.0 million , $21.6 million and $48.0 million of foreign, U.S. federal, U.S. California state, and U.S. other states net operating loss carryforwards (“NOL”), respectively. There is no expiration to the utilization of the foreign NOL, while the U.S. federal and California NOL begin to expire at various dates beginning in 2026 through 2039 , if not utilized. As of December 31, 2018 , the Company had U.S. federal and California state tax credit carryforwards of approximately $13.2 million and $34.9 million , respectively. If not utilized, the U.S. federal tax credit carryforwards will begin to expire in 2031 , while the California tax credit forward will not expire . The Company has not provided U.S. state income taxes and foreign withholding taxes, on approximately $15.3 million of cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable. The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in our judgment, is more than fifty percent likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions to be recognized in earnings in the period in which such determination is made. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of December 31, 2018 , the Company had $16.6 million of unrecognized future tax benefits that would favorably impact the effective tax rate in future periods if recognized. The following table summarizes the activities related to the Company’s gross unrecognized tax benefits (in millions): Year ended December 31, 2018 2017 2016 Balance at beginning of period $ 18.8 $ 19.2 $ 15.6 Increase in balance related to tax positions taken during current year 1.0 1.4 4.6 Decrease in balance as a result of a lapse of the applicable statues of limitations (0.1 ) (2.2 ) (1.0 ) Decrease in balance due to settlement with tax authorities (1.6 ) — — Increase in balance related to tax positions taken during prior years 0.2 1.8 — Decrease in balance related to tax positions taken during prior years (0.3 ) (1.4 ) — Balance at end of period $ 18.0 $ 18.8 $ 19.2 The Company recognizes interest and penalties related to unrecognized tax positions in income tax expenses on the Consolidated Statements of Operations. The net interest and penalties charges recorded for the years ended December 31, 2016 through 2018, were not material. The Company had approximately $24.0 thousand and $0.5 million of accrued interest and penalties related to uncertain tax positions as of December 31, 2018 and December 31, 2017 . The 2015 through 2018 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In addition, a subsidiary of the Company is under audit from 2013 to 2017 tax years by the Swiss tax authority. If, upon the conclusion of this audit, the ultimate determination of taxes owed in Switzerland is for an amount in excess of the tax provision the Company has recorded in the applicable period, the Company’s overall tax expense, effective tax rate, operating results and cash flow could be materially and adversely impacted in the period of adjustment. 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 substantially met these various thresholds and the Switzerland tax holiday is effective through the end of 2018 . The income tax benefits attributable to the Switzerland holiday were estimated to be approximately $0.4 million , $0.6 million and $0.7 million for each of the fiscal years 2018 , 2017 and 2016 , increasing diluted earnings per share by approximately $0.005 , $0.007 and $0.008 for each of the fiscal years 2018 , 2017 and 2016 , respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss attributable to common stockholders for the applicable period by the weighted average number of common shares outstanding during the period. Potentially dilutive shares, consisting of outstanding stock options, restricted stock units, ESPP plan awards as well as the Notes, are excluded from the net loss per share computations when their effect is anti-dilutive. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Numerator: Net loss $ (21,035 ) $ (82,955 ) $ (72,314 ) Denominator: Weighted average number of shares outstanding: Basic and diluted 85,615 80,974 77,705 Net loss per share: Basic and diluted $ (0.25 ) $ (1.02 ) $ (0.93 ) The diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2018, 2017 and 2016, as the effect of inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the years presented. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands): December 31, 2018 2017 2016 Stock options 3,327 4,470 5,295 Restricted stock units 2,997 3,059 2,536 Stock purchase rights under the ESPP 609 620 659 Warrants (1) 1,268 782 206 Total (2) 8,201 8,931 8,696 (1) In 2016, in connection with the execution of a product supply agreement the Company granted Comcast a warrant to purchase shares of its common stock. See Note 16, “Warrants,” for additional information. The warrants will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the warrant exercise price of $4.76 per share. (2) Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information on the Notes. Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Warrants Disclosure [Text Block] | WARRANTS On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76 . Comcast may exercise the Warrant for cash or on a net share basis. The Warrant expires on September 26, 2023 or the prior consummation of a change of control of the Company. Comcast’s right to purchase 781,617 shares vested as of the Warrant issuance date as an incentive to enter into the software license product supply agreement. Comcast’s right to purchase 1,172,425 shares vested as of July 31, 2018 upon the acceptance and completion of field trials. Comcast’s right to purchase an additional 781,617 shares will vest upon Comcast’s election for enterprise license pricing for the Company’s CableOS software products. Such pricing would obligate Comcast to make certain total payments to the Company over the term of the product supply agreement. Comcast’s rights to purchase additional shares in specified tranches vest when Comcast exceeds specified cumulative purchase amounts from the Company under the product supply agreement and, for certain tranches, such purchases are made within specified time periods. The Warrant is considered an incentive for Comcast to purchase certain of the Company’s products. Therefore the value of the vested Warrant is recorded as an asset, which is recognized as a reduction in the Company’s net revenues in proportion to the pertinent sales to Comcast. The Warrant is considered indexed to the Company’s common stock and classified as stockholders’ equity based on its terms. Accordingly, the vested Warrant amounts are included in “Additional paid-in capital”. Because the Warrants contain performance criteria, which include cumulative purchase amounts Comcast must achieve for the Warrants to vest, the final measurement date for the Warrants is the date on which the Warrants vest. Prior to the final measurement, when achievement of the performance criteria has been deemed probable, the estimated fair value of Warrants is being recorded as a reduction to the Company’s net revenue based on the estimated number of Warrants expected to vest, the proportion of purchases by Comcast within the period relative to the cumulative purchase levels required for the Warrants to vest and the then-current fair value of the related Warrants. To the extent that estimate change in the future as to the number of Warrants that will vest, as well as changes in the fair market value of the Warrants, a cumulative catch-up adjustment will be recorded in the period in which the estimates change. The value of the Warrant is recorded as a reduction in the Company’s net revenues to the extent such value does not exceed net revenues from pertinent sales to Comcast. The fair value of the Warrant is determined using the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include the risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate is based on the U.S. Treasury yield curve rates with maturity terms similar to the expected life of the Warrant. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the Warrant. Expected life is equal to the remaining contractual term of the Warrant. The dividend yield is assumed to be zero since the Company has not historically declared dividends and does not have any plans to declare dividends in the future. The portion of the Warrant which vested on September 26, 2016 had a fair value of $1.6 million . The fair value was determined using the Black-Scholes option valuation model using the following assumptions: expected term of 7 years, volatility of 42% , risk-free interest rate of 1.4% , and expected dividends of 0.0% . On July 31, 2018, pursuant to the vesting provisions of the Warrant, an additional tranche of 1,172,425 shares vested and became exercisable upon the acceptance of completion of field trials by Comcast. The fair value of the Warrant on the date of vesting was estimated to be $2.3 million using the Black-Scholes option pricing model with the following assumptions: expected term of 5.2 years , volatility of 45% , risk-free interest rate of 2.9% , and expected dividends of 0.0% . The fair value of the Warrant was recorded as a component of “Other long-term assets” with an equal offset to “Additional paid in capital” on the Company’s Consolidated Balance Sheets. The Company will amortize this asset as a reduction in the Company’s net revenues in proportion to the pertinent sales to Comcast. During the year ended December 31, 2018, 2017 and 2016, the Company recorded $1.2 million , $0.2 million and $0.4 million , respectively as a reduction to net revenues in connection with amortization of the Warrant. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION Segment Information 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 Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Access. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Access segment provides CableOS cable access solutions and related services to cable operators globally. On February 29, 2016, the Company completed its acquisition of 100% of the outstanding equity of TVN and assigned TVN to its Video operating segment. The following table provides summary financial information by reportable segment (in thousands): Year ended December 31, 2018 2017 (1) 2016 Video Revenue $ 313,828 $ 319,473 $ 351,489 Gross profit 178,170 173,414 194,044 Operating income (loss) 26,170 (2,024 ) 11,963 Cable Access Revenue $ 89,730 $ 38,773 $ 54,422 Gross profit 39,029 8,892 21,174 Operating loss (1,756 ) (23,154 ) (12,131 ) Total Revenue $ 403,558 $ 358,246 $ 405,911 Gross profit 217,199 182,306 215,218 Operating income (loss) 24,414 (25,178 ) (168 ) (1) The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments. A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands): Year ended December 31, 2018 2017 (1) 2016 (1) Total segment operating income (loss) $ 24,414 $ (25,178 ) $ (168 ) Unallocated corporate expenses (1) (3,769 ) (20,767 ) (38,972 ) Stock-based compensation (17,289 ) (16,610 ) (13,060 ) Amortization of intangibles (8,367 ) (8,322 ) (14,836 ) Consolidated loss from operations (5,011 ) (70,877 ) (67,036 ) Non-operating expense, net (11,937 ) (13,830 ) (13,394 ) Loss before income taxes $ (16,948 ) $ (84,707 ) $ (80,430 ) (1) For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million , respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. Unallocated Corporate Expenses Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges, TVN acquisition- and integration-related costs, and certain other non-recurring charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. Geographic Information The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands): Year ended December 31, 2018 2017 2016 Net revenue (1) : United States $ 181,965 $ 131,773 $ 171,016 Other countries 221,593 226,473 234,895 Total $ 403,558 $ 358,246 $ 405,911 (1) Revenue is attributed to countries based on the location of the customer. Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018 2017 Property and equipment, net: United States $ 10,376 $ 13,786 Israel 6,975 8,904 France 3,519 4,573 Other countries 1,451 2,002 Total $ 22,321 $ 29,265 Customer Concentration Net revenue from Comcast accounted for 15% of the Company’s total net revenue during the year ended December 31, 2018 . During the years ended December 31, 2017 and 2016, no single customer accounted for more than 10% of our net revenue. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases The Company leases its facilities under non-cancelable operating leases which expire at various dates through June 2028 . In addition, the Company leases vehicles and phones in Israel the last of which expires in 2020. Total rent expense related to these operating leases was $10.1 million , $10.2 million and $9.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future minimum lease payments under non-cancellable operating leases at December 31, 2018 , are as follows (in thousands): Operating Leases Year ending December 31, 2019 $ 13,515 2020 10,139 2021 4,088 2022 2,523 2023 2,220 Thereafter 6,694 Total minimum payments $ 39,179 Warranty The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated 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. Activities for the Company’s warranty accrual for each fiscal year, which is included in accrued and other current liabilities, is summarized below (in thousands): 2018 2017 2016 Balance at beginning of period $ 4,381 $ 4,862 $ 3,913 Accrual for current period warranties 6,612 5,117 5,482 Balance assumed from TVN acquisition — — 1,012 Warranty costs incurred (6,124 ) (5,598 ) (5,545 ) Balance at end of period $ 4,869 $ 4,381 $ 4,862 Bank Guarantees and standby Letters of Credit As of December 31, 2018 and 2017, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.3 million and $2.7 million , respectively, consisting of building leases and performance bonds issued to customers. During 2017, one of the Company’s subsidiaries entered into a $2.0 million credit facility with a foreign bank for the purpose of issuing performance guarantees. The credit facility is secured by a $2.2 million guarantee issued by the parent company. There were no amounts outstanding under this credit facility as of December 31, 2018 and December 31, 2017. Indemnification The Company is obligated to indemnify its officers and its directors pursuant to its bylaws and contractual indemnity agreements. The Company 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 the indemnification provisions through December 31, 2018 . Royalties The Company has licensed certain technologies from various companies. It incorporates these technologies into its own products and is required to pay royalties for such use, usually based on shipment of the related products. In addition, the Company has obtained research and development grants under various Israeli government programs that require the payment of royalties on sales of certain products resulting from such research. Royalty expenses were $4.2 million , $5.2 million and $4.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and they are included in cost of revenue in the Company’s Consolidated Statements of Operations. Purchase Obligations The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. The Company had approximately $35.9 million of non-cancelable commitments to purchase inventories and other commitments as of December 31, 2018 . |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2018 | |
Loss Contingency [Abstract] | |
Legal Proceedings | LEGAL PROCEEDINGS 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 us, rejecting Avid’s infringement allegations in their entirety. In January 2015, Avid filed an appeal with respect to the jury’s verdict with the Federal Circuit. In January 2016, the Federal Circuit issued an order vacating the verdict of noninfringement and remanding the case to the trial court for a new trial on infringement. In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that the Company’s Spectrum product infringes one patent held by Avid. The complaint sought 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. In July 2014, the PTAB issued a decision finding claims 1-10 invalid and claims 11-16 not invalid. We filed an appeal with respect to the PTAB’s decision on claims 11-16 in September 2014, and the Federal Circuit affirmed the PTAB’s decision in April 2016. In July 2017, the court issued a scheduling order consolidating both cases and setting the trial date for November 6, 2017. On October 19, 2017, the parties agreed to settle the consolidated cases by entering into a settlement and patent portfolio cross-license agreement, and the cases were dismissed with prejudice. In connection with the agreement, the Company recorded a $6.0 million litigation settlement expense in “Selling, general and administrative expenses” in the Company’s 2017 Consolidated Statement of Operations. Of the associated $6.0 million settlement liability, $2.5 million was paid in October 2017 and the remaining $1.5 million and $2.0 million will be paid in the second quarter of 2019 and the third quarter of 2020, respectively. 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 probable 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2018 . In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data. Fiscal 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (In thousands, except per share amounts) Quarterly Data: Net revenue $ 90,127 $ 99,160 $ 100,616 $ 113,655 Gross profit (2) 47,183 51,603 50,102 60,321 Net income (loss) (1) (3) (4) (13,694 ) (2,913 ) (7,758 ) 3,330 Net income (loss) per share: Basic and diluted $ (0.16 ) $ (0.03 ) $ (0.09 ) $ 0.04 Shares used in per share calculations: Basic 83,912 85,304 86,321 86,846 Diluted 83,912 85,304 86,321 89,028 Fiscal 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (In thousands, except per share amounts) Quarterly Data: Net revenue $ 82,943 $ 82,315 $ 92,014 $ 100,974 Gross profit (2) 40,408 33,815 47,025 48,572 Net loss (1) (4) (24,027 ) (31,500 ) (15,583 ) (11,516 ) Net loss per share: Basic and diluted $ (0.30 ) $ (0.39 ) $ (0.19 ) $ (0.14 ) Shares used in per share calculations: Basic and diluted 79,810 80,590 81,445 82,014 (1) In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million , $0.5 million , $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018. (2) Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017. (3) During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management. (4) During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of Harmonic include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter which ends on December 31. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not have material impact on previously reported financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash and highly liquid investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments. |
Restricted Cash | Restricted Cash The Company had no restricted cash balance as of December 31, 2018. The restricted cash balance as of December 31, 2017 was $1.7 million . The restricted cash serves as collateral for certain bank guarantees and they are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. As of December 31, 2017 , $0.5 million of the restricted cash balance was reported as a component of “Prepaid expenses and other current assets” and the remaining balance of $1.2 million was reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets. |
Short-Term Investments | Short-Term Investments The Company did not have any outstanding short-term investments as of December 31, 2018 and 2017. |
