Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-25826 | ||
Entity Registrant Name | HARMONIC INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0201147 | ||
Entity Address, Address Line One | 2590 Orchard Parkway | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95131 | ||
City Area Code | 408 | ||
Local Phone Number | 542-2500 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | HLIT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 239,854,000 | ||
Entity Common Stock, Shares Outstanding | 100,847,272 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000851310 | ||
Current Fiscal Year End Date | --12-31 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the Registrant’s 2021 Annual Meeting of Stockholders (which will be filed with the Securities and Exchange Commission within 120 days of the end of the fiscal year ended December 31, 2020) are incorporated by reference in Part III of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 98,645 | $ 93,058 |
Accounts receivable, net | 66,227 | 88,500 |
Inventories | 35,031 | 29,042 |
Prepaid expenses and other current assets | 38,132 | 40,762 |
Total current assets | 238,035 | 251,362 |
Property and equipment, net | 43,141 | 22,928 |
Operating lease right-of-use assets | 27,556 | 27,491 |
Other non-current assets | 38,609 | 41,305 |
Intangibles, net | 508 | 4,461 |
Goodwill | 243,674 | 239,780 |
Total assets | 591,523 | 587,327 |
Current liabilities: | ||
Convertible notes, short-term | 0 | 43,375 |
Other debts and finance lease obligations, current | 11,771 | 6,713 |
Accounts payable | 23,543 | 40,933 |
Deferred revenue | 54,294 | 37,117 |
Operating lease liabilities, current | 7,354 | 8,881 |
Other current liabilities | 50,333 | 54,880 |
Total current liabilities | 147,295 | 191,899 |
Convertible notes, long-term | 129,507 | 88,629 |
Other debts and finance lease obligations, long-term | 10,086 | 10,511 |
Operating lease liabilities, long-term | 26,071 | 25,766 |
Other non-current liabilities | 20,262 | 15,666 |
Total liabilities | 333,221 | 332,471 |
Commitments and contingencies (Note 18) | ||
Convertible notes | 0 | 2,410 |
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; 98,204 and 91,875 shares issued and outstanding at December 31, 2020 and 2019, respectively | 98 | 92 |
Additional paid-in capital | 2,353,559 | 2,327,359 |
Accumulated deficit | (2,101,211) | (2,071,940) |
Accumulated other comprehensive income (loss) | 5,856 | (3,065) |
Total stockholders’ equity | 258,302 | 252,446 |
Total liabilities and stockholders’ equity | $ 591,523 | $ 587,327 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 98,204,000 | 91,875,000 |
Common Stock, Shares, Outstanding | 98,204,000 | 91,875,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue | [1] | $ 378,831 | $ 402,874 | $ 403,558 |
Total cost of revenue | 183,834 | 179,862 | 194,349 | |
Total gross profit | 194,997 | 223,012 | 209,209 | |
Operating expenses: | ||||
Research and development | 82,494 | 84,614 | 89,163 | |
Selling, general and administrative | 119,611 | 119,035 | 118,952 | |
Amortization of intangibles | 3,019 | 3,139 | 3,187 | |
Restructuring and related charges | 2,322 | 3,141 | 2,918 | |
Total operating expenses | 207,446 | 209,929 | 214,220 | |
Income (loss) from operations | (12,449) | 13,083 | (5,011) | |
Interest expense, net | (11,509) | (11,651) | (11,401) | |
Loss on convertible debt extinguishment | (1,362) | (5,695) | 0 | |
Other expense, net | (897) | (2,333) | (536) | |
Loss before income taxes | (26,217) | (6,596) | (16,948) | |
Provision for (benefit from) income taxes | 3,054 | (672) | 4,087 | |
Net loss | $ (29,271) | $ (5,924) | $ (21,035) | |
Net loss per share: | ||||
Basic and diluted | $ (0.30) | $ (0.07) | $ (0.25) | |
Shares used in per share calculations: | ||||
Basic and diluted | 96,971 | 89,575 | 85,615 | |
Appliance & Integration [Member] | ||||
Revenue | $ 252,014 | $ 275,797 | $ 287,564 | |
Total cost of revenue | 126,948 | 130,284 | 148,472 | |
SaaS and service | ||||
Revenue | 126,817 | 127,077 | 115,994 | |
Total cost of revenue | $ 56,886 | $ 49,578 | $ 45,877 | |
[1] | Revenue is attributed to countries based on the location of the customer. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net loss | $ (29,271) | $ (5,924) | $ (21,035) |
Other comprehensive income (loss): | |||
Adjustment to pension benefit plan | (159) | (206) | 202 |
Translation gain (loss) | 8,279 | (1,437) | (4,433) |
Loss reclassified into earnings | 0 | 56 | 11 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Total | 8,279 | (1,381) | (4,422) |
Other comprehensive income (loss) before tax | 8,120 | (1,587) | (4,220) |
Provision for (benefit from) income taxes | (801) | 262 | 378 |
Other comprehensive income (loss), net of tax | 8,921 | (1,849) | (4,598) |
Total comprehensive loss | $ (20,350) | $ (7,773) | $ (25,633) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Previously Reported | Revision of Prior Period, Accounting Standards Update, Adjustment | Common Stock [Member] | Common Stock [Member]Previously Reported | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Previously Reported | Accumulated Deficit [Member] | Accumulated Deficit [Member]Previously Reported | Accumulated Deficit [Member]Revision of Prior Period, Accounting Standards Update, Adjustment | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Previously Reported | Convertible Note due 2020 [Member] | Convertible Note due 2020 [Member]Additional Paid-in Capital [Member] | Conversion Note 2022 [Member] | Conversion Note 2022 [Member]Additional Paid-in Capital [Member] | Convertible Note due 2024 [Member] | Convertible Note due 2024 [Member]Additional Paid-in Capital [Member] |
Balance, Shares at Dec. 31, 2017 | 82,554 | 82,554 | ||||||||||||||||
Balance, Shares at Dec. 31, 2018 | 87,057 | 87,057 | ||||||||||||||||
Balance at Dec. 31, 2017 | $ 229,774 | $ 218,343 | $ 11,431 | $ 83 | $ 83 | $ 2,272,690 | $ 2,272,690 | $ (2,046,381) | $ (2,057,812) | $ 11,431 | $ 3,382 | $ 3,382 | ||||||
Net loss | (21,035) | (21,035) | ||||||||||||||||
Other Comprehensive income or 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 | 229,650 | $ 228,250 | $ 1,400 | $ 87 | $ 87 | 2,296,795 | $ 2,296,795 | (2,066,016) | $ (2,067,416) | $ 1,400 | (1,216) | $ (1,216) | ||||||
Balance, Shares at Dec. 31, 2019 | 91,875 | |||||||||||||||||
Net loss | (5,924) | (5,924) | ||||||||||||||||
Other Comprehensive income or loss, net of tax | (1,849) | (1,849) | ||||||||||||||||
Issuance of Common Stock under option, stock award and purchase plans | 6,914 | $ 4 | 6,910 | |||||||||||||||
Issuance of Common Stock under option, stock award and purchase plans, Shares | 4,014 | |||||||||||||||||
Stock-based compensation | 12,156 | 12,156 | ||||||||||||||||
Issuance of warrant | 16,142 | 16,142 | ||||||||||||||||
Exercise of warrants | 804 | |||||||||||||||||
Exercise of warrant, Amount | $ 1 | |||||||||||||||||
Adjustments to Additional Paid in Capital - Exercise of Warrants | 0 | (1) | ||||||||||||||||
Adjustments to APIC - Reclassification from Equity to Mezzanine equity | $ (2,410) | $ (2,410) | ||||||||||||||||
Portion of repurchase price recorded in additional paid-in capital in connection with partial repurchase of 2020 Notes | (27,111) | (27,111) | ||||||||||||||||
Conversion feature of 2024 Notes | $ 24,878 | $ 24,878 | ||||||||||||||||
Balance at Dec. 31, 2019 | 252,446 | $ 92 | 2,327,359 | (2,071,940) | (3,065) | |||||||||||||
Balance, Shares at Dec. 31, 2020 | 98,204 | |||||||||||||||||
Net loss | (29,271) | (29,271) | ||||||||||||||||
Other Comprehensive income or loss, net of tax | 8,921 | |||||||||||||||||
Issuance of Common Stock under option, stock award and purchase plans | 3,810 | $ 3 | 3,807 | |||||||||||||||
Issuance of Common Stock under option, stock award and purchase plans, Shares | 3,822 | |||||||||||||||||
Stock-based compensation | 18,034 | 18,034 | ||||||||||||||||
Issuance of warrant | 0 | |||||||||||||||||
Exercise of warrants | 2,413 | |||||||||||||||||
Exercise of warrant, Amount | $ 2 | |||||||||||||||||
Adjustments to Additional Paid in Capital - Exercise of Warrants | 0 | (2) | ||||||||||||||||
Adjustment to APIC - Reclassification from Mezzanine Equity to Equity | $ 2,410 | $ 2,410 | ||||||||||||||||
Portion of repurchase price recorded in additional paid-in capital in connection with partial repurchase of 2020 Notes | $ (6,909) | $ (6,909) | ||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 607 | $ 1 | 606 | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 94 | |||||||||||||||||
Conversion feature of 2024 Notes | $ 8,254 | $ 8,254 | ||||||||||||||||
Balance at Dec. 31, 2020 | $ 258,302 | $ 98 | $ 2,353,559 | $ (2,101,211) | $ 5,856 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (29,271) | $ (5,924) | $ (21,035) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 11,737 | 11,287 | 12,971 |
Amortization of intangibles | 3,970 | 8,319 | 8,367 |
Stock-based compensation | 18,040 | 12,074 | 17,289 |
Amortization of discount on convertible and other debt | 7,058 | 6,756 | 6,060 |
Amortization of warrant | 1,746 | 13,576 | 1,178 |
Foreign currency adjustments | 6,391 | (290) | (1,906) |
Loss on convertible debt extinguishment | 1,362 | 5,695 | 0 |
Deferred income taxes, net | (105) | (2,076) | 661 |
Provision for doubtful accounts and returns | 1,666 | 1,500 | 2,521 |
Provision for excess and obsolete inventories | 1,847 | 1,479 | 1,649 |
Other non-cash adjustments, net | 409 | 1,349 | 1,898 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 21,186 | (8,388) | (14,700) |
Inventories | (8,195) | (4,819) | (2,045) |
Other assets | 11,556 | (3,347) | 3,227 |
Accounts payable | (18,173) | 5,086 | 1,018 |
Deferred revenues | 19,751 | (3,436) | (4,808) |
Other liabilities | (11,812) | (7,546) | (61) |
Net cash provided by operating activities | 39,163 | 31,295 | 12,284 |
Cash flows from investing activities: | |||
Proceeds from sales of investments | 0 | 0 | 104 |
Purchases of property and equipment | (32,205) | (10,328) | (7,044) |
Net cash used in investing activities | (32,205) | (10,328) | (6,940) |
Cash flows from financing activities: | |||
Proceeds from convertible debt | 0 | 115,500 | 0 |
Payments of convertible debt | (7,999) | (109,603) | 0 |
Payment of convertible debt issuance costs | (672) | (4,277) | 0 |
Proceeds from other debts | 9,398 | 4,684 | 5,066 |
Repayment of other debts and finance leases | (6,646) | (6,913) | (7,132) |
Proceeds from common stock issued to employees | 5,472 | 8,406 | 4,947 |
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,662) | (1,492) | (230) |
Net cash (used in) provided by financing activities | (2,109) | 6,305 | 2,651 |
Effect of exchange rate changes on cash and cash equivalents | 738 | (203) | (763) |
Net increase in cash and cash equivalents | 5,587 | 27,069 | 7,232 |
Cash and cash equivalents, beginning of the year | 93,058 | 65,989 | 58,757 |
Cash and cash equivalents, end of the year | 98,645 | 93,058 | 65,989 |
Supplemental disclosures of cash flow information: | |||
Income tax payments (refunds), net | (17) | 1,138 | 2,031 |
Interest payments, net | 4,221 | 4,260 | 5,273 |
Supplemental schedule of non-cash investing and financing activities: | |||
Capital expenditures incurred but not yet paid | 1,155 | 2,055 | 148 |
Fair value of warrants issued | 0 | 16,142 | 2,295 |
Convertible Notes 2022 [Member] | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Fair value of 2022 Notes used to settle 2020 Notes | $ 44,357 | $ 0 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Harmonic Inc. (“Harmonic” or the “Company”), the worldwide leader in visualized cable access and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The Company revolutionized cable access networking via the industry’s first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit internet service to consumer’s homes and mobile devices. Whether simplifying video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet cable services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. 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, 2020 | |
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. 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. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. Reclassifications Certain prior period balances have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on previously reported financial statements. Beginning in fiscal 2019, the Company changed the classification of total revenue and cost of revenue in the Consolidated Statements of Operations from the two previous categories, “Product” and “Service,” to two new categories, “Appliance and integration” and “SaaS and service.” The Company has also adjusted revenue and cost of revenue retrospectively into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue and cost of revenue did not have an impact on total revenue, cost of revenue or segment revenue for any periods presented. 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. 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. The Company 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 measures these investments at cost minus impairment, if any. The Company’s total investments in equity securities of privately held companies were $3.6 million as of December 31, 2020 and 2019 , respectively. The Company’s equity investments are classified as long-term investments and reported as a component of “Other non-current assets” on the Company’s Consolidated Balance Sheets. Credit Risk and Major Customers/Supplier Concentration Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents 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. One customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2020 and 2019. During the year ended December 31, 2020, 2019 and 2018, Comcast is the only customer accounted for more than 10% of the Company’s revenue. 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 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 to 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 to 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. Refer to Note 3, “Revenue,” for additional information. Inventories Inventories are stated at the lower of cost (determined on first-in, first-out basis) or net realizable value. The cost of inventories is comprised of material and manufacturing labor and overheads. 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 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 over the estimated useful life, generally three years. During the years ended December 31, 2020, 2019 and 2018, the Company capitalized $2.3 million, $1.1 million and $0.9 million, respectively, of its software development costs related to the development of its SaaS offerings. Capitalized Software Implementation Costs In a hosting arrangement that is a service contract, the Company capitalizes costs for implementation activities in the application development stage depending on the nature of the costs. The 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, which is the fixed, non-cancelable term of the arrangement, plus any reasonably certain renewal periods. The capitalized implementation costs are included in “Other non-current assets” in the Consolidated Balance Sheets, and the amortization expense related to these costs are primarily included in “Selling, general and administrative” in the Consolidated Statements of Operations. The payments for capitalized implementation costs are included as operating activities in the Consolidated Statements of Cash Flows. During the year ended December 31, 2020 and 2018, the capitalized software implementation costs were immaterial. During the year ended December 31, 2019, the Company capitalized $3.6 million of its software implementation costs. 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. Goodwill As of December 31, 2020, the Company had goodwill of $243.7 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. On January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350) using the prospective approach. The ASU eliminates step two from the goodwill impairment test. Under ASU No. 2017-04, the Company will recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. There was no impairment of goodwill resulting from the Company’s fiscal 2020 annual impairment testing. Refer to Note 7, “Goodwill,” 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, 2020, 2019 and 2018. Leases On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification. Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 10 years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. Refer to Note 4, “Leases,” for additional information. Foreign Currency The functional currency of the Company’s Israeli and Swiss subsidiaries 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 foreign subsidiaries in their nonfunctional currencies. These monetary assets and liabilities are being remeasured into the subsidiaries’ respective functional currencies using exchange rates as of 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, 2020, 2019 and 2018, the Company recorded remeasurement losses of approximately $1.0 million, $1.5 million and $0.6 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 three 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 Sheets. The Company enters into derivative instruments 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. 