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^[1]

$ 403,558

$ 358,246

$ 405,911

Total cost of revenue

194,349

188,426

205,161

Total gross profit

209,209

169,820

200,750

Operating expenses:

Research and development

89,163

95,978

98,401

Amortization of intangibles

118,952

136,270

144,381

3,187

3,142

10,402

Restructuring and related charges

2,918

5,307

14,602

^[2]

Total operating expenses

214,220

240,697

267,786

Loss from operations

(5,011)

(70,877)

^[3]

(67,036)

^[3]

Interest expense, net

(11,401)

(11,078)

(10,628)

Other expense, net

(536)

(2,222)

(31)

Loss on impairment of long-term investments

(530)

(2,735)

Provision for (benefit from) income taxes

(16,948)

(84,707)

^[3]

(80,430)

^[3]

4,087

(1,752)

(8,116)

$ (21,035)

$ (82,955)

$ (72,314)

Net loss per share:

Shares used in per share calculations:

$ (0.25)

$ (1.02)

$ (0.93)

85,615

80,974

77,705

Product [Member]

$ 252,067

$ 224,645

$ 285,260

Total cost of revenue

127,268

119,802

145,714

Service [Member]

Balance, Shares at Dec. 31, 2015

151,491

133,601

120,651

Total cost of revenue

$ 67,081

$ 68,624

$ 59,447

[1]	Revenue is attributed to countries based on the location of the customer.
[2]	The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information.
[3]	For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net loss	$ (21,035)	$ (82,955)	$ (72,314)
Other comprehensive income (loss), before tax:
Unrealized gain, net arising during the period	0	0	202
Loss reclassified into earnings	0	0	44
Other Comprehensive Income (Loss) before tax, Cash Flow Hedges	0	0	246
Unrealized loss, net arising during the period	0	(658)	(903)
Loss reclassified into earnings	0	384	2,735
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax	0	(274)	1,832
Adjustment to pension benefit plan	202	528	(279)
Unrealized foreign exchange gain (loss), net on intercompany long-term loans arising during the period	667	(1,705)	0
Translation gain (loss) arising during the period	(5,100)	11,471	(4,633)
Loss reclassified into earnings	11	106	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	(5,089)	11,577	(4,633)
Other comprehensive income (loss) before tax	(4,220)	10,126	(2,834)
Provision for (benefit from) income taxes	378	(526)	18
Other comprehensive income (loss), net of tax	(4,598)	10,652	(2,852)
Total comprehensive loss	$ (25,633)	$ (72,303)	$ (75,166)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Accumulated Deficit [Member]

Accumulated Other Comprehensive Loss [Member]

Difference between Revenue Guidance in Effect before and after Topic 606 [Member]

Accumulated Deficit [Member]

^[1]

Balance at Dec. 31, 2015

$ 328,168

$ 76

$ 2,236,418

$ (1,903,908)

$ (4,418)

76,015

Other comprehensive loss, net of tax

(72,314)

(2,852)

Issuance of Common Stock under option, stock award and purchase plans

2,800

$ 2

2,798

Issuance of Common Stock under option, stock award and purchase plans, Shares

2,441

Balance, Shares at Dec. 31, 2016

13,242

Issuance of warrant

1,597

Balance at Dec. 31, 2016

270,641

$ 78

2,254,055

(1,976,222)

(7,270)

78,456

Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2016-09 [Member]

(69)

Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2016-16 [Member]

1,434

Balance at Jan. 01, 2017

272,075

$ 78

2,254,124

(1,974,857)

(7,270)

Balance, Shares at Jan. 01, 2017

78,456

Balance at Dec. 31, 2016

270,641

$ 78

2,254,055

(1,976,222)

(7,270)

Balance, Shares at Dec. 31, 2016

78,456

Other comprehensive loss, net of tax

(82,955)

10,652

Issuance of Common Stock under option, stock award and purchase plans

1,959

$ 5

1,954

Issuance of Common Stock under option, stock award and purchase plans, Shares

4,098

Balance, Shares at Dec. 31, 2017

16,612

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

82,554

Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2014-09 [Member]

(2,057,812)

^[1]

$ 11,431

Balance at Jan. 01, 2018

229,774

$ 83

2,272,690

(2,046,381)

3,382

Balance, Shares at Jan. 01, 2018

82,554

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

Balance, Shares at Dec. 31, 2017

82,554

Net loss | Accounting Standards Update 2014-09 [Member]

(21,035)

959

Other comprehensive loss, net of tax

(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

Balance, Shares at Dec. 31, 2018

17,097

Issuance of warrant

2,295

Balance at Dec. 31, 2018

228,250

$ 87

$ 2,296,795

(2,067,416)

$ (1,216)

87,057

Accumulated deficit | Accounting Standards Update 2014-09 [Member]

(2,046,381)

$ 11,431

Accumulated deficit | Accounting Standards Update 2014-09 [Member]

$ (2,067,416)

$ 12,390

[1]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

$ (21,035)

$ (82,955)

$ (72,314)

Amortization of intangibles

8,367

8,322

^[1]

14,836

^[1]

Depreciation

12,971

14,599

18,819

Amortization of discount on convertible debt

17,289

16,610

13,060

6,060

5,489

4,964

Provision for non-cash warrant

1,178

153

434

Restructuring, asset impairment and loss on retirement of fixed assets

1,491

1,906

2,305

Loss on impairment of long-term investments

530

2,735

Unrealized foreign exchange (gain) loss

(1,906)

2,369

(856)

Gain on pension curtailment

(1,955)

Deferred income taxes, net

661

2,189

(10,085)

Provision for doubtful accounts, returns and discounts

2,521

4,912

2,589

Provision for excess and obsolete inventories

1,649

6,005

6,871

Other non-cash adjustments, net

407

445

408

Changes in operating assets and liabilities, net of effects of acquisition:

Accounts receivable

(14,700)

12,598

(2,563)

Prepaid expenses and other assets

(2,045)

11,687

(4,107)

3,227

6,642

(1,892)

Accounts payable

1,018

3,432

5,793

Deferred revenues

(4,808)

(392)

18,106

Income taxes payable

440

(2,978)

(133)

Accrued and other liabilities

(501)

(8,499)

3,423

Net cash provided by operating activities

12,284

3,064

438

Cash flows from investing activities:

Acquisition of business, net of cash and restricted cash acquired

(74,334)

Proceeds from maturities of investments

3,106

19,707

Proceeds from sales of investments

104

3,792

Purchases of property and equipment

(7,044)

(11,399)

(15,107)

Net cash used in investing activities

(6,940)

(4,501)

(69,734)

Cash flows from financing activities:

Payment of convertible debt issuance cost

(582)

Proceeds from other debts and capital leases

5,066

6,344

5,968

Repayment of other debts and capital leases

(7,132)

(7,408)

(8,338)

Proceeds from common stock issued to employees

4,947

4,716

4,444

Payment of tax withholding obligations related to net share settlements of restricted stock units

(230)

(2,757)

(1,644)

Net cash provided by (used in) financing activities

2,651

895

(152)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(763)

1,879

(415)

Net increase (decrease) in cash, cash equivalents and restricted cash

7,232

1,337

(69,863)

Cash, cash equivalents and restricted cash at beginning of period

58,757

57,420

127,283

Cash, cash equivalents and restricted cash at end of period

65,989

58,757

57,420

Supplemental disclosures of cash flow information:

Income tax payments (refunds), net

2,031

2,141

(54)

Interest payments, net

5,273

5,515

5,275

Supplemental schedule of non-cash investing and financing activities:

Capital expenditures incurred but not yet paid

148

337

394

Issuance of warrant

2,295

1,597

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

Cash and cash equivalents

65,989

57,024

55,635

Total cash, cash equivalents and restricted cash

$ 58,757

$ 57,420

$ 127,283

[1]

For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS Harmonic Inc. (“Harmonic” or the “Company”) is a leading global provider of (i) versatile and high performance video delivery software, products, system solutions and services that enable our customers to efficiently create, prepare, store, playout and deliver a full range of high-quality broadcast and “over-the-top” (OTT) video services to consumer devices, including televisions, personal computers, laptops, tablets and smart phones and (ii) cable access solutions that enable cable operators to more efficiently and effectively deploy high-speed internet, for data, voice and video services to consumers’ homes. The Company operates in two segments, Video and Cable Access. The Video business sells video processing and production and playout solutions and services worldwide to cable operators and satellite and telecommunications (telco) pay-TV service providers, which are collectively referred to as “service providers,” and to broadcast and media companies, including streaming media companies. The Video business infrastructure solutions are delivered either through shipment of our products, software licenses or as software-as-a-service (“SaaS”) subscriptions. The Cable Access business sells cable access solutions and related services, including our CableOS software-based cable access solution, primarily to cable operators globally.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements of Harmonic include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter which ends on December 31.

On February 29, 2016, the Company completed the acquisition of Thomson Video Networks (“TVN”) and its results of operations are included in the Company’s Consolidated Statements of Operations beginning March 1, 2016.

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not have material impact on previously reported financial statements.

Cash and Cash Equivalents

Cash and cash equivalents include all cash and highly liquid investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments.

Restricted Cash

The Company had no restricted cash balance as of December 31, 2018. The restricted cash balance as of December 31, 2017 was $1.7 million. The restricted cash serves as collateral for certain bank guarantees and they are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. As of December 31, 2017, $0.5 million of the restricted cash balance was reported as a component of “Prepaid expenses and other current assets” and the remaining balance of $1.2 million was reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets.

Short-Term Investments

The Company did not have any outstanding short-term investments as of December 31, 2018 and 2017.

Investments in Equity Securities

From time to time, the Company may acquire certain equity investments for the promotion of business and strategic objectives and these investments may be in marketable equity securities or non-marketable equity securities. Effective January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for its equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, the Company measure these investments at cost minus impairment, if any, The Company’s equity investments are classified as long-term investments and reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets.

Prior to January 1, 2018, the Company accounted for its investments in entities that it did not have significant influence under the cost method. Investments in equity securities were carried at fair value if the fair value of the security is readily determinable. Unrealized gains and losses, net of taxes, on the long-term investments were included in the Company’s Consolidated Balance Sheet as a component of accumulated other comprehensive loss. Investments in equity securities that did not qualify for fair value accounting or equity method accounting were accounted for under the cost method.

The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2018 and 2017, respectively.

Liquidity

As of December 31, 2018, the Company’s principal sources of liquidity consisted of cash and cash equivalents of $66.0 million, net accounts receivable of $81.8 million, its $15 million line of credit with Silicon Valley Bank and financing from French government agencies. As of December 31, 2018, the Company had $128.25 million in aggregate principal amount convertible senior notes outstanding (the “Notes”), which are due on December 1, 2020. The Notes bear interest at a fixed rate of 4.00% per year, payable semiannually in arrears on June 1 and December 1 of each year. The Company also had debts with French government agencies and to a lesser extent, with other financial institutions, primarily in France, in the aggregate of $19.9 million at December 31, 2018.

The Company’s principal uses of cash will include repayments of debt and related interest, purchases of inventory, payroll, restructuring expenses, and other operating expenses related to the development and marketing of our products, purchases of property and equipment and other contractual obligations for the foreseeable future. The Company believes that its cash and cash equivalents of $66.0 million at December 31, 2018 will be sufficient to fund its principal uses of cash for at least the next 12 months. However, if its expectations are incorrect, it may need to raise additional funds to fund our operations, to take advantage of unanticipated strategic opportunities or to strengthen our financial position. Additional funds may not be available on terms favorable to us or at all.

Credit Risk and Major Customers/Supplier Concentration

Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Cash, cash equivalents and short-term investments are invested in short-term, highly liquid, investment-grade obligations of commercial or governmental issuers, in accordance with the Company’s investment policy. The investment policy limits the amount of credit exposure to any one financial institution, commercial or governmental issuer.

The Company’s accounts receivable are derived from sales to worldwide cable, satellite, telco, and broadcast and media companies. The Company generally does not require collateral from its customers, and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. Two customers had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2018. No customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2017. During the year ended December 31, 2018, Comcast accounted for more than 10% of the Company’s revenue. No customer accounted for more than 10% of the Company’s net revenue for the year ended December 31, 2017.

Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those sole source and limited source suppliers, the partial or complete loss of certain of these sources could have at least a temporary adverse effect on the Company’s results of operations and damage customer relationships.

Revenue Recognition

On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for the reporting period beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not restated and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (“Topic 605”). (See “Recently Adopted Accounting Pronouncements” for additional information.)

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The cost of inventories is comprised of material, labor and manufacturing overhead. The Company’s manufacturing overhead standards for product costs are calculated assuming full absorption of forecasted spending over projected volumes. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations.