Investments in Equity Securities | Investments in Equity Securities From time to time, the Company may acquire certain equity investments for the promotion of business and strategic objectives and these investments may be in marketable equity securities or non-marketable equity securities. Effective January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for its equity investments ( except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, the Company measure these investments at cost minus impairment, if any, The Company’s equity investments are classified as long-term investments and reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets. Prior to January 1, 2018, the Company accounted for its investments in entities that it did not have significant influence under the cost method. Investments in equity securities were carried at fair value if the fair value of the security is readily determinable. Unrealized gains and losses, net of taxes, on the long-term investments were included in the Company’s Consolidated Balance Sheet as a component of accumulated other comprehensive loss. Investments in equity securities that did not qualify for fair value accounting or equity method accounting were accounted for under the cost method. The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2018 and 2017, respectively. |
Credit Risk and Major Customers/Supplier Concentration | Credit Risk and Major Customers/Supplier Concentration Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Cash, cash equivalents and short-term investments are invested in short-term, highly liquid, investment-grade obligations of commercial or governmental issuers, in accordance with the Company’s investment policy. The investment policy limits the amount of credit exposure to any one financial institution, commercial or governmental issuer. The Company’s accounts receivable are derived from sales to worldwide cable, satellite, telco, and broadcast and media companies. The Company generally does not require collateral from its customers, and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. Two customers had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2018 . No customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2017 . During the year ended December 31, 2018 , Comcast accounted for more than 10% of the Company’s revenue. No customer accounted for more than 10% of the Company’s net revenue for the year ended December 31, 2017. Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those sole source and limited source suppliers, the partial or complete loss of certain of these sources could have at least a temporary adverse effect on the Company’s results of operations and damage customer relationships. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for the reporting period beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (“Topic 605”). (See “Recently Adopted Accounting Pronouncements” for additional information.) Revenue Recognition The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions. Revenue from contracts with customers is recognized using the following five steps: a) Identify the contract(s) with a customer; b) Identify the performance obligations in the contract; c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract; and e) Recognize revenue when (or as) the Company satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a Company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation. A contract may contain one or more performance obligations, including hardware, software, professional services and support and maintenance. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise performance obligations will be combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price also reflects the impact of the time value of money if there is a significant financing component present in an arrangement. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time depending on the nature of the arrangement. Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Revenue recognized during the year ended December 31, 2018 that was included within the deferred revenue balance at January 1, 2018 was $46.9 million . Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Contract assets are reported as a component of “Prepaid expenses and other current assets” on the Consolidated Balance Sheets. See Note 9, “Certain Balance Sheet Components’ for additional information. Shipping and handling costs are accounted for as a fulfillment cost and are recorded in cost of revenue in the Company’s Consolidated Statements of Operations. Sales tax and other amounts collected on behalf of third parties are excluded from the transaction price. Hardware and Software. Revenue from the sale of hardware and software products is recognized when the control is transferred. For most of the Company’s product sales (including sales to distributors and system integrators), the control is transferred at the time the product is shipped or delivery has occurred because the customer has significant risks and rewards of ownership of the asset and the Company has a present right to payment at that time. The Company’s agreements with the distributors and system integrators have terms which are generally consistent with the standard terms and conditions for the sale of the Company’s equipment to end users, and do not provide for product rotation or pricing allowances, as are typically found in agreements with stocking distributors. The Company offers return rights which are specifically identified and accrued for as sales returns at the end of the period. Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts offered and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change. Solution Sales. Solution sales for the design, manufacture, test, integration and installation of products, including equipment acquired from third parties to be integrated with Harmonic’s products, that are customized to meet the customer’s specifications are accounted for based on the percentage-of-completion basis, using the input method. Some of our arrangements may include acceptance provisions that require testing of the solution against specific performance criteria. The Company performs a detailed evaluation to determine whether the arrangement involves performance criteria based on our standard performance criteria. The Company has a long-standing history of entering into contractual arrangements to deliver the solution sales based on standard performance criteria. For this type of arrangement, we consider the customer acceptance clause not substantive and recognize product revenue when the customer takes possession on the product and recognize service on a percentage-of-completion basis using the input method. However, if the solution results in significant production, modification or customization, we consider the arrangement as a single performance obligation and recognize the revenue at a point in time, depending on the complexity of the solution and nature of acceptance. Professional services. Revenue from professional services is recognized over time, on the percentage-of-completion basis using the input method. Input method. The use of the input method requires the Company to make reasonably dependable estimates. We use the input method based on labor hours, where revenue is calculated based on the percentage of total hours incurred in relation to total estimated hours at completion of the contract. The input method is reasonable because the hours best reflect the Company’s efforts toward satisfying the performance obligation over time. As circumstances change over time, the Company updates its measure of progress to reflect any changes in the outcome of the performance obligation. Such changes to an entity’s measure of progress are accounted for as a change in accounting estimates. Support and maintenance. Support and maintenance services are satisfied ratably over time as the customer simultaneously receives and consumes the benefits of the services. Contract costs . The incremental costs of obtaining a contract are capitalized if the costs are expected to be recovered. Costs that are recognized as assets are amortized straight-line over the period as the related goods or services transfer to the customer. Costs incurred to fulfill a contract are capitalized if they are not covered by other relevant guidance, relate directly to a contract, will be used to satisfy future performance obligations, and are expected to be recovered. The Company recorded a net decrease to the opening balance of accumulated deficit of $1.4 million as of January 1, 2018 for capitalizing contract costs due to the cumulative impact of adopting Topic 606 for sales commissions related to customer contracts with an amortization period in excess of one year . Anticipated contract renewals, amendments, and follow-on contracts with the same customer are considered when determining the period of amortization. The net capitalized contract costs as of December 31, 2018 were $1.6 million , of which $1.1 million and $0.5 million were reported as components of “Prepaid expenses and other current assets” and “Other long-term assets” on the Consolidated Balance Sheets, respectively. The amortization of the capitalized contract costs for the year ended December 31, 2018 was $1.3 million . Significant Judgments . The Company has revenue arrangements that include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. The Company allocates the transaction price to all separate performance obligations based on the SSP of each obligation. The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of the transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining the best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change. Practical Expedients and Exemptions. Under Topic 606, incremental costs of obtaining a contract such as sales commissions are capitalized if they are expected to be recovered, and amortized on a straight-line basis. Expensing these costs as incurred is not permitted unless they qualify for a practical expedient. Other than capitalized costs of obtaining subscription contracts which are amortized regardless of the life of expected amortization period, the Company elected the practical expedient to expense the costs to obtain all other contracts as incurred, when the life of the expected amortization period is one year or less by using a portfolio approach. The Company elected the practical expedient under Topic 606 to not disclose the transaction price allocated to remaining performance obligations, since the majority of the Company’s arrangements have original expected durations of one year or less, or the invoicing corresponds to the value of the Company’s performance completed to date. The Company elected the practical expedient that allows the Company to not assess a contract for a significant financing component if the period between the customer’s payment and the transfer of the goods or services is one year or less. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The cost of inventories is comprised of material, labor and manufacturing overhead. The Company’s manufacturing overhead standards for product costs are calculated assuming full absorption of forecasted spending over projected volumes. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations. |
Capitalized Software Development Costs | Capitalized Software Development Costs External-use software. Research and development costs are generally charged to expense as incurred. The Company has not capitalized any such development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product is available for general release to customers has been insignificant. Internal-use software. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. These capitalized costs are amortized on a straight-line basis, generally three years . During the years ended December 31, 2018 and December 31, 2017 , the Company capitalized $0.9 million and $1.1 million , respectively, of its software development costs related to the development of its SaaS offerings. During the year ended December 31, 2016 , research and development costs capitalized for internal use software was not significant. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally, five years for furniture and fixtures, three years for software and four years for machinery and equipment. Depreciation for leasehold improvements are computed using the shorter of the remaining useful lives of the assets or the lease term of the respective assets . |
Business Combinations | Business Combination The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and the liabilities assumed. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received in a sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measurements that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. |
Goodwill | Goodwill As of December 31, 2018 , the Company had goodwill of $240.6 million which represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has two reporting units, which are the same as its operating segments. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. There was no impairment of goodwill resulting from the Company’s fiscal 2018 annual impairment testing in the fourth quarter of 2018 . (See Note 7, “Goodwill and Identified Intangible Assets,” for additional information). |
Long-lived Assets | Long-lived Assets Long-lived assets represent property and equipment and purchased intangible assets. Purchased intangible assets from business combinations and asset acquisitions include customer contracts, trademarks and trade names, and maintenance agreements and related relationships, the amortization of which is charged to general and administrative expenses, and core technology and developed technology, the amortization of which is charged to cost of revenue. The Company evaluates the recoverability of intangible assets and other long-lived assets when indicators of impairment are present. When impairment indicators are present, the Company evaluates the recoverability of intangible assets and other long-lived assets on the basis of undiscounted cash flows expected to result from the use of each asset group and its eventual disposition. If the undiscounted expected future cash flows are less than the carrying amount of the asset, an impairment loss is recognized in order to write down the carrying value of the asset to its estimated fair market value. There were no impairment charges for long-lived assets in the years ended December 31, 2018 , 2017 and 2016 . |
Foreign Currency | Foreign Currency The functional currency of the Company’s Israeli, Cayman and Swiss operations is the U.S. dollar. All other foreign subsidiaries use the respective local currency as the functional currency. When the local currency is the functional currency, gains and losses from translation of these foreign currency financial statements into U.S. dollars are recorded as a separate component of other comprehensive income (loss) in stockholders’ equity. The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its subsidiaries in their nonfunctional currencies. These monetary assets and monetary liabilities are being remeasured into the functional currencies of the subsidiaries using exchange rates prevailing on the balance sheet date. Such remeasurement gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2018 , 2017 and 2016 , the Company recorded remeasurement losses of approximately $0.6 million , $2.2 million and $0.2 million , respectively. |
Derivative Instruments | Derivative Instruments The Company enters into derivative instruments, primarily foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities as well as certain foreign currencies denominated expenses. The Company does not enter into derivative instruments for trading purposes and these derivatives generally have maturities within twelve months. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheet. For derivative instruments designated and qualifying as cash flow hedges of forecasted foreign currency denominated transactions expected to occur within twelve months, the effective portion of the gain or loss on these hedges is reported as a component of “Accumulated other comprehensive loss” in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is (or becomes) ineffective, the gain or loss on the associated financial instrument is recorded immediately in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged. The Company did not enter into any cash flow hedges during the year ended December 31, 2018 . Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges) The Company’s balance sheet hedges consist of foreign currency forward contracts which mature generally within three months, These forward contracts are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. |
Research and Development | Research and Development Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products. R&D expense was $89.2 million , $96.0 million and $98.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company’s TVN French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D tax credits receivable from the French government for spending on innovative R&D under the CIR program is recorded as an offset to R&D expenses. In the years ended December 31, 2018 , 2017 and 2016, the R&D expenses were net of $5.9 million , $5.9 million and $6.1 million of R&D tax credits, respectively. |
Restructuring and Related Charges | Restructuring and Related Charges The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, lease exit costs, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements. Costs to terminate a lease before the end of its term are recognized when the entity terminates the contract in accordance with the contract terms. The Company determines the excess facilities accrual based on expected cash payments, under the applicable facility lease, reduced by any estimated sublease rental income for such facility. S ee Note 10, “Restructuring and related Charges” for additional information. |
Warranty | Warranty The Company accrues for estimated warranty costs at the time of revenue recognition and records such accrued liabilities as part of cost of revenue. Management periodically reviews its warranty liability and adjusts the accrued liability 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. The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated 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. |
Advertising Expenses | Advertising Expenses All advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations. Advertising expense was $1.0 million , $0.7 million and $1.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Stock-based Compensation Expense | Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based compensation awards made to employees, including stock options, restricted stock units (“RSUs”) and awards related to the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. Prior to January 1, 2017, stock-based compensation was recorded net of estimated forfeitures over the requisite service period and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. Upon the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), issued by the Financial Accounting Standards Board (“FASB”), the Company changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective approach with a cumulative effect adjustment of $69,000 to retained earnings as of January 1, 2017 (which increased the accumulated deficit). The fair value of the Company’s stock options and ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs is calculated based on the market value of the Company’s stock at the grant date. The fair value of the Company’s market-based RSUs (“MRSUs”) is estimated using the Monte-Carlo valuation model with market vesting conditions. The Company recognizes the stock-based compensation for performance-based RSUs (“PRSUs”) based on the probability of achieving certain performance criteria, as defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next. Valuation Assumptions The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. 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. At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP 2017 2016 2018 2017 2016 Expected term (in years) 4.30 4.30 0.50 0.50 0.50 Volatility 42 % 36 % 55 % 48 % 70 % Risk-free interest rate 1.8 % 1.4 % 1.9 % 1.2 % 0.6 % Expected dividends 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The expected term of the employee stock option represents the weighted-average period that the stock options are expected to remain outstanding. The computation of 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 expected term of the stock purchase right under ESPP 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 not paid and does not plan to pay any cash dividends in the foreseeable future. |