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. The Company’s 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, 2020, 2019 and 2018, the Company had R&D tax credits of $4.5 million, $4.7 million and $5.9 million, 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, 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. Refer to 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 $1.1 million, $0.7 million and $1.0 million for the years ended December 31, 2020, 2019 and 2018, 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 stock purchase rights under the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. The Company recognizes the impact of forfeitures as they occur. The fair value of the Company’s stock options and stock purchase rights under ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs and performance-based RSUs (“PRSUs”) 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 options, RSUs, MRSUs and stock purchase rights under ESPP on straight-line basis over the requisite service period, which is generally the vesting period. The Company recognizes the stock-based compensation for PRSUs based on the probability of achieving performance criteria 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 subsidiary in France 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, 2020 , the Company did not meet the 10% threshold, and therefore no amortization of 2020 actuarial gain would be recorded in 2021. Refer to Note 12, “Employee Benefit Plans and Stock-based Compensation-French Pension Plan,” for additional information. Income Taxes In preparing the Company’s consolidated 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 Sheets. 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 Sheets 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, 2020. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Compa ny’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. Recently Adopted Accounting Pronouncements ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“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 is required to use a new forward-looking “expected loss” model. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) 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 Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have an impact on its consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU No. 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU 2018-14, Compensation – Retirement Benefits – Defined Benefits Plans- General (Subtopic 715-20) In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This new standard, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company adopted this new standard in the fourth quarter of fiscal 2020 , a nd the adoption did not have a material impact on its consolidated financial statements and associated disclosures. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. Among other changes, ASU No. 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from stockholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU No. 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which would result in an increase in diluted shares for purposes of calculating diluted EPS for the Company. The new ASU is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted after December 15, 2020. Adoption of the new ASU can either be on a modified retrospective or full retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new ASU clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The new ASU is effective for the Company for fiscal years ending after December 15, 2021, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE Contract Balances . 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. The Company’s payment terms vary by the type and location of its 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, the Company requires payment before the products or services are delivered to the customer. Revenue recognized during the year ended December 31, 2020 that was included within the deferred revenue balance at January 1, 2020 was $36.2 million. Revenue recognized during the year ended December 31, 2019 that was included within the deferred revenue balance at January 1, 2019 was $41.1 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 and deferred revenue consisted of the following: As of December 31, (in thousands) 2020 2019 Contract assets $ 9,800 $ 13,969 Deferred revenue 63,533 43,450 Contract assets and the non-current portion of Deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the Consolidated Balance Sheets. 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”). See “ Significant Judgments ” for additional information. 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 of 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 on a straight-line basis over the period during which 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 balances of net capitalized contract costs included in the Company’s Consolidated Balance Sheets were as follows (in thousands): As of December 31, Balance Sheet Location 2020 2019 Prepaid expenses and other current assets $ 1,581 $ 1,309 Other non-current assets 1,287 722 Total net capitalized contract costs $ 2,868 $ 2,031 The amortization of the capitalized contract costs for the years ended December 31, 2020, 2019 and 2018 was $1.6 million, $1.5 million and $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 transaction price to all separate performance obligations based on their relative 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 separ ately, 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. If the Company has not yet established a price because the good or service has not previously been sold on a standalone basis, SSP for such good and service in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the good or service for which the price has not yet been established. 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. These performance obligations primarily relate to the Company’s support and maintenance contracts which have a duration of one year or less and subscriptions services for which 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. In July 2019, Comcast elected enterprise license pricing for the Company’s CableOS software as contemplated under certain existing commercial agreements between the Company and Comcast (the “CableOS software license agreement”), which also includes maintenance and support services, and material rights. As of December 31, 2020, the aggregate amount of the transaction price under this agreement allocated to the remaining performance obligations was $77.6 million, and the Company will recognize this revenue as the related performance obligations are satisfied over the next ten quarters. Refer to Note 17, “Segment Information, Geographic Information and Customer Concentration” for disaggregated revenue information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 10 years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. The Company elected certain practical expedients under Topic 842 which are: (i) to not record leases with an initial term of twelve months or less on the balance sheet; (ii) to combine the lease and non-lease components in determining the lease liabilities and right-of-use assets, and (iii) to carry forward prior conclusions about lease identification and classification. The Company’s lease contracts do not provide an implicit borrowing rate; hence the Company determined the incremental borrowing rate based on information available at lease commencement to determine the present value of lease liability. The Company generally uses the parent entity’s incremental borrowing rates as the treasury operations are managed centrally by the parent entity and, consequently, the pricing of leases at a subsidiary level is typically significantly influenced by the credit risk evaluated at the parent or consolidated group level on the basis of guarantees or other payment mechanisms that allow the lessor to look beyond just the subsidiary for payment. During the fiscal year ended December 31, 2020 , the Company entered into new or modified lease agreements which were assessed under Topic 842 to be operating leases. The new or modified lease agreements resulted in the balance sheet recognition of $5.4 million in “Operating lease right-of use assets,” $4.1 million in “Operating lease liabilities, long-term,” and $1.3 million in “Operating lease liabilities, current.” The components of lease expense are as follows: Year ended December 31, (in thousands) 2020 2019 Operating lease cost $ 8,369 $ 9,574 Variable lease cost 2,675 3,232 Total lease cost $ 11,044 $ 12,806 Supplemental cash flow information related to leases are as follows: Year ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,584 $ 9,702 ROU assets obtained in exchange for operating lease obligations $ 5,414 $ 12,032 Other information related to leases are as follows: Year ended December 31, 2020 2019 Operating leases Weighted-average remaining lease term (years) 7 7 Weighted-average discount rate 7.1 % 7.1 % Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 are as follows (in thousands): Years ending December 31, 2021 $ 7,682 2022 6,297 2023 5,535 2024 5,148 2025 4,900 Thereafter 13,136 Total future minimum lease payments $ 42,698 Less: imputed interest (9,273) Total lease liability balance $ 33,425 |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
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 intercompany receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Consolidated Statements of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. Foreign currency forward contracts’ gains (losses) recognized during the years ended December 31, 2020, 2019 and 2018, were $2.2 million, $1.4 million and $(2.3) million, respectively. The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts were as follows: As of December 31, (in thousands) 2020 2019 Purchase $ 11,426 $ 14,806 Sell $ — $ 2,629 While the Company’s arrangements with its counterparties allow for net settlement, which is designed to reduce credit risk by permitting net settlement with the same counterparty, the Company recognizes all derivative instruments in the Consolidated Balance Sheets on a gross basis. As of December 31, 2020 and 2019 , gross fair values of derivative assets and liabilities, recorded as components of “Prepaid expenses and other current assets” and “Other current liabilities”, respectively, in the Consolidated Balance Sheets, were immaterial. 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, 2020 and 2019, the total compensating balance maintained was $1.0 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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 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. 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 follows: • 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. • 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 liabilities, approximate fair value due to their short maturities. The Company's financial instruments not measured at fair value on a recurring basis were as follows: December 31, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2020 Notes n/a n/a n/a n/a $ 43,785 $ — $ 66,844 $ — 2022 Notes $ 35,925 $ — $ 54,204 $ — n/a n/a n/a n/a 2024 Notes $ 93,582 $ — $ 125,953 $ — $ 88,629 $ — $ 131,887 $ — French and other loans $ 21,835 $ — $ 21,835 $ — $ 17,153 $ — $ 17,153 $ — The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The difference between the carrying value and the fair value is primarily due to the spread between the conversion price and the market value of the shares underlying the conversion as of each respective balance sheet date. The Company’s French and other loans 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. Refer to Note 11, “Convertible Notes, Other Debts and Finance Leases,” for additional information. The fair value of the Company’s French pension plan liability as of December 31, 2020 and 2019 was $6.1 million and $5.3 million, respectively. Refer to Note 12, “Employee Benefit Plans and Stock-based Compensation - French Pension Plan,” for additional information. During the years ended December 31, 2020, 2019, and 2018, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 quantitative goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The fair value of each of the Company’s reporting units is determined using both the income and market valuation approaches. Under the income approach, the fair value of the reporting unit is based on the present value of estimated future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, the value of the reporting unit is based on an analysis that compares the value of the reporting unit to the value of publicly-traded companies in similar lines of business. In the application of the income and market valuation approaches, the Company is required to make estimates of future operating trends and judgments on discount rates and other variables. Determining the fair value of a reporting unit is highly judgmental in nature and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but that are unpredictable and inherently uncertain. Actual future results related to assumed variables could differ from these estimates. In addition, the Company makes certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of its reporting units. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business's ability to execute on the projected cash flows. Under the market approach, the Company estimates the fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting units, and then apply a control premium which is determined by considering control premiums offered as part of the acquisitions that have occurred in market segments that are comparable with its reporting units. During the fourth quarter of 2020, the Company performed the quantitative goodwill impairment testing for the two reporting units as part of the Company’s annual goodwill impairment test and concluded that goodwill was not impaired. 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. The changes in the Company’s carrying amount of goodwill are as follows: (in thousands) Video Cable Access Total Balance as of December 31, 2018 $ 179,839 $ 60,779 $ 240,618 Foreign currency translation adjustment (857) 19 (838) Balance as of December 31, 2019 $ 178,982 $ 60,798 $ 239,780 Foreign currency translation adjustment 3,873 21 3,894 Balance as of December 31, 2020 $ 182,855 $ 60,819 $ 243,674 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable, net of allowances, consisted of the following: As of December 31, (in thousands) 2020 2019 Accounts receivable, net: Accounts receivable $ 68,295 $ 91,513 Less: allowance for doubtful accounts and sales returns (2,068) (3,013) Total $ 66,227 $ 88,500 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 Charges to Charges Additions to Balance at End Year ended December 31, 2020 $ 3,013 $ 1,367 $ 299 $ (2,611) $ 2,068 2019 $ 3,497 $ 1,896 $ (396) $ (1,984) $ 3,013 2018 $ 4,631 $ 1,949 $ 572 $ (3,655) $ 3,497 |
Certain Balance Sheet Component
Certain Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Certain Balance Sheet Components | CERTAIN BALANCE SHEET COMPONENTS Inventories: December 31, (in thousands) 2020 2019 Raw materials $ 2,529 $ 4,179 Work-in-process 1,689 1,633 Finished goods 22,777 14,080 Service-related spares 8,036 9,150 Total $ 35,031 $ 29,042 Prepaid expenses and other current assets: December 31, (in thousands) 2020 2019 Prepaid expenses $ 11,453 $ 3,050 Contract assets (1) 9,800 13,969 Other current assets 16,879 23,743 Total $ 38,132 $ 40,762 (1) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. Property and equipment, net: December 31, (in thousands) 2020 2019 Machinery and equipment $ 72,731 $ 75,229 Capitalized software 37,141 34,190 Leasehold improvements * 38,718 15,170 Furniture and fixtures 2,913 6,036 Construction-in-progress 2,209 5,506 Property and equipment, gross 153,712 136,131 Less: accumulated depreciation and amortization (110,571) (113,203) Total $ 43,141 $ 22,928 *During fiscal 2020, the Company completed construction of $23.9 million leasehold improvements for the new headquarters facility. Other current liabilities: December 31, (in thousands) 2020 2019 Accrued employee compensation and related expenses $ 23,131 $ 19,454 Other 27,202 35,426 Total $ 50,333 $ 54,880 |
Restructuring and Excess Facili
Restructuring and Excess Facilities | 12 Months Ended |
Dec. 31, 2020 | |
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 revenue, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of excess facilities, severance payments and termination benefits related to headcount reductions. The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The following table summarizes the activities related to the Company’s restructuring plans during the year ended December 31, 2020: (in thousands) Excess facilities Severance and Benefits French VDP Other Total Balance at December 31, 2019 $ 720 $ 3,294 $ 806 $ 30 $ 4,850 Charges for current period — 3,278 91 47 3,416 Cash payments (720) (2,367) (862) (77) (4,026) Other — (107) (35) — (142) Balance at December 31, 2020 $ — $ 4,098 $ — $ — $ 4,098 For the year ended December 31, 2020, $1.1 million and $2.3 million of restructuring and related charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges”, respectively, in the Consolidated Statements of Operations. A majority of the costs incurred during the year ended December 31, 2020 relate to the Company’s Video segment. |
Convertible Notes, Debts and Fi