Capitalized Software Development Costs

External-use software. Research and development costs are generally charged to expense as incurred. The Company has not capitalized any such development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product is available for general release to customers has been insignificant.

Internal-use software. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. These capitalized costs are amortized on a straight-line basis, generally three years.

During the years ended December 31, 2018 and December 31, 2017, the Company capitalized $0.9 million and $1.1 million, respectively, of its software development costs related to the development of its SaaS offerings. During the year ended December 31, 2016, research and development costs capitalized for internal use software was not significant.

Property and Equipment

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally, five years for furniture and fixtures, three years for software and four years for machinery and equipment. Depreciation for leasehold improvements are computed using the shorter of the remaining useful lives of the assets or the lease term of the respective assets.

Business Combination

The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and the liabilities assumed. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received in a sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measurements that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill.

Goodwill

As of December 31, 2018, the Company had goodwill of $240.6 million which represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has two reporting units, which are the same as its operating segments.

The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

There was no impairment of goodwill resulting from the Company’s fiscal 2018 annual impairment testing in the fourth quarter of 2018. (See Note 7, “Goodwill and Identified Intangible Assets,” for additional information).

Long-lived Assets

Long-lived assets represent property and equipment and purchased intangible assets. Purchased intangible assets from business combinations and asset acquisitions include customer contracts, trademarks and trade names, and maintenance agreements and related relationships, the amortization of which is charged to general and administrative expenses, and core technology and developed technology, the amortization of which is charged to cost of revenue. The Company evaluates the recoverability of intangible assets and other long-lived assets when indicators of impairment are present. When impairment indicators are present, the Company evaluates the recoverability of intangible assets and other long-lived assets on the basis of undiscounted cash flows expected to result from the use of each asset group and its eventual disposition. If the undiscounted expected future cash flows are less than the carrying amount of the asset, an impairment loss is recognized in order to write down the carrying value of the asset to its estimated fair market value. There were no impairment charges for long-lived assets in the years ended December 31, 2018, 2017 and 2016.

Foreign Currency

The functional currency of the Company’s Israeli, Cayman and Swiss operations is the U.S. dollar. All other foreign subsidiaries use the respective local currency as the functional currency. When the local currency is the functional currency, gains and losses from translation of these foreign currency financial statements into U.S. dollars are recorded as a separate component of other comprehensive income (loss) in stockholders’ equity.

The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its subsidiaries in their nonfunctional currencies. These monetary assets and monetary liabilities are being remeasured into the functional currencies of the subsidiaries using exchange rates prevailing on the balance sheet date. Such remeasurement gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2018, 2017 and 2016, the Company recorded remeasurement losses of approximately $0.6 million, $2.2 million and $0.2 million, respectively.

Derivative Instruments

The Company enters into derivative instruments, primarily foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities as well as certain foreign currencies denominated expenses. The Company does not enter into derivative instruments for trading purposes and these derivatives generally have maturities within twelve months.

The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheet. For derivative instruments designated and qualifying as cash flow hedges of forecasted foreign currency denominated transactions expected to occur within twelve months, the effective portion of the gain or loss on these hedges is reported as a component of “Accumulated other comprehensive loss” in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is (or becomes) ineffective, the gain or loss on the associated financial instrument is recorded immediately in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged.

The Company did not enter into any cash flow hedges during the year ended December 31, 2018.

Research and Development

Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products. R&D expense was $89.2 million, $96.0 million and $98.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company’s TVN French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D tax credits receivable from the French government for spending on innovative R&D under the CIR program is recorded as an offset to R&D expenses. In the years ended December 31, 2018, 2017 and 2016, the R&D expenses were net of $5.9 million, $5.9 million and $6.1 million of R&D tax credits, respectively.

Restructuring and Related Charges

The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, lease exit costs, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements. Costs to terminate a lease before the end of its term are recognized when the entity terminates the contract in accordance with the contract terms. The Company determines the excess facilities accrual based on expected cash payments, under the applicable facility lease, reduced by any estimated sublease rental income for such facility. See Note 10, “Restructuring and related Charges” for additional information.

Warranty

The Company accrues for estimated warranty costs at the time of revenue recognition and records such accrued liabilities as part of cost of revenue. Management periodically reviews its warranty liability and adjusts the accrued liability based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims.

Advertising Expenses

All advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations. Advertising expense was $1.0 million, $0.7 million and $1.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Stock-based Compensation

The Company measures and recognizes compensation expense for all stock-based compensation awards made to employees, including stock options, restricted stock units (“RSUs”) and awards related to the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards.

Prior to January 1, 2017, stock-based compensation was recorded net of estimated forfeitures over the requisite service period and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. Upon the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), issued by the Financial Accounting Standards Board (“FASB”), the Company changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective approach with a cumulative effect adjustment of $69,000 to retained earnings as of January 1, 2017 (which increased the accumulated deficit).

The fair value of the Company’s stock options and ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs is calculated based on the market value of the Company’s stock at the grant date. The fair value of the Company’s market-based RSUs (“MRSUs”) is estimated using the Monte-Carlo valuation model with market vesting conditions.

The Company recognizes the stock-based compensation for performance-based RSUs (“PRSUs”) based on the probability of achieving certain performance criteria, as defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next.

Pension Plan

Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, is obligated to provide for a defined benefit plan to its employees upon their retirement from the Company. The Company’s defined benefit pension plan in France is unfunded.

The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its pension plan are reasonable based on its experience, market conditions and input from its actuaries.

The Company accounts for the actuarial gains (losses) in accordance with ASC 715, “Compensation - Retirement Benefits”. If the net accumulated gain or loss exceeds 10% of the projected plan benefit obligation, a portion of the net gain or loss is amortized and included in expense for the following year based upon the average remaining service period of active plan participants, unless the Company’s policy is to recognize all actuarial gains (losses) when they occur. The Company elected to defer actuarial gains (losses) in accumulated other comprehensive income (loss). As of December 31, 2018, the Company did not meet the 10% requirement, and therefore no amortization of 2018 actuarial gain would be recorded in 2019.

See Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information.

Income Taxes

In preparing the Company’s financial statements, the Company estimates the income taxes for each of the jurisdictions in which the Company operates. This involves estimating the Company’s current tax expense and assessing temporary and permanent differences resulting from differing treatment of items, such as reserves and accruals, for tax and accounting purposes. These temporary differences result in deferred tax assets and liabilities, which are included within the Company’s Consolidated Balance Sheet.

The Company’s income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the Company’s accompanying Consolidated Balance Sheets, as well as operating loss and tax credit carryforwards. The Company follows the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the Consolidated Balance Sheet and provides any necessary allowances as required. Determining necessary allowances requires the Company to make assessments about the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. A history of operating losses in recent years has led to uncertainty with respect to our ability to realize certain of our net deferred tax assets, and as a result we applied a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2018. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected.

The Company is subject to examination of its income tax returns by various tax authorities on a periodic basis. The Company regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of its provision for income taxes. The Company has applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes, which requires application of a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the Company to recognize a tax benefit measured at the largest amount of tax benefit that, in the Company’s judgment, is more than 50% likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change.

The Company files annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves and penalties, as well as the related interest, in light of changing facts and circumstances. Changes in the Company’s assessment of its uncertain tax positions or settlement of any particular position could materially and adversely impact the Company’s income tax rate, operating results, financial position and cash flows.

Segment Reporting

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and is evaluated by the Chief Operating Decision Maker (“CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has two operating segments: Video and Cable Access.

Comprehensive Income (Loss)

Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes cumulative translation adjustments, unrealized foreign exchange gains and losses on intercompany long-term loans, unrealized gains and losses on certain foreign currency forward contracts that qualify as cash flow hedges and available-for-sale securities, as well as actuarial gains and losses on pension plan.

Recently Adopted Accounting Pronouncements

ASC Topic 606, “Revenue from Contracts with Customers”

Under Topic 606, the Company began to recognize a contract asset for satisfied performance obligations that do not provide the Company with an unconditional right to consideration, which was restricted under the previous standard. In addition, the Company changed its revenue recognition for professional services from a completed contract method to a percentage of completion method.

The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands):



CONSOLIDATED BALANCE SHEETS	Balance as of December 31, 2017			Cumulative Impact from Adopting Topic 606			Balance as of January 1, 2018
ASSETS
Accounts receivable, net	$	69,844		$	1,781		$	71,625
Prepaid expenses and other current assets	18,931			3,578			22,509
Other long-term assets	42,913			773			43,686

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	$	52,429		$	(4,826	)	$	47,603
Other non-current liabilities	22,626			(473		)	22,153
Accumulated deficit	(2,057,812		)	11,431			(2,046,381		)

The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands):



	Year ended December 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS	As Reported			Previous Accounting Guidance			Impact from Adopting Topic 606
Total net revenue	$	403,558		$	402,550		$	1,008
Total cost of revenue	194,349			194,101			248
Total gross profit	209,209			208,449			760
Operating expenses:
Selling, general and administrative	118,952			119,151			(199		)
Loss from operations	(5,011		)	(5,970		)	959
Loss before income taxes	(16,948		)	(17,907		)	959
Net loss	(21,035		)	(21,994		)	959



	As of December 31, 2018
CONSOLIDATED BALANCE SHEETS	As Reported		Previous Accounting Guidance		Impact from Adopting Topic 606
ASSETS
Accounts receivable, net	81,795		79,954		$	1,841
Prepaid expenses and other current assets	23,280		19,067		4,213
Other long-term assets	38,377		37,872		505
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	41,592		47,117		(5,525		)
Other non-current liabilities	18,228		18,534		(306		)
Accumulated deficit	(2,067,416	)	(2,079,806	)	12,390

Revenue Recognition

The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions.

Revenue from contracts with customers is recognized using the following five steps:

a) Identify the contract(s) with a customer;

b) Identify the performance obligations in the contract;

c) Determine the transaction price;

d) Allocate the transaction price to the performance obligations in the contract; and

e) Recognize revenue when (or as) the Company satisfies a performance obligation.

A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a Company expects to be entitled from a customer in exchange for providing the goods or services.

The unit of account for revenue recognition is a performance obligation. A contract may contain one or more performance obligations, including hardware, software, professional services and support and maintenance. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise performance obligations will be combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct.

The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price also reflects the impact of the time value of money if there is a significant financing component present in an arrangement. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes.

Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time depending on the nature of the arrangement.

Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Revenue recognized during the year ended December 31, 2018 that was included within the deferred revenue balance at January 1, 2018 was $46.9 million.

Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Contract assets are reported as a component of “Prepaid expenses and other current assets” on the Consolidated Balance Sheets. See Note 9, “Certain Balance Sheet Components’ for additional information.

Shipping and handling costs are accounted for as a fulfillment cost and are recorded in cost of revenue in the Company’s Consolidated Statements of Operations. Sales tax and other amounts collected on behalf of third parties are excluded from the transaction price.

Hardware and Software. Revenue from the sale of hardware and software products is recognized when the control is transferred. For most of the Company’s product sales (including sales to distributors and system integrators), the control is transferred at the time the product is shipped or delivery has occurred because the customer has significant risks and rewards of ownership of the asset and the Company has a present right to payment at that time. The Company’s agreements with the distributors and system integrators have terms which are generally consistent with the standard terms and conditions for the sale of the Company’s equipment to end users, and do not provide for product rotation or pricing allowances, as are typically found in agreements with stocking distributors. The Company offers return rights which are specifically identified and accrued for as sales returns at the end of the period.

Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts offered and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change.

Solution Sales. Solution sales for the design, manufacture, test, integration and installation of products, including equipment acquired from third parties to be integrated with Harmonic’s products, that are customized to meet the customer’s specifications are accounted for based on the percentage-of-completion basis, using the input method. Some of our arrangements may include acceptance provisions that require testing of the solution against specific performance criteria. The Company performs a detailed evaluation to determine whether the arrangement involves performance criteria based on our standard performance criteria. The Company has a long-standing history of entering into contractual arrangements to deliver the solution sales based on standard performance criteria. For this type of arrangement, we consider the customer acceptance clause not substantive and recognize product revenue when the customer takes possession on the product and recognize service on a percentage-of-completion basis using the input method. However, if the solution results in significant production, modification or customization, we consider the arrangement as a single performance obligation and recognize the revenue at a point in time, depending on the complexity of the solution and nature of acceptance.

Professional services. Revenue from professional services is recognized over time, on the percentage-of-completion basis using the input method.

Input method. The use of the input method requires the Company to make reasonably dependable estimates. We use the input method based on labor hours, where revenue is calculated based on the percentage of total hours incurred in relation to total estimated hours at completion of the contract. The input method is reasonable because the hours best reflect the Company’s efforts toward satisfying the performance obligation over time. As circumstances change over time, the Company updates its measure of progress to reflect any changes in the outcome of the performance obligation. Such changes to an entity’s measure of progress are accounted for as a change in accounting estimates.