Pension Plan | Pension Plan Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, is obligated to provide for a defined benefit plan to its employees upon their retirement from the Company. The Company’s defined benefit pension plan in France is unfunded. The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its pension plan are reasonable based on its experience, market conditions and input from its actuaries. The Company accounts for the actuarial gains (losses) in accordance with ASC 715, “Compensation - Retirement Benefits”. If the net accumulated gain or loss exceeds 10% of the projected plan benefit obligation, a portion of the net gain or loss is amortized and included in expense for the following year based upon the average remaining service period of active plan participants, unless the Company’s policy is to recognize all actuarial gains (losses) when they occur. The Company elected to defer actuarial gains (losses) in accumulated other comprehensive income (loss). As of December 31, 2018, the Company did not meet the 10% requirement, and therefore no amortization of 2018 actuarial gain would be recorded in 2019. S ee Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information. |
Income Taxes | Income Taxes In preparing the Company’s financial statements, the Company estimates the income taxes for each of the jurisdictions in which the Company operates. This involves estimating the Company’s current tax expense and assessing temporary and permanent differences resulting from differing treatment of items, such as reserves and accruals, for tax and accounting purposes. These temporary differences result in deferred tax assets and liabilities, which are included within the Company’s Consolidated Balance Sheet. The Company’s income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the Company’s accompanying Consolidated Balance Sheets, as well as operating loss and tax credit carryforwards. The Company follows the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the Consolidated Balance Sheet and provides any necessary allowances as required. Determining necessary allowances requires the Company to make assessments about the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. A history of operating losses in recent years has led to uncertainty with respect to our ability to realize certain of our net deferred tax assets, and as a result we applied a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2018. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected. The Company is subject to examination of its income tax returns by various tax authorities on a periodic basis. The Company regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of its provision for income taxes. The Company has applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes, which requires application of a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the Company to recognize a tax benefit measured at the largest amount of tax benefit that, in the Company’s judgment, is more than 50% likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. The Company files annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves and penalties, as well as the related interest, in light of changing facts and circumstances. Changes in the Company’s assessment of its uncertain tax positions or settlement of any particular position could materially and adversely impact the Company’s income tax rate, operating results, financial position and cash flows. Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction by jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. $15.3 million of cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable. The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in our judgment, is more than fifty The Company recognizes interest and penalties related to unrecognized tax positions in income tax expenses on the Consolidated Statements of Operations. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and is evaluated by the Chief Operating Decision Maker (“CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has two operating segments: Video and Cable Access. Segment Information 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 Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Access. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Access segment provides CableOS cable access solutions and related services to cable operators globally. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes cumulative translation adjustments, unrealized foreign exchange gains and losses on intercompany long-term loans, unrealized gains and losses on certain foreign currency forward contracts that qualify as cash flow hedges and available-for-sale securities, as well as actuarial gains and losses on pension plan. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for the reporting period beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (“Topic 605”). Under Topic 606, the Company began to recognize a contract asset for satisfied performance obligations that do not provide the Company with an unconditional right to consideration, which was restricted under the previous standard. In addition, the Company changed its revenue recognition for professional services from a completed contract method to a percentage of completion method. The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands): CONSOLIDATED BALANCE SHEETS Balance as of December 31, 2017 Cumulative Impact from Adopting Topic 606 Balance as of January 1, 2018 ASSETS Accounts receivable, net $ 69,844 $ 1,781 $ 71,625 Prepaid expenses and other current assets 18,931 3,578 22,509 Other long-term assets 42,913 773 43,686 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue $ 52,429 $ (4,826 ) $ 47,603 Other non-current liabilities 22,626 (473 ) 22,153 Accumulated deficit (2,057,812 ) 11,431 (2,046,381 ) The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands): Year ended December 31, 2018 CONSOLIDATED STATEMENTS OF OPERATIONS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 Total net revenue $ 403,558 $ 402,550 $ 1,008 Total cost of revenue 194,349 194,101 248 Total gross profit 209,209 208,449 760 Operating expenses: Selling, general and administrative 118,952 119,151 (199 ) Loss from operations (5,011 ) (5,970 ) 959 Loss before income taxes (16,948 ) (17,907 ) 959 Net loss (21,035 ) (21,994 ) 959 As of December 31, 2018 CONSOLIDATED BALANCE SHEETS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 ASSETS Accounts receivable, net 81,795 79,954 $ 1,841 Prepaid expenses and other current assets 23,280 19,067 4,213 Other long-term assets 38,377 37,872 505 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 41,592 47,117 (5,525 ) Other non-current liabilities 18,228 18,534 (306 ) Accumulated deficit (2,067,416 ) (2,079,806 ) 12,390 Revenue Recognition The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions. Revenue from contracts with customers is recognized using the following five steps: a) Identify the contract(s) with a customer; b) Identify the performance obligations in the contract; c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract; and e) Recognize revenue when (or as) the Company satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a Company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation. A contract may contain one or more performance obligations, including hardware, software, professional services and support and maintenance. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise performance obligations will be combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price also reflects the impact of the time value of money if there is a significant financing component present in an arrangement. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time depending on the nature of the arrangement. Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Revenue recognized during the year ended December 31, 2018 that was included within the deferred revenue balance at January 1, 2018 was $46.9 million . Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Contract assets are reported as a component of “Prepaid expenses and other current assets” on the Consolidated Balance Sheets. See Note 9, “Certain Balance Sheet Components’ for additional information. Shipping and handling costs are accounted for as a fulfillment cost and are recorded in cost of revenue in the Company’s Consolidated Statements of Operations. Sales tax and other amounts collected on behalf of third parties are excluded from the transaction price. Hardware and Software. Revenue from the sale of hardware and software products is recognized when the control is transferred. For most of the Company’s product sales (including sales to distributors and system integrators), the control is transferred at the time the product is shipped or delivery has occurred because the customer has significant risks and rewards of ownership of the asset and the Company has a present right to payment at that time. The Company’s agreements with the distributors and system integrators have terms which are generally consistent with the standard terms and conditions for the sale of the Company’s equipment to end users, and do not provide for product rotation or pricing allowances, as are typically found in agreements with stocking distributors. The Company offers return rights which are specifically identified and accrued for as sales returns at the end of the period. Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts offered and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change. Solution Sales. Solution sales for the design, manufacture, test, integration and installation of products, including equipment acquired from third parties to be integrated with Harmonic’s products, that are customized to meet the customer’s specifications are accounted for based on the percentage-of-completion basis, using the input method. Some of our arrangements may include acceptance provisions that require testing of the solution against specific performance criteria. The Company performs a detailed evaluation to determine whether the arrangement involves performance criteria based on our standard performance criteria. The Company has a long-standing history of entering into contractual arrangements to deliver the solution sales based on standard performance criteria. For this type of arrangement, we consider the customer acceptance clause not substantive and recognize product revenue when the customer takes possession on the product and recognize service on a percentage-of-completion basis using the input method. However, if the solution results in significant production, modification or customization, we consider the arrangement as a single performance obligation and recognize the revenue at a point in time, depending on the complexity of the solution and nature of acceptance. Professional services. Revenue from professional services is recognized over time, on the percentage-of-completion basis using the input method. Input method. The use of the input method requires the Company to make reasonably dependable estimates. We use the input method based on labor hours, where revenue is calculated based on the percentage of total hours incurred in relation to total estimated hours at completion of the contract. The input method is reasonable because the hours best reflect the Company’s efforts toward satisfying the performance obligation over time. As circumstances change over time, the Company updates its measure of progress to reflect any changes in the outcome of the performance obligation. Such changes to an entity’s measure of progress are accounted for as a change in accounting estimates. Support and maintenance. Support and maintenance services are satisfied ratably over time as the customer simultaneously receives and consumes the benefits of the services. Contract costs . The incremental costs of obtaining a contract are capitalized if the costs are expected to be recovered. Costs that are recognized as assets are amortized straight-line over the period as the related goods or services transfer to the customer. Costs incurred to fulfill a contract are capitalized if they are not covered by other relevant guidance, relate directly to a contract, will be used to satisfy future performance obligations, and are expected to be recovered. The Company recorded a net decrease to the opening balance of accumulated deficit of $1.4 million as of January 1, 2018 for capitalizing contract costs due to the cumulative impact of adopting Topic 606 for sales commissions related to customer contracts with an amortization period in excess of one year . Anticipated contract renewals, amendments, and follow-on contracts with the same customer are considered when determining the period of amortization. The net capitalized contract costs as of December 31, 2018 were $1.6 million , of which $1.1 million and $0.5 million were reported as components of “Prepaid expenses and other current assets” and “Other long-term assets” on the Consolidated Balance Sheets, respectively. The amortization of the capitalized contract costs for the year ended December 31, 2018 was $1.3 million . Significant Judgments . The Company has revenue arrangements that include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. The Company allocates the transaction price to all separate performance obligations based on the SSP of each obligation. The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of the transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining the best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change. Practical Expedients and Exemptions. Under Topic 606, incremental costs of obtaining a contract such as sales commissions are capitalized if they are expected to be recovered, and amortized on a straight-line basis. Expensing these costs as incurred is not permitted unless they qualify for a practical expedient. Other than capitalized costs of obtaining subscription contracts which are amortized regardless of the life of expected amortization period, the Company elected the practical expedient to expense the costs to obtain all other contracts as incurred, when the life of the expected amortization period is one year or less by using a portfolio approach. The Company elected the practical expedient under Topic 606 to not disclose the transaction price allocated to remaining performance obligations, since the majority of the Company’s arrangements have original expected durations of one year or less, or the invoicing corresponds to the value of the Company’s performance completed to date. The Company elected the practical expedient that allows the Company to not assess a contract for a significant financing component if the period between the customer’s payment and the transfer of the goods or services is one year or less. See Note 17, “Segment Information” for further disaggregated revenue information. Other Recently Adopted Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The Company adopted this new standard in the first quarter of fiscal 2018, and the adoption did not have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires entities to present the aggregate changes in cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the statement of cash flows is required to present restricted cash and restricted cash equivalents as a part of the beginning and ending balances of cash and cash equivalents. The Company adopted this new standard in the first quarter of fiscal 2018 on a retrospective basis. The Company’s total restricted cash balance was zero , $1.7 million and $1.8 million as of December 31, 2018, 2017 and 2016, respectively. These restricted cash balances are presented as a part of the ending and beginning balances of cash, cash equivalents and restricted cash on the Company’s Consolidated Statements of Cash Flows for the corresponding periods. See Note 9, “Certain Balance Sheet Components” for additional information. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The objective of ASU 2017-01 is to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The Company adopted this new standard in the first quarter of fiscal 2018, and the adoption had no impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in the new ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. This new standard is effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted, including adoption in any interim period. The Company early adopted this new standard in the third quarter of fiscal 2018 and applied it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements for the year ended December 31, 2018. Should the Company incur significant implementation costs in a cloud computing arrangement that is a service contract in future, the new standard could have a significant impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to amend the existing accounting standard for lease accounting. This new standard will require lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors to recognize a net lease investment. Additional qualitative and quantitative disclosures will also be required. The new standard is effective for the Company on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. While the Company continues to assess all of the effects of adoption, the Company currently believes that the most significant effects on its consolidated financial statements relate to the recognition of the right-of-use assets and lease liabilities on its balance sheets for the operating leases, and providing significant new disclosures about the leasing activities. Based on our current lease portfolio, adoption of the standard is estimated to result in an increase in operating lease assets and liabilities of approximately $23 million with an insignificant impact on our Consolidated Statements of Operations. This estimate is subject to change as we finalize our implementation. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 and early adoption is permitted. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new ASU removes Step 2 of the goodwill impairment test and requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will then be the amount by which a reporting unit's carrying value exceeds its fair value. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 on a prospective basis, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting this new standard on its consolidated financial statements. The Company currently believes that the most significant effects on its consolidated financial statements relate to the accounting of Comcast warrants. The Company expects to complete related assessments before filing its Quarterly Report for the first quarter of fiscal 2019. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. This final rule is effective on November 5, 2018. The release expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the release, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. According to the release, the staff of the SEC will not object if a filer’s first presentation of changes in shareholders’ equity is included in its Quarterly Report on Form 10-Q for the quarter that begins after the final rule’s effective date. The Company plans to first include the changes required by this release in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cumulative Effect of Topic 606 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements | The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands): CONSOLIDATED BALANCE SHEETS Balance as of December 31, 2017 Cumulative Impact from Adopting Topic 606 Balance as of January 1, 2018 ASSETS Accounts receivable, net $ 69,844 $ 1,781 $ 71,625 Prepaid expenses and other current assets 18,931 3,578 22,509 Other long-term assets 42,913 773 43,686 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue $ 52,429 $ (4,826 ) $ 47,603 Other non-current liabilities 22,626 (473 ) 22,153 Accumulated deficit (2,057,812 ) 11,431 (2,046,381 ) The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands): Year ended December 31, 2018 CONSOLIDATED STATEMENTS OF OPERATIONS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 Total net revenue $ 403,558 $ 402,550 $ 1,008 Total cost of revenue 194,349 194,101 248 Total gross profit 209,209 208,449 760 Operating expenses: Selling, general and administrative 118,952 119,151 (199 ) Loss from operations (5,011 ) (5,970 ) 959 Loss before income taxes (16,948 ) (17,907 ) 959 Net loss (21,035 ) (21,994 ) 959 As of December 31, 2018 CONSOLIDATED BALANCE SHEETS As Reported Previous Accounting Guidance Impact from Adopting Topic 606 ASSETS Accounts receivable, net 81,795 79,954 $ 1,841 Prepaid expenses and other current assets 23,280 19,067 4,213 Other long-term assets 38,377 37,872 505 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 41,592 47,117 (5,525 ) Other non-current liabilities 18,228 18,534 (306 ) Accumulated deficit (2,067,416 ) (2,079,806 ) 12,390 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Gain and Losses Reported in Statement of Operations | The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the Company’s A OCI and Consolidated Statements of Operations are as follows (in thousands): Year ended December 31, Financial Statement Location 2018 2017 2016 Derivatives not designated as hedging instruments: Gains (losses) recognized in income Other expense, net $ (2,325 ) $ 155 $ 343 Derivatives designated as hedging instruments (1) : Gains in AOCI on derivatives (effective portion) AOCI $ — $ — $ 202 Losses reclassified from AOCI into income (effective portion) Cost of Revenue $ — $ — $ (6 ) Operating Expense — — (38 ) Total $ — $ — $ (44 ) Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) Other expense, net $ — $ — $ (63 ) (1) The Company did not enter into any new cash flow hedge contracts since December 31, 2016. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands): December 31, 2018 2017 Derivatives not designated as hedging instruments: Purchase $ 28,975 $ 12,875 Sell $ — $ 1,509 |