Convertible Notes, Debts and Finance Leases | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facilities | CONVERTIBLE NOTES, OTHER DEBTS AND FINANCE LEASES 4.375% Convertible Senior Notes due 2022 (the “2022 Notes”) In June 2020, the Company issued the 2022 Notes with an aggregate principal amount of $37.7 million in a non-cash exchange for its 2020 Notes with an equal principal amount pursuant to an indenture, dated June 2, 2020 (the “2022 Notes Indenture”), by and between the Company and U.S. Bank National Association, as trustee. The 2022 Notes bear interest at a rate of 4.375% per year, payable in cash on June 1 and December 1 of each year. The 2022 Notes will mature on December 1, 2022, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms. The 2022 Notes are 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 2020 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 as set forth in the 2022 Notes Indenture. Prior to the close of business on the business day immediately preceding September 1, 2022, the 2022 Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ended on June 26, 2020 (and only during such fiscal quarter), if the last reported sale price of 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 on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2022 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Common Stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2022 Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances. As the 2022 Notes were issued in exchange for the 2020 Notes, which was accounted for as an extinguishment, the 2022 Notes were initially accounted for at fair value, which was estimated to be $44.4 million. In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2022 Notes was initially valued at $8.3 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital.” The remaining amount of $36.0 million, which represents the fair value of the liability component of the 2022 Notes, was recorded as the initial carrying value of the 2022 Notes. The initial debt discount on the 2022 Notes is $1.7 million, calculated as the difference between the stated principal amount of $37.7 million and the initial carrying value of the liability component of $36.0 million. The debt discount is being amortized to interest expense at the effective interest rate over the contractual terms of the 2022 Notes. The following table presents the components of the 2022 Notes: (in thousands, except for years and percentages) As of December 31, 2020 Liability: Principal amount $ 37,707 Less: Debt discount, net of amortization (1,357) Less: Debt issuance costs, net of amortization (425) Carrying amount $ 35,925 Remaining amortization period (years) 1.9 Effective interest rate on liability component 6.95 % The following table presents interest expense recognized for the 2022 Notes: (in thousands) Year ended Contractual interest expense $ 953 Amortization of debt discount 373 Amortization of debt issuance costs 117 Total interest expense recognized $ 1,443 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank National Association, as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semi-annually on March 1 and September 1 of each year, beginning March 1, 2020. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms. The 2024 Notes are 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 115.5001 shares of Common Stock per $1,000 principal amount of 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 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 or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture. The 2024 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2024 Notes Indenture. Further, on or after June 1, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or a portion of their 2024 Notes regardless of these conditions. In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital.” The resulting debt discount on the 2024 Notes is being amortized to interest expense at the effective interest rate over the contractual term of the 2024 Notes. The following table presents the components of the 2024 Notes: As of December 31, (in thousands, except for years and percentages) 2020 2019 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt discount, net of amortization (19,294) (23,652) Less: Debt issuance costs, net of amortization (2,624) (3,219) Carrying amount $ 93,582 $ 88,629 Remaining amortization period (years) 3.7 4.7 Effective interest rate on liability component 7.95 % 7.95 % The following table presents interest expense recognized for the 2024 Notes: Year ended December 31, (in thousands) 2020 2019 Contractual interest expense $ 2,310 $ 687 Amortization of debt discount 4,358 1,226 Amortization of debt issuance costs 595 166 Total interest expense recognized $ 7,263 $ 2,079 4.00% Convertible Senior Notes due 2020 (the “2020 Notes”) In December 2015, the Company issued $128.25 million in aggregate principal amount of the 2020 Notes pursuant to an indenture (the “2020 Notes Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The 2020 Notes bear interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year. The 2020 Notes matured on December 1, 2020. The 2020 Notes were convertible into cash, shares of the Common Stock, or a combination thereof, at the Company’s election, at a conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of 2020 Notes (which is equivalent to a conversion price of approximately $5.75 per share). The conversion rate, and thus the effective conversion price, was adjustable 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 2020 Notes Indenture. In September 2019, the Company used approximately $109.6 million of the net proceeds from the issuance of the 2024 Notes to repurchase $82.5 million aggregate principal of the 2020 Notes in privately negotiated transactions. The repurchase of the 2020 Notes was accounted for as a debt extinguishment, and the consideration transferred was allocated between the equity and liability components by determining the fair value of the conversion option immediately prior to the debt extinguishment and allocating that portion of the repurchase price to additional paid-in capital for $27.1 million, with the residual repurchase price allocated to the liability component, respectively. The partial repurchase of the 2020 Notes resulted in the recognition of a $5.7 million loss on debt extinguishment for the year ended December 31, 2019, which is recorded in “Loss on convertible debt extinguishment” in the Consolidated Statements of Operations. In accordance with accounting guidance on embedded conversion features, the conversion feature associated with the 2020 Notes was initially valued at $26.1 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital.” The resulting debt discount on the 2020 Notes had been amortized to interest expense at the effective interest rate over the contractual terms of the 2020 Notes prior to the maturity date in December 2020. The 2020 Notes became convertible as of December 31, 2019, as the last reported sale price of the Company’s common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter was greater than or equal to 130% of the conversion price of the 2020 Notes on each applicable trading day. As a result of the 2020 Notes becoming convertible for cash up to the principal amount of $45.8 million, the Company reclassified the unamortized debt discount for the 2020 Notes in the amount of $2.4 million from “Additional paid-in-capital” to convertible debt in the mezzanine equity section in the Consolidated Balance Sheets as of December 31, 2019. During the year ended December 31, 2020, this conversion condition was not present, and accordingly, the Company reclassified this balance from convertible debt in the mezzanine equity section to “Additional paid-in-capital.” In June 2020, the Company exchanged $37.7 million in aggregate principal amount of the 2020 Notes for $37.7 million in aggregate principal amount of its 2022 Notes. The fair value of the consideration transferred in the form of the 2022 Notes of $44.4 million was allocated between the equity and liability components as discussed in the 2022 Notes section above. The exchange of the 2020 Notes was accounted for as a debt extinguishment, which resulted in the recognition of a $0.8 million loss on debt extinguishment for the year ended December 31, 2020, which is recorded in “Loss on convertible debt extinguishment” in the Consolidated Statements of Operations. Following the exchange, there was a total of $8.1 million aggregate principal amount of the 2020 Notes remaining. On or after September 1, 2020, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2020 Notes were able to convert all or a portion of their 2020 Notes regardless of any conditions. Prior to maturity date, a total of $7.8 million of the principal balance was converted by holders of the 2020 Notes. In accordance with provisions of the 2020 Notes Indenture, conversion was settled in a combination of cash and the Company’s Common Stock. The conversion resulted in the recognition of a $0.5 million loss, which was recorded in “Loss on convertible debt extinguishment” in the Consolidated Statements of Operations. The remaining principal of $0.3 million matured on December 1, 2020 and was paid in cash. The following table presents interest expense recognized for the 2020 Notes: Year ended December 31, (in thousands) 2020 2019 2018 Contractual interest expense $ 936 $ 4,148 $ 5,130 Amortization of debt discount 1,158 4,787 5,408 Amortization of debt issuance costs 138 577 652 Total interest expense recognized $ 2,232 $ 9,512 $ 11,190 Other Debts and Finance Leases The Company has a variety of debt and credit facilities primarily in France to satisfy the financing requirements of the operations of its French subsidiary. These arrangements are summarized in the table below: December 31, (in thousands) 2020 2019 Financing from French government agencies related to various government incentive programs (1) $ 14,974 $ 16,566 Relief loans (2) 6,694 — Term loans 167 587 Obligations under finance leases 22 71 Total debt obligations 21,857 17,224 Less: current portion (11,771) (6,713) Long-term portion $ 10,086 $ 10,511 (1) Loans backed by French R&D tax credit receivables were $13.6 million and $15.1 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the French subsidiary had an aggregate of $21.5 million of R&D tax credit receivables from the French government from 2021 through 2024. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2021 through 2023. The remaining loans of $1.4 million and $1.5 million as of December 31, 2020 and 2019, 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, 2020 mature between 2021 through 2025. (2) Refer to the below section “Relief Loans” for the description of these loans. The table below presents the future minimum repayments of debts and finance lease obligations in France as of December 31, 2020 (in thousands): Years ending December 31, Finance lease obligations Other Debt obligations 2021 $ 22 $ 11,749 2022 — 5,420 2023 — 3,856 2024 — 184 2025 — 626 Total $ 22 $ 21,835 Line of Credit On December 19, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as lender. The Credit Agreement provides for a secured revolving loan facility in an aggregate principal amount of up to $25.0 million, based on a borrowing base of eligible accounts receivable and inventory, with a maturity date of October 31, 2020. The Company may use availability under the revolving loan facility for the issuance of letters of credit. The proceeds of the revolving loans may be used for general corporate purposes. During fiscal 2020, the Company amended the Credit Agreement to extend the Credit Agreement maturity date to October 30, 2022 and amend the interest rates for the revolving loans. As amended, the revolving loans bear interest, at the Company’s election, at a floating rate per annum equal to either (1) 2.00% plus the greater of (i) 1 month LIBOR on any day plus 2.50% and (ii) the prime rate as reported in the Wall Street Journal from time to time or (2) 3.00% plus LIBOR for an interest period of one two The Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, dispose of assets, enter into transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the Credit Agreement. The Company is also required to maintain compliance with an adjusted quick ratio, a minimum EBITDA covenant (tested quarterly) and a minimum liquidity covenant, in each case, determined in accordance with the terms of the Credit Agreement. As of December 31, 2020, the Company was in compliance with the covenants under the Credit Agreement. There were no revolving borrowings under the Credit Agreement as of December 31, 2020. Relief Loans In June 2020, Harmonic France was granted a loan from Société Générale S.A. (the “SG Loan”) in the aggregate amount of 5,000,000 Euros, pursuant to a state guarantee program introduced in March 2020 to provide relief to companies from the financial consequences of the COVID-19 pandemic. The SG Loan initially matures in 12 months (with an option to extend for up to five years) and bears an effective interest rate of 0.51% per annum payable annually. The SG Loan may be repaid at any time prior to maturity with no repayment penalties. There are no restrictions on the use of funds from the SG Loan. The purpose of the funds from the SG Loan is to allow the preservation of activity and employment in France. As of December 31, 2020, there was $6.1 million outstanding under the loan, which is recorded in “Other debts and finance lease obligations, current” in the Consolidated Balance Sheets. In April 2020, Harmonic International GmbH was granted a loan of CHF 500,000 from UBS Switzerland AG (the “UBS Loan”) in accordance with a Swiss federal COVID-19 loan guarantee program with an initial maturity of five years. The exclusive purpose of the UBS Loan is to guarantee the Company’s current liability requirements. The UBS Loan does not bear any interest. The UBS Loan is to be repaid in full no later than April 8, 2025. As of December 31, 2020, there was $0.6 million outstanding under the loan, which is recorded in “Other debts and finance lease obligations, long-term” in the Consolidated Balance Sheets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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 non-employees. Under the terms of the 1995 Stock Plan, no incentive stock option or non-statutory stock option may be granted in the ordinary course of business 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 certain financial and non-financial operating goals of the Company (performance-based RSUs, or “PRSUs”), or where vesting is dependent on performance of the Company’s total shareholder return (“TSR”) relative to the TSR of the NASDAQ Telecommunication Index (market-based RSUs, or “MRSUs”). A s of December 31, 2020, an aggregate of 11,149,423 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 6,622,440 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 one year for RSUs and three years for options, and options expire seven years from the date of grant. As of December 31, 2020, an aggregate of 497,974 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 303,814 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. Under the ESPP, 1,036,543, 1,037,366 and 1,132,438 shares were issued during fiscal 2020, 2019 and 2018, respectively, representing $4.5 million, $4.1 million and $4.0 million in contributions. As of December 31, 2020, 1,208,449 shares were reserved for future purchases by eligible employees. Stock Options (in thousands, except per share amounts) Number Weighted-Average Balance at December 31, 2019 1,888 $ 5.83 Exercised (177) 5.53 Canceled (258) 6.19 Balance at December 31, 2020 1,453 $ 5.80 All stock options outstanding as of December 31, 2020 are fully vested and exercisable. The weighted-average remaining contractual term of stock options outstanding as of December 31, 2020 was 1.2 years. The aggregate intrinsic value of stock options outstanding as of December 31, 2020 was $2.4 million. Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of the Company’s common stock as of December 31, 2020. The intrinsic value of stock options exercised during the years ended December 31, 2020, 2019 and 2018 was $0.2 million, $1.8 million and $0.3 million, respectively. No stock options were granted during the years ended December 31, 2020, 2019 and 2018. The fair value of stock options vested during the years ended December 31, 2020, 2019 and 2018 was zero, $0.1 million and $0.7 million, respectively. The Company realized no income tax benefit from stock option exercises for the years ended December 31, 2020, 2019 and 2018 due to recurring losses and valuation allowances. Restricted Stock Units (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2019 3,601 $ 5.18 Granted 2,966 5.86 Vested (2,869) 5.39 Forfeited (430) 4.65 Balance at December 31, 2020 3,268 $ 5.67 The fair value of all RSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $15.5 million, $9.7 million and $15.6 million, respectively. French Pension Plan Under French law, the Company’s subsidiaries in France 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 2021, but the Company, at its discretion, may make contributions to the defined benefit plan. The Company’s defined benefit pension obligations are measured annually as of December 31. The present value of these lump-sum payments is determined on an actuarial basis and the actuarial valuation considers 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, 2020 and December 31, 2019 and the changes to the Company’s pension obligations for each of those years were as follows: December 31, (in thousands) 2020 2019 Projected benefit obligation: Balance at January 1 $ 5,259 $ 4,881 Service cost 252 227 Interest cost 37 78 Actuarial losses 159 206 Benefits paid (173) (31) Foreign currency translation adjustment 523 (102) Balance at December 31 $ 6,057 $ 5,259 Presented on the Consolidated Balance Sheets under: Current portion (presented under “Accrued and other current liabilities”) $ 47 $ 30 Long-term portion (presented under “Other non-current liabilities”) $ 6,010 $ 5,229 The table below presents the components of net periodic benefit costs: Year ended December 31, (in thousands) 2020 2019 Service cost $ 252 $ 227 Interest cost 37 78 Net periodic benefit cost included in operating loss $ 289 $ 305 The following assumptions were used in determining the Company’s pension obligation: December 31, 2020 2019 Discount rate 0.4 % 0.7 % Mobility rate 5.2 % 5.0 % 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, 2020, 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, 2021 $ 46 2022 — 2023 341 2024 254 2025 480 2026 - 2030 3,465 Total $ 4,586 Share-based Compensation Cost The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Consolidated Statements of Operations: Year ended December 31, (in thousands) 2020 2019 2018 Share-based compensation expense included in: Cost of revenue $ 1,712 $ 1,124 $ 1,953 Research and development expense 4,850 3,261 5,192 Selling, general and administrative expense 11,478 7,689 10,144 Total $ 18,040 $ 12,074 $ 17,289 Share-based compensation expense by type of award: Stock options — 94 670 RSUs 11,522 9,444 8,901 PRSUs 4,022 924 6,075 MRSUs 711 286 222 Employee stock purchase rights under ESPP 1,785 1,326 1,421 Total $ 18,040 $ 12,074 $ 17,289 As of December 31, 2020, total unrecognized share-based compensation cost related to unvested RSUs was $12.8 million and is expected to be recognized over a weighted-average period of approximately 1.58 years. Valuation Assumptions The Company estimates the fair value of 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 purchase right granted under the ESPP using the following weighted average assumptions: December 31, 2020 2019 2018 Expected term (in years) 0.50 0.50 0.50 Volatility 56 % 38 % 55 % Risk-free interest rate 0.9 % 2.3 % 1.9 % Expected dividends 0.0 % 0.0 % 0.0 % 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 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. The estimated weighted-average fair value per share of stock purchase rights under the ESPP, granted for the years ended December 31, 2020, 2019 and 2018 was $1.80, $1.33 and $1.33, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss) (“AOCI”) The components of AOCI, on an after-tax basis where applicable, were as follows: December 31, (in thousands) 2020 2019 Foreign currency translation adjustments $ 5,774 $ (3,306) Actuarial gain 82 241 Total accumulated other comprehensive income (loss) $ 5,856 $ (3,065) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Loss before income tax: Year ended December 31, (in thousands) 2020 2019 2018 United States $ (42,905) $ 1,769 $ (19,780) International 16,688 (8,365) 2,832 Loss before income taxes $ (26,217) $ (6,596) $ (16,948) Provision for (benefit from) income taxes: Year ended December 31, (in thousands) 2020 2019 2018 Current: Federal $ 124 $ (180) $ (305) State 93 108 116 International 2,103 1,525 2,958 Deferred: International 734 (2,125) 1,318 Total provision for (benefit from) income taxes $ 3,054 $ (672) $ 4,087 Effective tax rate (12) % 10 % (24) % The difference between the tax provision at the statutory federal income tax rate and the provision for (benefit from) income tax as a percentage of loss before income taxes (effective tax rate) for each period was as follows: Year ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21 % 21 % 21 % Increase (reduction) in rate resulting from: Differential in rates on foreign earnings (11) % (37) % (25) % Change in valuation allowance (16) % 14 % (9) % Change in liabilities for uncertain tax positions — % 6 % 1 % Non-deductible stock-based compensation (2) % (8) % (8) % Permanent differences (2) % 11 % (6) % Adjustments related to tax positions taken during prior years — % 6 % (1) % Other (2) % (3) % 3 % Effective tax rate (12) % 10 % (24) % 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 differs from the U.S. federal statutory rate primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal and state deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax 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, as well as one-time discrete items. During fiscal 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure, and a $0.8 million benefit from a valuation allowance release for one of its foreign subsidiaries. This release of the valuation allowance was due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during 2019. The components of deferred taxes included in the Consolidated Balance Sheets are as follows: December 31, (in thousands) 2020 2019 Deferred tax assets: Reserves and accruals $ 21,823 $ 20,622 Net operating loss carryforwards 39,733 33,811 Research and development credit carryforwards 38,179 36,914 Deferred stock-based compensation 1,202 1,675 Intangibles 7,838 8,224 Operating lease liabilities 7,822 8,892 Capitalized research and development expenses 10,805 10,897 Other 442 — Gross deferred tax assets 127,844 121,035 Valuation allowance (99,585) (95,518) Gross deferred tax assets after valuation allowance 28,259 25,517 Deferred tax liabilities: Depreciation (6,399) (1,272) Convertible notes (4,708) (6,275) Operating lease right-of-use assets (6,529) (7,076) Other — (319) Gross deferred tax liabilities (17,636) (14,942) Net deferred tax assets $ 10,623 $ 10,575 The following table summarizes the activities related to the Company’s valuation allowance: Year ended December 31, (in thousands) 2020 2019 2018 Balance at beginning of period $ 95,518 $ 77,144 $ 77,756 Additions 6,690 23,929 928 Deductions (2,623) (5,555) (1,540) Balance at end of period $ 99,585 $ 95,518 $ 77,144 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. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner, 145 T.C. No.3 (2015), concluding that parties in an intercompany cost-sharing arrangement are not required to share stock-based compensation expenses. On June 7, 2019, the Ninth Circuit overturned the earlier Tax Court decision and ruled to include share-based compensation in the cost sharing pool. On July 22, 2019, Altera Corp. filed a petition for an en banc rehearing before the U.S. Court of Appeals for the Ninth Circuit, which was denied on November 12, 2019. Altera filed a petition for a writ of certiorari on February 10, 2020 asking the Supreme Court to review the Ninth Circuit Court of Appeals' decision which was denied on June 22, 2020. The Company has not changed its historical position of including share-based compensation in the cost base consistent with the Ninth Circuit’s ruling. As of December 31, 2020, the Company had $137.1 million, $70.4 million, $28.1 million and $35.0 million of foreign, U.S. federal, California state, and other U.S. states’ net operating loss (“NOL”) carryforwards, respectively. Certain foreign NOL carryforwards expire beginning in 2027, if not utilized, while the majority of the foreign NOLs carryforward indefinitely. $37.8 million of the U.S. federal NOL carryforward expires at various dates beginning in 2021 through 2037, if not utilized, and the remainder carries forward indefinitely. The California NOL carryforward expires at various dates beginning in 2029 through 2040, if not utilized. As of December 31, 2020, the Company had U.S. federal and California state tax credit carryforwards of $14.4 million and $36.5 million, respectively. If not utilized, the U.S. federal tax credit carryforwards will begin to expire in 2031, while the California tax credit carryforward will not expire. The Company has not provided U.S. state income taxes and foreign withholding taxes on approximately $33.7 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 the Company’s 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, 2020, the Company had $16.2 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: Year ended December 31, (in millions) 2020 2019 2018 Balance at beginning of period $ 17.0 $ 18.0 $ 18.8 Increase in balance related to tax positions taken during current year 0.3 0.2 1.0 Decrease in balance as a result of a lapse of the applicable statutes of limitations — (0.1) (0.1) Decrease in balance due to settlement with tax authorities — — (1.6) Increase in balance related to tax positions taken during prior years 0.3 — 0.2 Decrease in balance related to tax positions taken during prior years — (1.1) (0.3) Balance at end of period $ 17.6 $ 17.0 $ 18.0 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, 2018 through 2020, were not material. The 2017 through 2020 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In addition, the Company remains subject to income tax examination for several other jurisdictions, including in Switzerland for years after 2015, Israel for years after 2014, and France for years after 2016. On March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act” was signed into law. The new legislation includes a number of income tax provisions applicable to individuals and businesses. The Company recognized the effect of the tax law changes in the period of enactment, such as the reclassification of the long-term receivable of $0.5 million for the alternative minimum tax credit refund to short-term receivable. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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 awards, warrants, and the Company’s convertible notes , are excluded from the net loss per share computations when their effect is anti-dilutive. The diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2020, 2019 and 2018, 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 diluted net loss per share computations: December 31, (in thousands) 2020 2019 2018 2020 Notes 312 1,322 — 2022 Notes 192 n/a n/a Stock options 1,603 2,568 3,327 Restricted stock units 3,041 2,955 2,997 Stock purchase rights under the ESPP 531 478 609 Warrants (1) — 4,321 1,268 Total 5,679 11,644 8,201 (1) Refer to Note 16, “Warrants,” for additional information. The Company applies the treasury stock method to determine the potential dilutive effect of the 2020 Notes, 2022 Notes, and 2024 Notes on net earnings per share as a result of the Company's intent and stated policy to settle the principal amount of the 2020 Notes, 2022 Notes, and 2024 Notes in cash. The 2020 Notes, 2022 Notes, and 2024 Notes are excluded from the calculation of diluted earnings per share under the treasury stock method for the periods when their respective conversion prices exceeded the average market price for the Company's common stock. Under the if-converted method, the 2022 Notes and the 2024 Notes have potential dilutive effect of 6.6 million shares and 13.3 million shares, respectively. Refer to Note 11, “Convertible Notes, Other Debts and Finance Leases,” for additional information on the 2022 Notes and the 2024 Notes. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Warrants Disclosure | 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. Prior to the third quarter of fiscal 2019, Comcast had vested in 1,954,042 Warrant shares as a result of the achievement of certain milestones. On July 8 2019, in connection with the election by Comcast of enterprise licensing pricing for the Company’s CableOS software, the Company deemed that all of the remaining milestones and thresholds required to fulfill each of the vesting requirements of the Warrant were satisfied and achieved or otherwise waived such that all Warrant shares were fully vested and exercisable as of July 1, 2019. The remaining terms of the Warrant have not been modified or amended. The total fair value of the fully vested Warrants as of July 1, 2019 was $20.0 million, which includes $3.9 million in fair value for the Warrant shares which were vested prior to July 2019. The fair value of the Warrant that vested in connection with the CableOS software license agreement was estimated to be $16.1 million on July 8, 2019, using the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model included the risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate was based on the U.S. Treasury yield curve rates with maturity terms similar to the expected life of the Warrant, which was determined to be 1.9%. Expected volatility was determined utilizing historical volatility over a period of time equal to the expected life of the Warrant, which was determined to be 48.6%. Expected life was equal to the remaining contractual term of the Warrant, which was determined to be 4.2 years. The dividend yield was assumed to be zero since the Company had not historically declared dividends and did not have any plans to declare dividends in the future. The fair value of the Warrant was recorded as a component of “Prepaid expenses and other current assets” and “Other non-current assets” with a corresponding offset to “Additional paid-in capital” on the Company’s Consolidated Balance Sheets. This asset is being amortized as a reduction to the Company’s revenue, based on the recognition pattern of the related transaction price. During the years ended December 31, 2020, 2019 and 2018, the Company recorded $1.7 million, $13.6 million and $1.2 million, respectively, as a reduction to net revenues in connection with amortization of the Warrant. On December 17, 2019, Comcast exercised the Warrant in its entirety, resulting in a net issuance of 3,217,547 shares. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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 the 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 telco Pay-TV service providers. The Cable Access segment provides CableOS cable access solutions and related services to cable operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. The following table provides summary financial information by reportable segment: Year ended December 31, ( in thousands ) 2020 2019 2018 Video Revenue $ 242,510 $ 278,028 $ 313,828 Gross profit 132,092 162,156 178,170 Operating income 1,326 15,837 26,170 Cable Access Revenue $ 136,321 $ 124,846 $ 89,730 Gross profit 66,661 68,548 39,029 Operating income (loss) 11,651 22,171 (1,756) Total Revenue $ 378,831 $ 402,874 $ 403,558 Gross profit $ 198,753 $ 230,704 $ 217,199 Operating income $ 12,977 $ 38,008 $ 24,414 A reconciliation of the Company’s consolidated segment operating income to consolidated loss before income taxes: Year ended December 31, (in thousands ) 2020 2019 2018 Total segment operating income $ 12,977 $ 38,008 $ 24,414 Unallocated corporate expenses (1) (3,416) (4,532) (3,769) Stock-based compensation (18,040) (12,074) (17,289) Amortization of intangibles (3,970) (8,319) (8,367) Consolidated income (loss) from operations (12,449) 13,083 (5,011) Loss on convertible debt extinguishment (1,362) (5,695) — Non-operating expense, net (12,406) (13,984) (11,937) Loss before income taxes $ (26,217) $ (6,596) $ (16,948) (1) Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges and certain other non-recurring charges to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments. Geographic Information Net revenue (1) : Year ended December 31, (in thousands) 2020 2019 2018 United States $ 191,854 $ 202,272 $ 181,965 Other countries 186,977 200,602 221,593 Total $ 378,831 $ 402,874 $ 403,558 (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, 2020, 2019 and 2018. Property and equipment, net: As of December 31, (in thousands) 2020 2019 United States $ 31,017 $ 13,301 Israel 8,803 5,919 France 2,461 2,615 Other countries 860 1,093 Total $ 43,141 $ 22,928 Customer Concentration Net revenue from Comcast accounted for 20%, 23% and 15% of total revenue during the years ended December 31, 2020, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Bank Guarantees and Standby Letters of Credit As of December 31, 2020 and 2019, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $3.3 million and $2.7 million, respectively, consisting of building leases and performance bonds issued to customers. There were no revolving borrowings under the Credit Agreement from the closing of the Credit Agreement through December 31, 2020. 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 $2.3 million guarantee issued by the Company. There were no amounts outstanding under this credit facility as of December 31, 2020 and 2019. 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, 2020. Purchase Commitments As of December 31, 2020, the Company had approximately $49.9 million of commitments to purchase goods and services. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2020 | |
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 non-infringement 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 Statements of Operations. Of the associated $6.0 million settlement liability, $2.5 million was paid in October 2017, $1.5 million was paid in April 2019 an d $2.0 million was paid in the third quarter of 2020 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. |
Reclassifications | Reclassifications Certain prior period balances have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on previously reported financial statements. Beginning in fiscal 2019, the Company changed the classification of total revenue and cost of revenue in the Consolidated Statements of Operations from the two previous categories, “Product” and “Service,” to two new categories, “Appliance and integration” and “SaaS and service.” The Company has also adjusted revenue and cost of revenue retrospectively into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue and cost of revenue did not have an impact on total revenue, cost of revenue or segment revenue for any periods presented. |