Support and maintenance. Support and maintenance services are satisfied ratably over time as the customer simultaneously receives and consumes the benefits of the services.

Contract costs. The incremental costs of obtaining a contract are capitalized if the costs are expected to be recovered. Costs that are recognized as assets are amortized straight-line over the period as the related goods or services transfer to the customer. Costs incurred to fulfill a contract are capitalized if they are not covered by other relevant guidance, relate directly to a contract, will be used to satisfy future performance obligations, and are expected to be recovered.

The Company recorded a net decrease to the opening balance of accumulated deficit of $1.4 million as of January 1, 2018 for capitalizing contract costs due to the cumulative impact of adopting Topic 606 for sales commissions related to customer contracts with an amortization period in excess of one year. Anticipated contract renewals, amendments, and follow-on contracts with the same customer are considered when determining the period of amortization.

The net capitalized contract costs as of December 31, 2018 were $1.6 million, of which $1.1 million and $0.5 million were reported as components of “Prepaid expenses and other current assets” and “Other long-term assets” on the Consolidated Balance Sheets, respectively. The amortization of the capitalized contract costs for the year ended December 31, 2018 was $1.3 million.

Significant Judgments. The Company has revenue arrangements that include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together.

The Company allocates the transaction price to all separate performance obligations based on the SSP of each obligation. The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of the transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining the best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change.

Practical Expedients and Exemptions. Under Topic 606, incremental costs of obtaining a contract such as sales commissions are capitalized if they are expected to be recovered, and amortized on a straight-line basis. Expensing these costs as incurred is not permitted unless they qualify for a practical expedient. Other than capitalized costs of obtaining subscription contracts which are amortized regardless of the life of expected amortization period, the Company elected the practical expedient to expense the costs to obtain all other contracts as incurred, when the life of the expected amortization period is one year or less by using a portfolio approach.

The Company elected the practical expedient under Topic 606 to not disclose the transaction price allocated to remaining performance obligations, since the majority of the Company’s arrangements have original expected durations of one year or less, or the invoicing corresponds to the value of the Company’s performance completed to date.

The Company elected the practical expedient that allows the Company to not assess a contract for a significant financing component if the period between the customer’s payment and the transfer of the goods or services is one year or less.

See Note 17, “Segment Information” for further disaggregated revenue information.

Other Recently Adopted Accounting Pronouncements

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The Company adopted this new standard in the first quarter of fiscal 2018, and the adoption did not have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires entities to present the aggregate changes in cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the statement of cash flows is required to present restricted cash and restricted cash equivalents as a part of the beginning and ending balances of cash and cash equivalents. The Company adopted this new standard in the first quarter of fiscal 2018 on a retrospective basis. The Company’s total restricted cash balance was zero, $1.7 million and $1.8 million as of December 31, 2018, 2017 and 2016, respectively. These restricted cash balances are presented as a part of the ending and beginning balances of cash, cash equivalents and restricted cash on the Company’s Consolidated Statements of Cash Flows for the corresponding periods. See Note 9, “Certain Balance Sheet Components” for additional information.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The objective of ASU 2017-01 is to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The Company adopted this new standard in the first quarter of fiscal 2018, and the adoption had no impact on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in the new ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. This new standard is effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted, including adoption in any interim period.

The Company early adopted this new standard in the third quarter of fiscal 2018 and applied it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements for the year ended December 31, 2018. Should the Company incur significant implementation costs in a cloud computing arrangement that is a service contract in future, the new standard could have a significant impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to amend the existing accounting standard for lease accounting. This new standard will require lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors to recognize a net lease investment. Additional qualitative and quantitative disclosures will also be required.

The new standard is effective for the Company on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify.

While the Company continues to assess all of the effects of adoption, the Company currently believes that the most significant effects on its consolidated financial statements relate to the recognition of the right-of-use assets and lease liabilities on its balance sheets for the operating leases, and providing significant new disclosures about the leasing activities. Based on our current lease portfolio, adoption of the standard is estimated to result in an increase in operating lease assets and liabilities of approximately $23 million with an insignificant impact on our Consolidated Statements of Operations. This estimate is subject to change as we finalize our implementation.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 and early adoption is permitted. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new ASU removes Step 2 of the goodwill impairment test and requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will then be the amount by which a reporting unit's carrying value exceeds its fair value. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 on a prospective basis, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting this new standard on its consolidated financial statements. The Company currently believes that the most significant effects on its consolidated financial statements relate to the accounting of Comcast warrants. The Company expects to complete related assessments before filing its Quarterly Report for the first quarter of fiscal 2019.

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. This final rule is effective on November 5, 2018. The release expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the release, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. According to the release, the staff of the SEC will not object if a filer’s first presentation of changes in shareholders’ equity is included in its Quarterly Report on Form 10-Q for the quarter that begins after the final rule’s effective date. The Company plans to first include the changes required by this release in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2019.

Investments in Other Equity Securities	12 Months Ended
Investments in Other Equity Securities	Dec. 31, 2018
Investments, All Other Investments [Abstract]
Cost-method Investments	INVESTMENTS IN EQUITY SECURITIES Unconsolidated Variable Interest Entities (“VIE”) From time to time, the Company may enter into investments in entities that are considered variable interest entities under Accounting Standards Codification (ASC) Topic 810. If the Company is a primary beneficiary of a variable interest entity (“VIE”), it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE requires significant assumptions and judgments. EDC In 2014, the Company acquired an 18.4% interest in Encoding.com, Inc. (“EDC”), a privately held video transcoding service company headquartered in San Francisco, California, for $3.5 million by purchasing EDC’s Series B preferred stock. EDC is considered a VIE but the Company determined that it is not the primary beneficiary of EDC. As a result, EDC is measured at its cost minus impairment, if any. The Company determined that there were no indicators at December 31, 2018 and 2017 that EDC investment was impaired.

Derivative and Hedging Activities

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

DERIVATIVES AND HEDGING ACTIVITIES

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

The Company’s balance sheet hedges consist of foreign currency forward contracts which mature generally within three months, These forward contracts are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged.

The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the Company’s AOCI and Consolidated Statements of Operations are as follows (in thousands):



		Year ended December 31,
	Financial Statement Location	2018			2017		2016
Derivatives not designated as hedging instruments:
Gains (losses) recognized in income	Other expense, net	$	(2,325	)	$	155	$	343

Derivatives designated as hedging instruments ⁽¹⁾:
Gains in AOCI on derivatives (effective portion)	AOCI	$	—		$	—	$	202
Losses reclassified from AOCI into income (effective portion)	Cost of Revenue	$	—		$	—	$	(6	)
	Operating Expense	—			—		(38		)
	Total	$	—		$	—	$	(44	)
Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing)	Other expense, net	$	—		$	—	$	(63	)

(1) The Company did not enter into any new cash flow hedge contracts since December 31, 2016.

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):



	December 31,
	2018		2017
Derivatives not designated as hedging instruments:
Purchase	$	28,975	$	12,875
Sell	$	—	$	1,509

The locations and fair value amounts of the Company’s derivative instruments reported in its Consolidated Balance Sheets are as follows (in thousands):



		Asset Derivatives					Liability Derivatives
	Balance Sheet Location	December 31, 2018		December 31, 2017		Balance Sheet Location	December 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	—	$	33	Accrued and other current liabilities	$	333	$	4
		$	—	$	33		$	333	$	4

Offsetting of Derivative Assets and Liabilities

The Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of December 31, 2018, information related to the offsetting arrangements was as follows (in thousands):




	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets		Net Amounts of Derivatives Presented in the Consolidated Balance Sheets
Derivative assets	$	—	$	—	$	—
Derivative liabilities	$	333	$	—	$	333

In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of December 31, 2018 and 2017, the total compensating balance maintained was $1.0 million.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below.

The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:


•	Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

•

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market.


•	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying value of the Company’s financial instruments, including cash equivalents, restricted cash, accounts receivable, accounts payable and accrued and other current liabilities, approximate fair value due to their short maturities.

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The fair values of the Company’s convertible notes as of December 31, 2018 and 2017 was $136.5 million and $129.9 million, based on the bond’s quoted market price as of December 31, 2018 and 2017, respectively, and represents a Level 2 valuation. The Company’s other debts assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities, therefore, the carrying value of these debts approximate its fair value. The other debts, excluding capital leases, outstanding as of December 31, 2018 and 2017 were in the aggregate of $19.7 million and $21.8 million, respectively. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information.

The fair value of the Company’s TVN defined pension benefit plan liability as of December 31, 2018 and 2017 was $4.9 million and $5.0 million, respectively. See Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information.

During the years ended December 31, 2018, 2017 and 2016 there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

The following tables provide the fair value measurement amounts for other financial assets and liabilities recorded in the Company’s Consolidated Balance Sheets based on the three-tier fair value hierarchy (in thousands):



	Level 1		Level 2		Level 3 ⁾		Total
As of December 31, 2018
Accrued and other current liabilities
Derivative liabilities	$	—	$	333	$	—	$	333
Total liabilities measured and recorded at fair value	$	—	$	333	$	—	$	333



	Level 1		Level 2		Level 3		Total
As of December 31, 2017
Cash equivalents
Money market funds	$	22	$	—	$	—	$	22
Prepaid expenses and other current assets
Derivative assets	—		33		—		33
Total assets measured and recorded at fair value	$	22	$	33	$	—	$	55
Accrued and other current liabilities
Derivative liabilities	$	—	$	4	$	—	$	4
Total liabilities measured and recorded at fair value	$	—	$	4	$	—	$	4

The Company’s liability for the TVN VDP (as defined below) at December 31, 2018 and 2017 was $2.4 million and $5.1 million, respectively. This amount is not included in the table above because its fair value at inception, based on Level 3 inputs, was determined during the fourth quarter of fiscal 2016. Subsequently there is no recurring fair value remeasurement for this liability based on the applicable accounting guidance.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Acquisition

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS ACQUISITION

On February 29, 2016, the Company completed its acquisition of TVN, a global leader in advanced video compression solutions headquartered in Rennes, France, for $82.5 million in cash. The acquisition strengthened the Company’s competitive position in the video infrastructure market and enhanced the depth and scale of the Company’s research and development and service and support capabilities in the video arena.

During the fourth quarter of 2016, the Company completed the accounting for this business combination. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. The Company’s allocation of TVN purchase consideration is as follows (in thousands):



Assets:
Cash and cash equivalents	$	6,843
Accounts receivable, net	14,933
Inventories	3,462
Prepaid expenses and other current assets	2,412
Property and equipment, net	9,942
French R&D tax credit receivables ⁽¹⁾	26,421
Other long-term assets	2,134
Total assets	$	66,147
Liabilities:
Other debts and capital lease obligations, current	8,362
Accounts payable	12,494
Deferred revenue	2,504
Accrued and other current liabilities	18,365
Other debts and capital lease obligations, long-term	16,087
Other non-current liabilities	6,467
Deferred tax liabilities	2,126
Total liabilities	$	66,405

Goodwill	41,670
Intangibles	41,100
Total purchase consideration	$	82,512

(1) See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables.

The following table presents details of the intangible assets acquired through this business combination (in thousands, except years):



	Estimated Useful Life	Fair Value
Backlog	6 months	$	3,600
Developed technology	4 years	21,700
Customer relationships	5 years	15,200
Trade name	4 years	600
		$	41,100

Acquired identifiable intangible assets were valued using the income method and are amortized on a straight line basis over their respective estimated useful lives. Goodwill of $41.7 million arising from the acquisition was derived from expected benefits from the business synergies to be derived from the combined entities and the experienced workforce who joined the Company in connection with the acquisition. The goodwill is not expected to be deductible for income tax purposes but the intangibles assets acquired are expected to be deductible for income tax purposes in certain jurisdictions. Both goodwill and intangibles assets acquired were assigned to the Company’s video reporting unit.

Acquisition-and integration-related expenses

As a result of the TVN acquisition, the Company incurred acquisition-and integration-related expenses and these costs are expensed as incurred. Acquisition-related costs include outside legal, accounting and other professional services.

The following table summarizes the acquisition-and integration-related expenses for the TVN acquisition (in thousands):



	Acquisition-related		Integration-related⁽¹⁾
	Year ended December 31, 2016		Year ended December 31, 2017 (unaudited)		Year ended December 31, 2016 (unaudited)
Cost of revenue	$	—	$	342	$	1,049
Research and development	—		7		974
Selling, general and administrative	3,855		2,469		11,058
Total acquisition- and integration-related expenses	$	3,855	$	2,818	$	13,081

(1) Integration-related costs include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. All integration efforts were completed by 2017 and the Company does not expect any more such expenses to continue after 2017.

Goodwill and Identified Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identified Intangible Assets

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has two reporting units, Video and Cable Access.