Schedule of Foreign Exchange Contracts - Balance Sheet | The locations and fair value amounts of the Company’s derivative instruments reported in its Consolidated Balance Sheets are as follows (in thousands): Asset Derivatives Liability Derivatives Balance Sheet Location December 31, 2018 December 31, 2017 Balance Sheet Location December 31, 2018 December 31, 2017 Derivatives not designated as hedging instruments: Foreign currency contracts Prepaid expenses and other current assets $ — $ 33 Accrued and other current liabilities $ 333 $ 4 $ — $ 33 $ 333 $ 4 |
Offsetting of Derivative Assets and Liabilities | As of December 31, 2018 , information related to the offsetting arrangements was as follows (in thousands): Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets Net Amounts of Derivatives Presented in the Consolidated Balance Sheets Derivative assets $ — $ — $ — Derivative liabilities $ 333 $ — $ 333 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy | The following tables provide the fair value measurement amounts for other financial assets and liabilities recorded in the Company’s Consolidated Balance Sheets based on the three-tier fair value hierarchy (in thousands): Level 1 Level 2 Level 3 ) Total As of December 31, 2018 Accrued and other current liabilities Derivative liabilities $ — $ 333 $ — $ 333 Total liabilities measured and recorded at fair value $ — $ 333 $ — $ 333 Level 1 Level 2 Level 3 Total As of December 31, 2017 Cash equivalents Money market funds $ 22 $ — $ — $ 22 Prepaid expenses and other current assets Derivative assets — 33 — 33 Total assets measured and recorded at fair value $ 22 $ 33 $ — $ 55 Accrued and other current liabilities Derivative liabilities $ — $ 4 $ — $ 4 Total liabilities measured and recorded at fair value $ — $ 4 $ — $ 4 The Company’s liability for the TVN VDP (as defined below) at December 31, 2018 and 2017 was $2.4 million and $5.1 million , respectively. This amount is not included in the table above because its fair value at inception, based on Level 3 inputs, was determined during the fourth quarter of fiscal 2016. Subsequently there is no recurring fair value remeasurement for this liability based on the applicable accounting guidance. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Assets: Cash and cash equivalents $ 6,843 Accounts receivable, net 14,933 Inventories 3,462 Prepaid expenses and other current assets 2,412 Property and equipment, net 9,942 French R&D tax credit receivables (1) 26,421 Other long-term assets 2,134 Total assets $ 66,147 Liabilities: Other debts and capital lease obligations, current 8,362 Accounts payable 12,494 Deferred revenue 2,504 Accrued and other current liabilities 18,365 Other debts and capital lease obligations, long-term 16,087 Other non-current liabilities 6,467 Deferred tax liabilities 2,126 Total liabilities $ 66,405 Goodwill 41,670 Intangibles 41,100 Total purchase consideration $ 82,512 (1) See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables. The following table presents details of the intangible assets acquired through this business combination (in thousands, except years): Estimated Useful Life Fair Value Backlog 6 months $ 3,600 Developed technology 4 years 21,700 Customer relationships 5 years 15,200 Trade name 4 years 600 $ 41,100 |
Business combination acquisition and integration cost | The following table summarizes the acquisition-and integration-related expenses for the TVN acquisition (in thousands): Acquisition-related Integration-related (1) Year ended December 31, 2016 Year ended December 31, 2017 (unaudited) Year ended December 31, 2016 (unaudited) Cost of revenue $ — $ 342 $ 1,049 Research and development — 7 974 Selling, general and administrative 3,855 2,469 11,058 Total acquisition- and integration-related expenses $ 3,855 $ 2,818 $ 13,081 (1) Integration-related costs include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. All integration efforts were completed by 2017 and the Company does not expect any more such expenses to continue after 2017. |
Goodwill and Identified Intan_2
Goodwill and Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | (in thousands): Video Cable Access Total Balance as of December 31, 2016 $ 176,519 $ 60,760 $ 237,279 Foreign currency translation adjustment 5,493 55 5,548 Balance as of December 31, 2017 $ 182,012 $ 60,815 $ 242,827 Foreign currency translation adjustment (2,173 ) (36 ) (2,209 ) Balance as of December 31, 2018 $ 179,839 $ 60,779 $ 240,618 |
Summary of Identified Intangible Assets | The following table provides a summary of the Company’s identified intangible assets (in thousands): December 31, 2018 December 31, 2017 Weighted Average Remaining Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed core technology 1.2 $ 31,707 $ (25,576 ) $ 6,131 $ 31,707 $ (20,396 ) $ 11,311 Customer relationships/contracts 2.2 44,650 (38,146 ) 6,504 44,819 (35,205 ) 9,614 Trademarks and tradenames 1.2 623 (441 ) 182 654 (300 ) 354 Maintenance agreements and related relationships N/A 5,500 (5,500 ) — 5,500 (5,500 ) — Order Backlog N/A 3,112 (3,112 ) — 3,177 (3,177 ) — Total identifiable intangibles $ 85,592 $ (72,775 ) $ 12,817 $ 85,857 $ (64,578 ) $ 21,279 |
Purchased Intangibles Amortization Expense Allocation | Amortization expense for the identifiable intangible assets was allocated as follows (in thousands): Year Ended December 31, 2018 2017 2016 Included in cost of revenue $ 5,180 $ 5,180 $ 4,434 Included in operating expenses 3,187 3,142 10,402 Total amortization expense $ 8,367 $ 8,322 $ 14,836 |
Schedule of Finite-Lived Intangible Assets, Estimated Future Amortization Expense | The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2018 is as follows (in thousands): Cost of Revenue Operating Expenses Total Year ended December 31, 2019 $ 5,180 $ 3,158 $ 8,338 2020 951 3,028 3,979 2021 — 500 500 Total future amortization expense $ 6,131 $ 6,686 $ 12,817 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowances | Accounts receivable, net of allowances, consisted of the following (in thousands): December 31, 2018 2017 Accounts receivable, net: Accounts receivable $ 85,292 $ 74,475 Less: allowance for doubtful accounts and sales returns (3,497 ) (4,631 ) Total $ 81,795 $ 69,844 |
Allowance for for doubtful accounts and sales returns | The following table is a summary of activities in allowances for doubtful accounts and sales returns (in thousands): Balance at Beginning of Period Charges to Revenue Charges (Credits) to Expense Additions to (Deductions from) Reserves Balance at End of Period Year ended December 31, 2018 $ 4,631 $ 1,949 $ 572 $ (3,655 ) $ 3,497 2017 $ 4,831 $ 4,030 $ 881 $ (5,111 ) $ 4,631 2016 $ 4,340 $ 1,488 $ 1,100 $ (2,097 ) $ 4,831 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | The following tables provide details of selected balance sheet components (in thousands): December 31, 2018 2017 Inventories: Raw materials $ 1,705 $ 2,881 Work-in-process 991 933 Finished goods 12,267 10,130 Service-related spares 10,675 12,032 Total $ 25,638 $ 25,976 |
Prepaid Expenses and Other Current Assets | December 31, 2018 2017 Prepaid expenses and other current assets: French R&D tax credits receivable (1) $ 7,305 $ 6,609 Contract assets (2) 3,834 — Deferred cost of revenue 3,671 4,440 Prepaid maintenance, royalty, rent, property taxes and VAT 3,497 3,867 Capitalized commission 1,098 — Restricted cash — 530 Other 3,875 3,485 Total $ 23,280 $ 18,931 (1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017 , the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets. (2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. |
Property and Equipment | December 31, 2018 2017 Property and equipment, net: Machinery and equipment $ 75,094 $ 87,121 Capitalized software 32,696 35,139 Leasehold improvements 14,951 15,051 Furniture and fixtures 6,049 6,534 Property and equipment, gross 128,790 143,845 Less: accumulated depreciation and amortization (106,469 ) (114,580 ) Total $ 22,321 $ 29,265 |
Other long-term assets | December 31, 2018 2017 Other long-term assets: French R&D tax credits receivable $ 19,249 $ 22,322 Deferred tax assets 8,695 10,462 Equity investment 3,593 3,593 Other 6,840 6,536 Total $ 38,377 $ 42,913 |
Accrued Liabilities | December 31, 2018 2017 Accrued and other current liabilities: Accrued employee compensation and related expenses $ 21,451 $ 16,414 Accrued warranty 4,869 4,381 Customer deposits 4,642 5,020 Contingent inventory reserves 2,500 3,806 Accrued TVN VDP, current (1) 1,585 3,186 Accrued royalty payments 1,998 2,195 Accrued Avid litigation settlement fees, current 1,500 — Other 14,216 13,703 Total $ 52,761 $ 48,705 (1) See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities. |
Restructuring and Excess Faci_2
Restructuring and Excess Facilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the restructuring and related charges (in thousands): Year ended December 31, Restructuring and related charges in: 2018 2017 2016 (1) Cost of revenue $ 857 $ 1,279 $ 3,400 Operating expenses - Restructuring and related charges 2,918 5,307 14,602 Total restructuring and related charges $ 3,775 $ 6,586 $ 18,002 (1) The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million , in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2018 (in thousands): Harmonic 2016 Restructuring Plan Harmonic 2017 Restructuring Plan Harmonic 2018 Restructuring Plan Excess facilities TVN VDP Excess facilities Severance and benefits Excess facilities Severance and benefits Total Balance at December 31, 2017 $ 2,426 $ 5,128 $ 296 $ 193 $ — $ — $ 8,043 Charges for current period — — — — 932 2,124 3,056 Adjustments to restructuring provisions 132 531 167 — 5 (116 ) 719 Reclassification of deferred rent — — — — 332 — 332 Cash payments (1,015 ) (3,066 ) (146 ) (193 ) (203 ) (2,052 ) (6,675 ) Foreign exchange effect — (184 ) — — — 44 (140 ) Balance at December 31, 2018 $ 1,543 $ 2,409 $ 317 $ — $ 1,066 $ — $ 5,335 |
Convertible Notes and Credit _2
Convertible Notes and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the Notes as of December 31, 2018 and December 31, 2017 (in thousands, except for years and percentages): December 31, 2018 2017 Liability: Principal amount $ 128,250 $ 128,250 Less: Debt discount, net of amortization (11,996 ) (17,404 ) Less: Debt issuance costs, net of amortization (1,446 ) (2,098 ) Carrying amount $ 114,808 $ 108,748 Remaining amortization period (years) 1.9 years 2.9 years Effective interest rate on liability component 9.94 % 9.94 % Carrying amount of equity component $ 26,062 $ 26,062 |
Convertible Interest Expense Recognized | The following table presents interest expense recognized related to the Notes (in thousands): Year ended December 31, 2018 2017 2016 Contractual interest expense $ 5,130 $ 5,130 $ 5,130 Amortization of debt discount 5,408 4,898 4,430 Amortization of debt issuance costs 652 591 534 Total interest expense recognized $ 11,190 $ 10,619 $ 10,094 |
Schedule of Debt | The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands): December 31, 2018 2017 Financing from French government agencies related to various government incentive programs (1) $ 18,783 $ 20,565 Term loans 914 1,282 Obligations under capital leases 162 1,099 Total debt obligations 19,859 22,946 Less: current portion (7,175 ) (7,610 ) Long-term portion $ 12,684 $ 15,336 (1) Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6% , plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025. |
Schedule of Maturities of Long-term Debt | The table below presents the future minimum repayments of other debts and capital lease obligations as of December 31, 2018 (in thousands): Years ending December 31, Capital lease obligations Other Debt obligations 2019 91 7,084 2020 49 6,607 2021 22 5,333 2022 — 452 2023 — 155 Thereafter — 66 Total $ 162 $ 19,697 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options Outstanding | The following table summarizes the Company’s stock option activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms): Stock Options Outstanding Number of Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance at December 31, 2017 3,880 $ 6.04 Granted — — Exercised (239 ) 3.79 Forfeited (35 ) 4.76 Canceled or expired (538 ) 8.75 Balance at December 31, 2018 3,068 5.76 2.3 $ 1,148.7 As of December 31, 2018 Vested and expected to vest 3,067 $ 5.76 2.3 $ 1,147.7 Exercisable 2,994 $ 5.78 2.3 $ 1,082.0 |
Summary of Restricted Stock Units Outstanding | The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms): Restricted Stock Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2017 2,904 $ 5.09 Granted 3,906 3.97 Vested (3,177 ) 4.91 Forfeited (230 ) 4.89 Balance at December 31, 2018 3,403 $ 3.99 |
Schedule of Defined Benefit Plans Disclosures | The Company’s pension obligations as of December 31, 2018 and December 31, 2017 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands): December 31, 2018 2017 Projected benefit obligation: Balance at January 1 $ 5,033 $ 4,264 Service cost 243 259 Interest cost 74 71 Actuarial (gains) losses (202 ) (528 ) Benefits paid (13 ) — Adjustment for prior year balance — 343 Foreign currency translation adjustment (254 ) 624 Balance at December 31 $ 4,881 $ 5,033 Presented on the Consolidated Balance Sheets under: Current portion (presented under “Accrued and other current liabilities”) $ 63 34 Long-term portion (presented under “Other non-current liabilities”) $ 4,818 4,999 |
Components of Net Periodic Benefit Costs | The table below presents the components of net periodic benefit costs (in thousands): Year ended December 31, 2018 2017 Service cost $ 243 $ 259 Interest cost 74 71 Amortization of net actuarial loss (gain) (1) — — Net periodic benefit cost included in operating loss $ 317 $ 330 (1) The Company uses the allowable 10% corridor approach to determine the amount of actuarial gains or losses subject to amortization in pension cost. Gains or losses are amortized on a straight-line basis over the average future remaining service period of active plan participants. |
Schedule of Pension Obligations Assumptions Used | The following assumptions were used in determining the Company’s pension obligation: December 31, 2018 2017 Discount rate 1.7 % 1.5 % Mobility rate 6.0 % 6.0 % Salary progression rate 2.0 % 2.0 % |
Schedule of Expected Benefit Payments | As of December 31, 2018 , future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands): Years ending December 31, 2019 $ 63 2020 — 2021 41 2022 80 2023 479 2024 - 2028 2,626 $ 3,289 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation expense for all plans (in thousands): Year ended December 31, 2018 2017 2016 Stock-based compensation in: Cost of revenue $ 1,953 $ 2,370 $ 1,554 Research and development expense 5,192 5,313 3,711 Selling, general and administrative expense 10,144 8,927 7,795 Total stock-based compensation in operating expense 15,336 14,240 11,506 Total stock-based compensation recognized in net loss $ 17,289 $ 16,610 $ 13,060 |
Valuation Assumptions for Stock Options | At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP 2017 2016 2018 2017 2016 Expected term (in years) 4.30 4.30 0.50 0.50 0.50 Volatility 42 % 36 % 55 % 48 % 70 % Risk-free interest rate 1.8 % 1.4 % 1.9 % 1.2 % 0.6 % Expected dividends 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands): December 31, 2018 2017 Foreign currency translation adjustments $ (779 ) $ 4,310 Unrealized foreign exchange loss on intercompany long-term loans, net of taxes (888 ) (1,177 ) Actuarial gain 451 249 Total accumulated other comprehensive income (loss) $ (1,216 ) $ 3,382 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Tax Provision | Loss from operations before income taxes consists of the following (in thousands): Year ended December 31, 2018 2017 2016 United States $ (19,780 ) $ (50,041 ) $ (53,833 ) International 2,832 (34,666 ) (26,597 ) Loss before income taxes $ (16,948 ) $ (84,707 ) $ (80,430 ) |
Provision for Income Taxes | The components of the benefit from income taxes consist of the following (in thousands): Year ended December 31, 2018 2017 2016 Current: Federal $ (305 ) $ (4,530 ) $ (950 ) State 116 129 181 International 2,958 273 2,738 Deferred: Federal — — (713 ) International 1,318 2,376 (9,372 ) Total provision for (benefit from) income taxes $ 4,087 $ (1,752 ) $ (8,116 ) |
Reconciliation of Provision for Income Taxes | The differences between the provision for (benefit from) income taxes computed at the U.S. federal statutory rate at 21% and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands): Year ended December 31, 2018 2017 2016 Benefit from for income taxes at U.S. Federal statutory rate $ (3,559 ) $ (29,648 ) $ (28,150 ) Differential in rates on foreign earnings 4,299 15,920 11,741 Non-deductible amortization expense — — 617 Tax Reform tax rate reduction — 14,527 — Change in valuation allowance 1,449 (2,834 ) 4,465 Change in liabilities for uncertain tax positions (250 ) (2,009 ) (960 ) Non-deductible stock-based compensation 1,363 1,934 1,480 Permanent Differences 1,096 380 441 Adjustments related to tax positions taken during prior years 184 (473 ) (163 ) Adjustments made under intercompany transactions — — 1,779 Tax refund (305 ) (834 ) — Other (190 ) 1,285 634 Total provision for (benefit from) income taxes $ 4,087 $ (1,752 ) $ (8,116 ) |
Components of Deferred Tax Assets and Liabilities | The components of net deferred tax assets included in the Consolidated Balance Sheets are as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Reserves and accruals $ 17,090 $ 17,247 Net operating loss carryforwards 29,900 34,915 Research and development credit carryforwards 36,446 34,419 Deferred stock-based compensation 2,201 2,677 Intangibles 2,585 2,062 Other 939 1,441 Gross deferred tax assets 89,161 92,761 Valuation allowance (77,144 ) (77,756 ) Gross deferred tax assets after valuation allowance 12,017 15,005 Deferred tax liabilities: Depreciation and amortization (391 ) (259 ) Convertible notes (2,931 ) (4,284 ) Gross deferred tax liabilities (3,322 ) (4,543 ) Net deferred tax assets $ 8,695 $ 10,462 |
Activities Related to Valuation Allowance | The following table summarizes the activities related to the Company’s valuation allowance (in thousands): Year ended December 31, 2018 2017 2016 Balance at beginning of period $ 77,756 $ 74,480 $ 64,545 Additions 928 9,028 18,291 Deductions (1,540 ) (5,752 ) (8,356 ) Balance at end of period $ 77,144 $ 77,756 $ 74,480 |