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. |
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. The Company 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 measures these investments at cost minus impairment, if any. The Company’s total investments in equity securities of privately held companies were $3.6 million as of December 31, 2020 and 2019 , respectively. The Company’s equity investments are classified as long-term investments and reported as a component of “Other non-current assets” on the Company’s Consolidated Balance Sheets. |
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, and accounts receivable. Cash and cash equivalents 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. One customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2020 and 2019. During the year ended December 31, 2020, 2019 and 2018, Comcast is the only customer accounted for more than 10% of the Company’s revenue. 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 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 to 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 to 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. Refer to Note 3, “Revenue,” for additional information. Contract Balances . 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. The Company’s payment terms vary by the type and location of its 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, the Company requires payment before the products or services are delivered to the customer. 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”). See “ Significant Judgments ” for additional information. 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 of 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 on a straight-line basis over the period during which 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. 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 transaction price to all separate performance obligations based on their relative 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 separ ately, 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. If the Company has not yet established a price because the good or service has not previously been sold on a standalone basis, SSP for such good and service in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the good or service for which the price has not yet been established. 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. These performance obligations primarily relate to the Company’s support and maintenance contracts which have a duration of one year or less and subscriptions services for which 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 (determined on first-in, first-out basis) or net realizable value. The cost of inventories is comprised of material and manufacturing labor and overheads. 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 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 over the estimated useful life, generally three years. |
Capitalized Software Implementation Costs | Capitalized Software Implementation Costs In a hosting arrangement that is a service contract, the Company capitalizes costs for implementation activities in the application development stage depending on the nature of the costs. The 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, which is the fixed, non-cancelable term of the arrangement, plus any reasonably certain renewal periods. The capitalized implementation costs are included in “Other non-current assets” in the Consolidated Balance Sheets, and the amortization expense related to these costs are primarily included in “Selling, general and administrative” in the Consolidated Statements of Operations. The payments for capitalized implementation costs are included as operating activities in the Consolidated Statements of Cash Flows. |
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. |
Goodwill | Goodwill As of December 31, 2020, the Company had goodwill of $243.7 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. On January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350) using the prospective approach. The ASU eliminates step two from the goodwill impairment test. Under ASU No. 2017-04, the Company will recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. There was no impairment of goodwill resulting from the Company’s fiscal 2020 annual impairment testing. |
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, 2020, 2019 and 2018. |
Leases | Leases On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification. Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 10 years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. Refer to Note 4, “Leases,” for additional information. |
Foreign Currency | Foreign Currency The functional currency of the Company’s Israeli and Swiss subsidiaries 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 foreign subsidiaries in their nonfunctional currencies. These monetary assets and liabilities are being remeasured into the subsidiaries’ respective functional currencies using exchange rates as of 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, 2020, 2019 and 2018, the Company recorded remeasurement losses of approximately $1.0 million, $1.5 million and $0.6 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 three 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 Sheets. The Company enters into derivative instruments 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. |
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. The Company’s 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, 2020, 2019 and 2018, the Company had R&D tax credits of $4.5 million, $4.7 million and $5.9 million, 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, 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. Refer to 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. |
Advertising Expenses | Advertising ExpensesAll 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 $1.1 million, $0.7 million and $1.0 million for the years ended December 31, 2020, 2019 and 2018, 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 stock purchase rights under the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. The Company recognizes the impact of forfeitures as they occur. The fair value of the Company’s stock options and stock purchase rights under ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs and performance-based RSUs (“PRSUs”) 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. Valuation Assumptions The Company estimates the fair value of 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 purchase right granted under the ESPP using the following weighted average assumptions: December 31, 2020 2019 2018 Expected term (in years) 0.50 0.50 0.50 Volatility 56 % 38 % 55 % Risk-free interest rate 0.9 % 2.3 % 1.9 % Expected dividends 0.0 % 0.0 % 0.0 % 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 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 subsidiary in France 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, 2020 , the Company did not meet the 10% threshold, and therefore no amortization of 2020 actuarial gain would be recorded in 2021. Refer to Note 12, “Employee Benefit Plans and Stock-based Compensation-French Pension Plan,” for additional information. |
Income Taxes | Income Taxes In preparing the Company’s consolidated 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 Sheets. 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 Sheets 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, 2020. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Compa ny’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 has not provided U.S. state income taxes and foreign withholding taxes on approximately $33.7 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. |
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 the 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 telco Pay-TV service providers. The Cable Access segment provides CableOS cable access solutions and related services to cable operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“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 is required to use a new forward-looking “expected loss” model. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) 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 Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have an impact on its consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU No. 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers. The Company adopted this new standard in the first quarter of fiscal 2020 , and the adoption did not have a material impact on its consolidated financial statements. ASU 2018-14, Compensation – Retirement Benefits – Defined Benefits Plans- General (Subtopic 715-20) In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This new standard, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company adopted this new standard in the fourth quarter of fiscal 2020 , a nd the adoption did not have a material impact on its consolidated financial statements and associated disclosures. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. Among other changes, ASU No. 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from stockholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU No. 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which would result in an increase in diluted shares for purposes of calculating diluted EPS for the Company. The new ASU is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted after December 15, 2020. Adoption of the new ASU can either be on a modified retrospective or full retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new ASU clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The new ASU is effective for the Company for fiscal years ending after December 15, 2021, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Contract assets and deferred revenue consisted of the following: As of December 31, (in thousands) 2020 2019 Contract assets $ 9,800 $ 13,969 Deferred revenue 63,533 43,450 |
Capitalized Contract Cost | The balances of net capitalized contract costs included in the Company’s Consolidated Balance Sheets were as follows (in thousands): As of December 31, Balance Sheet Location 2020 2019 Prepaid expenses and other current assets $ 1,581 $ 1,309 Other non-current assets 1,287 722 Total net capitalized contract costs $ 2,868 $ 2,031 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense are as follows: Year ended December 31, (in thousands) 2020 2019 Operating lease cost $ 8,369 $ 9,574 Variable lease cost 2,675 3,232 Total lease cost $ 11,044 $ 12,806 Supplemental cash flow information related to leases are as follows: Year ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,584 $ 9,702 ROU assets obtained in exchange for operating lease obligations $ 5,414 $ 12,032 Other information related to leases are as follows: Year ended December 31, 2020 2019 Operating leases Weighted-average remaining lease term (years) 7 7 Weighted-average discount rate 7.1 % 7.1 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 are as follows (in thousands): Years ending December 31, 2021 $ 7,682 2022 6,297 2023 5,535 2024 5,148 2025 4,900 Thereafter 13,136 Total future minimum lease payments $ 42,698 Less: imputed interest (9,273) Total lease liability balance $ 33,425 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of December 31, (in thousands) 2020 2019 Purchase $ 11,426 $ 14,806 Sell $ — $ 2,629 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy | The Company's financial instruments not measured at fair value on a recurring basis were as follows: December 31, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2020 Notes n/a n/a n/a n/a $ 43,785 $ — $ 66,844 $ — 2022 Notes $ 35,925 $ — $ 54,204 $ — n/a n/a n/a n/a 2024 Notes $ 93,582 $ — $ 125,953 $ — $ 88,629 $ — $ 131,887 $ — French and other loans $ 21,835 $ — $ 21,835 $ — $ 17,153 $ — $ 17,153 $ — |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the Company’s carrying amount of goodwill are as follows: (in thousands) Video Cable Access Total Balance as of December 31, 2018 $ 179,839 $ 60,779 $ 240,618 Foreign currency translation adjustment (857) 19 (838) Balance as of December 31, 2019 $ 178,982 $ 60,798 $ 239,780 Foreign currency translation adjustment 3,873 21 3,894 Balance as of December 31, 2020 $ 182,855 $ 60,819 $ 243,674 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowances | Accounts receivable, net of allowances, consisted of the following: As of December 31, (in thousands) 2020 2019 Accounts receivable, net: Accounts receivable $ 68,295 $ 91,513 Less: allowance for doubtful accounts and sales returns (2,068) (3,013) Total $ 66,227 $ 88,500 |
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 Charges to Charges Additions to Balance at End Year ended December 31, 2020 $ 3,013 $ 1,367 $ 299 $ (2,611) $ 2,068 2019 $ 3,497 $ 1,896 $ (396) $ (1,984) $ 3,013 2018 $ 4,631 $ 1,949 $ 572 $ (3,655) $ 3,497 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories: December 31, (in thousands) 2020 2019 Raw materials $ 2,529 $ 4,179 Work-in-process 1,689 1,633 Finished goods 22,777 14,080 Service-related spares 8,036 9,150 Total $ 35,031 $ 29,042 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets: December 31, (in thousands) 2020 2019 Prepaid expenses $ 11,453 $ 3,050 Contract assets (1) 9,800 13,969 Other current assets 16,879 23,743 Total $ 38,132 $ 40,762 (1) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. |
Property and Equipment | Property and equipment, net: December 31, (in thousands) 2020 2019 Machinery and equipment $ 72,731 $ 75,229 Capitalized software 37,141 34,190 Leasehold improvements * 38,718 15,170 Furniture and fixtures 2,913 6,036 Construction-in-progress 2,209 5,506 Property and equipment, gross 153,712 136,131 Less: accumulated depreciation and amortization (110,571) (113,203) Total $ 43,141 $ 22,928 *During fiscal 2020, the Company completed construction of $23.9 million leasehold improvements for the new headquarters facility. |
Accrued and other current liabilities | Other current liabilities: December 31, (in thousands) 2020 2019 Accrued employee compensation and related expenses $ 23,131 $ 19,454 Other 27,202 35,426 Total $ 50,333 $ 54,880 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
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 year ended December 31, 2020: (in thousands) Excess facilities Severance and Benefits French VDP Other Total Balance at December 31, 2019 $ 720 $ 3,294 $ 806 $ 30 $ 4,850 Charges for current period — 3,278 91 47 3,416 Cash payments (720) (2,367) (862) (77) (4,026) Other — (107) (35) — (142) Balance at December 31, 2020 $ — $ 4,098 $ — $ — $ 4,098 |
Convertible Notes, Debts and _2
Convertible Notes, Debts and Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Schedule of Debt | The Company has a variety of debt and credit facilities primarily in France to satisfy the financing requirements of the operations of its French subsidiary. These arrangements are summarized in the table below: December 31, (in thousands) 2020 2019 Financing from French government agencies related to various government incentive programs (1) $ 14,974 $ 16,566 Relief loans (2) 6,694 — Term loans 167 587 Obligations under finance leases 22 71 Total debt obligations 21,857 17,224 Less: current portion (11,771) (6,713) Long-term portion $ 10,086 $ 10,511 (1) Loans backed by French R&D tax credit receivables were $13.6 million and $15.1 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the French subsidiary had an aggregate of $21.5 million of R&D tax credit receivables from the French government from 2021 through 2024. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2021 through 2023. The remaining loans of $1.4 million and $1.5 million as of December 31, 2020 and 2019, 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, 2020 mature between 2021 through 2025. (2) Refer to the below section “Relief Loans” for the description of these loans. |
Schedule of Maturities of Long-term Debt | The table below presents the future minimum repayments of debts and finance lease obligations in France as of December 31, 2020 (in thousands): Years ending December 31, Finance lease obligations Other Debt obligations 2021 $ 22 $ 11,749 2022 — 5,420 2023 — 3,856 2024 — 184 2025 — 626 Total $ 22 $ 21,835 |
Convertible Note due 2022 [Member] | |
Debt Instrument [Line Items] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the 2022 Notes: (in thousands, except for years and percentages) As of December 31, 2020 Liability: Principal amount $ 37,707 Less: Debt discount, net of amortization (1,357) Less: Debt issuance costs, net of amortization (425) Carrying amount $ 35,925 Remaining amortization period (years) 1.9 Effective interest rate on liability component 6.95 % |
Convertible Interest Expense Recognized | The following table presents interest expense recognized for the 2022 Notes: (in thousands) Year ended Contractual interest expense $ 953 Amortization of debt discount 373 Amortization of debt issuance costs 117 Total interest expense recognized $ 1,443 |
Convertible Note due 2024 [Member] | |
Debt Instrument [Line Items] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the 2024 Notes: As of December 31, (in thousands, except for years and percentages) 2020 2019 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt discount, net of amortization (19,294) (23,652) Less: Debt issuance costs, net of amortization (2,624) (3,219) Carrying amount $ 93,582 $ 88,629 Remaining amortization period (years) 3.7 4.7 Effective interest rate on liability component 7.95 % 7.95 % |