The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The changes in the Company’s carrying amount of goodwill are as follows (in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2016	$	176,519		$	60,760		$	237,279
Foreign currency translation adjustment	5,493			55			5,548
Balance as of December 31, 2017	$	182,012		$	60,815		$	242,827
Foreign currency translation adjustment	(2,173		)	(36		)	(2,209		)
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618

The Company has not recorded any impairment charges related to goodwill for any prior periods. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible Assets, Net

The following table provides a summary of the Company’s identified intangible assets (in thousands):



		December 31, 2018							December 31, 2017
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	1.2	$	31,707	$	(25,576	)	$	6,131	$	31,707	$	(20,396	)	$	11,311
Customer relationships/contracts	2.2	44,650		(38,146		)	6,504		44,819		(35,205		)	9,614
Trademarks and tradenames	1.2	623		(441		)	182		654		(300		)	354
Maintenance agreements and related relationships	N/A	5,500		(5,500		)	—		5,500		(5,500		)	—
Order Backlog	N/A	3,112		(3,112		)	—		3,177		(3,177		)	—
Total identifiable intangibles		$	85,592	$	(72,775	)	$	12,817	$	85,857	$	(64,578	)	$	21,279

Amortization expense for the identifiable intangible assets was allocated as follows (in thousands):



	Year Ended December 31,
	2018		2017		2016
Included in cost of revenue	$	5,180	$	5,180	$	4,434
Included in operating expenses	3,187		3,142		10,402
Total amortization expense	$	8,367	$	8,322	$	14,836

The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2018 is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019	$	5,180	$	3,158	$	8,338
2020	951		3,028		3,979
2021	—		500		500
Total future amortization expense	$	6,131	$	6,686	$	12,817

Accounts Receivable

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Accounts Receivable

ACCOUNTS RECEIVABLE

Accounts receivable, net of allowances, consisted of the following (in thousands):



	December 31,
	2018			2017
Accounts receivable, net:
Accounts receivable	$	85,292		$	74,475
Less: allowance for doubtful accounts and sales returns	(3,497		)	(4,631		)
Total	$	81,795		$	69,844

Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. The expectation of collectability is based on the Company’s review of credit profiles of customers, contractual terms and conditions, current economic trends and historical payment experience. The Company offers return rights which are specifically identified and accrued for as sales returns at the end of the period.

The following table is a summary of activities in allowances for doubtful accounts and sales returns (in thousands):



	Balance at Beginning of Period		Charges to Revenue		Charges (Credits) to Expense		Additions to (Deductions from) Reserves			Balance at End of Period
Year ended December 31,
2018	$	4,631	$	1,949	$	572	$	(3,655	)	$	3,497
2017	$	4,831	$	4,030	$	881	$	(5,111	)	$	4,631
2016	$	4,340	$	1,488	$	1,100	$	(2,097	)	$	4,831

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Certain Balance Sheet Components

12 Months Ended

Dec. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Certain Balance Sheet Components

CERTAIN BALANCE SHEET COMPONENTS

The following tables provide details of selected balance sheet components (in thousands):



	December 31,
	2018		2017
Inventories:
Raw materials	$	1,705	$	2,881
Work-in-process	991		933
Finished goods	12,267		10,130
Service-related spares	10,675		12,032
Total	$	25,638	$	25,976



	December 31,
	2018		2017
Prepaid expenses and other current assets:
French R&D tax credits receivable ⁽¹⁾	$	7,305	$	6,609
Contract assets ⁽²⁾	3,834		—
Deferred cost of revenue	3,671		4,440
Prepaid maintenance, royalty, rent, property taxes and VAT	3,497		3,867
Capitalized commission	1,098		—
Restricted cash	—		530
Other	3,875		3,485
Total	$	23,280	$	18,931

(1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017, the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.

(2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.



	December 31,
	2018			2017
Property and equipment, net:
Machinery and equipment	$	75,094		$	87,121
Capitalized software	32,696			35,139
Leasehold improvements	14,951			15,051
Furniture and fixtures	6,049			6,534
Property and equipment, gross	128,790			143,845
Less: accumulated depreciation and amortization	(106,469		)	(114,580		)
Total	$	22,321		$	29,265



	December 31,
	2018		2017
Other long-term assets:
French R&D tax credits receivable	$	19,249	$	22,322
Deferred tax assets	8,695		10,462
Equity investment	3,593		3,593
Other	6,840		6,536
Total	$	38,377	$	42,913



	December 31,
	2018		2017
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	21,451	$	16,414
Accrued warranty	4,869		4,381
Customer deposits	4,642		5,020
Contingent inventory reserves	2,500		3,806
Accrued TVN VDP, current ⁽¹⁾	1,585		3,186
Accrued royalty payments	1,998		2,195
Accrued Avid litigation settlement fees, current	1,500		—
Other	14,216		13,703
Total	$	52,761	$	48,705

(1) See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Restructuring and Excess Facilities

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Excess Facilities

RESTRUCTURING AND RELATED CHARGES

The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenues, while simultaneously implementing extensive company-wide expense control programs.

The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The restructuring and asset impairment charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges” in the Consolidated Statements of Operations. The following table summarizes the restructuring and related charges (in thousands):



	Year ended December 31,
Restructuring and related charges in:	2018		2017		2016 ⁽¹⁾
Cost of revenue	$	857	$	1,279	$	3,400
Operating expenses - Restructuring and related charges	2,918		5,307		14,602
Total restructuring and related charges	$	3,775	$	6,586	$	18,002

(1) The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information.

As of December 31, 2018 and December 31, 2017, the Company’s total restructuring liability was $5.3 million and $8.0 million, respectively, of which $3.3 million and $4.4 million, respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $2.0 million and $3.6 million, respectively, were reported as a component of “Other non-current liabilities” on the Company’s Consolidated Balance Sheets.

The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2018 (in thousands):



	Harmonic 2016 Restructuring Plan						Harmonic 2017 Restructuring Plan						Harmonic 2018 Restructuring Plan
	Excess facilities			TVN VDP			Excess facilities			Severance and benefits			Excess facilities			Severance and benefits			Total
Balance at December 31, 2017	$	2,426		$	5,128		$	296		$	193		$	—		$	—		$	8,043
Charges for current period	—			—			—			—			932			2,124			3,056
Adjustments to restructuring provisions	132			531			167			—			5			(116		)	719
Reclassification of deferred rent	—			—			—			—			332			—			332
Cash payments	(1,015		)	(3,066		)	(146		)	(193		)	(203		)	(2,052		)	(6,675		)
Foreign exchange effect	—			(184		)	—			—			—			44			(140		)
Balance at December 31, 2018	$	1,543		$	2,409		$	317		$	—		$	1,066		$	—		$	5,335

Harmonic 2018 Restructuring

In the first quarter of 2018, the Company approved and implemented a restructuring plan (the “Harmonic 2018 Restructuring Plan”). The restructuring activities under this plan primarily include worldwide workforce reductions of the Company. As of December 31, 2018, the Company recorded an aggregate amount of $2.1 million of restructuring and related charges for severance and employee benefits for 59 employees worldwide, primarily in the United States and across all functions. The Company made $2.1 million in payments for this plan during the fiscal year ended December 31, 2018. The activities under this plan were completed in 2018.

Excess Facility in San Jose, California

In August 2018, the Company exited an additional excess facility at its U.S. headquarters in San Jose, California and recorded $0.9 million in facility exit costs. The Company accounts for facility exit costs in accordance with ASC 420, “Exit or Disposal Cost Obligations”, which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. The fair value of these liabilities is based on a net present value model using a credit-adjusted, risk-free rate. Actual sublease terms may differ from the estimates originally made by the Company. Any future changes in the estimates or in the actual sublease income could require future adjustments to the liabilities, which would impact net income in the period the adjustment is recorded. As of the cease-use date, the fair value of this restructuring liability totaled $1.2 million. Offsetting these charges was an adjustment for deferred rent liability relating to this space of $0.3 million. As of December 31, 2018, the remaining liability for the additional excess facility exited in August 2018 was $1.1 million, which will be paid out over the remainder of the leased properties’ term through August 2020.

Harmonic 2017 Restructuring

In the third quarter of 2017, the Company implemented a restructuring plan (the “Harmonic 2017 Restructuring Plan”) to better align its operating costs with the continued decline in its net revenues. In 2017, the Company recorded $2.5 million of restructuring and related charges under this plan, consisting of $2.1 million of employee severance and $0.4 million related to the closure of one of the Company’s offices in New York. The activities under this plan were completed in 2017. During 2018, as a result of a change in the estimate of the sublease income, the restructuring liability related to the New York excess facility was increased by $0.2 million. As of December 31, 2018, the remaining $0.3 million liability under the Harmonic 2017 Restructuring Plan relates to the accrual for the New York excess facility, which will be paid out over the remainder of the leased properties’ term through August 2020.

Harmonic 2016 Restructuring

In the first quarter of 2016, the Company implemented a restructuring plan (the “Harmonic 2016 Restructuring Plan”) to reduce operating costs by consolidating duplicative resources in connection with the acquisition of TVN. The planned activities included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France (the “TVN VDP”).

In 2016, the Company recorded an aggregate of $20.0 million of restructuring and related charges under the Harmonic 2016 Restructuring Plan, of which $2.2 million was primarily related to the exit from the excess facility at its U.S. headquarters and the remaining $17.8 million was related to severance and benefits for the termination of 118 employees worldwide, including 83 employees in France who participated in the TVN VDP. The restructuring and related charges under this plan were partially offset by approximately $2.0 million of gain from TVN pension curtailment. For the employees who participated in the TVN VDP, their pension benefit will be funded by the TVN VDP and as a result, the TVN defined benefit pension plan was remeasured at December 31, 2016, which resulted in a non-cash curtailment gain.

TVN VDP

The Company recorded 0.5 million, $1.8 million and $13.1 million of TVN VDP costs in the years ended December 31, 2018, 2017 and 2016, respectively. In aggregate, in 2018, 2017 and 2016, the Company had paid $13.8 million of TVN VDP costs. The TVN VDP liability balance as of December 31, 2018 was $2.4 million, payable from 2019 through 2020.

Excess Facility in San Jose, California

In January 2016, the Company exited an excess facility at its U.S. headquarters in San Jose, California and recorded $1.4 million in facility exit costs. The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate. The liability will be paid out over the remainder of the leased properties’ term, which continues through August 2020. As of the cease-use date, the fair value of this restructuring liability totaled $2.5 million. Offsetting these charges was an adjustment for deferred rent liability relating to this space of $1.1 million. As a result of a change in the estimate of the sublease income, the restructuring liability was increased by $1.2 million as of December 31, 2017. As of December 31, 2018, the remaining liability for the excess facility exited in January 2016 was $1.5 million, which will be paid out over the remainder of the leased properties’ term through August 2020.

Convertible Notes and Credit Facilities

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Credit Facilities

CONVERTIBLE NOTES, OTHER DEBTS AND CAPITAL LEASES

4.00% Convertible Senior Notes

In December 2015, the Company issued $128.25 million aggregate principal amount of 4.00% Senior Convertible Notes due 2020 (the “offering” or “Notes”, as applicable) pursuant to an indenture (the “Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The Notes bear interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year and the Notes will mature on December 1, 2020 unless earlier repurchased or converted. The Notes will be convertible into cash, shares of the Company’s common stock, par value $0.001 (“Common Stock”), or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances, in each case, as set forth in the Indenture.

Prior to the close of business on the business day immediately preceding September 1, 2020, the Notes will be convertible only under the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any 5 consecutive trading day period (the “ measurement period ”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances.

If a fundamental change occurs, holders of the Notes may require the Company to purchase all or any portion of their Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Concurrent with the closing of the offering, the Company used $49.9 million of the net proceeds to repurchase 11.1 million shares of the Company’s common stock from purchasers of Notes in the offering in privately negotiated transactions. In addition, the Company incurred approximately $4.1 million of debt issuance cost, resulting in net proceeds to the Company of approximately $74.2 million, which was used to fund the TVN acquisition.