Activities Related to Gross Unrecognized Tax Benefits | The following table summarizes the activities related to the Company’s gross unrecognized tax benefits (in millions): Year ended December 31, 2018 2017 2016 Balance at beginning of period $ 18.8 $ 19.2 $ 15.6 Increase in balance related to tax positions taken during current year 1.0 1.4 4.6 Decrease in balance as a result of a lapse of the applicable statues of limitations (0.1 ) (2.2 ) (1.0 ) Decrease in balance due to settlement with tax authorities (1.6 ) — — Increase in balance related to tax positions taken during prior years 0.2 1.8 — Decrease in balance related to tax positions taken during prior years (0.3 ) (1.4 ) — Balance at end of period $ 18.0 $ 18.8 $ 19.2 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Numerator: Net loss $ (21,035 ) $ (82,955 ) $ (72,314 ) Denominator: Weighted average number of shares outstanding: Basic and diluted 85,615 80,974 77,705 Net loss per share: Basic and diluted $ (0.25 ) $ (1.02 ) $ (0.93 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands): December 31, 2018 2017 2016 Stock options 3,327 4,470 5,295 Restricted stock units 2,997 3,059 2,536 Stock purchase rights under the ESPP 609 620 659 Warrants (1) 1,268 782 206 Total (2) 8,201 8,931 8,696 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Product Type | The following table provides summary financial information by reportable segment (in thousands): Year ended December 31, 2018 2017 (1) 2016 Video Revenue $ 313,828 $ 319,473 $ 351,489 Gross profit 178,170 173,414 194,044 Operating income (loss) 26,170 (2,024 ) 11,963 Cable Access Revenue $ 89,730 $ 38,773 $ 54,422 Gross profit 39,029 8,892 21,174 Operating loss (1,756 ) (23,154 ) (12,131 ) Total Revenue $ 403,558 $ 358,246 $ 405,911 Gross profit 217,199 182,306 215,218 Operating income (loss) 24,414 (25,178 ) (168 ) (1) The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands): Year ended December 31, 2018 2017 (1) 2016 (1) Total segment operating income (loss) $ 24,414 $ (25,178 ) $ (168 ) Unallocated corporate expenses (1) (3,769 ) (20,767 ) (38,972 ) Stock-based compensation (17,289 ) (16,610 ) (13,060 ) Amortization of intangibles (8,367 ) (8,322 ) (14,836 ) Consolidated loss from operations (5,011 ) (70,877 ) (67,036 ) Non-operating expense, net (11,937 ) (13,830 ) (13,394 ) Loss before income taxes $ (16,948 ) $ (84,707 ) $ (80,430 ) (1) For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million , respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Summary of Revenue, Property and Equipment, Net by Geographic Region | The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands): Year ended December 31, 2018 2017 2016 Net revenue (1) : United States $ 181,965 $ 131,773 $ 171,016 Other countries 221,593 226,473 234,895 Total $ 403,558 $ 358,246 $ 405,911 (1) Revenue is attributed to countries based on the location of the customer. Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2018, 2017 and 2016. |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As of December 31, 2018 2017 Property and equipment, net: United States $ 10,376 $ 13,786 Israel 6,975 8,904 France 3,519 4,573 Other countries 1,451 2,002 Total $ 22,321 $ 29,265 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Noncancelable Operating Leases | Future minimum lease payments under non-cancellable operating leases at December 31, 2018 , are as follows (in thousands): Operating Leases Year ending December 31, 2019 $ 13,515 2020 10,139 2021 4,088 2022 2,523 2023 2,220 Thereafter 6,694 Total minimum payments $ 39,179 |
Summary of Warranty Accrual Included in Accrued Liabilities | Activities for the Company’s warranty accrual for each fiscal year, which is included in accrued and other current liabilities, is summarized below (in thousands): 2018 2017 2016 Balance at beginning of period $ 4,381 $ 4,862 $ 3,913 Accrual for current period warranties 6,612 5,117 5,482 Balance assumed from TVN acquisition — — 1,012 Warranty costs incurred (6,124 ) (5,598 ) (5,545 ) Balance at end of period $ 4,869 $ 4,381 $ 4,862 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Data | The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2018 . In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data. Fiscal 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (In thousands, except per share amounts) Quarterly Data: Net revenue $ 90,127 $ 99,160 $ 100,616 $ 113,655 Gross profit (2) 47,183 51,603 50,102 60,321 Net income (loss) (1) (3) (4) (13,694 ) (2,913 ) (7,758 ) 3,330 Net income (loss) per share: Basic and diluted $ (0.16 ) $ (0.03 ) $ (0.09 ) $ 0.04 Shares used in per share calculations: Basic 83,912 85,304 86,321 86,846 Diluted 83,912 85,304 86,321 89,028 Fiscal 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (In thousands, except per share amounts) Quarterly Data: Net revenue $ 82,943 $ 82,315 $ 92,014 $ 100,974 Gross profit (2) 40,408 33,815 47,025 48,572 Net loss (1) (4) (24,027 ) (31,500 ) (15,583 ) (11,516 ) Net loss per share: Basic and diluted $ (0.30 ) $ (0.39 ) $ (0.19 ) $ (0.14 ) Shares used in per share calculations: Basic and diluted 79,810 80,590 81,445 82,014 (1) In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million , $0.5 million , $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018. (2) Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017. (3) During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management. (4) During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries. |
Description of Business (Detail
Description of Business (Details) - segment | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 2 | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2017USD ($) | Dec. 31, 2014segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)CustomerReportingUnitsegment | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | Sep. 29, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2015USD ($) |
Cash and cash equivalents maximum maturity | 3 months | 3 months | 3 months | ||||||||
Restricted Cash | $ 0 | $ 1,700,000 | |||||||||
Restricted cash included in prepaid expenses and other current assets | 0 | 530,000 | $ 732,000 | ||||||||
Cost Method Investments | 3,593,000 | 3,593,000 | |||||||||
Cash and cash equivalents | 65,989,000 | 57,024,000 | 55,635,000 | ||||||||
Accounts receivable, net | 81,795,000 | 69,844,000 | |||||||||
Debt Instrument, Face Amount | $ 128,250,000 | 128,250,000 | $ 128,250,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||||||||
Debt and Capital Lease Obligations | $ 19,859,000 | 22,946,000 | |||||||||
Capitalized Software Development Costs for Software Sold to Customers | 900,000 | 1,100,000 | |||||||||
Goodwill | $ 240,618,000 | 242,827,000 | 237,279,000 | ||||||||
Number of reporting units | ReportingUnit | 2 | ||||||||||
Goodwill, Impairment Loss | $ 0 | 0 | 0 | ||||||||
Research and Development Expense | 89,163,000 | 95,978,000 | 98,401,000 | ||||||||
Advertising expense | $ 1,000,000 | $ 700,000 | 1,400,000 | ||||||||
Net Accumulated Gain or Loss as a Percentage of Projected Plan Benefit Obligation | 10.00% | 10.00% | |||||||||
More Likely Than Not Threshold Recognition of Uncertain Tax Position | 50.00% | ||||||||||
Number of reportable segments | segment | 2 | 2 | |||||||||
Retained Earnings (Accumulated Deficit) | $ (2,067,416,000) | $ (2,057,812,000) | |||||||||
Capitalized Contract Cost, Net | 1,600,000 | ||||||||||
Capitalized Contract Cost, Amortization | 1,300,000 | ||||||||||
Contract with Customer, Liability, Revenue Recognized | 46,900,000 | ||||||||||
Short-term investments | 0 | 0 | |||||||||
Impairment of Intangible Assets, Finite-lived | 0 | ||||||||||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | $ 0 | 0 | ||||||||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | ||||||||||
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | ||||||||||
Revenue, Practical Expedient, Financing Component [true false] | true | ||||||||||
Lease, Practical Expedients, Package [true false] | true | ||||||||||
Discount rate | 1.70% | 1.50% | |||||||||
Defined Benefit Plan, Benefit Obligation | $ 4,881,000 | $ 5,033,000 | 4,264,000 | ||||||||
Deferred Tax Assets, Net | 8,695,000 | 10,462,000 | |||||||||
Deferred Tax Assets, Valuation Allowance | $ 77,144,000 | $ 77,756,000 | 74,480,000 | $ 64,545,000 | |||||||
Minimum [Member] | |||||||||||
Capitalized Contract Cost, Amortization Period | 1 year | ||||||||||
Maximum [Member] | |||||||||||
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year | ||||||||||
Revenue, Financing Payment Term | 1 year | ||||||||||
Furniture and Fixtures [Member] | |||||||||||
Property, plant and equipment estimated useful life | 5 years | ||||||||||
Internal Use Software [Member] | |||||||||||
Property, plant and equipment estimated useful life | 3 years | ||||||||||
Machinery and Equipment [Member] | |||||||||||
Property, plant and equipment estimated useful life | 4 years | ||||||||||
Leasehold Improvements [Member] | |||||||||||
Property, plant and equipment leasehold improvements useful lives | shorter of the remaining useful lives of the assets or the lease term of the respective assets | ||||||||||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||||||||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 0 | ||||||||||
Forward Contracts [Member] | |||||||||||
Derivative, Term of Contract | 12 months | ||||||||||
Software [Member] | |||||||||||
Property, plant and equipment estimated useful life | 3 years | ||||||||||
Accounts Receivable [Member] | |||||||||||
Number of significant customers for accounts receivable | Customer | 2 | 0 | |||||||||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 10.00% | 10.00% | |||||||||
Net Revenue [Member] | |||||||||||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 10.00% | 10.00% | |||||||||
TVN [Member] | |||||||||||
Goodwill | 41,670,000 | ||||||||||
R&D Tax Credits | $ 5,900,000 | $ 5,900,000 | 6,100,000 | ||||||||
Other Expense [Member] | |||||||||||
Remeasurement Losses, Reporting Currency Denominated, Value | 600,000 | 2,200,000 | 200,000 | ||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||||
Capitalized Contract Cost, Net | 1,100,000 | ||||||||||
Other Assets [Member] | |||||||||||
Restricted Cash and Investments, Noncurrent | 1,200,000 | ||||||||||
Other long-term assets[Member] | |||||||||||
Capitalized Contract Cost, Net | 500,000 | ||||||||||
Accounting Standards Update 2016-18 [Member] | |||||||||||
Restricted Cash | 0 | $ 1,700,000 | $ 1,800,000 | ||||||||
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 0 | ||||||||||
Accounting Standards Update 2016-09 [Member] | Deferred Tax Assets Gross [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 4,600,000 | ||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||
Accounts receivable, net | $ 71,625,000 | ||||||||||
Accounting Standards Update 2016-16 [Member] | |||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | 1,434,000 | ||||||||||
Deferred Tax Assets, Net | $ 1,100,000 | ||||||||||
Deferred Tax Assets, Valuation Allowance | 2,100,000 | ||||||||||
Deferred Tax Assets, Tax Deferred Expense | $ 300,000 | ||||||||||
Accounting Standards Update 2017-01 [Member] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||||||||||
Silicon Valley Bank [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 15,000,000 | $ 15,000,000 | |||||||||
Cash Flow Hedging [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||||||||||
Derivative, Term of Contract | 12 months | ||||||||||
Sales Commission Contract Costs [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||
Retained Earnings (Accumulated Deficit) | $ 1,400,000 | ||||||||||
Practical Expedient, Expense As Incurred [Member] | Maximum [Member] | |||||||||||
Capitalized Contract Cost, Amortization Period | 1 year | ||||||||||
Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09 [Member] | |||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 69,000 | ||||||||||
Scenario, Forecast [Member] | |||||||||||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 0 | ||||||||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | |||||||||||
Operating Lease, Right-of-Use Asset | $ 23,000,000 | ||||||||||
Operating Lease, Liability | $ 23,000,000 | ||||||||||
Customer Concentration Risk [Member] | Net Revenue [Member] | Comcast [Member] | |||||||||||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 15.00% | ||||||||||
Number Of Customers Accounting For More Than Ten Percent of Revenue | Customer | 1 | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue from Contracts with Customers Beginning Balance Sheet Impact (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 81,795 | $ 69,844 | ||
Prepaid expenses and other current assets | 23,280 | 18,931 | ||
Other long-term assets | 38,377 | 42,913 | ||
Deferred revenue | 41,592 | 52,429 | ||
Other non-current liabilities | 18,228 | 22,626 | ||
Accumulated deficit | (2,067,416) | (2,057,812) | ||
Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 71,625 | |||
Prepaid expenses and other current assets | 22,509 | |||
Other long-term assets | 43,686 | |||
Deferred revenue | 47,603 | |||
Other non-current liabilities | 22,153 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | 1,841 | 1,781 | ||
Prepaid expenses and other current assets | 4,213 | 3,578 | ||
Other long-term assets | 505 | 773 | ||
Deferred revenue | (5,525) | (4,826) | ||
Other non-current liabilities | (306) | (473) | ||
Accumulated deficit | 12,390 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | 79,954 | |||
Prepaid expenses and other current assets | 19,067 | |||
Other long-term assets | 37,872 | |||
Deferred revenue | 47,117 | |||
Other non-current liabilities | 18,534 | |||
Accumulated deficit | (2,079,806) | |||
Retained Earnings [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | $ (2,067,416) | $ (2,057,812) | ||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | (2,046,381) | |||
Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | [1] | $ 11,431 | ||
[1] | See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue from Contracts with Customers, Financial Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Total net revenue | $ 113,655 | $ 100,616 | $ 99,160 | $ 90,127 | $ 100,974 | $ 92,014 | $ 82,315 | $ 82,943 | $ 403,558 | [1] | $ 358,246 | [1] | $ 405,911 | [1] | ||||||||||
Cost of revenue | 194,349 | 188,426 | 205,161 | |||||||||||||||||||||
Gross profit | 60,321 | [2] | 50,102 | [2] | 51,603 | [2] | 47,183 | [2] | 48,572 | [2] | 47,025 | [2] | 33,815 | [2] | 40,408 | [2] | 209,209 | 169,820 | 200,750 | |||||
Selling, general and administrative | 118,952 | 136,270 | 144,381 | |||||||||||||||||||||
Operating Income (Loss) | (5,011) | (70,877) | [3] | (67,036) | [3] | |||||||||||||||||||
Loss before income taxes | (16,948) | (84,707) | [3] | (80,430) | [3] | |||||||||||||||||||
Net loss | 3,330 | [4],[5],[6] | $ (7,758) | [4],[5],[6] | $ (2,913) | [4],[5],[6] | $ (13,694) | [4],[5],[6] | (11,516) | [5],[6] | $ (15,583) | [5],[6] | $ (31,500) | [5],[6] | $ (24,027) | [5],[6] | (21,035) | (82,955) | (72,314) | |||||
Accounts receivable, net | 81,795 | 69,844 | 81,795 | 69,844 | ||||||||||||||||||||
Prepaid expenses and other current assets | 23,280 | 18,931 | 23,280 | 18,931 | ||||||||||||||||||||
Other long-term assets | 38,377 | 42,913 | 38,377 | 42,913 | ||||||||||||||||||||
Deferred revenue | 41,592 | 52,429 | 41,592 | 52,429 | ||||||||||||||||||||
Other non-current liabilities | 18,228 | 22,626 | 18,228 | 22,626 | ||||||||||||||||||||
Accumulated deficit | (2,067,416) | (2,057,812) | (2,067,416) | (2,057,812) | ||||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Accounts receivable, net | $ 71,625 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 22,509 | |||||||||||||||||||||||
Other long-term assets | 43,686 | |||||||||||||||||||||||
Deferred revenue | 47,603 | |||||||||||||||||||||||
Other non-current liabilities | 22,153 | |||||||||||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Total net revenue | 402,550 | |||||||||||||||||||||||
Cost of revenue | 194,101 | |||||||||||||||||||||||
Gross profit | 208,449 | |||||||||||||||||||||||
Selling, general and administrative | 119,151 | |||||||||||||||||||||||
Operating Income (Loss) | (5,970) | |||||||||||||||||||||||
Loss before income taxes | (17,907) | |||||||||||||||||||||||
Net loss | (21,994) | |||||||||||||||||||||||
Accounts receivable, net | 79,954 | 79,954 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 19,067 | 19,067 | ||||||||||||||||||||||
Other long-term assets | 37,872 | 37,872 | ||||||||||||||||||||||
Deferred revenue | 47,117 | 47,117 | ||||||||||||||||||||||
Other non-current liabilities | 18,534 | 18,534 | ||||||||||||||||||||||
Accumulated deficit | (2,079,806) | (2,079,806) | ||||||||||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Total net revenue | 1,008 | |||||||||||||||||||||||
Cost of revenue | 248 | |||||||||||||||||||||||
Gross profit | 760 | |||||||||||||||||||||||
Selling, general and administrative | (199) | |||||||||||||||||||||||
Operating Income (Loss) | 959 | |||||||||||||||||||||||
Loss before income taxes | 959 | |||||||||||||||||||||||
Net loss | 959 | |||||||||||||||||||||||
Accounts receivable, net | 1,841 | 1,841 | 1,781 | |||||||||||||||||||||
Prepaid expenses and other current assets | 4,213 | 4,213 | 3,578 | |||||||||||||||||||||
Other long-term assets | 505 | 505 | 773 | |||||||||||||||||||||
Deferred revenue | (5,525) | (5,525) | (4,826) | |||||||||||||||||||||
Other non-current liabilities | (306) | (306) | (473) | |||||||||||||||||||||
Accumulated deficit | 12,390 | 12,390 | ||||||||||||||||||||||
Retained Earnings [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Net loss | (21,035) | (82,955) | $ (72,314) | |||||||||||||||||||||
Accumulated deficit | $ (2,067,416) | $ (2,057,812) | $ (2,067,416) | $ (2,057,812) | ||||||||||||||||||||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Accumulated deficit | (2,046,381) | |||||||||||||||||||||||
Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||
Accumulated deficit | [7] | $ 11,431 | ||||||||||||||||||||||
[1] | Revenue is attributed to countries based on the location of the customer. | |||||||||||||||||||||||
[2] | Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017. | |||||||||||||||||||||||
[3] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. | |||||||||||||||||||||||
[4] | During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management. | |||||||||||||||||||||||
[5] | During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries. | |||||||||||||||||||||||
[6] | In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018. | |||||||||||||||||||||||
[7] | See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board. |
Investments in Other Equity S_2
Investments in Other Equity Securities (Details) - EDC [Member] $ in Millions | Oct. 22, 2014USD ($) |
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31) | |
Noncontrolling Interest, Ownership Percentage by Parent | 18.40% |
Cost Method Investments, Original Cost | $ 3.5 |
Derivative and Hedging Activi_3
Derivative and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | $ 0 | $ 0 |
Compensating Balance, Amount | $ 1,000 | $ 1,000 | |
Fair Value Hedging [Member] | Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative, Term of Contract | 3 months |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Gain Loss in Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain, net arising during the period | $ 0 | $ 0 | $ 202 | |
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | [1] | 0 | 0 | (44) |
Cost of revenue [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | [1] | 0 | 0 | (6) |
Operating expense [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | [1] | 0 | 0 | (38) |
Other Nonoperating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing | [1] | 0 | 0 | (63) |
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recorded in other expense, net | (2,325) | 155 | 343 | |
Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain, net arising during the period | [1] | $ 0 | $ 0 | $ 202 |