Convertible Interest Expense Recognized | The following table presents interest expense recognized for the 2024 Notes: Year ended December 31, (in thousands) 2020 2019 Contractual interest expense $ 2,310 $ 687 Amortization of debt discount 4,358 1,226 Amortization of debt issuance costs 595 166 Total interest expense recognized $ 7,263 $ 2,079 |
Convertible Note due 2020 [Member] | |
Debt Instrument [Line Items] | |
Convertible Interest Expense Recognized | The following table presents interest expense recognized for the 2020 Notes: Year ended December 31, (in thousands) 2020 2019 2018 Contractual interest expense $ 936 $ 4,148 $ 5,130 Amortization of debt discount 1,158 4,787 5,408 Amortization of debt issuance costs 138 577 652 Total interest expense recognized $ 2,232 $ 9,512 $ 11,190 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options Outstanding | (in thousands, except per share amounts) Number Weighted-Average Balance at December 31, 2019 1,888 $ 5.83 Exercised (177) 5.53 Canceled (258) 6.19 Balance at December 31, 2020 1,453 $ 5.80 |
Summary of Restricted Stock Units Outstanding | (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2019 3,601 $ 5.18 Granted 2,966 5.86 Vested (2,869) 5.39 Forfeited (430) 4.65 Balance at December 31, 2020 3,268 $ 5.67 |
Schedule of Defined Benefit Plans Disclosures | The Company’s pension obligations as of December 31, 2020 and December 31, 2019 and the changes to the Company’s pension obligations for each of those years were as follows: December 31, (in thousands) 2020 2019 Projected benefit obligation: Balance at January 1 $ 5,259 $ 4,881 Service cost 252 227 Interest cost 37 78 Actuarial losses 159 206 Benefits paid (173) (31) Foreign currency translation adjustment 523 (102) Balance at December 31 $ 6,057 $ 5,259 Presented on the Consolidated Balance Sheets under: Current portion (presented under “Accrued and other current liabilities”) $ 47 $ 30 Long-term portion (presented under “Other non-current liabilities”) $ 6,010 $ 5,229 |
Components of Net Periodic Benefit Costs | The table below presents the components of net periodic benefit costs: Year ended December 31, (in thousands) 2020 2019 Service cost $ 252 $ 227 Interest cost 37 78 Net periodic benefit cost included in operating loss $ 289 $ 305 |
Schedule of Pension Obligations Assumptions Used | The following assumptions were used in determining the Company’s pension obligation: December 31, 2020 2019 Discount rate 0.4 % 0.7 % Mobility rate 5.2 % 5.0 % Salary progression rate 2.0 % 2.0 % |
Schedule of Expected Benefit Payments | As of December 31, 2020, 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, 2021 $ 46 2022 — 2023 341 2024 254 2025 480 2026 - 2030 3,465 Total $ 4,586 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Consolidated Statements of Operations: Year ended December 31, (in thousands) 2020 2019 2018 Share-based compensation expense included in: Cost of revenue $ 1,712 $ 1,124 $ 1,953 Research and development expense 4,850 3,261 5,192 Selling, general and administrative expense 11,478 7,689 10,144 Total $ 18,040 $ 12,074 $ 17,289 Share-based compensation expense by type of award: Stock options — 94 670 RSUs 11,522 9,444 8,901 PRSUs 4,022 924 6,075 MRSUs 711 286 222 Employee stock purchase rights under ESPP 1,785 1,326 1,421 Total $ 18,040 $ 12,074 $ 17,289 |
Valuation Assumptions for Stock Options | At the date of grant, the Company estimated the fair value of each stock purchase right granted under the ESPP using the following weighted average assumptions: December 31, 2020 2019 2018 Expected term (in years) 0.50 0.50 0.50 Volatility 56 % 38 % 55 % Risk-free interest rate 0.9 % 2.3 % 1.9 % Expected dividends 0.0 % 0.0 % 0.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of AOCI, on an after-tax basis where applicable, were as follows: December 31, (in thousands) 2020 2019 Foreign currency translation adjustments $ 5,774 $ (3,306) Actuarial gain 82 241 Total accumulated other comprehensive income (loss) $ 5,856 $ (3,065) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Tax Provision | Loss before income tax: Year ended December 31, (in thousands) 2020 2019 2018 United States $ (42,905) $ 1,769 $ (19,780) International 16,688 (8,365) 2,832 Loss before income taxes $ (26,217) $ (6,596) $ (16,948) |
Provision for Income Taxes | Provision for (benefit from) income taxes: Year ended December 31, (in thousands) 2020 2019 2018 Current: Federal $ 124 $ (180) $ (305) State 93 108 116 International 2,103 1,525 2,958 Deferred: International 734 (2,125) 1,318 Total provision for (benefit from) income taxes $ 3,054 $ (672) $ 4,087 Effective tax rate (12) % 10 % (24) % |
Reconciliation of Provision for Income Taxes | The difference between the tax provision at the statutory federal income tax rate and the provision for (benefit from) income tax as a percentage of loss before income taxes (effective tax rate) for each period was as follows: Year ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21 % 21 % 21 % Increase (reduction) in rate resulting from: Differential in rates on foreign earnings (11) % (37) % (25) % Change in valuation allowance (16) % 14 % (9) % Change in liabilities for uncertain tax positions — % 6 % 1 % Non-deductible stock-based compensation (2) % (8) % (8) % Permanent differences (2) % 11 % (6) % Adjustments related to tax positions taken during prior years — % 6 % (1) % Other (2) % (3) % 3 % Effective tax rate (12) % 10 % (24) % |
Components of Deferred Tax Assets and Liabilities | The components of deferred taxes included in the Consolidated Balance Sheets are as follows: December 31, (in thousands) 2020 2019 Deferred tax assets: Reserves and accruals $ 21,823 $ 20,622 Net operating loss carryforwards 39,733 33,811 Research and development credit carryforwards 38,179 36,914 Deferred stock-based compensation 1,202 1,675 Intangibles 7,838 8,224 Operating lease liabilities 7,822 8,892 Capitalized research and development expenses 10,805 10,897 Other 442 — Gross deferred tax assets 127,844 121,035 Valuation allowance (99,585) (95,518) Gross deferred tax assets after valuation allowance 28,259 25,517 Deferred tax liabilities: Depreciation (6,399) (1,272) Convertible notes (4,708) (6,275) Operating lease right-of-use assets (6,529) (7,076) Other — (319) Gross deferred tax liabilities (17,636) (14,942) Net deferred tax assets $ 10,623 $ 10,575 |
Activities Related to Valuation Allowance | The following table summarizes the activities related to the Company’s valuation allowance: Year ended December 31, (in thousands) 2020 2019 2018 Balance at beginning of period $ 95,518 $ 77,144 $ 77,756 Additions 6,690 23,929 928 Deductions (2,623) (5,555) (1,540) Balance at end of period $ 99,585 $ 95,518 $ 77,144 |
Activities Related to Gross Unrecognized Tax Benefits | The following table summarizes the activities related to the Company’s gross unrecognized tax benefits: Year ended December 31, (in millions) 2020 2019 2018 Balance at beginning of period $ 17.0 $ 18.0 $ 18.8 Increase in balance related to tax positions taken during current year 0.3 0.2 1.0 Decrease in balance as a result of a lapse of the applicable statutes of limitations — (0.1) (0.1) Decrease in balance due to settlement with tax authorities — — (1.6) Increase in balance related to tax positions taken during prior years 0.3 — 0.2 Decrease in balance related to tax positions taken during prior years — (1.1) (0.3) Balance at end of period $ 17.6 $ 17.0 $ 18.0 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
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 diluted net loss per share computations: December 31, (in thousands) 2020 2019 2018 2020 Notes 312 1,322 — 2022 Notes 192 n/a n/a Stock options 1,603 2,568 3,327 Restricted stock units 3,041 2,955 2,997 Stock purchase rights under the ESPP 531 478 609 Warrants (1) — 4,321 1,268 Total 5,679 11,644 8,201 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Dec. 31, 2020 | ||
Segment Reporting [Abstract] | ||
Summary of Revenue by Product Type | The following table provides summary financial information by reportable segment: Year ended December 31, ( in thousands ) 2020 2019 2018 Video Revenue $ 242,510 $ 278,028 $ 313,828 Gross profit 132,092 162,156 178,170 Operating income 1,326 15,837 26,170 Cable Access Revenue $ 136,321 $ 124,846 $ 89,730 Gross profit 66,661 68,548 39,029 Operating income (loss) 11,651 22,171 (1,756) Total Revenue $ 378,831 $ 402,874 $ 403,558 Gross profit $ 198,753 $ 230,704 $ 217,199 Operating income $ 12,977 $ 38,008 $ 24,414 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | A reconciliation of the Company’s consolidated segment operating income to consolidated loss before income taxes: Year ended December 31, (in thousands ) 2020 2019 2018 Total segment operating income $ 12,977 $ 38,008 $ 24,414 Unallocated corporate expenses (1) (3,416) (4,532) (3,769) Stock-based compensation (18,040) (12,074) (17,289) Amortization of intangibles (3,970) (8,319) (8,367) Consolidated income (loss) from operations (12,449) 13,083 (5,011) Loss on convertible debt extinguishment (1,362) (5,695) — Non-operating expense, net (12,406) (13,984) (11,937) Loss before income taxes $ (26,217) $ (6,596) $ (16,948) | |
Summary of Revenue, Property and Equipment, Net by Geographic Region | Net revenue (1) : Year ended December 31, (in thousands) 2020 2019 2018 United States $ 191,854 $ 202,272 $ 181,965 Other countries 186,977 200,602 221,593 Total $ 378,831 $ 402,874 $ 403,558 (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, 2020, 2019 and 2018. | [1] |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Property and equipment, net: As of December 31, (in thousands) 2020 2019 United States $ 31,017 $ 13,301 Israel 8,803 5,919 France 2,461 2,615 Other countries 860 1,093 Total $ 43,141 $ 22,928 | |
[1] | Revenue is attributed to countries based on the location of the customer. |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)ReportingUnitsegmentCustomer | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($) | |
Cash and cash equivalents maximum maturity | three months | |||
Investments in Equity Securities of Privately Held Companies | $ 3,600 | $ 3,600 | ||
Capitalized Software Development Costs for Software Sold to Customers | 2,300 | 1,100 | $ 900 | |
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, before Accumulated Amortization | 3,600 | |||
Goodwill | $ 243,674 | 239,780 | 240,618 | |
Number of reporting units | ReportingUnit | 2 | |||
Goodwill, Impairment Loss | $ 0 | |||
Impairment of Intangible Assets, Finite-lived | 0 | 0 | 0 | |
Advertising expense | $ 1,100 | 700 | 1,000 | |
Net Accumulated Gain or Loss as a Percentage of Projected Plan Benefit Obligation | 10.00% | |||
More Likely Than Not Threshold Recognition of Uncertain Tax Position | 50.00% | |||
Number of reportable segments | segment | 2 | |||
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 | |||
Leaseholds and Leasehold Improvements [Member] | Minimum [Member] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Leaseholds and Leasehold Improvements [Member] | Maximum [Member] | ||||
Lessee, Operating Lease, Term of Contract | 10 years | |||
Capitalized software [Member] | ||||
Property, plant and equipment estimated useful life | 3 years | |||
Foreign Exchange Forward [Member] | ||||
Derivative, Term of Contract | 3 months | |||
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 | |||
TVN [Member] | ||||
Research and Development Tax Credits Receivables from French Government | 4,500 | 4,700 | 5,900 | |
Other Expense [Member] | ||||
Remeasurement Losses, Reporting Currency Denominated, Value | $ 1,000 | $ 1,500 | $ 600 | |
Forecast [Member] | ||||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 0 | |||
Comcast [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Number Of Customers Accounting For More Than Ten Percent of Net Accounts Receivable | Customer | 1 | 1 | ||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 10.00% | 10.00% | ||
Comcast [Member] | Net Revenue [Member] | ||||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 10.00% | 10.00% | 10.00% | |
Comcast [Member] | Net Revenue [Member] | Customer Concentration Risk [Member] | ||||
Entity-wide revenue, major customer, revenue or accounts receivable percentage | 20.00% | 23.00% | 15.00% |
Revenue Narratives (Details)
Revenue Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with Customer, Liability, Revenue Recognized | $ 36.2 | $ 41.1 | |
Capitalized Contract Cost, Amortization | $ 1.6 | $ 1.5 | $ 1.3 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | ||
Revenue, Practical Expedient, Financing Component [true false] | true | ||
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | ||
Maximum [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Capitalized Contract Cost, Amortization Period | 1 year | ||
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year | ||
Support and Maintenance Contracts [Member] | Maximum [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year | ||
Comcast CableOS Software License Agreement [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 77.6 | ||
Significant Financing Component Revenue with Customer [Member] | Maximum [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year |
Revenue - Contract Assets and D
Revenue - Contract Assets and Deferred Revenue Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Contract assets | [1] | $ 9,800 | $ 13,969 |
Prepaid Expenses and Other Current Assets [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Contract assets | 9,800 | 13,969 | |
Other Noncurrent Liabilities [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Deferred revenue | $ 63,533 | $ 43,450 | |
[1] | Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration. |
Revenue - Net Capitalized Contr
Revenue - Net Capitalized Contract Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Net | $ 2,868 | $ 2,031 |
Prepaid Expenses and Other Current Assets [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Net | 1,581 | 1,309 |
Other Noncurrent Assets [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Net | $ 1,287 | $ 722 |
Revenue Additional Information
Revenue Additional Information (Details) | Dec. 31, 2020 |
Comcast CableOS Software License Agreement [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years 6 months |
Leases - Narratives (Details)
Leases - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lease, Practical Expedients, Package [true false] | true | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 5,414 | $ 12,032 |
Operating lease liabilities, current | 7,354 | 8,881 |
Operating Lease, Liability, Noncurrent | $ 26,071 | $ 25,766 |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | |
Minimum [Member] | Leaseholds and Leasehold Improvements [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum [Member] | Leaseholds and Leasehold Improvements [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 10 years | |
Initial Lease Term Threshold Not Capitalized as Operating Lease | 12 months | |
Other Noncurrent Liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 4,100 | |
Accrued Liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,300 |
Leases - Disclosure Information
Leases - Disclosure Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 8,369 | $ 9,574 |
Variable Lease, Cost | 2,675 | 3,232 |
Total lease cost | 11,044 | 12,806 |
Cash paid for amounts included in the measurement of operating lease liabilities | 9,584 | 9,702 |
ROU assets obtained in exchange for operating lease obligations | $ 5,414 | $ 12,032 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseRightOfUseAsset | |
Weighted-average remaining lease term (years) | 7 years | 7 years |
Weighted-average discount rate | 7.10% | 7.10% |
Lease - Future Minimum Lease Pa
Lease - Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 7,682 |
2022 | 6,297 |
2023 | 5,535 |
2024 | 5,148 |
2025 | 4,900 |
Thereafter | 13,136 |
Total future minimum lease payments | 42,698 |
Less: imputed interest | (9,273) |
Total | $ 33,425 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
Derivative and Hedging Activi_3
Derivative and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative [Line Items] | |||
Gain (loss) recorded in other expense, net | $ 2,200 | $ 1,400 | $ (2,300) |
Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative, Term of Contract | 3 months | ||
Fair Value Hedging [Member] | Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative, Term of Contract | 3 months | ||
ISRAEL | |||
Derivative [Line Items] | |||
Compensating Balance, Amount | $ 1,000 | $ 1,000 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Notional Values (Details) - Foreign Exchange Forward [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Purchase | $ 11,426 | $ 14,806 |
Short [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Sell | $ 0 | $ 2,629 |
Fair Value Measurements of fina
Fair Value Measurements of financial instruments not measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes, short-term | $ 0 | $ 43,375 |
Notes Carrying amount | 129,507 | 88,629 |
French loans Carrying Amount | 21,835 | 17,153 |
Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
French Loans, Fair Value Disclosure | 21,835 | 17,153 |
Convertible Note due 2020 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes, short-term | 43,785 | |
Convertible Note due 2020 [Member] | Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible Debt, Fair Value Disclosures | 66,844 | |
Convertible Note due 2022 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Carrying amount | 35,925 | |
Convertible Note due 2022 [Member] | Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible Debt, Fair Value Disclosures | 54,204 | |