In accordance with accounting guidance on embedded conversion features, the conversion feature associated with the Notes was valued at $26.1 million and bifurcated from the host debt instrument and recorded in stockholders’ equity. The resulting debt discount on the Notes is being amortized to interest expense at the effective interest rate over the contractual terms of the Notes. The following table presents the components of the Notes as of December 31, 2018 and December 31, 2017 (in thousands, except for years and percentages):



	December 31,
	2018			2017
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(11,996		)	(17,404		)
Less: Debt issuance costs, net of amortization	(1,446		)	(2,098		)
Carrying amount	$	114,808		$	108,748
Remaining amortization period (years)	1.9 years			2.9 years
Effective interest rate on liability component	9.94		%	9.94		%
Carrying amount of equity component	$	26,062		$	26,062

The following table presents interest expense recognized related to the Notes (in thousands):



	Year ended December 31,
	2018		2017		2016
Contractual interest expense	$	5,130	$	5,130	$	5,130
Amortization of debt discount	5,408		4,898		4,430
Amortization of debt issuance costs	652		591		534
Total interest expense recognized	$	11,190	$	10,619	$	10,094

Other Debts and Capital Leases

The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):



	December 31,
	2018			2017
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	18,783		$	20,565
Term loans	914			1,282
Obligations under capital leases	162			1,099
Total debt obligations	19,859			22,946
Less: current portion	(7,175		)	(7,610		)
Long-term portion	$	12,684		$	15,336

(1) Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025.

Future minimum repayments

The table below presents the future minimum repayments of other debts and capital lease obligations as of December 31, 2018 (in thousands):



Years ending December 31,	Capital lease obligations		Other Debt obligations
2019	91		7,084
2020	49		6,607
2021	22		5,333
2022	—		452
2023	—		155
Thereafter	—		66
Total	$	162	$	19,697

Line of Credit

On September 27, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”). The Loan Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $15.0 million. Under the terms of the Loan Agreement, the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time cannot exceed up to 85% of the Company’s eligible receivables. Under the terms of the Loan Agreement, the Company may also request letters of credit from the Bank. The proceeds of any loans under the Loan Agreement will be used for working capital and general corporate purposes.

Loans under the Loan Agreement will bear interest, at the Company’s option, and subject to certain conditions, at an annual rate of either a prime rate or a LIBOR rate plus an applicable margin of 2.25%. There will be no applicable margin for prime rate advances when the Company is in compliance with the liquidity requirement of at least $20.0 million in the aggregate of consolidated cash plus availability under the Loan Agreement (the “Liquidity Requirement”) and a 0.25% margin for prime rate advances when the Company is not in compliance with the Liquidity Requirement. The Company may not request LIBOR advances when it is not in compliance with the Liquidity Requirement. Interest on each advance is due and payable monthly and the principal balance is due at maturity. The Company’s obligations under the revolving credit facility are secured by a security interest on substantially all of its assets, excluding intellectual property.

The Loan Agreement contains customary affirmative and negative covenants. The Company must comply with financial covenants requiring it to maintain (i) minimum a short-term asset to short-term liabilities ratio and (ii) minimum adjusted EBITDA, in the amounts and for the periods as set forth in the Loan Agreement. The Company must also maintain a minimum liquidity amount, comprised of unrestricted cash held at accounts with the Bank plus proceeds available to be drawn under the Loan Agreement, equal to $10.0 million at all times. As of December 31, 2018, the Company was in compliance with the covenants under the Loan Agreement.

As of December 31, 2018, the Company committed $1.8 million towards security for letters of credit issued under the Loan Agreement. There were no borrowings under the Loan Agreement from the closing of the Loan Agreement through December 31, 2018.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION

Equity Award Plans

1995 Stock Plan

The 1995 Stock Plan provides for the grant of incentive stock options, non-statutory stock options and RSUs. Incentive stock options may be granted only to employees. All other awards may be granted to employees and consultants. Under the terms of the 1995 Stock Plan, no incentive stock option or non-statutory stock option may be granted in the ordinary course with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Company’s Board of Directors (the “Board”), generally two to four years, and expire seven years from the date of grant. Grants of RSUs decrease the plan reserve by 1.5 shares for every unit or share granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit or share forfeited. As of December 31, 2018, an aggregate of 9,915,865 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 3,819,736 shares remained available for grant.

2002 Director Plan

The 2002 Director Plan provides for the grant of non-statutory stock options and RSUs to non-employee directors of the Company. Under the terms of the 2002 Director Plan, no non-statutory stock option may be granted with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Board, generally three years for the initial grant and one year for subsequent grants to a non-employee director, and expire seven years from the date of grant. Grants of RSUs decrease the plan reserve by 1.5 shares for every unit granted, and any forfeiture of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit forfeited. The Company’s stockholders approved an amendment to the 2002 Director Stock Plan at the Company’s 2018 annual meeting of stockholders (“2018 Annual Meeting”) which increased the number of shares of common stock reserved for issuance under the 2002 Director Stock Plan by 400,000 shares. As of December 31, 2018, an aggregate of 947,536 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 643,661 shares remained available for grant.

Employee Stock Purchase Plan

The 2002 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of share purchase rights to employees of the Company. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. The ESPP enables employees to purchase shares at 85% of the fair market value of the Common Stock at the beginning or end of the offering period, whichever is lower. Offering periods generally begin on the first trading day on or after January 1 and July 1 of each year. Employees may participate through payroll deductions of 1% to 10% of their earnings. In the event that there are insufficient shares in the plan to fully fund the issuance, the available shares will be allocated across all participants based on their contributions relative to the total contributions received for the offering period. The Company’s stockholders approved an amendment to the ESPP at the 2018 Annual Meeting which increased the number of shares of common stock reserved for issuance under the ESPP by 1,300,000 shares. Under the ESPP, 1,132,438, 1,291,875 and 1,265,458 shares were issued during fiscal 2018, 2017 and 2016, respectively, representing $4.0 million, $4.4 million and $3.7 million in contributions. As of December 31, 2018, 1,282,358 shares were reserved for future purchases by eligible employees.

Stock Option Activities

The following table summarizes the Company’s stock option activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms):



	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance at December 31, 2017	3,880		$	6.04
Granted	—		—
Exercised	(239	)	3.79
Forfeited	(35	)	4.76
Canceled or expired	(538	)	8.75
Balance at December 31, 2018	3,068		5.76		2.3	$	1,148.7
As of December 31, 2018
Vested and expected to vest	3,067		$	5.76	2.3	$	1,147.7
Exercisable	2,994		$	5.78	2.3	$	1,082.0

Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of the Company’s common stock. The intrinsic value of options exercised during the years ended December 31, 2018, 2017 and 2016 was $0.3 million, $0.3 million and $0.1 million, respectively.

The Company realized no income tax benefit from stock option exercises for the years ended December 31, 2018, 2017 and 2016 due to recurring losses and valuation allowances.

Restricted Stock Units (“RSUs”) Activities

The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2017	2,904		$	5.09
Granted	3,906		3.97
Vested	(3,177	)	4.91
Forfeited	(230	)	4.89
Balance at December 31, 2018	3,403		$	3.99

The estimated fair value of RSUs is based on the market price of the Company’s common stock on the grant date. The fair value of all restricted stock units vested during the years ended December 31, 2018, 2017 and 2016 was $15.6 million, $13.0 million and $9.7 million, respectively.

Performance- and Market-based awards

Starting 2015, the Company began to settle a portion of its incentive bonus payment to eligible employees by issuing PRSUs from the 1995 Stock Plan. The Company granted 1,443,168, 1,165,685 and 898,533 PRSUs to its employees during the years ended December 31, 2018, 2017 and 2016, respectively, of which 1,343,168, 1,165,685 and 610,579 PRSUs vested during the years ended December 31, 2018, 2017 and 2016, respectively, for the purpose of settling amounts earned under the Company’s incentive bonus plans. The vesting of the remaining PRSUs will be based on the achievement of certain financial and non-financial operating goals of the Company, subject to the Board’s approval. The stock-based compensation recognized for PRSUs were $6.1 million, $3.2 million and $2.8 million, for the years ended December 31, 2018, 2017 and 2016, respectively.

In 2017, the Company granted 344,500 MRSUs under the 1995 Stock Plan to its key executives and certain eligible employees that may vest during a three-year period as part of its long-term incentive program. In 2018, the Company granted 40,000 MRSUs that may vest during an eighteen-month period from the date of grant. The vesting conditions of these awards are based on the market value of the Company's common stock. The fair value of these shares was estimated using a Monte-Carlo simulation and the stock-based compensation recognized in 2018 and 2017 for these MRSUs was $0.2 million and $0.9 million, respectively. No MRSUs had vested as of December 31, 2018.

French Retirement Benefit Plan

Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, are obligated to make certain payments to their employees upon their retirement from the Company. These payments are based on the retiring employee’s salary for a number of months that varies according to the employee’s period of service and position. Salary used in the calculation is the employee’s average monthly salary for the twelve months prior to retirement. The payments are made in one lump-sum at the time of retirement. The French pension plan is unfunded and there are no contributions to the plan required by related laws or funding regulations. No required contributions are expected in fiscal 2019, but the Company, at its discretion, may make contributions to the defined benefit plan.

The company’s defined benefit pension obligations are measured as of December 31. The present value of these lump-sum payments is determined on an actuarial basis and the actuarial valuation takes into account the employees’ age and period of service with the Company, projected mortality rates, mobility rates, increases in salaries and a discount rate.

The Company’s pension obligations as of December 31, 2018 and December 31, 2017 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands):



	December 31,
	2018			2017
Projected benefit obligation:
Balance at January 1	$	5,033		$	4,264
Service cost	243			259
Interest cost	74			71
Actuarial (gains) losses	(202		)	(528		)
Benefits paid	(13		)	—
Adjustment for prior year balance	—			343
Foreign currency translation adjustment	(254		)	624
Balance at December 31	$	4,881		$	5,033

Presented on the Consolidated Balance Sheets under:
Current portion (presented under “Accrued and other current liabilities”)	$	63		34
Long-term portion (presented under “Other non-current liabilities”)	$	4,818		4,999

The table below presents the components of net periodic benefit costs (in thousands):



	Year ended December 31,
	2018		2017
Service cost	$	243	$	259
Interest cost	74		71
Amortization of net actuarial loss (gain) ⁽¹⁾	—		—
Net periodic benefit cost included in operating loss	$	317	$	330

(1) The Company uses the allowable 10% corridor approach to determine the amount of actuarial gains or losses subject to amortization in pension cost. Gains or losses are amortized on a straight-line basis over the average future remaining service period of active plan participants.

The following assumptions were used in determining the Company’s pension obligation:



	December 31,
	2018		2017
Discount rate	1.7	%	1.5	%
Mobility rate	6.0	%	6.0	%
Salary progression rate	2.0	%	2.0	%

The Company evaluates the discount rate assumption annually. The discount rate is determined using the average yields on high-quality fixed-income securities that have maturities consistent with the timing of benefit payments.

The Company also evaluates other assumptions related to demographic factors, such as retirement age, mortality rates and turnover periodically, updating them to reflect experience and expectations for the future. The mortality assumption related to the Company’s defined benefit pension plan used the most current mortality tables published by the French National Institute of Statistics and Economic Studies.

As of December 31, 2018, future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands):



Years ending December 31,
2019	$	63
2020	—
2021	41
2022	80
2023	479
2024 - 2028	2,626
	$	3,289

401(k) Plan

The Company has a retirement/savings plan for its U.S. employees, which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. The Company can make discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. The Company’s contributions to the plan were $0.3 million, $0.3 million and $0.4 million for fiscal 2018, 2017 and 2016, respectively.

Stock-based Compensation

The following table summarizes stock-based compensation expense for all plans (in thousands):



	Year ended December 31,
	2018		2017		2016
Stock-based compensation in:
Cost of revenue	$	1,953	$	2,370	$	1,554
Research and development expense	5,192		5,313		3,711
Selling, general and administrative expense	10,144		8,927		7,795
Total stock-based compensation in operating expense	15,336		14,240		11,506
Total stock-based compensation recognized in net loss	$	17,289	$	16,610	$	13,060

As of December 31, 2018, total unrecognized stock-based compensation cost related to unvested stock options and RSUs was $0.1 million and $8.5 million, respectively, and is expected to be recognized over a weighted-average period of 0.3 years and 1.5 years, respectively.

Valuation Assumptions

The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model. At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions:



	Employee Stock Options				ESPP
	2017		2016		2018		2017		2016
Expected term (in years)	4.30		4.30		0.50		0.50		0.50
Volatility	42	%	36	%	55	%	48	%	70	%
Risk-free interest rate	1.8	%	1.4	%	1.9	%	1.2	%	0.6	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%

The expected term of the employee stock option represents the weighted-average period that the stock options are expected to remain outstanding. The computation of expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The expected term of the stock purchase right under ESPP represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has not paid and does not plan to pay any cash dividends in the foreseeable future.

There were no stock options granted during the year ended December 31, 2018. The weighted-average fair value per share of stock options granted for the years ended December 31, 2017 and 2016 was $1.85 and $0.99, respectively.

The fair value of stock options vested during the years ended December 31, 2018, 2017 and 2016 was $0.7 million, $1.7 million and $2.3 million, respectively.

The estimated weighted-average fair value per share of stock purchase rights under the ESPP, granted for the years ended December 31, 2018, 2017 and 2016 was $1.33, $1.50 and $1.04, respectively.

Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Preferred Stock

Harmonic has 5,000,000 authorized shares of preferred stock. No shares of preferred stock were issued or outstanding in any of the periods presented.

Common Stock Repurchases

Our stock repurchase program expired on December 31, 2016. No stock was repurchased during fiscal 2018, 2017 and 2016. Any further stock repurchases would require authorization from the Board.

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands):



	December 31,
	2018			2017
Foreign currency translation adjustments	$	(779	)	$	4,310
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(888		)	(1,177		)
Actuarial gain	451			249
Total accumulated other comprehensive income (loss)	$	(1,216	)	$	3,382

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Loss from operations before income taxes consists of the following (in thousands):



	Year ended December 31,
	2018			2017			2016
United States	$	(19,780	)	$	(50,041	)	$	(53,833	)
International	2,832			(34,666		)	(26,597		)
Loss before income taxes	$	(16,948	)	$	(84,707	)	$	(80,430	)

The components of the benefit from income taxes consist of the following (in thousands):



	Year ended December 31,
	2018			2017			2016
Current:
Federal	$	(305	)	$	(4,530	)	$	(950	)
State	116			129			181
International	2,958			273			2,738
Deferred:
Federal	—			—			(713		)
International	1,318			2,376			(9,372		)
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

The differences between the provision for (benefit from) income taxes computed at the U.S. federal statutory rate at 21% and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands):



	Year ended December 31,
	2018			2017			2016
Benefit from for income taxes at U.S. Federal statutory rate	$	(3,559	)	$	(29,648	)	$	(28,150	)
Differential in rates on foreign earnings	4,299			15,920			11,741
Non-deductible amortization expense	—			—			617
Tax Reform tax rate reduction	—			14,527			—
Change in valuation allowance	1,449			(2,834		)	4,465
Change in liabilities for uncertain tax positions	(250		)	(2,009		)	(960		)
Non-deductible stock-based compensation	1,363			1,934			1,480
Permanent Differences	1,096			380			441
Adjustments related to tax positions taken during prior years	184			(473		)	(163		)
Adjustments made under intercompany transactions	—			—			1,779
Tax refund	(305		)	(834		)	—
Other	(190		)	1,285			634
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

The Company operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective income tax rate may be affected by changes in its interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net operating loss and tax credit carry forwards, changes in geographical mix of income and expense, and changes in management's assessment of matters such as the ability to realize deferred tax assets. The Company’s effective tax rate varies from year to year primarily due to the absence of several onetime, discrete items that benefited or decremented the tax rates in the previous years.

In 2018, the Company had a worldwide consolidated loss before tax of $16.9 million and tax expense of $4.1 million, with an annual effective income tax rate of (24)%. The Company’s 2018 effective income tax rate differed from the U.S. federal statutory rate of 21% primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal, California and other states deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax jurisdictions.

On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted which, among other things, lowered the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of December 31, 2018, the Company completed the accounting for transition tax and concluded that it had no tax impact because the Company's cumulative unremitted earnings and profits are negative.

The TCJA also includes a requirement to pay a minimum tax on foreign earnings for tax years beginning after December 31, 2017. An accounting policy election is allowed to either treat taxes due on future U.S. inclusions as a current period expense or account for the minimum tax in the measurement of deferred tax assets. The Company has elected to treat the minimum tax as a period cost. As such, the Company has not recognized any deferred taxes related to the minimum tax.

In 2017, the Company had a worldwide consolidated loss before tax of $84.7 million and tax benefit of $1.8 million, with an annual effective tax rate of 2%. The Company’s 2017 effective income tax rate differed from the U.S. federal statutory rate of 35% primarily due to geographical income mix, favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, tax rate change in foreign jurisdictions, tax benefits associated with the release of tax reserves for uncertain tax positions resulting from the expiration of the statutes of limitations, a one-time benefit of $2.6 million from the reduction of a valuation allowance on alternative minimum tax (“AMT”) credit carryforwards that will be refundable as a result of the TCJA, partially offset by the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, and the net of various other discrete tax adjustments.

In 2016, the Company had a worldwide consolidated loss before tax of $80.4 million and tax benefit of $8.1 million, with an annual effective income tax rate of 10%. The Company’s 2016 effective income tax rate differed from the U.S. federal statutory rate of 35% primarily due to geographical income mix and its tax valuation allowance, favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, favorable resolutions of uncertain tax positions, and the tax benefit from the realization of certain deferred tax assets as a result of the TVN acquisition, partially offset by the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, non-deductible amortization of foreign intangibles, and the net of various discrete tax adjustments.

The components of net deferred tax assets included in the Consolidated Balance Sheets are as follows (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Reserves and accruals	$	17,090		$	17,247
Net operating loss carryforwards	29,900			34,915
Research and development credit carryforwards	36,446			34,419
Deferred stock-based compensation	2,201			2,677
Intangibles	2,585			2,062
Other	939			1,441
Gross deferred tax assets	89,161			92,761
Valuation allowance	(77,144		)	(77,756		)
Gross deferred tax assets after valuation allowance	12,017			15,005
Deferred tax liabilities:
Depreciation and amortization	(391		)	(259		)
Convertible notes	(2,931		)	(4,284		)
Gross deferred tax liabilities	(3,322		)	(4,543		)
Net deferred tax assets	$	8,695		$	10,462

The following table summarizes the activities related to the Company’s valuation allowance (in thousands):



	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	77,756		$	74,480		$	64,545
Additions	928			9,028			18,291
Deductions	(1,540		)	(5,752		)	(8,356		)
Balance at end of period	$	77,144		$	77,756		$	74,480

Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction by jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.

In 2018, the Company continued to record a valuation allowance against all of its United States deferred tax assets due to significant cumulative losses in the United States, resulting in a net increase in valuation allowance of $0.9 million. This increase in valuation allowance is offset partially by the release of $1.5 million valuation allowance against one of its Israel subsidiaries due to cumulative income generated in the recent years as well as the analysis of all available positive and negative evidence. As of December 31, 2018, the Company had a valuation allowance of $77.1 million against all of its U.S. federal, California and other states net deferred tax assets.

The Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, using a modified-retrospective transition method, in the first quarter of fiscal 2017. As a result, the Company recorded a cumulative effect of $4.6 million of additional gross deferred tax asset associated with shared-based payment and an offsetting valuation allowance of the same amount, therefore resulting in no net impact to the Company’s beginning retained earnings or effective tax rate for 2017.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires companies to recognize the income tax consequences of all intra-entity sales of assets other than inventory when they occur. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The Company early adopted this ASU during the first quarter of fiscal 2017 on a modified retrospective approach and recorded a cumulative-effect adjustment of $1.4 million to the retained earnings as of January 1, 2017 (which reduced the accumulated deficit). Correspondingly, in the first quarter of fiscal 2017, the Company recognized an additional $1.1 million of net deferred tax assets, after netting with $2.1 million of valuation allowance, and write off the remaining $0.3 million of unamortized tax expenses deferred under the previous guidance to provision for income taxes in the first quarter of fiscal 2017.

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner, 145 T.C. No.3 (2015) related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the U.S. Tax Court on December 1, 2015 (the “2015 Decision”). On February 19, 2016, the U.S. Internal Revenue Service filed a notice of appeal in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015), to the Ninth Circuit Court of Appeals. The Ninth Circuit was to decide whether a regulation that mandates that stock-based compensation costs related to the intangible development activity of a qualified cost sharing arrangement (a “QCSA”) must be included in the joint cost pool of the QCSA (the “all costs rule”) is consistent with the arm’s length standard as set forth in Section 482 of the Internal Revenue Code. On July 24, 2018, the Ninth Circuit Court of Appeals issued an opinion in Altera Corp. v. Commissioner (the “Altera Opinion”) requiring related parties in an intercompany cost-sharing arrangement to share expenses related to share-based compensation. This opinion reversed the 2015 Decision of the United States Tax Court. The Ninth Circuit subsequently withdrew the opinion on August 7, 2018. Due to uncertainties surrounding the ultimate resolution of the 2015 Decision, the Company continues to share expenses related to share-based compensation despite the 2015 Decision.

As of December 31, 2018, the Company had $95.9 million, $38.0 million, $21.6 million and $48.0 million of foreign, U.S. federal, U.S. California state, and U.S. other states net operating loss carryforwards (“NOL”), respectively. There is no expiration to the utilization of the foreign NOL, while the U.S. federal and California NOL begin to expire at various dates beginning in 2026 through 2039, if not utilized.

As of December 31, 2018, the Company had U.S. federal and California state tax credit carryforwards of approximately $13.2 million and $34.9 million, respectively. If not utilized, the U.S. federal tax credit carryforwards will begin to expire in 2031, while the California tax credit forward will not expire.

The Company has not provided U.S. state income taxes and foreign withholding taxes, on approximately $15.3 million of cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable.

The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in our judgment, is more than fifty percent likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions to be recognized in earnings in the period in which such determination is made. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of December 31, 2018, the Company had $16.6 million of unrecognized future tax benefits that would favorably impact the effective tax rate in future periods if recognized. The following table summarizes the activities related to the Company’s gross unrecognized tax benefits (in millions):



	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	18.8		$	19.2		$	15.6
Increase in balance related to tax positions taken during current year	1.0			1.4			4.6
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(2.2		)	(1.0		)
Decrease in balance due to settlement with tax authorities	(1.6		)	—			—
Increase in balance related to tax positions taken during prior years	0.2			1.8			—
Decrease in balance related to tax positions taken during prior years	(0.3		)	(1.4		)	—
Balance at end of period	$	18.0		$	18.8		$	19.2

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expenses on the Consolidated Statements of Operations. The net interest and penalties charges recorded for the years ended December 31, 2016 through 2018, were not material. The Company had approximately $24.0 thousand and $0.5 million of accrued interest and penalties related to uncertain tax positions as of December 31, 2018 and December 31, 2017.

The 2015 through 2018 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In addition, a subsidiary of the Company is under audit from 2013 to 2017 tax years by the Swiss tax authority. If, upon the conclusion of this audit, the ultimate determination of taxes owed in Switzerland is for an amount in excess of the tax provision the Company has recorded in the applicable period, the Company’s overall tax expense, effective tax rate, operating results and cash flow could be materially and adversely impacted in the period of adjustment.

The Company’s operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland. The Company has substantially met these various thresholds and the Switzerland tax holiday is effective through the end of 2018. The income tax benefits attributable to the Switzerland holiday were estimated to be approximately $0.4 million, $0.6 million and $0.7 million for each of the fiscal years 2018, 2017 and 2016, increasing diluted earnings per share by approximately $0.005, $0.007 and $0.008 for each of the fiscal years 2018, 2017 and 2016, respectively.

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

NET LOSS PER SHARE

Basic net loss per share is computed by dividing the net loss attributable to common stockholders for the applicable period by the weighted average number of common shares outstanding during the period. Potentially dilutive shares, consisting of outstanding stock options, restricted stock units, ESPP plan awards as well as the Notes, are excluded from the net loss per share computations when their effect is anti-dilutive.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):



	Year Ended December 31,
	2018			2017			2016
Numerator:
Net loss	$	(21,035	)	$	(82,955	)	$	(72,314	)
Denominator:
Weighted average number of shares outstanding:
Basic and diluted	85,615			80,974			77,705
Net loss per share:
Basic and diluted	$	(0.25	)	$	(1.02	)	$	(0.93	)

The diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2018, 2017 and 2016, as the effect of inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the years presented. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	December 31,
	2018	2017	2016
Stock options	3,327	4,470	5,295
Restricted stock units	2,997	3,059	2,536
Stock purchase rights under the ESPP	609	620	659
Warrants ⁽¹⁾	1,268	782	206
Total ⁽²⁾	8,201	8,931	8,696

(1) In 2016, in connection with the execution of a product supply agreement the Company granted Comcast a warrant to purchase shares of its common stock. See Note 16, “Warrants,” for additional information. The warrants will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the warrant exercise price of $4.76 per share.

(2) Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information on the Notes. Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.