[1] | The Company did not enter into any new cash flow hedge contracts since December 31, 2016. |
Derivative and Hedging Activi_5
Derivative and Hedging Activities - Notional Values (Details) - Foreign Exchange Forward [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase | $ 28,975 | $ 12,875 |
Short [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Sell | $ 0 | $ 1,509 |
Derivative and Hedging Activi_6
Derivative and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 0 | $ 33 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 333 | 4 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 33 |
Accrued Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 333 | $ 4 |
Derivative and Hedging Activi_7
Derivative and Hedging Activities - Offsetting of Derivative Assets and Liabiltiies (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Derivative [Line Items] | |
Derivative Asset, Fair Value, Gross Asset | $ 0 |
Derivative Asset, Fair Value, Gross Liability | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 |
Derivative Liability, Fair Value, Gross Liability | 333 |
Derivative Liability, Fair Value, Gross Asset | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 333 |
Fair Value Measurements Additio
Fair Value Measurements Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 4,881 | $ 5,033 | $ 4,264 |
Assets, Fair Value Disclosure | 55 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 333 | 4 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible Debt, Fair Value Disclosures | 136,500 | 129,900 | |
Other Debts, excluding capital leases | 19,700 | 21,800 | |
Assets, Fair Value Disclosure | 33 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 333 | 4 | |
TVN Voluntary Departure Plan [Member] | TVN [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Postemployment Benefits Liability | 2,400 | 5,100 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | $ 55 | |
Total liabilities measured and recorded at fair value | $ 333 | 4 |
Cash equivalents [Member] | Money market funds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 22 | |
Prepaid Expenses and Other Current Assets [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 33 | |
Accrued and Other Current Liabilities [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total liabilities measured and recorded at fair value | 333 | 4 |
Level 1 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 22 | |
Total liabilities measured and recorded at fair value | 0 | 0 |
Level 1 [Member] | Cash equivalents [Member] | Money market funds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 22 | |
Level 1 [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 0 | |
Level 1 [Member] | Accrued and Other Current Liabilities [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total liabilities measured and recorded at fair value | 0 | 0 |
Level 2 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 33 | |
Total liabilities measured and recorded at fair value | 333 | 4 |
Level 2 [Member] | Cash equivalents [Member] | Money market funds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 0 | |
Level 2 [Member] | Prepaid Expenses and Other Current Assets [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 33 | |
Level 2 [Member] | Accrued and Other Current Liabilities [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total liabilities measured and recorded at fair value | 333 | 4 |
Level 3 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total liabilities measured and recorded at fair value | 0 | 0 |
Level 3 [Member] | Accrued and Other Current Liabilities [Member] | Foreign exchange forward contracts [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total liabilities measured and recorded at fair value | $ 0 | $ 0 |
Business Acquisition Narratives
Business Acquisition Narratives (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 237,279 | $ 240,618 | $ 242,827 | |
TVN [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase consideration | $ 82,500 | 82,512 | ||
Goodwill | $ 41,670 |
Business Acquisition - Prelimin
Business Acquisition - Preliminary allocation of the estimated purchase consideration (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Goodwill | $ 237,279 | $ 240,618 | $ 242,827 | ||
TVN [Member] | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Cash and cash equivalents | 6,843 | ||||
Accounts receivable, net | 14,933 | ||||
Inventories | 3,462 | ||||
Prepaid expenses and other current assets | 2,412 | ||||
Property and equipment, net | 9,942 | ||||
French R&D tax credit receivables (1) | [1] | 26,421 | |||
Other long-term assets | 2,134 | ||||
Total assets | 66,147 | ||||
Other debts and capital lease obligations, current | 8,362 | ||||
Accounts payable | 12,494 | ||||
Deferred revenue | 2,504 | ||||
Accrued and other current liabilities | 18,365 | ||||
Other debts and capital lease obligations, long-term | 16,087 | ||||
Other non-current liabilities | 6,467 | ||||
Deferred tax liabilities | 2,126 | ||||
Total liabilities | 66,405 | ||||
Goodwill | 41,670 | ||||
Intangibles | 41,100 | ||||
Total purchase consideration | $ 82,500 | $ 82,512 | |||
[1] | See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables. |
Business Acquisition, Intangibl
Business Acquisition, Intangible Assets Useful Lives (Details) - TVN [Member] $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangibles | $ 41,100 |
Order or Production Backlog [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 months |
Intangibles | $ 3,600 |
Developed Technology Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Intangibles | $ 21,700 |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Intangibles | $ 15,200 |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Intangibles | $ 600 |
Business Acquisition - Acquisit
Business Acquisition - Acquisition and Integration Expenses (Details) - TVN [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Cost of Goods, Product Line [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Integration Related Costs | [1] | $ 342 | $ 1,049 |
Business Combination, Acquisition Related Costs | 0 | ||
Research and Development Expense [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Integration Related Costs | [1] | 7 | 974 |
Business Combination, Acquisition Related Costs | 0 | ||
Selling, General and Administrative Expenses [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Integration Related Costs | [1] | 2,469 | 11,058 |
Business Combination, Acquisition Related Costs | 3,855 | ||
Operating expense [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Integration Related Costs | [1] | $ 2,818 | 13,081 |
Business Combination, Acquisition Related Costs | $ 3,855 | ||
[1] | Integration-related costs include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. All integration efforts were completed by 2017 and the Company does not expect any more such expenses to continue after 2017. |
Goodwill and Identified Intan_3
Goodwill and Identified Intangible Assets Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)ReportingUnit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnit | 2 | ||
Goodwill, Impairment Loss | $ | $ 0 | $ 0 | $ 0 |
Goodwill and Identified Intan_4
Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Balance at beginning of period | $ 242,827 | $ 237,279 |
Foreign currency translation adjustment | (2,209) | 5,548 |
Balance at end of period | 240,618 | 242,827 |
Video [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of period | 182,012 | 176,519 |
Foreign currency translation adjustment | (2,173) | 5,493 |
Balance at end of period | 179,839 | 182,012 |
Cable Edge [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of period | 60,815 | 60,760 |
Foreign currency translation adjustment | (36) | 55 |
Balance at end of period | $ 60,779 | $ 60,815 |
Goodwill and Identified Intan_5
Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 85,592 | $ 85,857 |
Accumulated Amortization | (72,775) | (64,578) |
Total future amortization expense | $ 12,817 | 21,279 |
Developed core technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 2 months 12 days | |
Gross Carrying Amount | $ 31,707 | 31,707 |
Accumulated Amortization | (25,576) | (20,396) |
Total future amortization expense | $ 6,131 | 11,311 |
Customer relationships/contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 2 months 12 days | |
Gross Carrying Amount | $ 44,650 | 44,819 |
Accumulated Amortization | (38,146) | (35,205) |
Total future amortization expense | $ 6,504 | 9,614 |
Trademarks and tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 2 months 12 days | |
Gross Carrying Amount | $ 623 | 654 |
Accumulated Amortization | (441) | (300) |
Total future amortization expense | 182 | 354 |
Maintenance agreements and related relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,500 | 5,500 |
Accumulated Amortization | (5,500) | (5,500) |
Total future amortization expense | 0 | 0 |
Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,112 | 3,177 |
Accumulated Amortization | (3,112) | (3,177) |
Total future amortization expense | $ 0 | $ 0 |
Goodwill and Identified Intan_6
Goodwill and Identified Intangible Assets - Allocation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense for identified intangibles | $ 3,187 | $ 3,142 | $ 10,402 | ||
Amortization | 8,367 | 8,322 | [1] | 14,836 | [1] |
Cost of revenue [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense for identified intangibles | 5,180 | 5,180 | 4,434 | ||
Operating expense [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense for identified intangibles | $ 3,187 | $ 3,142 | $ 10,402 | ||
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Estimated Future Amortized Intangible Expense by Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
2,019 | $ 8,338 | |
2,020 | 3,979 | |
2,021 | 500 | |
Total future amortization expense | 12,817 | $ 21,279 |
Cost of Sales [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
2,019 | 5,180 | |
2,020 | 951 | |
2,021 | 0 | |
Total future amortization expense | 6,131 | |
Operating expense [Member] | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
2,019 | 3,158 | |
2,020 | 3,028 | |
2,021 | 500 | |
Total future amortization expense | $ 6,686 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net of Allowances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Accounts receivable | $ 85,292 | $ 74,475 |
Less: allowance for doubtful accounts and sales returns | (3,497) | (4,631) |
Accounts Receivable, Net, Current, Total | $ 81,795 | $ 69,844 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Activity in Allowances for Doubtful Accounts, Returns and Discounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Balance at Beginning of Period | $ 4,631 | $ 4,831 | $ 4,340 |
Charges to Revenue | 1,949 | 4,030 | 1,488 |
Charges (Credits) to Expense | 572 | 881 | 1,100 |
Additions to (Deductions from) Reserves | (3,655) | (5,111) | (2,097) |
Balance at End of Period | $ 3,497 | $ 4,631 | $ 4,831 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Raw materials | $ 1,705 | $ 2,881 |
Work-in-process | 991 | 933 |
Finished goods | 12,267 | 10,130 |
Service-related spares | 10,675 | 12,032 |
Inventories | $ 25,638 | $ 25,976 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
French R&D tax credits receivable (1) | [1] | $ 7,305 | $ 6,609 | |
Contract assets (2) | [2] | 3,834 | ||
Deferred cost of revenue | 3,671 | 4,440 | ||
Prepaid maintenance, royalty, rent, property taxes and VAT | 3,497 | 3,867 | ||
Capitalized commission | 1,098 | |||
Restricted cash | 0 | 530 | $ 732 | |
Other | 3,875 | 3,485 | ||
Prepaid Expense and Other Assets, Total | $ 23,280 | $ 18,931 | ||
[1] | The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017, the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets. | |||
[2] | Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Income Taxes Receivable, Noncurrent | $ 19,249 | $ 22,322 | ||
Income Taxes Receivable, Current | [1] | 7,305 | 6,609 | |
Restricted Cash, Noncurrent | 0 | 1,203 | $ 1,053 | |
TVN [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Income Tax Refunds | 6,400 | $ 6,400 | ||
Research Tax Credit Carryforward [Member] | TVN [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Income Taxes Receivable, Noncurrent | 26,500 | |||
Other Noncurrent Assets [Member] | Research Tax Credit Carryforward [Member] | TVN [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Income Taxes Receivable, Noncurrent | $ 19,200 | |||
[1] | The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017, the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets. |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 128,790 | $ 143,845 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (106,469) | (114,580) |
Property, Plant and Equipment, Net | 22,321 | 29,265 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 75,094 | 87,121 |
Capitalized software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 32,696 | 35,139 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 14,951 | 15,051 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,049 | $ 6,534 |
Certain Balance Sheet Compone_7
Certain Balance Sheet Components - Other long-term assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
French R&D tax credits receivable | $ 19,249 | $ 22,322 |
Deferred tax assets | 8,695 | 10,462 |
Equity investment | 3,593 | 3,593 |
Other | 6,840 | 6,536 |
Other long-term assets, Total | $ 38,377 | $ 42,913 |
Certain Balance Sheet Compone_8
Certain Balance Sheet Components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and related expenses | $ 21,451 | $ 16,414 | |
Accrued warranty | 4,869 | 4,381 | |
Customer deposits | 4,642 | 5,020 | |
Contingent inventory reserves | 2,500 | 3,806 | |
Accrued TVN VDP, current (1) | [1] | 1,585 | 3,186 |
Accrued royalty payments | 1,998 | 2,195 | |
Accrued Avid litigation settlement fees, current | 1,500 | ||
Other | 14,216 | 13,703 | |
Total | $ 52,761 | $ 48,705 | |
[1] | See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities. |
Restructuring and Excess Faci_3
Restructuring and Excess Facilities - Restructuring and Asset Impairment Charges COS vs OPEX (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | |
Restructuring and Related Activities [Abstract] | ||||
Cost of revenue | $ 857 | $ 1,279 | $ 3,400 | |
Restructuring and Related Cost | 2,918 | 5,307 | 14,602 | |
Restructuring and related Charges | $ 3,775 | $ 6,586 | $ 18,002 | |
[1] | The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. |
Restructuring and Excess Faci_4
Restructuring and Excess Facilities - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
Aug. 31, 2018USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2018USD ($)Employees | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)Employees | Dec. 31, 2018USD ($) | Aug. 01, 2018USD ($) | Jan. 04, 2016USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain From TVN Pension Curtailment | $ 0 | $ 0 | $ 1,955 | ||||||
Restructuring Reserve, Current | 3,335 | 4,443 | $ 3,335 | ||||||
Restructuring Reserve, Noncurrent | 2,000 | 3,600 | 2,000 | ||||||
Restructuring charges | 3,056 | ||||||||
Payments for Restructuring | 6,675 | ||||||||
Restructuring Reserve | 5,335 | 8,043 | 5,335 | ||||||
Restructuring and Related Cost | 2,918 | 5,307 | 14,602 | [1] | |||||
Adjustments to restructuring provisions | 719 | ||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 317 | 330 | |||||||
Payments of Voluntary Plan Benefit Obligation | 13 | ||||||||
Harmonic 2018 Restructuring Plan [Member] | Severance and benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 2,124 | ||||||||
Payments for Restructuring | 2,052 | ||||||||
Restructuring Reserve | $ 0 | 0 | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 59 | ||||||||
Adjustments to restructuring provisions | $ (116) | ||||||||
Harmonic 2018 Restructuring Plan [Member] | Excess Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 932 | ||||||||
Payments for Restructuring | 203 | ||||||||
Restructuring Reserve | 1,066 | 1,066 | |||||||
Adjustments to restructuring provisions | 5 | ||||||||
Harmonic 2017 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 2,500 | ||||||||
Harmonic 2017 Restructuring Plan [Member] | Severance and benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 2,100 | ||||||||
Payments for Restructuring | 193 | ||||||||
Restructuring Reserve | 0 | 193 | 0 | ||||||
Harmonic 2017 Restructuring Plan [Member] | Excess Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Reserve, Noncurrent | 200 | 200 | |||||||
Restructuring charges | 400 | ||||||||
Payments for Restructuring | 146 | ||||||||
Restructuring Reserve | 317 | 296 | 317 | ||||||
Adjustments to restructuring provisions | 167 | ||||||||
Harmonic 2016 Restructuring Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost | 20,000 | ||||||||
Harmonic 2016 Restructuring Plan [Member] | Excess Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for Restructuring | 1,015 | ||||||||
Restructuring Reserve | 1,543 | 2,426 | 1,543 | ||||||
Restructuring and Related Cost | 2,200 | ||||||||
Adjustments to restructuring provisions | 132 | ||||||||
Harmonic 2016 Restructuring Plan [Member] | Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost | $ 17,800 | ||||||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 118 | ||||||||
Harmonic 2016 Restructuring Plan [Member] | TVN Voluntary Departure Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for Restructuring | 3,066 | ||||||||
Restructuring Reserve | 2,409 | 5,128 | 2,409 | ||||||
Adjustments to restructuring provisions | 531 | ||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 500 | 1,800 | $ 13,100 | ||||||
Payments of Voluntary Plan Benefit Obligation | 13,800 | ||||||||
TVN [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain From TVN Pension Curtailment | 2,000 | ||||||||
TVN [Member] | Cost of revenue [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain From TVN Pension Curtailment | 600 | ||||||||
TVN [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Gain From TVN Pension Curtailment | $ 1,400 | ||||||||
TVN [Member] | TVN Voluntary Departure Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Postemployment Benefits Liability | 2,400 | 5,100 | 2,400 | ||||||
TVN [Member] | Harmonic 2016 Restructuring Plan [Member] | Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 83 | ||||||||
San Jose CA Excess Facility [Member] | Harmonic 2018 Restructuring Plan [Member] | Excess Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 900 | ||||||||
Restructuring Reserve | 1,100 | 1,100 | |||||||
San Jose CA Excess Facility [Member] | Harmonic 2016 Restructuring Plan [Member] | Excess Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 1,400 | ||||||||
Restructuring Reserve | $ 1,500 | $ 1,500 | |||||||
Adjustments to restructuring provisions | $ 1,200 | ||||||||
Other Liabilities, Fair Value Disclosure | $ 1,200 | $ 2,500 | |||||||
Deferred Rent Credit | $ 300 | $ 1,100 | |||||||
[1] | The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. |
Restructuring and Excess Faci_5
Restructuring and Excess Facilities - Schedule of Restructuring Costs By Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 8,043 | |
Charges for current period | 3,056 | |
Adjustments to restructuring provisions | 719 | |
Reclassification of deferred rent | 332 | |
Cash payments | (6,675) | |
Foreign exchange effect | (140) | |
Restructuring Reserve | 5,335 | $ 8,043 |
Harmonic 2017 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges for current period | 2,500 | |
Excess Facilities [Member] | Harmonic 2016 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 2,426 | |
Adjustments to restructuring provisions | 132 | |
Cash payments | (1,015) | |
Restructuring Reserve | 1,543 | 2,426 |
Excess Facilities [Member] | Harmonic 2017 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 296 | |
Charges for current period | 400 | |
Adjustments to restructuring provisions | 167 | |
Cash payments | (146) | |
Restructuring Reserve | 317 | 296 |
Excess Facilities [Member] | Harmonic 2018 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges for current period | 932 | |
Adjustments to restructuring provisions | 5 | |
Reclassification of deferred rent | 332 | |