Convertible Note due 2024 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Carrying amount | 93,582 | 88,629 |
Convertible Note due 2024 [Member] | Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible Debt, Fair Value Disclosures | $ 125,953 | $ 131,887 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Total assets measured and recorded at fair value | $ 0 | $ 0 | $ 0 |
Total liabilities measured and recorded at fair value | 0 | 0 | $ 0 |
French Voluntary Departure Plan [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Postemployment Benefits Liability | $ 6,100 | $ 5,300 |
Goodwill Narrative (Details)
Goodwill Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)ReportingUnit | |
Goodwill [Line Items] | |
Number of reporting units | ReportingUnit | 2 |
Goodwill, Impairment Loss | $ | $ 0 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Balance at beginning of period | $ 239,780 | $ 240,618 |
Foreign currency translation adjustment | 3,894 | (838) |
Balance at end of period | 243,674 | 239,780 |
Video [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of period | 178,982 | 179,839 |
Foreign currency translation adjustment | 3,873 | (857) |
Balance at end of period | 182,855 | 178,982 |
Cable Access [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of period | 60,798 | 60,779 |
Foreign currency translation adjustment | 21 | 19 |
Balance at end of period | $ 60,819 | $ 60,798 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net of Allowances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 68,295 | $ 91,513 |
Less: allowance for doubtful accounts and sales returns | (2,068) | (3,013) |
Accounts Receivable, Net, Current, Total | $ 66,227 | $ 88,500 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance at Beginning of Period | $ 3,013 | $ 3,497 | $ 4,631 |
Charges to Revenue | 1,367 | 1,896 | 1,949 |
Credits to Expense | (396) | ||
Charges (Credits) to Expense | 299 | 572 | |
Additions to (Deductions from) Reserves | (2,611) | (1,984) | (3,655) |
Balance at End of Period | $ 2,068 | $ 3,013 | $ 3,497 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Raw materials | $ 2,529 | $ 4,179 |
Work-in-process | 1,689 | 1,633 |
Finished goods | 22,777 | 14,080 |
Service-related spares | 8,036 | 9,150 |
Inventories | $ 35,031 | $ 29,042 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid Expense, Current | $ 11,453 | $ 3,050 | |
Contract assets (1) | [1] | 9,800 | 13,969 |
Other current assets | 16,879 | 23,743 | |
Prepaid Expense and Other Assets, Total | $ 38,132 | $ 40,762 | |
[1] | 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 - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 153,712 | $ 136,131 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (110,571) | (113,203) | |
Property, Plant and Equipment, Net | 43,141 | 22,928 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 72,731 | 75,229 | |
Capitalized software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 37,141 | 34,190 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | [1] | 38,718 | 15,170 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,913 | 6,036 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,209 | $ 5,506 | |
[1] | During fiscal 2020, the Company completed construction of $23.9 million leasehold improvements for the new headquarters facility |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components - Narratives (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||
Property, Plant and Equipment, Gross | $ 153,712 | $ 136,131 |
Leasehold Improvements [Member] | Harmonic Headquarter Lease Commencing May 2019 [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Property, Plant and Equipment, Gross | $ 23,900 |
Certain Balance Sheet Compone_7
Certain Balance Sheet Components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and related expenses | $ 23,131 | $ 19,454 |
Other | 27,202 | 35,426 |
Total | $ 50,333 | $ 54,880 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges - Schedule of Restructuring Costs By Type (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 4,850 |
Charges for current period | 3,416 |
Cash payments | (4,026) |
Restructuring Reserve, Translation and Other Adjustment | (142) |
Restructuring Reserve | 4,098 |
Excess Facilities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 720 |
Charges for current period | 0 |
Cash payments | (720) |
Restructuring Reserve, Translation and Other Adjustment | 0 |
Restructuring Reserve | 0 |
Severance and benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 3,294 |
Charges for current period | 3,278 |
Cash payments | (2,367) |
Restructuring Reserve, Translation and Other Adjustment | (107) |
Restructuring Reserve | 4,098 |
French Voluntary Departure Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 806 |
Charges for current period | 91 |
Cash payments | (862) |
Restructuring Reserve, Translation and Other Adjustment | (35) |
Restructuring Reserve | 0 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 30 |
Charges for current period | 47 |
Cash payments | (77) |
Restructuring Reserve, Translation and Other Adjustment | 0 |
Restructuring Reserve | $ 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 3,416 |
Cost of Sales [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,100 |
Operating expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 2,300 |
Convertible Notes, Debts and _3
Convertible Notes, Debts and Finance Leases - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2020CHF (SFr) | Dec. 31, 2020USD ($)$ / shares | Sep. 25, 2020USD ($)$ / shares | Sep. 27, 2019USD ($)$ / shares | Jun. 26, 2020USD ($) | Jun. 26, 2020EUR (€) | Sep. 27, 2019USD ($)$ / shares | Dec. 31, 2020USD ($)day$ / shares | Dec. 31, 2019USD ($)day$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Loss on convertible debt extinguishment | $ 1,362,000 | $ 5,695,000 | $ 0 | |||||||||
Reclassification from APIC to Convertible Debt in Mezzanine Equity | $ 0 | 0 | 2,410,000 | |||||||||
Repayments of Convertible Debt | 7,999,000 | 109,603,000 | $ 0 | |||||||||
Loans Payable to Bank | [1] | 14,974,000 | 14,974,000 | 16,566,000 | ||||||||
Relief loans (2) | [2] | 6,694,000 | 6,694,000 | |||||||||
Societe Generale S.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.51% | |||||||||||
Proceeds from Loans | € | € 5,000,000 | |||||||||||
Debt Instrument, Term | 12 months | 12 months | ||||||||||
Debt Instrument Term, Option to Extend | 5 years | 5 years | ||||||||||
Relief loans (2) | $ 6,100,000 | $ 6,100,000 | ||||||||||
UBS Switzerland AG [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | ||||||||||
Proceeds from Loans | SFr | SFr 500,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Relief loans (2) | $ 600,000 | $ 600,000 | ||||||||||
Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 0 | $ 0 | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | ||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 25,000,000 | $ 25,000,000 | ||||||||||
One Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity interest period, Variable Rate | 1 month | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||
Two Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity interest period, Variable Rate | 2 months | |||||||||||
Three Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity interest period, Variable Rate | 3 months | |||||||||||
LIBOR for interest period of one, two or three months [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||
TVN [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Income Taxes Receivable | $ 21,500,000 | $ 21,500,000 | ||||||||||
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% | 0.60% | ||||||||||
Loans Payable to Bank | $ 13,600,000 | $ 13,600,000 | 15,100,000 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.30% | |||||||||||
Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member] | Euribor Future [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity interest period, Variable Rate | 1 month | |||||||||||
Loans From French Government For R&D Innovation Projects [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans Payable to Bank | $ 1,400,000 | $ 1,400,000 | 1,500,000 | |||||||||
Convertible Note due 2022 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | 4.375% | 4.375% | |||||||||
Debt Instrument, Face Amount | $ 37,707,000 | $ 37,700,000 | $ 37,707,000 | |||||||||
Common Stock, Par Value Per Share | $ / shares | $ 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 | ||||||||||
Fair value of 2022 Notes used to settle 2020 Notes | $ 44,400,000 | |||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 8,300,000 | |||||||||||
Convertible Debt | 36,000,000 | |||||||||||
Debt Instrument, Unamortized Discount | $ 1,357,000 | 1,700,000 | $ 1,357,000 | |||||||||
Other Significant Noncash Transaction, Value of Consideration Received | 37,700,000 | |||||||||||
Convertible Note due 2022 [Member] | 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% | |||||||||||
Convertible Note due 2022 [Member] | Note price less than 98 percent of stock price times conversion rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | |||||||||||
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% | |||||||||||
Convertible Note due 2022 [Member] | Upon occurrence of specified corporate events [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | |||||||||||
Convertible Note due 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||||||||
Debt Instrument, Face Amount | 115,500,000 | $ 115,500,000 | 115,500,000 | 115,500,000 | ||||||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | |||||||||||
Debt Instrument, Convertible, Conversion Ratio | 115.5001 | |||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 8.66 | |||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 24,900,000 | |||||||||||
Debt Instrument, Unamortized Discount | 19,294,000 | $ 19,294,000 | $ 23,652,000 | |||||||||
Convertible Note due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||||||||
Debt Instrument, Face Amount | 8,100,000 | $ 128,250,000 | ||||||||||
Debt Instrument, Convertible, Conversion Ratio | 173.9978 | |||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 5.75 | $ 5.75 | ||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 26,100,000 | |||||||||||
Debt Instrument, Repurchase Amount | $ 109,600,000 | $ 109,600,000 | ||||||||||
Loss on convertible debt extinguishment | 500,000 | 800,000 | ||||||||||
Other Significant Noncash Transaction, Value of Consideration Received | $ 37,700,000 | |||||||||||
Convertible Note due 2020 [Member] | 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% | |||||||||||
Convertible Note due 2020 [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 45,800,000 | |||||||||||
Convertible Debt [Member] | Convertible Note due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on convertible debt extinguishment | $ 5,700,000 | |||||||||||
Convertible Debt [Member] | Long-term Debt [Member] | Convertible Note due 2020 [Member] | Privately Negotiated Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Extinguishment of Debt, Amount | 82,500,000 | |||||||||||
Convertible Debt [Member] | Additional Paid-in Capital [Member] | Convertible Note due 2020 [Member] | Privately Negotiated Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Extinguishment of Debt, Amount | $ 27,100,000 | |||||||||||
Convertible Debt Settled in Cash and Company's Stocks [Member] | Convertible Note due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of Convertible Debt | 7,800,000 | |||||||||||
Convertible Debt Settled in Cash [Member] | Convertible Note due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of Convertible Debt | $ 300,000 | |||||||||||
[1] | Loans backed by French R&D tax credit receivables were $13.6 million and $15.1 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the French subsidiary had an aggregate of $21.5 million of R&D tax credit receivables from the French government from 2021 through 2024. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2021 through 2023. The remaining loans of $1.4 million and $1.5 million as of December 31, 2020 and 2019, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2020 mature between 2021 through 2025. | |||||||||||
[2] | Refer to the below section “Relief Loans” for the description of these loans. |
Convertible Notes, Debts and _4
Convertible Notes, Debts and Finance Leases - Convertible Roll Forwards Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 25, 2020 | Jun. 26, 2020 | |
Debt Instrument [Line Items] | ||||
Notes Carrying amount | $ 129,507 | $ 88,629 | ||
Convertible Note due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 37,707 | $ 37,700 | ||
Less: Debt discount, net of amortization | (1,357) | $ (1,700) | ||
Less: Debt issuance costs, net of amortization | (425) | |||
Notes Carrying amount | $ 35,925 | |||
Remaining amortization period (years) | 1 year 10 months 24 days | |||
Effective interest rate on liability component | 6.95% | |||
Convertible Note due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 115,500 | 115,500 | $ 115,500 | |
Less: Debt discount, net of amortization | (19,294) | (23,652) | ||
Less: Debt issuance costs, net of amortization | (2,624) | (3,219) | ||
Notes Carrying amount | $ 93,582 | $ 88,629 | ||
Remaining amortization period (years) | 3 years 8 months 12 days | 4 years 8 months 12 days | ||
Effective interest rate on liability component | 7.95% | 7.95% |
Convertible Notes, Debts and _5
Convertible Notes, Debts and Finance Leases - Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Convertible Note due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 953 | ||
Amortization of Debt Discount | 373 | ||
Amortization of debt issuance costs | 117 | ||
Total interest expense recognized | 1,443 | ||
Convertible Note due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 2,310 | $ 687 | |
Amortization of Debt Discount | 4,358 | 1,226 | |
Amortization of debt issuance costs | 595 | 166 | |
Total interest expense recognized | 7,263 | 2,079 | |
Convertible Note due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 936 | 4,148 | $ 5,130 |
Amortization of Debt Discount | 1,158 | 4,787 | 5,408 |
Amortization of debt issuance costs | 138 | 577 | 652 |
Total interest expense recognized | $ 2,232 | $ 9,512 | $ 11,190 |
Convertible Notes, Debts and _6
Convertible Notes, Debts and Finance Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 14,974 | $ 16,566 |
Relief loans (2) | [2] | 6,694 | |
Term loans | 167 | 587 | |
Obligations under finance leases | 22 | 71 | |
Total debt obligations | 21,857 | 17,224 | |
Less: current portion | (11,771) | (6,713) | |
Long-term portion | $ 10,086 | $ 10,511 | |
[1] | Loans backed by French R&D tax credit receivables were $13.6 million and $15.1 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the French subsidiary had an aggregate of $21.5 million of R&D tax credit receivables from the French government from 2021 through 2024. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2021 through 2023. The remaining loans of $1.4 million and $1.5 million as of December 31, 2020 and 2019, 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, 2020 mature between 2021 through 2025. | ||
[2] | Refer to the below section “Relief Loans” for the description of these loans. |
Convertible Notes, Debts and _7
Convertible Notes, Debts and Finance Leases - Debt Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Capital Lease Obligations 2021 | $ 22 |
Capital lease obligation 2022 | 0 |
Capital Lease Obligations 2023 | 0 |
Capital Lease Obligations 2024 | 0 |
Capital Lease Obligations 2025 | 0 |
Capital Lease Obligations Total | 22 |
Other debt obligations 2021 | 11,749 |
Other Debt Obligations 2022 | 5,420 |
Other Debt Obligations 2023 | 3,856 |
Other Debt Obligations 2024 | 184 |
Other Debt Obligations 2025 | 626 |
Other Debt Obligations Total | $ 21,835 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 200 | $ 1,800 | $ 300 | |
Share-based Payment Arrangement, Expense | 18,040 | 12,074 | 17,289 | |
Payments of Dividends | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |
Fair value of options vested | $ 0 | $ 100 | $ 700 | |
Weighted Average Remaining Contractual Term | 1 year 2 months 12 days | |||
Aggregate Intrinsic Value | $ 2,400 | |||
Vested and expected to vest, number of shares | 1,453,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,453,000 | |||
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% | |||
Common stock reserved for issuance | 1,208,449 | |||
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 | 1,036,543 | 1,037,366 | 1,132,438 | |
Stock contributions value under 2002 ESPP | $ 4,500 | $ 4,100 | $ 4,000 | |
Share-based Payment Arrangement, Expense | $ 1,785 | $ 1,326 | $ 1,421 | |
Discount Percentage On Purchase Of Stock | 15.00% | |||
Value Of Stock Purchase Right Percentage Of Put Option | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.80 | $ 1.33 | $ 1.33 | |
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, Equity Instruments Other than Options, Grants in Period | 2,966,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 2,869,000 | |||
Share-based Payment Arrangement, Expense | $ 11,522 | $ 9,444 | $ 8,901 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 15,500 | $ 9,700 | 15,600 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 12,800 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 6 months 29 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.86 | |||
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 | $ 5.80 | $ 5.83 | ||
Share-based Payment Arrangement, Expense | $ 0 | $ 94 | 670 | |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 0 | $ 0 | $ 0 | |