Warrants	12 Months Ended
Warrants	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Warrants Disclosure [Text Block]	WARRANTS On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76. Comcast may exercise the Warrant for cash or on a net share basis. The Warrant expires on September 26, 2023 or the prior consummation of a change of control of the Company. Comcast’s right to purchase 781,617 shares vested as of the Warrant issuance date as an incentive to enter into the software license product supply agreement. Comcast’s right to purchase 1,172,425 shares vested as of July 31, 2018 upon the acceptance and completion of field trials. Comcast’s right to purchase an additional 781,617 shares will vest upon Comcast’s election for enterprise license pricing for the Company’s CableOS software products. Such pricing would obligate Comcast to make certain total payments to the Company over the term of the product supply agreement. Comcast’s rights to purchase additional shares in specified tranches vest when Comcast exceeds specified cumulative purchase amounts from the Company under the product supply agreement and, for certain tranches, such purchases are made within specified time periods. The Warrant is considered an incentive for Comcast to purchase certain of the Company’s products. Therefore the value of the vested Warrant is recorded as an asset, which is recognized as a reduction in the Company’s net revenues in proportion to the pertinent sales to Comcast. The Warrant is considered indexed to the Company’s common stock and classified as stockholders’ equity based on its terms. Accordingly, the vested Warrant amounts are included in “Additional paid-in capital”. Because the Warrants contain performance criteria, which include cumulative purchase amounts Comcast must achieve for the Warrants to vest, the final measurement date for the Warrants is the date on which the Warrants vest. Prior to the final measurement, when achievement of the performance criteria has been deemed probable, the estimated fair value of Warrants is being recorded as a reduction to the Company’s net revenue based on the estimated number of Warrants expected to vest, the proportion of purchases by Comcast within the period relative to the cumulative purchase levels required for the Warrants to vest and the then-current fair value of the related Warrants. To the extent that estimate change in the future as to the number of Warrants that will vest, as well as changes in the fair market value of the Warrants, a cumulative catch-up adjustment will be recorded in the period in which the estimates change. The value of the Warrant is recorded as a reduction in the Company’s net revenues to the extent such value does not exceed net revenues from pertinent sales to Comcast. The fair value of the Warrant is determined using the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include the risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate is based on the U.S. Treasury yield curve rates with maturity terms similar to the expected life of the Warrant. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the Warrant. Expected life is equal to the remaining contractual term of the Warrant. The dividend yield is assumed to be zero since the Company has not historically declared dividends and does not have any plans to declare dividends in the future. The portion of the Warrant which vested on September 26, 2016 had a fair value of $1.6 million. The fair value was determined using the Black-Scholes option valuation model using the following assumptions: expected term of 7 years, volatility of 42%, risk-free interest rate of 1.4%, and expected dividends of 0.0%. On July 31, 2018, pursuant to the vesting provisions of the Warrant, an additional tranche of 1,172,425 shares vested and became exercisable upon the acceptance of completion of field trials by Comcast. The fair value of the Warrant on the date of vesting was estimated to be $2.3 million using the Black-Scholes option pricing model with the following assumptions: expected term of 5.2 years, volatility of 45%, risk-free interest rate of 2.9%, and expected dividends of 0.0%. The fair value of the Warrant was recorded as a component of “Other long-term assets” with an equal offset to “Additional paid in capital” on the Company’s Consolidated Balance Sheets. The Company will amortize this asset as a reduction in the Company’s net revenues in proportion to the pertinent sales to Comcast. During the year ended December 31, 2018, 2017 and 2016, the Company recorded $1.2 million, $0.2 million and $0.4 million, respectively as a reduction to net revenues in connection with amortization of the Warrant.

Segment Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Access. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Access segment provides CableOS cable access solutions and related services to cable operators globally.

On February 29, 2016, the Company completed its acquisition of 100% of the outstanding equity of TVN and assigned TVN to its Video operating segment.

The following table provides summary financial information by reportable segment (in thousands):



	Year ended December 31,
	2018			2017⁽¹⁾			2016
Video
Revenue	$	313,828		$	319,473		$	351,489
Gross profit	178,170			173,414			194,044
Operating income (loss)	26,170			(2,024		)	11,963
Cable Access
Revenue	$	89,730		$	38,773		$	54,422
Gross profit	39,029			8,892			21,174
Operating loss	(1,756		)	(23,154		)	(12,131		)
Total
Revenue	$	403,558		$	358,246		$	405,911
Gross profit	217,199			182,306			215,218
Operating income (loss)	24,414			(25,178		)	(168		)

(1) The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments.

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):



	Year ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Total segment operating income (loss)	$	24,414		$	(25,178	)	$	(168	)
Unallocated corporate expenses ⁽¹⁾	(3,769		)	(20,767		)	(38,972		)
Stock-based compensation	(17,289		)	(16,610		)	(13,060		)
Amortization of intangibles	(8,367		)	(8,322		)	(14,836		)
Consolidated loss from operations	(5,011		)	(70,877		)	(67,036		)
Non-operating expense, net	(11,937		)	(13,830		)	(13,394		)
Loss before income taxes	$	(16,948	)	$	(84,707	)	$	(80,430	)

(1) For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.

Unallocated Corporate Expenses

Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges, TVN acquisition- and integration-related costs, and certain other non-recurring charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

Geographic Information

The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands):



	Year ended December 31,
	2018		2017		2016
Net revenue ⁽¹⁾:
United States	$	181,965	$	131,773	$	171,016
Other countries	221,593		226,473		234,895
Total	$	403,558	$	358,246	$	405,911

(1) Revenue is attributed to countries based on the location of the customer.

Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2018, 2017 and 2016.



	As of December 31,
	2018		2017
Property and equipment, net:
United States	$	10,376	$	13,786
Israel	6,975		8,904
France	3,519		4,573
Other countries	1,451		2,002
Total	$	22,321	$	29,265

Customer Concentration

Net revenue from Comcast accounted for 15% of the Company’s total net revenue during the year ended December 31, 2018. During the years ended December 31, 2017 and 2016, no single customer accounted for more than 10% of our net revenue.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases

The Company leases its facilities under non-cancelable operating leases which expire at various dates through June 2028. In addition, the Company leases vehicles and phones in Israel the last of which expires in 2020. Total rent expense related to these operating leases was $10.1 million, $10.2 million and $9.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Future minimum lease payments under non-cancellable operating leases at December 31, 2018, are as follows (in thousands):



	Operating Leases
Year ending December 31,
2019	$	13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total minimum payments	$	39,179

Warranty

The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Activities for the Company’s warranty accrual for each fiscal year, which is included in accrued and other current liabilities, is summarized below (in thousands):



	2018			2017			2016
Balance at beginning of period	$	4,381		$	4,862		$	3,913
Accrual for current period warranties	6,612			5,117			5,482
Balance assumed from TVN acquisition	—			—			1,012
Warranty costs incurred	(6,124		)	(5,598		)	(5,545		)
Balance at end of period	$	4,869		$	4,381		$	4,862

Bank Guarantees and standby Letters of Credit

As of December 31, 2018 and 2017, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.3 million and $2.7 million, respectively, consisting of building leases and performance bonds issued to customers.

During 2017, one of the Company’s subsidiaries entered into a $2.0 million credit facility with a foreign bank for the purpose of issuing performance guarantees. The credit facility is secured by a $2.2 million guarantee issued by the parent company. There were no amounts outstanding under this credit facility as of December 31, 2018 and December 31, 2017.

Indemnification

The Company is obligated to indemnify its officers and its directors pursuant to its bylaws and contractual indemnity agreements. The Company also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of the indemnification provisions through December 31, 2018.

Royalties

The Company has licensed certain technologies from various companies. It incorporates these technologies into its own products and is required to pay royalties for such use, usually based on shipment of the related products. In addition, the Company has obtained research and development grants under various Israeli government programs that require the payment of royalties on sales of certain products resulting from such research. Royalty expenses were $4.2 million, $5.2 million and $4.1 million for the years ended December 31, 2018, 2017 and 2016, respectively, and they are included in cost of revenue in the Company’s Consolidated Statements of Operations.

Purchase Obligations

The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. The Company had approximately $35.9 million of non-cancelable commitments to purchase inventories and other commitments as of December 31, 2018.

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2018
Loss Contingency [Abstract]
Legal Proceedings	LEGAL PROCEEDINGS In October 2011, Avid Technology, Inc. (“Avid”) filed a complaint in the United States District Court for the District of Delaware alleging that Harmonic’s Media Grid product infringes two patents held by Avid. A jury trial on this complaint commenced on January 23, 2014 and, on February 4, 2014, the jury returned a unanimous verdict in favor of us, rejecting Avid’s infringement allegations in their entirety. In January 2015, Avid filed an appeal with respect to the jury’s verdict with the Federal Circuit. In January 2016, the Federal Circuit issued an order vacating the verdict of noninfringement and remanding the case to the trial court for a new trial on infringement. In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that the Company’s Spectrum product infringes one patent held by Avid. The complaint sought injunctive relief and unspecified damages. In September 2013, the U.S. Patent Trial and Appeal Board (“PTAB”) authorized an inter partes review to be instituted as to claims 1-16 of the patent asserted in this second complaint. In July 2014, the PTAB issued a decision finding claims 1-10 invalid and claims 11-16 not invalid. We filed an appeal with respect to the PTAB’s decision on claims 11-16 in September 2014, and the Federal Circuit affirmed the PTAB’s decision in April 2016. In July 2017, the court issued a scheduling order consolidating both cases and setting the trial date for November 6, 2017. On October 19, 2017, the parties agreed to settle the consolidated cases by entering into a settlement and patent portfolio cross-license agreement, and the cases were dismissed with prejudice. In connection with the agreement, the Company recorded a $6.0 million litigation settlement expense in “Selling, general and administrative expenses” in the Company’s 2017 Consolidated Statement of Operations. Of the associated $6.0 million settlement liability, $2.5 million was paid in October 2017 and the remaining $1.5 million and $2.0 million will be paid in the second quarter of 2019 and the third quarter of 2020, respectively. From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably probable losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated.

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

SELECTED QUARTERLY FINANCIAL DATA

(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2018. In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data.



	Fiscal 2018
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	90,127		$	99,160		$	100,616		$	113,655
Gross profit ⁽²⁾	47,183			51,603			50,102			60,321
Net income (loss) ^{(1) (3) (4)}	(13,694		)	(2,913		)	(7,758		)	3,330
Net income (loss) per share:
Basic and diluted	$	(0.16	)	$	(0.03	)	$	(0.09	)	$	0.04
Shares used in per share calculations:
Basic	83,912			85,304			86,321			86,846
Diluted	83,912			85,304			86,321			89,028
	Fiscal 2017
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	82,943		$	82,315		$	92,014		$	100,974
Gross profit ⁽²⁾	40,408			33,815			47,025			48,572
Net loss ^{(1) (4)}	(24,027		)	(31,500		)	(15,583		)	(11,516		)
Net loss per share:
Basic and diluted	$	(0.30	)	$	(0.39	)	$	(0.19	)	$	(0.14	)
Shares used in per share calculations:
Basic and diluted	79,810			80,590			81,445			82,014

(1) In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018.

(2) Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018

and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017.

(3) During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.

(4) During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Reclassifications

Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications did not have material impact on previously reported financial statements.

Cash and Cash Equivalents

Restricted Cash

Short-Term Investments

The Company did not have any outstanding short-term investments as of December 31, 2018 and 2017.

Investments in Equity Securities

The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2018 and 2017, respectively.

Credit Risk and Major Customers/Supplier Concentration

Revenue Recognition

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.

Professional services. Revenue from professional services is recognized over time, on the percentage-of-completion basis using the input method.

Support and maintenance. Support and maintenance services are satisfied ratably over time as the customer simultaneously receives and consumes the benefits of the services.

Capitalized Software Development Costs

Property and Equipment

Business Combinations

Business Combination

Goodwill

Long-lived Assets

Foreign Currency

Derivative Instruments

The Company did not enter into any cash flow hedges during the year ended December 31, 2018.

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

Research and Development

Restructuring and Related Charges

Warranty

Advertising Expenses

Stock-based Compensation Expense

Stock-based Compensation

Valuation Assumptions



	Employee Stock Options				ESPP
	2017		2016		2018		2017		2016
Expected term (in years)	4.30		4.30		0.50		0.50		0.50
Volatility	42	%	36	%	55	%	48	%	70	%
Risk-free interest rate	1.8	%	1.4	%	1.9	%	1.2	%	0.6	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%

Pension Plan

See Note 12, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information.

Income Taxes

$15.3 million of cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable.

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expenses on the Consolidated Statements of Operations.

Segment Reporting

Segment Information

Comprehensive Income (Loss)

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

ASC Topic 606, “Revenue from Contracts with Customers”

The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands):



CONSOLIDATED BALANCE SHEETS	Balance as of December 31, 2017			Cumulative Impact from Adopting Topic 606			Balance as of January 1, 2018
ASSETS
Accounts receivable, net	$	69,844		$	1,781		$	71,625
Prepaid expenses and other current assets	18,931			3,578			22,509
Other long-term assets	42,913			773			43,686

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	$	52,429		$	(4,826	)	$	47,603
Other non-current liabilities	22,626			(473		)	22,153
Accumulated deficit	(2,057,812		)	11,431			(2,046,381		)

The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands):



	Year ended December 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS	As Reported			Previous Accounting Guidance			Impact from Adopting Topic 606
Total net revenue	$	403,558		$	402,550		$	1,008
Total cost of revenue	194,349			194,101			248
Total gross profit	209,209			208,449			760
Operating expenses:
Selling, general and administrative	118,952			119,151			(199		)
Loss from operations	(5,011		)	(5,970		)	959
Loss before income taxes	(16,948		)	(17,907		)	959
Net loss	(21,035		)	(21,994		)	959



	As of December 31, 2018
CONSOLIDATED BALANCE SHEETS	As Reported		Previous Accounting Guidance		Impact from Adopting Topic 606
ASSETS
Accounts receivable, net	81,795		79,954		$	1,841
Prepaid expenses and other current assets	23,280		19,067		4,213
Other long-term assets	38,377		37,872		505
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	41,592		47,117		(5,525		)
Other non-current liabilities	18,228		18,534		(306		)
Accumulated deficit	(2,067,416	)	(2,079,806	)	12,390

Revenue Recognition

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.