Cash payments | (203) | |
Restructuring Reserve | 1,066 | |
TVN Voluntary Departure Plan [Member] | Harmonic 2016 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 5,128 | |
Adjustments to restructuring provisions | 531 | |
Cash payments | (3,066) | |
Foreign exchange effect | (184) | |
Restructuring Reserve | 2,409 | 5,128 |
Severance and benefits [Member] | Harmonic 2017 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 193 | |
Charges for current period | 2,100 | |
Cash payments | (193) | |
Restructuring Reserve | 0 | $ 193 |
Severance and benefits [Member] | Harmonic 2018 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges for current period | 2,124 | |
Adjustments to restructuring provisions | (116) | |
Cash payments | (2,052) | |
Foreign exchange effect | 44 | |
Restructuring Reserve | $ 0 |
Convertible Notes and Credit _3
Convertible Notes and Credit Facilities - Additional Information (Detail) | Dec. 14, 2015shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2015USD ($)day$ / shares | Sep. 29, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 128,250,000 | $ 128,250,000 | $ 128,250,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Debt Instrument, Convertible, Conversion Ratio | 173.9978 | ||||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | ||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 5.75 | $ 5.75 | |||||
Stock Repurchased and Retired During Period, Shares | shares | 0 | 0 | 0 | ||||
Debt Issuance Cost | $ 4,100,000 | ||||||
Percentage Of Principal Amount Of Convertible Notes Is Equal To Repurchase Price | 100.00% | ||||||
Loans Payable to Bank | [1] | $ 18,783,000 | $ 20,565,000 | ||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 26,062,000 | 26,062,000 | |||||
Stock price greater or equal 130 percent of Note Conversion Price [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Threshold Trading Days | day | 20 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | day | 30 | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | ||||||
Note price less than 98 percent of stock price times conversion rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Threshold Trading Days | day | 5 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | day | 5 | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 98.00% | ||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | 15,000,000 | $ 15,000,000 | |||||
Outstanding Borrowing Limit Based on Eligible Receivables, Percentage | 85.00% | ||||||
Minimum Net Worth Required for Compliance | 20,000,000 | ||||||
Minimum Liquidity Amount on and after November 1, 2017 | 10,000,000 | ||||||
Letters of Credit Outstanding, Amount | 1,800,000 | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||||
Performance Guarantee [Member] | Foreign Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||||
Privately Negotiated Transactions [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from convertible debt | $ 49,900,000 | ||||||
Stock Repurchased and Retired During Period, Shares | shares | 11,100,000 | ||||||
TVN [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from convertible debt | $ 74,200,000 | ||||||
Income Taxes Receivable | $ 26,500,000 | ||||||
Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.60% | ||||||
Loans Payable to Bank | $ 16,700,000 | 17,700,000 | |||||
Adjusted EURIBOR Rate, Term | 1 month | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.30% | ||||||
Loans Backed By French Government Agencies for R&D Innovation Projects [Member] | TVN [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loans Payable to Bank | $ 2,100,000 | $ 2,900,000 | |||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||
Not Comply with Liquidity Requirement [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||
Comply with Liquidity Requirement [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||||
[1] | Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025. |
Convertible Notes and Credit _4
Convertible Notes and Credit Facilities - Convertible Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Principal amount | $ 128,250 | $ 128,250 | $ 128,250 |
Less: Debt discount, net of amortization | (11,996) | (17,404) | |
Less: Debt issuance costs, net of amortization | (1,446) | (2,098) | |
Carrying amount | $ 114,808 | $ 108,748 | |
Remaining amortization period (years) | 1 year 10 months 28 days | 2 years 10 months 28 days | |
Effective interest rate on liability component | 9.94% | 9.94% | |
Carrying amount of equity component | $ 26,062 | $ 26,062 |
Convertible Notes and Credit _5
Convertible Notes and Credit Facilities - Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 5,130 | $ 5,130 | $ 5,130 |
Amortization of Debt Discount | 5,408 | 4,898 | 4,430 |
Amortization of debt issuance costs | 652 | 591 | 534 |
Total interest expense recognized | $ 11,190 | $ 10,619 | $ 10,094 |
Convertible Notes - Other Debts
Convertible Notes - Other Debts and Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 18,783 | $ 20,565 |
Term loans | 914 | 1,282 | |
Obligations under capital leases | 162 | 1,099 | |
Total debt obligations | 19,859 | 22,946 | |
Less: current portion | (7,175) | (7,610) | |
Long-term portion | $ 12,684 | $ 15,336 | |
[1] | Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025. |
Convertible Notes, Other Debts
Convertible Notes, Other Debts and Capital Leases - Debt Maturities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Capital Lease Obligations 2019 | $ 91 |
Capital lease obligation 2020 | 49 |
Capital Lease Obligations 2021 | 22 |
Capital Lease Obligations 2022 | 0 |
Capital lease obligation 2023 | 0 |
Capital Lease Obligations Thereafter | 0 |
Capital Lease Obligations Total | 162 |
Other debt obligations 2019 | 7,084 |
Other Debt Obligations 2020 | 6,607 |
Other Debt Obligations 2021 | 5,333 |
Other Debt Obligations 2022 | 452 |
Other Debt Obligations 2023 | 155 |
Other Debt Obligations Thereafter | 66 |
Other Debt Obligations Total | $ 19,697 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of options exercised | $ 300,000 | $ 300,000 | $ 100,000 | |||
Allocated Share-based Compensation Expense | 17,289,000 | 16,610,000 | [1] | 13,060,000 | [1] | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 0 | $ 0 | 1,955,000 | |||
Net Accumulated Gain or Loss as a Percentage of Projected Plan Benefit Obligation | 10.00% | 10.00% | ||||
Company discretionary employee match | 25.00% | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |||||
Employer contributions made | $ 300,000 | $ 300,000 | $ 400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Dividends, Share-based Compensation, Cash | $ 0 | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employer contributions made | $ 1,000 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 5.76 | $ 6.04 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 100,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 months 18 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Dividend yield | 0.00% | 0.00% | ||||
Weighted-average fair value per share of option granted | $ 1.85 | $ 0.99 | ||||
Fair value of options vested | $ 700,000 | $ 1,700,000 | $ 2,300,000 | |||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 0 | $ 0 | $ 0 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8,500,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,443,168 | 1,165,685 | 898,533 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,343,168 | 1,165,685 | 610,579 | |||
Allocated Share-based Compensation Expense | $ 6,100,000 | $ 3,200,000 | $ 2,800,000 | |||
Market-based awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 18 months | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 40,000 | 344,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |||||
Allocated Share-based Compensation Expense | $ 200,000 | $ 900,000 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,906,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 3,177,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,403,000 | 2,904,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.97 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 15,600,000 | $ 13,000,000 | $ 9,700,000 | |||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price at which stock options or ESPP may be granted | 85.00% | |||||
Additional shares authorized | 1,300,000 | |||||
Common stock reserved for issuance | 1,282,358 | |||||
ESPP Employee Percentage of Payroll Deductions, Minimum | 1.00% | |||||
ESPP Employee Percentage of Payroll Deductions, Maximum | 10.00% | |||||
Common stock issued under the 2002 ESPP | 1,132,438 | 1,291,875 | 1,265,458 | |||
Stock contributions value under 2002 ESPP | $ 4,000,000 | $ 4,400,000 | $ 3,700,000 | |||
Discount Percentage On Purchase Of Stock | 15.00% | |||||
Value Of Stock Purchase Right Percentage Of Put Option | 15.00% | |||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.33 | $ 1.50 | $ 1.04 | |||
1995 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price at which stock options or ESPP may be granted | 100.00% | |||||
Expiration period | 7 years | |||||
Reduced the number of shares reserved for every unit granted | 1.5 | |||||
Increased number of shares reserved for every unit forfeited | 1.5 | |||||
Common stock reserved for issuance | 9,915,865 | |||||
Shares available for grant | 3,819,736 | |||||
1995 Stock Plan [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
1995 Stock Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
1995 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0 | |||||
2002 Director Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price at which stock options or ESPP may be granted | 100.00% | |||||
Reduced the number of shares reserved for every unit granted | 1.5 | |||||
Increased number of shares reserved for every unit forfeited | 1.5 | |||||
Additional shares authorized | 400,000 | |||||
Common stock reserved for issuance | 947,536 | |||||
Shares available for grant | 643,661 | |||||
2002 Director Plan [Member] | Options and Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Expiration period | 7 years | |||||
2002 Director Plan [Member] | Options and Restricted Stock Units [Member] | Subsequent Grants [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2002 Director Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0 | |||||
TVN [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payment for Pension and Other Postretirement Benefits | $ 0 | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 2,000,000 | |||||
Cost of Sales [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 1,953,000 | $ 2,370,000 | 1,554,000 | |||
Cost of Sales [Member] | TVN [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 600,000 | |||||
Restructuring Charges [Member] | TVN [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 1,400,000 | |||||
Scenario, Forecast [Member] | TVN [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payment for Pension and Other Postretirement Benefits | $ 0 | |||||
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Company's Stock Option (Detail) $ / shares in Units, shares in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Granted | 0 |
Stock Options Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning balance | 3,880 |
Number of Shares, Granted | 0 |
Number of Shares, Options exercised | (239) |
Number of Shares, Forfeited | (35) |
Number of Shares, Canceled or expired | (538) |
Number of Shares, Ending balance | 3,068 |
Weighted Average Exercise Price, Beginning balance | $ / shares | $ 6.04 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Options exercised | $ / shares | 3.79 |
Weighted Average Exercise Price, Forfeited | $ / shares | 4.76 |
Weighted Average Exercise Price, Canceled or Expired | $ / shares | 8.75 |
Weighted Average Exercise Price, Ending balance | $ / shares | $ 5.76 |
Weighted Average Remaining Contractual Term | 2 years 3 months 18 days |
Aggregate Intrinsic Value | $ | $ 1,148,700 |
Vested and expected to vest, number of shares | 3,067 |
Vested and expected to vest, Weighted Average Exercise Price (per share) | $ / shares | $ 5.76 |
Vested and expected to vest, Weighted Average Remaining Contractual Term (years) | 2 years 3 months 18 days |
Vested and Expected to Vest, Aggregate Intrinsic Value | $ | $ 1,147,700 |
Exercisable, Number of shares | 2,994 |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 5.78 |
Exercisable, Weighted Average Remaining Contractual Term (Years) | 2 years 3 months 18 days |
Exercisable, Aggregate Intrinsic Value | $ | $ 1,082,000 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, RSUs outstanding, Beginning Balance | shares | 2,904 |
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Beginning Balance | $ / shares | $ 5.09 |
Number of Shares, Granted RSUs outstanding | shares | 3,906 |
Weighted Average Grant Date Fair Value Per Share, Granted RSUs outstanding | $ / shares | $ 3.97 |
Number of Shares, Vested, RSUs outstanding | shares | (3,177) |
Weighted Average Grant Date Fair Value Per Share, Vested, RSUs outstanding | $ / shares | $ 4.91 |
Number of shares, Forfeited, RSUs outstanding | shares | (230) |
Weighted Average Grant Date Fair Value Per Share, Forfeited, RSUs outstanding | $ / shares | $ 4.89 |
Number of Shares, RSUs outstanding, Ending Balance | shares | 3,403 |
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Ending Balance | $ / shares | $ 3.99 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | $ 4,881 | $ 5,033 | $ 4,881 | $ 5,033 | $ 4,264 |
Service cost | 243 | 259 | |||
Interest cost | 74 | 71 | |||
Actuarial (gains) losses | (202) | (528) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (13) | ||||
Adjustment for prior year balance | 0 | 343 | |||
Foreign currency translation adjustment | (254) | 624 | |||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 4,881 | $ 5,033 | |||
Current portion (presented under “Accrued and other current liabilities”) | 63 | 34 | |||
Long-term portion (presented under “Other non-current liabilities”) | $ 4,818 | $ 4,999 |
Employee Benefit Plans And Stoc
Employee Benefit Plans And Stock-Based Compensation Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Postemployment Benefits [Abstract] | |||
Service cost | $ 243 | $ 259 | |
Interest cost | 74 | 71 | |
Amortization of net actuarial loss (gain) | [1] | 0 | 0 |
Net periodic benefit cost included in operating loss | $ 317 | $ 330 | |
[1] | The Company uses the allowable 10% corridor approach to determine the amount of actuarial gains or losses subject to amortization in pension cost. Gains or losses are amortized on a straight-line basis over the average future remaining service period of active plan participants. |
Employee Benefits - Pension Obl
Employee Benefits - Pension Obligations Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Discount rate | 1.70% | 1.50% |
Mobility rate | 6.00% | 6.00% |
Salary progression rate | 2.00% | 2.00% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefits (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2,019 | $ 63 |
2,020 | 0 |
2,021 | 41 |
2,022 | 80 |
2,023 | 479 |
2024 - 2028 | 2,626 |
Defined Benefit Plan Expected Future Benefit Payments | $ 3,289 |
Employee Benefits Plans - Summa
Employee Benefits Plans - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total employee stock-based compensation recognized in income (loss) from continuing operations | $ 17,289 | $ 16,610 | [1] | $ 13,060 | [1] |
Cost of Sales [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total employee stock-based compensation recognized in income (loss) from continuing operations | 1,953 | 2,370 | 1,554 | ||
Research and Development Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total employee stock-based compensation recognized in income (loss) from continuing operations | 5,192 | 5,313 | 3,711 | ||
Selling General And Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total employee stock-based compensation recognized in income (loss) from continuing operations | 10,144 | 8,927 | 7,795 | ||
Operating expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total employee stock-based compensation recognized in income (loss) from continuing operations | $ 15,336 | $ 14,240 | $ 11,506 | ||
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Employee Benefits Plan - Stock-
Employee Benefits Plan - Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 3 months 18 days | 4 years 3 months 18 days | |
Volatility | 42.00% | 36.00% | |
Risk-free interest rate | 1.80% | 1.40% | |
Dividend yield | 0.00% | 0.00% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Volatility | 55.00% | 48.00% | 70.00% |
Risk-free interest rate | 1.90% | 1.20% | 0.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Preferred stock authorized | 5,000,000 | 5,000,000 | |
Common stock repurchased and retired, shares | 0 | 0 | 0 |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (779) | $ 4,310 |
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes | (888) | (1,177) |
Actuarial gain | 451 | 249 |
Total accumulated other comprehensive loss | $ (1,216) | $ 3,382 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Abstract] | |||||
United States | $ (19,780) | $ (50,041) | $ (53,833) | ||
International | 2,832 | (34,666) | (26,597) | ||
Loss before income taxes | $ (16,948) | $ (84,707) | [1] | $ (80,430) | [1] |
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ (305) | $ (4,530) | $ (950) |
State | 116 | 129 | 181 |
International | 2,958 | 273 | 2,738 |
Deferred: | |||
Federal | 0 | 0 | (713) |
International | 1,318 | 2,376 | (9,372) |
Total provision for (benefit from) income taxes | $ 4,087 | $ (1,752) | $ (8,116) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2015 | ||
Debt Instrument, Face Amount | $ 128,250,000 | $ 128,250,000 | $ 128,250,000 | $ 128,250,000 | $ 128,250,000 | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% | |||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ (1,449,000) | $ 2,834,000 | $ (4,465,000) | |||||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Amount | 305,000 | 834,000 | ||||||||
World Consolidated Loss Before Tax | 16,948,000 | 84,707,000 | [1] | 80,430,000 | [1] | |||||
Income Tax Expense (Benefit) | $ 4,087,000 | $ (1,752,000) | $ (8,116,000) | |||||||
Effective Income Tax Rate Reconciliation, Percent | (24.00%) | 2.00% | 10.00% | |||||||
Deferred Tax Assets, Valuation Allowance | 77,144,000 | 77,756,000 | $ 77,144,000 | $ 77,756,000 | $ 74,480,000 | $ 64,545,000 | ||||
Decrease in balance as a result of a lapse of the applicable statues of limitations | 2,400,000 | 100,000 | 2,200,000 | 1,000,000 | ||||||
Gross unrecognized tax benefits including interest and penalties | 16,600,000 | 16,600,000 | ||||||||
Accrued potential interest related to unrecognized tax benefits | 24,000 | 500,000 | 24,000 | 500,000 | ||||||
Cumulative Undistributed Earnings of non-U.S. subsidiaries intended to be indefinitely reinvested | $ 15,300,000 | $ 15,300,000 | ||||||||
More Likely Than Not Threshold Recognition of Uncertain Tax Position | 50.00% | 50.00% | ||||||||
Deferred Tax Assets, Net | $ 8,695,000 | $ 10,462,000 | $ 8,695,000 | 10,462,000 | ||||||
US Tax Cuts Jobs Act [Member] | AMT credit carryover [Member] | ||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2,600,000 | |||||||||
Foreign [Member] | ||||||||||
Operating Loss Carryforwards | 95,900,000 | 95,900,000 | ||||||||
Federal [Member] | ||||||||||
Operating Loss Carryforwards | 38,000,000 | 38,000,000 | ||||||||
Tax credit carryovers | 13,200,000 | $ 13,200,000 | ||||||||
Year that federal tax credits expire | Jan. 1, 2031 | |||||||||
California Franchise Tax Board [Member] | ||||||||||
Operating Loss Carryforwards | 21,600,000 | $ 21,600,000 | ||||||||
Tax credit carryovers | 34,900,000 | 34,900,000 | ||||||||
State [Member] | ||||||||||
Operating Loss Carryforwards | 48,000,000 | $ 48,000,000 | ||||||||
Tax credit expiration | will not expire | |||||||||
Switzerland [Member] | ||||||||||
Tax savings due to reduction in tax rate | $ 400,000 | $ 600,000 | $ 700,000 | |||||||
Increase in diluted earnings per share | $ 0.005 | $ 0.007 | $ 0.008 | |||||||
Benefits from a tax ruling | 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. | |||||||||