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 | |||
Common stock reserved for issuance | 11,149,423 | |||
Shares available for grant | 6,622,440 | |||
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 | |||
1995 Stock Plan [Member] | Incentive Stock Option or Non-statutory Stock Option with Exercise Price less than 100% Fair Value of Common Stock on Grant Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||
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 | |||
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% | |||
Common stock reserved for issuance | 497,974 | |||
Shares available for grant | 303,814 | |||
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 | |||
Vesting period | 1 year | |||
2002 Director Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Expiration period | 7 years | |||
TVN [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payment for Pension and Other Postretirement Benefits | $ 0 | |||
Forecast [Member] | TVN [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payment for Pension and Other Postretirement Benefits | $ 0 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Company's Stock Option (Detail) - Stock Options Outstanding [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 1,888 |
Number of Shares, Options exercised | shares | (177) |
Number of Shares, Canceled or expired | shares | (258) |
Number of Shares, Ending balance | shares | 1,453 |
Weighted Average Exercise Price, Beginning balance | $ / shares | $ 5.83 |
Weighted Average Exercise Price, Options exercised | $ / shares | 5.53 |
Weighted Average Exercise Price, Canceled or Expired | $ / shares | 6.19 |
Weighted Average Exercise Price, Ending balance | $ / shares | $ 5.80 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, RSUs outstanding, Beginning Balance | shares | 3,601 |
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Beginning Balance | $ / shares | $ 5.18 |
Number of Shares, Granted RSUs outstanding | shares | 2,966 |
Weighted Average Grant Date Fair Value Per Share, Granted RSUs outstanding | $ / shares | $ 5.86 |
Number of Shares, Vested, RSUs outstanding | shares | (2,869) |
Weighted Average Grant Date Fair Value Per Share, Vested, RSUs outstanding | $ / shares | $ 5.39 |
Number of shares, Forfeited, RSUs outstanding | shares | (430) |
Weighted Average Grant Date Fair Value Per Share, Forfeited, RSUs outstanding | $ / shares | $ 4.65 |
Number of Shares, RSUs outstanding, Ending Balance | shares | 3,268 |
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Ending Balance | $ / shares | $ 5.67 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation, Beginning Balance | $ 5,259 | $ 4,881 |
Service cost | 252 | 227 |
Interest cost | 37 | 78 |
Actuarial losses | 159 | 206 |
Benefits paid | (173) | (31) |
Foreign currency translation adjustment | 523 | (102) |
Projected benefit obligation, Ending Balance | 6,057 | 5,259 |
Accrued and other current liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current portion (presented under “Accrued and other current liabilities”) | 47 | 30 |
Other Noncurrent Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term portion (presented under “Other non-current liabilities”) | $ 6,010 | $ 5,229 |
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, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | ||
Service cost | $ 252 | $ 227 |
Interest cost | 37 | 78 |
Net periodic benefit cost included in operating loss | $ 289 | $ 305 |
Employee Benefits - Pension Obl
Employee Benefits - Pension Obligations Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Discount rate | 0.40% | 0.70% |
Mobility rate | 5.20% | 5.00% |
Salary progression rate | 2.00% | 2.00% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefits (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
2021 | $ 46 |
2022 | 0 |
2023 | 341 |
2024 | 254 |
2025 | 480 |
2026 - 2030 | 3,465 |
Defined Benefit Plan Expected Future Benefit Payments | $ 4,586 |
Employee Benefits Plans - Summa
Employee Benefits Plans - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 18,040 | $ 12,074 | $ 17,289 |
Stock Options [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 0 | 94 | 670 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 11,522 | 9,444 | 8,901 |
PRSUs [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 4,022 | 924 | 6,075 |
MRSUs [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 711 | 286 | 222 |
Employee Stock Purchase Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 1,785 | 1,326 | 1,421 |
Cost of Sales [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 1,712 | 1,124 | 1,953 |
Research and Development Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 4,850 | 3,261 | 5,192 |
Selling General And Administrative Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 11,478 | $ 7,689 | $ 10,144 |
Employee Benefits Plan - Stock-
Employee Benefits Plan - Stock-Based Compensation - Valuation Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Volatility | 56.00% | 38.00% | 55.00% |
Risk-free interest rate | 0.90% | 2.30% | 1.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ 5,774 | $ (3,306) |
Actuarial gain | 82 | 241 |
Total accumulated other comprehensive loss | $ 5,856 | $ (3,065) |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (42,905) | $ 1,769 | $ (19,780) |
International | 16,688 | (8,365) | 2,832 |
Loss before income taxes | $ (26,217) | $ (6,596) | $ (16,948) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 124 | $ (180) | $ (305) |
State | 93 | 108 | 116 |
International | 2,103 | 1,525 | 2,958 |
Deferred: | |||
International | 734 | (2,125) | 1,318 |
Total provision for (benefit from) income taxes | $ 3,054 | $ (672) | $ 4,087 |
Effective tax rate | (12.00%) | 10.00% | (24.00%) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Differential in rates on foreign earnings | (11.00%) | (37.00%) | (25.00%) |
Change in valuation allowance | (16.00%) | 14.00% | (9.00%) |
Change in liabilities for uncertain tax positions | 0.00% | 6.00% | 1.00% |
Non-deductible stock-based compensation | (2.00%) | (8.00%) | (8.00%) |
Permanent differences | (2.00%) | 11.00% | (6.00%) |
Adjustments related to tax positions taken during prior years | 0.00% | 6.00% | (1.00%) |
Other | (2.00%) | (3.00%) | 3.00% |
Effective tax rate | (12.00%) | 10.00% | (24.00%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 2 | |
Cumulative Undistributed Earnings of non-U.S. subsidiaries intended to be indefinitely reinvested | $ 33.7 | |
More Likely Than Not Threshold Recognition of Uncertain Tax Position | 50.00% | |
Unrecognized future tax benefits that would favorably impact future effective tax rate if recognized | $ 16.2 | |
Alternative Minimum Tax Credit Refund | 0.5 | |
Foreign [Member] | ||
Benefit from a Valuation Allowance Release | $ 0.8 | |
Operating Loss Carryforwards | 137.1 | |
U.S. Federal [Member] | ||
Operating Loss Carryforwards | 70.4 | |
Tax credit carryovers | $ 14.4 | |
Year that federal tax credits expire | Jan. 1, 2031 | |
Internal Revenue Service (IRS) NOL carryforward expire between 2021 through 2037 [Member] | ||
Operating Loss Carryforwards | $ 37.8 | |
California Franchise Tax Board [Member] | ||
Operating Loss Carryforwards | 28.1 | |
Tax credit carryovers | $ 36.5 | |
Tax credit expiration | will not expire | |
State [Member] | ||
Operating Loss Carryforwards | $ 35 | |
Certain Foreign NOLs | ||
Operating loss carryforwards, expiration date | Jan. 1, 2027 | |
Minimum [Member] | U.S. Federal [Member] | ||
Operating loss carryforwards, expiration date | Jan. 1, 2021 | |
Minimum [Member] | California Franchise Tax Board [Member] | ||
Operating loss carryforwards, expiration date | Jan. 1, 2029 | |
Maximum [Member] | U.S. Federal [Member] | ||
Operating loss carryforwards, expiration date | Jan. 1, 2037 | |
Maximum [Member] | California Franchise Tax Board [Member] | ||
Operating loss carryforwards, expiration date | Jan. 1, 2040 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Reserves and accruals | $ 21,823 | $ 20,622 | ||
Net operating loss carryforwards | 39,733 | 33,811 | ||
Research and development credit carryforwards | 38,179 | 36,914 | ||
Deferred stock-based compensation | 1,202 | 1,675 | ||
Intangibles | 7,838 | 8,224 | ||
Operating lease liabilities | 7,822 | 8,892 | ||
Capitalized research and development expenses | 10,805 | 10,897 | ||
Other | 442 | 0 | ||
Gross deferred tax assets | 127,844 | 121,035 | ||
Valuation allowance | (99,585) | (95,518) | $ (77,144) | $ (77,756) |
Gross deferred tax assets after valuation allowance | 28,259 | 25,517 | ||
Deferred tax liabilities: | ||||
Depreciation | (6,399) | (1,272) | ||
Convertible notes | (4,708) | (6,275) | ||
Operating lease right-of-use assets | (6,529) | (7,076) | ||
Other | 0 | (319) | ||
Gross deferred tax liabilities | (17,636) | (14,942) | ||
Net deferred tax assets | $ 10,623 | $ 10,575 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Abstract] | |||
Balance at beginning of period | $ 95,518 | $ 77,144 | $ 77,756 |
Additions | 6,690 | 23,929 | 928 |
Deductions | (2,623) | (5,555) | (1,540) |
Balance at end of period | $ 99,585 | $ 95,518 | $ 77,144 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 17 | $ 18 | $ 18.8 |
Increase in balance related to tax positions taken during current year | 0.3 | 0.2 | 1 |
Decrease in balance as a result of a lapse of the applicable statutes of limitations | 0 | (0.1) | (0.1) |
Decrease in balance due to settlement with tax authorities | 0 | 0 | (1.6) |
Increase in balance related to tax positions taken during prior years | 0.3 | 0 | 0.2 |
Decrease in balance related to tax positions taken during prior years | 0 | (1.1) | (0.3) |
Balance at end of period | $ 17.6 | $ 17 | $ 18 |
Net Loss Per Share - Anti Dilut
Net Loss Per Share - Anti Diluted Shares Excluded (Details) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,679 | 11,644 | 8,201 | |
Convertible Notes 2020 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 312 | 1,322 | 0 | |
Convertible Notes 2022 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 192 | |||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,603 | 2,568 | 3,327 | |
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 | 3,041 | 2,955 | 2,997 | |
Stock purchase rights under the ESPP [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 531 | 478 | 609 | |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 0 | 4,321 | 1,268 |
[1] | Note 16, “Warrants,” for additional information. |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2020shares | |
Convertible Note due 2022 [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 6.6 |
Convertible Note due 2024 [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 13.3 |
Warrants Disclosure (Details)
Warrants Disclosure (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 17, 2019shares | Jul. 08, 2019USD ($)Measurement_Input | Jul. 01, 2019USD ($)shares | Sep. 26, 2016$ / sharesshares | |
Class of Warrant or Right [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 4.76 | ||||||
Common Stock, Shares, Issued | shares | 98,204,000 | 91,875,000 | |||||
Measurement Input, Risk Free Interest Rate [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | Measurement_Input | 0.019 | ||||||
Measurement Input, Option Volatility [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | Measurement_Input | 0.486 | ||||||
Measurement Input, Expected Term [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants and Rights Outstanding, Term | 4 years 2 months 12 days | ||||||
Measurement Input, Expected Dividend Rate [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | Measurement_Input | 0 | ||||||
Comcast Milestones Achievement [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Class of Warrant or Right, Outstanding | shares | 1,954,042 | ||||||
Comcast CableOS Software License Agreement [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Fair Value of Fully Vested Warrants | $ | $ 16.1 | ||||||
Comcast Warrants Vested Prior to July 2019 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Fair Value of Fully Vested Warrants | $ | $ 3.9 | ||||||
Comcast Warrants Vested July 2019 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Fair Value of Fully Vested Warrants | $ | $ 20 | ||||||
Comcast Warrants Exercise in its Entirety [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Common Stock, Shares, Issued | shares | 3,217,547 | ||||||
Revenue from Contract with Customer Benchmark [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Reduction to Revenues In Connection with Amortization of the Warrant | $ | $ 1.7 | $ 13.6 | $ 1.2 | ||||
Maximum [Member] | Comcast Warrant Expires September 26, 2023 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrant grants to Comcast subject to vesting | shares | 7,816,162 |
Segment Information - Narrative
Segment Information - Narratives (Details) | 12 Months Ended | ||
Dec. 31, 2020segmentcountry | Dec. 31, 2019country | Dec. 31, 2018country | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Non-US [Member] | Revenue Benchmark [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% | 10.00% | 10.00% |
Comcast [Member] | Revenue Benchmark [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Comcast [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 23.00% | 15.00% |
Segment Information, Geographic
Segment Information, Geographic Information And Customer Concentration Segment Information - Summary Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | $ 378,831 | $ 402,874 | $ 403,558 |
Gross profit | 194,997 | 223,012 | 209,209 | |
Operating Income (Loss) | (12,449) | 13,083 | (5,011) | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 378,831 | 402,874 | 403,558 | |
Gross profit | 198,753 | 230,704 | 217,199 | |
Operating Income (Loss) | 12,977 | 38,008 | 24,414 | |
Operating Segments [Member] | Video [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 242,510 | 278,028 | 313,828 | |
Gross profit | 132,092 | 162,156 | 178,170 | |
Operating Income (Loss) | 1,326 | 15,837 | 26,170 | |
Operating Segments [Member] | Cable Access [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 136,321 | 124,846 | 89,730 | |
Gross profit | 66,661 | 68,548 | 39,029 | |
Operating Income (Loss) | $ 11,651 | $ 22,171 | $ (1,756) | |
[1] | Revenue is attributed to countries based on the location of the customer. |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated corporate expenses | $ (207,446) | $ (209,929) | $ (214,220) | |
Stock-based compensation expense | (18,040) | (12,074) | (17,289) | |
Operating Income (Loss) | (12,449) | 13,083 | (5,011) | |
Gain (Loss) on Extinguishment of Debt | (1,362) | (5,695) | 0 | |
Non-operating expense, net | (12,406) | (13,984) | (11,937) | |
Loss before income taxes | (26,217) | (6,596) | (16,948) | |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating Income (Loss) | 12,977 | 38,008 | 24,414 | |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated corporate expenses | [1] | (3,416) | (4,532) | (3,769) |
Stock-based compensation expense | (18,040) | (12,074) | (17,289) | |
Amortization | $ (3,970) | $ (8,319) | $ (8,367) | |
[1] | Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges and certain other non-recurring charges to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments. |
Segment Information - Summary o
Segment Information - Summary of Revenue, Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net revenues: | ||||
Revenue | [1] | $ 378,831 | $ 402,874 | $ 403,558 |
Property and equipment, net: | ||||
Property and equipment, net | 43,141 | 22,928 | ||
United States | ||||
Net revenues: | ||||
Revenue | [1] | 191,854 | 202,272 | 181,965 |
Property and equipment, net: | ||||
Property and equipment, net | 31,017 | 13,301 | ||
Other countries | ||||
Net revenues: | ||||
Revenue | [1] | 186,977 | 200,602 | $ 221,593 |
Israel | ||||
Property and equipment, net: | ||||
Property and equipment, net | 8,803 | 5,919 | ||
France | ||||
Property and equipment, net: | ||||
Property and equipment, net | 2,461 | 2,615 | ||
All countries except United States, Israel and France [Member] [Member] | ||||
Property and equipment, net: | ||||
Property and equipment, net | $ 860 | $ 1,093 | ||
[1] | Revenue is attributed to countries based on the location of the customer. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Non-cancelable purchase commitments | $ 49.9 | |
Indemnification [Member] | ||
Other Commitments [Line Items] | ||
Accrual for indemnification provisions | 0 | |
Property Lease Guarantee [Member] | Performance Guarantee [Member] | ||
Other Commitments [Line Items] | ||
Guarantees, Fair Value Disclosure | 3.3 | $ 2.7 |
JPMORGAN CHASE BANK N.A. [Member] | Revolving Credit Facility [Member] | ||
Other Commitments [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 0 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Foreign Line of Credit [Member] | Performance Guarantee [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | 2 | |
Indemnity issued to secure credit facility | 2.3 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | $ 0 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) $ in Millions | Oct. 24, 2017USD ($) | Sep. 25, 2020USD ($) | Jun. 28, 2019USD ($) | Dec. 31, 2017USD ($) | Oct. 19, 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] | |||||||
Payments for Legal Settlements | $ 1.5 | ||||||
Settled Litigation Payment Third Quarter of 2020 [Member] | Avid [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Payments for Legal Settlements | $ 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 |
Uncategorized Items - hlit-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201807Member |