Additional period for renewal for investment and employment in foreign country | effective through the end of 2018 | |||||||||
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward [Member] | ||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 900,000 | |||||||||
Foreign [Member] | ||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (1,000,000) | $ (1,500,000) | ||||||||
Minimum [Member] | Federal [Member] | ||||||||||
Operating loss carryforwards, expiration date | Jan. 1, 2026 | |||||||||
Minimum [Member] | California Franchise Tax Board [Member] | ||||||||||
Operating loss carryforwards, expiration date | Jan. 1, 2026 | |||||||||
Maximum [Member] | Federal [Member] | ||||||||||
Operating loss carryforwards, expiration date | Jan. 1, 2039 | |||||||||
Maximum [Member] | California Franchise Tax Board [Member] | ||||||||||
Operating loss carryforwards, expiration date | Jan. 1, 2039 | |||||||||
US Tax Cuts Jobs Act [Member] | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||||||
One-time transition tax on foreign sourced earnings | $ 0 | |||||||||
Accounting Standards Update 2016-16 [Member] | ||||||||||
Deferred Tax Assets, Valuation Allowance | $ 2,100,000 | |||||||||
Deferred Tax Assets, Tax Deferred Expense | 300,000 | |||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 1,434,000 | |||||||||
Deferred Tax Assets, Net | $ 1,100,000 | |||||||||
Deferred Tax Assets Gross [Member] | Accounting Standards Update 2016-09 [Member] | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 4,600,000 | |||||||||
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 0 | |||||||||
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Benefit from for income taxes at U.S. Federal statutory rate | $ (3,559) | $ (29,648) | $ (28,150) |
Differential in rates on foreign earnings | 4,299 | 15,920 | 11,741 |
Non-deductible amortization expense | 0 | 0 | 617 |
Tax Reform Tax rate reduction | 0 | 14,527 | |
Change in valuation allowance | 1,449 | (2,834) | 4,465 |
Change in liabilities for uncertain tax positions | (250) | (2,009) | (960) |
Non-deductible stock-based compensation | 1,363 | 1,934 | 1,480 |
Permanent Differences | 1,096 | 380 | 441 |
Adjustments related to tax positions taken during prior years | 184 | (473) | (163) |
Adjustments made under intercompany transactions | 0 | 0 | 1,779 |
Tax Refund | (305) | (834) | |
Other | (190) | 1,285 | 634 |
Total provision for (benefit from) income taxes | $ 4,087 | $ (1,752) | $ (8,116) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||||
Reserves and accruals | $ 17,090 | $ 17,247 | ||
Net operating loss carryforwards | 29,900 | 34,915 | ||
Research and development credit carryforwards | 36,446 | 34,419 | ||
Deferred stock-based compensation | 2,201 | 2,677 | ||
Intangibles | 2,585 | 2,062 | ||
Other | 939 | 1,441 | ||
Gross deferred tax assets | 89,161 | 92,761 | ||
Valuation allowance | (77,144) | (77,756) | $ (74,480) | $ (64,545) |
Gross deferred tax assets after valuation allowance | 12,017 | 15,005 | ||
Deferred tax liabilities: | ||||
Depreciation and amortization | (391) | (259) | ||
Convertible notes | (2,931) | (4,284) | ||
Gross deferred tax liabilities | (3,322) | (4,543) | ||
Net deferred tax assets | $ 8,695 | $ 10,462 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Abstract] | |||
Balance at beginning of period | $ 77,756 | $ 74,480 | $ 64,545 |
Additions | 928 | 9,028 | 18,291 |
Deductions | (1,540) | (5,752) | (8,356) |
Balance at end of period | $ 77,144 | $ 77,756 | $ 74,480 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of period | $ 18.8 | $ 19.2 | $ 15.6 | |
Increase in balance related to tax positions taken during current year | 1 | 1.4 | 4.6 | |
Decrease in balance as a result of a lapse of the applicable statues of limitations | $ (2.4) | (0.1) | (2.2) | (1) |
Decrease in balance due to settlement with tax authorities | (1.6) | 0 | 0 | |
Increase in balance related to tax positions taken during prior years | 0.2 | 1.8 | 0 | |
Decrease in balance related to tax positions taken during prior years | (0.3) | (1.4) | 0 | |
Balance at end of period | $ 18.8 | $ 18 | $ 18.8 | $ 19.2 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Numerator: | |||||||||||||||||||
Net loss | $ 3,330 | [1],[2],[3] | $ (7,758) | [1],[2],[3] | $ (2,913) | [1],[2],[3] | $ (13,694) | [1],[2],[3] | $ (11,516) | [2],[3] | $ (15,583) | [2],[3] | $ (31,500) | [2],[3] | $ (24,027) | [2],[3] | $ (21,035) | $ (82,955) | $ (72,314) |
Denominator: | |||||||||||||||||||
Basic and diluted | 82,014 | 81,445 | 80,590 | 79,810 | 85,615 | 80,974 | 77,705 | ||||||||||||
Net loss per share, Basic and diluted | |||||||||||||||||||
Basic and diluted | $ 0.04 | $ (0.09) | $ (0.03) | $ (0.16) | $ (0.14) | $ (0.19) | $ (0.39) | $ (0.30) | $ (0.25) | $ (1.02) | $ (0.93) | ||||||||
[1] | During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management. | ||||||||||||||||||
[2] | During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries. | ||||||||||||||||||
[3] | In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018. |
Net Income (Loss) Per Share Net
Net Income (Loss) Per Share Net Income (Loss) Per Share - Anti Diluted Shares Excluded (Details) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 8,201 | 8,931 | 8,696 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,327 | 4,470 | 5,295 | |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,997 | 3,059 | 2,536 | |
Employee Stock Purchase Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 609 | 620 | 659 | |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [2] | 1,268 | 782 | 206 |
[1] | Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information on the Notes. Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share. | |||
[2] | In 2016, in connection with the execution of a product supply agreement the Company granted Comcast a warrant to purchase shares of its common stock. See Note 16, “Warrants,” for additional information. The warrants will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the warrant exercise price of $4.76 per share. |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 26, 2016 | Dec. 31, 2015 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Potential Common Shares Upon Notes Conversion If Only Settled In Shares | [1] | 8,201,000 | 8,931,000 | 8,696,000 | ||
Debt Instrument, Convertible, Conversion Price | $ 5.75 | $ 5.75 | ||||
Convertible Debt Securities [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Potential Common Shares Upon Notes Conversion If Only Settled In Shares | 22,304,348 | |||||
Comcast Milestones Achievement [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.76 | $ 4.76 | ||||
[1] | Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information on the Notes. Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share. |
Warrants Disclosure (Details)
Warrants Disclosure (Details) $ / shares in Units, $ in Millions | Jul. 31, 2018USD ($)Measurement_Inputshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 26, 2016USD ($)Measurement_Input$ / sharesshares |
Comcast Product Supply Agreement [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Class of Warrant or Right, Outstanding | shares | 781,617 | ||||
Comcast Product Supply Agreement [Member] | Measurement Input, Price Volatility [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.029 | ||||
Comcast Product Supply Agreement [Member] | Measurement Input, Expected Dividend Rate [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 | |||
Comcast Product Supply Agreement [Member] | Measurement Input, Expected Term [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Term | 5 years 2 months 12 days | ||||
Comcast Product Supply Agreement [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.45 | ||||
Comcast Milestones Achievement [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 7,816,162 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 4.76 | $ 4.76 | |||
Comcast Warrant Vesting Tranche September 26, 2016 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding | $ | $ 1.6 | ||||
Comcast Warrant Vesting Tranche September 26, 2016 [Member] | Measurement Input, Price Volatility [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.014 | ||||
Comcast Warrant Vesting Tranche September 26, 2016 [Member] | Measurement Input, Expected Dividend Rate [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||
Comcast Warrant Vesting Tranche September 26, 2016 [Member] | Measurement Input, Expected Term [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Term | 7 years | ||||
Comcast Warrant Vesting Tranche September 26, 2016 [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.42 | ||||
Comcast Warrant Vesting Tranche July 31, 2018 [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Class of Warrant or Right, Outstanding | shares | 1,172,425 | ||||
Class of Warrant or Right, Unissued | shares | 1,172,425 | ||||
Issuance of Stock and Warrants for Services or Claims | $ | $ 2.3 | ||||
Sales Revenue, Goods, Net [Member] | Comcast Product Supply Agreement [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Reduction to Net Revenues in connection with amortization of the Warrant | $ | $ 1.2 | $ 0.2 | $ 0.4 |
Segment Information - Narrative
Segment Information - Narratives (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014segment | Dec. 31, 2018USD ($)Customersegmentcountry | Dec. 31, 2017USD ($)Customercountry | Dec. 31, 2016USD ($)Customercountry | Feb. 29, 2016 | ||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | 2 | ||||
Restructuring and Related Cost | $ 2,918 | $ 5,307 | $ 14,602 | [1] | ||
Sales Revenue, Net [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||||
Number Of Customers Accounting For More Than Ten Percent Of Revenue Other Than Comcast | Customer | 0 | |||||
Customer concentration risk ten percent or more of net revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number Of Customers Accounting For More Than Ten Percent of Revenue | Customer | 0 | 0 | ||||
Non-US [Member] | Sales Revenue, Net [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number Of Countries Accounting For More Than Ten Percent of Non United States Revenue | country | 0 | 0 | 0 | |||
Concentration Risk, Percentage | 10.00% | |||||
Harmonic Two Thousand And Sixteen Restructuring [Member] | Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring and Related Cost | $ 7,900 | $ 32,200 | ||||
Avid Technology Inc. [Member] | Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Litigation Settlement, Expense | 8,000 | |||||
TVN [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Operating expense [Member] | Change in Accounting Method Accounted for as Change in Estimate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 5,900 | |||||
Comcast [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration Risk, Percentage | 15.00% | |||||
Number Of Customers Accounting For More Than Ten Percent of Revenue | Customer | 1 | 0 | ||||
[1] | The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information. |
Segment Information, Geographic
Segment Information, Geographic Information And Customer Concentration Segment Information - Summary Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | $ 113,655 | $ 100,616 | $ 99,160 | $ 90,127 | $ 100,974 | $ 92,014 | $ 82,315 | $ 82,943 | $ 403,558 | [1] | $ 358,246 | [1] | $ 405,911 | [1] | ||||||||
Gross profit | $ 60,321 | [2] | $ 50,102 | [2] | $ 51,603 | [2] | $ 47,183 | [2] | $ 48,572 | [2] | $ 47,025 | [2] | $ 33,815 | [2] | $ 40,408 | [2] | 209,209 | 169,820 | 200,750 | |||
Operating Income (Loss) | (5,011) | (70,877) | [3] | (67,036) | [3] | |||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 403,558 | 358,246 | [4] | 405,911 | ||||||||||||||||||
Gross profit | 217,199 | 182,306 | [4] | 215,218 | ||||||||||||||||||
Operating Income (Loss) | 24,414 | (25,178) | [3],[4] | (168) | [3] | |||||||||||||||||
Operating Segments [Member] | Video [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 313,828 | 319,473 | [4] | 351,489 | ||||||||||||||||||
Gross profit | 178,170 | 173,414 | [4] | 194,044 | ||||||||||||||||||
Operating Income (Loss) | 26,170 | (2,024) | [4] | 11,963 | ||||||||||||||||||
Operating Segments [Member] | Cable Access [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 89,730 | 38,773 | [4] | 54,422 | ||||||||||||||||||
Gross profit | 39,029 | 8,892 | [4] | 21,174 | ||||||||||||||||||
Operating Income (Loss) | $ (1,756) | $ (23,154) | [4] | $ (12,131) | ||||||||||||||||||
[1] | Revenue is attributed to countries based on the location of the customer. | |||||||||||||||||||||
[2] | Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017. | |||||||||||||||||||||
[3] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. | |||||||||||||||||||||
[4] | The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments. |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Unallocated corporate expenses | $ (214,220) | $ (240,697) | $ (267,786) | ||
Stock-based compensation expense | (17,289) | (16,610) | [1] | (13,060) | [1] |
Amortization | (8,367) | (8,322) | [1] | (14,836) | [1] |
Operating Income (Loss) | (5,011) | (70,877) | [1] | (67,036) | [1] |
Non-operating expense, net | (11,937) | (13,830) | [1] | (13,394) | [1] |
Loss before income taxes | (16,948) | (84,707) | [1] | (80,430) | [1] |
Operating Segments [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating Income (Loss) | 24,414 | (25,178) | [1],[2] | (168) | [1] |
Corporate, Non-Segment [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Unallocated corporate expenses | $ (3,769) | $ (20,767) | [1] | $ (38,972) | [1] |
[1] | For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges. | ||||
[2] | The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments. |
Segment Information - Summary o
Segment Information - Summary of Revenue, Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Net revenues: | |||||||||||||||
Revenue | $ 113,655 | $ 100,616 | $ 99,160 | $ 90,127 | $ 100,974 | $ 92,014 | $ 82,315 | $ 82,943 | $ 403,558 | [1] | $ 358,246 | [1] | $ 405,911 | [1] | |
Property and equipment, net: | |||||||||||||||
Property and equipment, net | 22,321 | 29,265 | 22,321 | 29,265 | |||||||||||
United States | |||||||||||||||
Net revenues: | |||||||||||||||
Revenue | [1] | 181,965 | 131,773 | 171,016 | |||||||||||
Property and equipment, net: | |||||||||||||||
Property and equipment, net | 10,376 | 13,786 | 10,376 | 13,786 | |||||||||||
Other countries | |||||||||||||||
Net revenues: | |||||||||||||||
Revenue | [1] | 221,593 | 226,473 | $ 234,895 | |||||||||||
Israel | |||||||||||||||
Property and equipment, net: | |||||||||||||||
Property and equipment, net | 6,975 | 8,904 | 6,975 | 8,904 | |||||||||||
France | |||||||||||||||
Property and equipment, net: | |||||||||||||||
Property and equipment, net | 3,519 | 4,573 | 3,519 | 4,573 | |||||||||||
All countries except United States, Israel and France [Member] [Member] | |||||||||||||||
Property and equipment, net: | |||||||||||||||
Property and equipment, net | $ 1,451 | $ 2,002 | $ 1,451 | $ 2,002 | |||||||||||
[1] | Revenue is attributed to countries based on the location of the customer. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Operating leases, rent expense | $ 10,100,000 | $ 10,200,000 | $ 9,700,000 |
Non-cancelable purchase commitments | 35,900,000 | ||
Indemnification [Member] | |||
Other Commitments [Line Items] | |||
Accrual for indemnification provisions | 0 | ||
ISRAEL | |||
Other Commitments [Line Items] | |||
Royalty expenses | $ 4,200,000 | 5,200,000 | $ 4,100,000 |
Property Subject to Operating Lease [Member] | Maximum [Member] | |||
Other Commitments [Line Items] | |||
Lease Expiration Date | Jun. 29, 2028 | ||
Property Lease Guarantee [Member] | Performance Guarantee [Member] | |||
Other Commitments [Line Items] | |||
Guarantees, Fair Value Disclosure | $ 2,300,000 | 2,700,000 | |
Foreign Line of Credit [Member] | Performance Guarantee [Member] | |||
Other Commitments [Line Items] | |||
Long-term Line of Credit | 2,000,000 | ||
Indemnity issued to secure credit facility | $ 2,200,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 13,515 |
2,020 | 10,139 |
2,021 | 4,088 |
2,022 | 2,523 |
2,023 | 2,220 |
Thereafter | 6,694 |
Total minimum payments | $ 39,179 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Warranty Accrual Included in Accrued Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Balance at beginning of period | $ 4,381 | $ 4,862 | $ 3,913 |
Accrual for current period warranties | 6,612 | 5,117 | 5,482 |
Balance assumed from TVN acquisition | 0 | 0 | 1,012 |
Warranty costs incurred | (6,124) | (5,598) | (5,545) |
Balance at end of period | $ 4,869 | $ 4,381 | $ 4,862 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) $ in Millions | Oct. 24, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 29, 2017USD ($) | Jun. 29, 2012Patents | Oct. 31, 2011Patents |
Avid [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated Litigation Liability | $ 6 | ||||
Payments for Legal Settlements | $ 2.5 | ||||
Settled Litigation Payment Second Quarter of 2019 [Member] | Avid [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated Litigation Liability, Noncurrent | 1.5 | ||||
Settled Litigation Payment Third Quarter of 2020 [Member] | Avid [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated Litigation Liability, Noncurrent | $ 2 | ||||
Media grid [Member] | Avid Technology Inc. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Infringements of number of patents held | Patents | 2 | ||||
Spectrum [Member] | Avid Technology Inc. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Infringements of number of patents held | Patents | 1 | ||||
Selling, General and Administrative Expenses [Member] | Avid [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Expense | $ 6 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||
Revenue | $ 113,655 | $ 100,616 | $ 99,160 | $ 90,127 | $ 100,974 | $ 92,014 | $ 82,315 | $ 82,943 | $ 403,558 | [1] | $ 358,246 | [1] | $ 405,911 | [1] | ||||||||
Gross profit | 60,321 | [2] | 50,102 | [2] | 51,603 | [2] | 47,183 | [2] | 48,572 | [2] | 47,025 | [2] | 33,815 | [2] | 40,408 | [2] | 209,209 | 169,820 | 200,750 | |||
Net loss | $ 3,330 | [3],[4],[5] | $ (7,758) | [3],[4],[5] | $ (2,913) | [3],[4],[5] | $ (13,694) | [3],[4],[5] | $ (11,516) | [4],[5] | $ (15,583) | [4],[5] | $ (31,500) | [4],[5] | $ (24,027) | [4],[5] | $ (21,035) | $ (82,955) | $ (72,314) | |||
Basic net income (loss) per share from: | ||||||||||||||||||||||
Basic and diluted | $ 0.04 | $ (0.09) | $ (0.03) | $ (0.16) | $ (0.14) | $ (0.19) | $ (0.39) | $ (0.30) | $ (0.25) | $ (1.02) | $ (0.93) | |||||||||||
Denominator: | ||||||||||||||||||||||
Basic | 86,846 | 86,321 | 85,304 | 83,912 | ||||||||||||||||||
Diluted | 89,028 | 86,321 | 85,304 | 83,912 | ||||||||||||||||||
Basic and diluted | 82,014 | 81,445 | 80,590 | 79,810 | 85,615 | 80,974 | 77,705 | |||||||||||||||
[1] | Revenue is attributed to countries based on the location of the customer. | |||||||||||||||||||||
[2] | Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017. | |||||||||||||||||||||
[3] | During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management. | |||||||||||||||||||||
[4] | During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries. | |||||||||||||||||||||
[5] | In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018. |
Selected Quarterly Financial _4
Selected Quarterly Financial Data Selected Quarterly Financial Data - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||||||||
Gross Margin Percentage | 53.10% | 49.80% | 52.00% | 51.10% | 41.10% | 48.70% | |||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 2,400 | $ 100 | $ 2,200 | $ 1,000 | |||||||
Tax Benefits Associated with AMT Tax Refund related to TCJA | $ 2,500 | ||||||||||
Tax Expense Related to Tax Law Changes in Foreign Subsidiary | 2,958 | $ 273 | $ 2,738 | ||||||||
TVN [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Business Combination, Acquisition and Integration Related Expenses | $ 100 | $ 100 | $ 500 | $ 2,200 | |||||||
Foreign Tax Authority [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,000 | $ 1,500 | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Tax Expense Related to Tax Law Changes in Foreign Subsidiary | $ 3,000 |