Professional services. Revenue from professional services is recognized over time, on the percentage-of-completion basis using the input method.

Support and maintenance. Support and maintenance services are satisfied ratably over time as the customer simultaneously receives and consumes the benefits of the services.

See Note 17, “Segment Information” for further disaggregated revenue information.

Other Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies - Cumulative Effect of Topic 606 (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Standards Update 2014-09 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of New Accounting Pronouncements

The cumulative effect of initially applying Topic 606 to the Company’s consolidated balance sheet on January 1, 2018 was as follows (in thousands):



CONSOLIDATED BALANCE SHEETS	Balance as of December 31, 2017			Cumulative Impact from Adopting Topic 606			Balance as of January 1, 2018
ASSETS
Accounts receivable, net	$	69,844		$	1,781		$	71,625
Prepaid expenses and other current assets	18,931			3,578			22,509
Other long-term assets	42,913			773			43,686

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	$	52,429		$	(4,826	)	$	47,603
Other non-current liabilities	22,626			(473		)	22,153
Accumulated deficit	(2,057,812		)	11,431			(2,046,381		)

The impact from adopting Topic 606 on the Company’s consolidated financial statements was as follows (in thousands):



	Year ended December 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS	As Reported			Previous Accounting Guidance			Impact from Adopting Topic 606
Total net revenue	$	403,558		$	402,550		$	1,008
Total cost of revenue	194,349			194,101			248
Total gross profit	209,209			208,449			760
Operating expenses:
Selling, general and administrative	118,952			119,151			(199		)
Loss from operations	(5,011		)	(5,970		)	959
Loss before income taxes	(16,948		)	(17,907		)	959
Net loss	(21,035		)	(21,994		)	959



	As of December 31, 2018
CONSOLIDATED BALANCE SHEETS	As Reported		Previous Accounting Guidance		Impact from Adopting Topic 606
ASSETS
Accounts receivable, net	81,795		79,954		$	1,841
Prepaid expenses and other current assets	23,280		19,067		4,213
Other long-term assets	38,377		37,872		505
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	41,592		47,117		(5,525		)
Other non-current liabilities	18,228		18,534		(306		)
Accumulated deficit	(2,067,416	)	(2,079,806	)	12,390

Derivative and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Gain and Losses Reported in Statement of Operations



		Year ended December 31,
	Financial Statement Location	2018			2017		2016
Derivatives not designated as hedging instruments:
Gains (losses) recognized in income	Other expense, net	$	(2,325	)	$	155	$	343

Derivatives designated as hedging instruments ⁽¹⁾:
Gains in AOCI on derivatives (effective portion)	AOCI	$	—		$	—	$	202
Losses reclassified from AOCI into income (effective portion)	Cost of Revenue	$	—		$	—	$	(6	)
	Operating Expense	—			—		(38		)
	Total	$	—		$	—	$	(44	)
Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing)	Other expense, net	$	—		$	—	$	(63	)

(1) The Company did not enter into any new cash flow hedge contracts since December 31, 2016.

Schedule of Notional Amounts of Outstanding Derivative Positions

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):



	December 31,
	2018		2017
Derivatives not designated as hedging instruments:
Purchase	$	28,975	$	12,875
Sell	$	—	$	1,509

Schedule of Foreign Exchange Contracts - Balance Sheet

The locations and fair value amounts of the Company’s derivative instruments reported in its Consolidated Balance Sheets are as follows (in thousands):



		Asset Derivatives					Liability Derivatives
	Balance Sheet Location	December 31, 2018		December 31, 2017		Balance Sheet Location	December 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	—	$	33	Accrued and other current liabilities	$	333	$	4
		$	—	$	33		$	333	$	4

Offsetting of Derivative Assets and Liabilities

As of December 31, 2018, information related to the offsetting arrangements was as follows (in thousands):




	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets		Net Amounts of Derivatives Presented in the Consolidated Balance Sheets
Derivative assets	$	—	$	—	$	—
Derivative liabilities	$	333	$	—	$	333

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy



	Level 1		Level 2		Level 3 ⁾		Total
As of December 31, 2018
Accrued and other current liabilities
Derivative liabilities	$	—	$	333	$	—	$	333
Total liabilities measured and recorded at fair value	$	—	$	333	$	—	$	333



	Level 1		Level 2		Level 3		Total
As of December 31, 2017
Cash equivalents
Money market funds	$	22	$	—	$	—	$	22
Prepaid expenses and other current assets
Derivative assets	—		33		—		33
Total assets measured and recorded at fair value	$	22	$	33	$	—	$	55
Accrued and other current liabilities
Derivative liabilities	$	—	$	4	$	—	$	4
Total liabilities measured and recorded at fair value	$	—	$	4	$	—	$	4

Business Acquisition (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



Assets:
Cash and cash equivalents	$	6,843
Accounts receivable, net	14,933
Inventories	3,462
Prepaid expenses and other current assets	2,412
Property and equipment, net	9,942
French R&D tax credit receivables ⁽¹⁾	26,421
Other long-term assets	2,134
Total assets	$	66,147
Liabilities:
Other debts and capital lease obligations, current	8,362
Accounts payable	12,494
Deferred revenue	2,504
Accrued and other current liabilities	18,365
Other debts and capital lease obligations, long-term	16,087
Other non-current liabilities	6,467
Deferred tax liabilities	2,126
Total liabilities	$	66,405

Goodwill	41,670
Intangibles	41,100
Total purchase consideration	$	82,512

(1) See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables.

The following table presents details of the intangible assets acquired through this business combination (in thousands, except years):



	Estimated Useful Life	Fair Value
Backlog	6 months	$	3,600
Developed technology	4 years	21,700
Customer relationships	5 years	15,200
Trade name	4 years	600
		$	41,100

Business combination acquisition and integration cost

The following table summarizes the acquisition-and integration-related expenses for the TVN acquisition (in thousands):



	Acquisition-related		Integration-related⁽¹⁾
	Year ended December 31, 2016		Year ended December 31, 2017 (unaudited)		Year ended December 31, 2016 (unaudited)
Cost of revenue	$	—	$	342	$	1,049
Research and development	—		7		974
Selling, general and administrative	3,855		2,469		11,058
Total acquisition- and integration-related expenses	$	3,855	$	2,818	$	13,081

Goodwill and Identified Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

(in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2016	$	176,519		$	60,760		$	237,279
Foreign currency translation adjustment	5,493			55			5,548
Balance as of December 31, 2017	$	182,012		$	60,815		$	242,827
Foreign currency translation adjustment	(2,173		)	(36		)	(2,209		)
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618

Summary of Identified Intangible Assets

The following table provides a summary of the Company’s identified intangible assets (in thousands):



		December 31, 2018							December 31, 2017
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	1.2	$	31,707	$	(25,576	)	$	6,131	$	31,707	$	(20,396	)	$	11,311
Customer relationships/contracts	2.2	44,650		(38,146		)	6,504		44,819		(35,205		)	9,614
Trademarks and tradenames	1.2	623		(441		)	182		654		(300		)	354
Maintenance agreements and related relationships	N/A	5,500		(5,500		)	—		5,500		(5,500		)	—
Order Backlog	N/A	3,112		(3,112		)	—		3,177		(3,177		)	—
Total identifiable intangibles		$	85,592	$	(72,775	)	$	12,817	$	85,857	$	(64,578	)	$	21,279

Purchased Intangibles Amortization Expense Allocation

Amortization expense for the identifiable intangible assets was allocated as follows (in thousands):



	Year Ended December 31,
	2018		2017		2016
Included in cost of revenue	$	5,180	$	5,180	$	4,434
Included in operating expenses	3,187		3,142		10,402
Total amortization expense	$	8,367	$	8,322	$	14,836

Schedule of Finite-Lived Intangible Assets, Estimated Future Amortization Expense

The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2018 is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019	$	5,180	$	3,158	$	8,338
2020	951		3,028		3,979
2021	—		500		500
Total future amortization expense	$	6,131	$	6,686	$	12,817

Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Accounts Receivable, Net of Allowances

Accounts receivable, net of allowances, consisted of the following (in thousands):



	December 31,
	2018			2017
Accounts receivable, net:
Accounts receivable	$	85,292		$	74,475
Less: allowance for doubtful accounts and sales returns	(3,497		)	(4,631		)
Total	$	81,795		$	69,844

Allowance for for doubtful accounts and sales returns

The following table is a summary of activities in allowances for doubtful accounts and sales returns (in thousands):



	Balance at Beginning of Period		Charges to Revenue		Charges (Credits) to Expense		Additions to (Deductions from) Reserves			Balance at End of Period
Year ended December 31,
2018	$	4,631	$	1,949	$	572	$	(3,655	)	$	3,497
2017	$	4,831	$	4,030	$	881	$	(5,111	)	$	4,631
2016	$	4,340	$	1,488	$	1,100	$	(2,097	)	$	4,831

Certain Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Prepaid Expenses and Other Current Assets

The following tables provide details of selected balance sheet components (in thousands):



	December 31,
	2018		2017
Inventories:
Raw materials	$	1,705	$	2,881
Work-in-process	991		933
Finished goods	12,267		10,130
Service-related spares	10,675		12,032
Total	$	25,638	$	25,976



	December 31,
	2018		2017
Prepaid expenses and other current assets:
French R&D tax credits receivable ⁽¹⁾	$	7,305	$	6,609
Contract assets ⁽²⁾	3,834		—
Deferred cost of revenue	3,671		4,440
Prepaid maintenance, royalty, rent, property taxes and VAT	3,497		3,867
Capitalized commission	1,098		—
Restricted cash	—		530
Other	3,875		3,485
Total	$	23,280	$	18,931

(2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.

Property and Equipment



	December 31,
	2018			2017
Property and equipment, net:
Machinery and equipment	$	75,094		$	87,121
Capitalized software	32,696			35,139
Leasehold improvements	14,951			15,051
Furniture and fixtures	6,049			6,534
Property and equipment, gross	128,790			143,845
Less: accumulated depreciation and amortization	(106,469		)	(114,580		)
Total	$	22,321		$	29,265



	December 31,
	2018		2017
Other long-term assets:
French R&D tax credits receivable	$	19,249	$	22,322
Deferred tax assets	8,695		10,462
Equity investment	3,593		3,593
Other	6,840		6,536
Total	$	38,377	$	42,913

Accrued Liabilities



	December 31,
	2018		2017
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	21,451	$	16,414
Accrued warranty	4,869		4,381
Customer deposits	4,642		5,020
Contingent inventory reserves	2,500		3,806
Accrued TVN VDP, current ⁽¹⁾	1,585		3,186
Accrued royalty payments	1,998		2,195
Accrued Avid litigation settlement fees, current	1,500		—
Other	14,216		13,703
Total	$	52,761	$	48,705

(1) See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Restructuring and Excess Facilities (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Related Costs [Table Text Block]

The following table summarizes the restructuring and related charges (in thousands):



	Year ended December 31,
Restructuring and related charges in:	2018		2017		2016 ⁽¹⁾
Cost of revenue	$	857	$	1,279	$	3,400
Operating expenses - Restructuring and related charges	2,918		5,307		14,602
Total restructuring and related charges	$	3,775	$	6,586	$	18,002

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2018 (in thousands):



	Harmonic 2016 Restructuring Plan						Harmonic 2017 Restructuring Plan						Harmonic 2018 Restructuring Plan
	Excess facilities			TVN VDP			Excess facilities			Severance and benefits			Excess facilities			Severance and benefits			Total
Balance at December 31, 2017	$	2,426		$	5,128		$	296		$	193		$	—		$	—		$	8,043
Charges for current period	—			—			—			—			932			2,124			3,056
Adjustments to restructuring provisions	132			531			167			—			5			(116		)	719
Reclassification of deferred rent	—			—			—			—			332			—			332
Cash payments	(1,015		)	(3,066		)	(146		)	(193		)	(203		)	(2,052		)	(6,675		)
Foreign exchange effect	—			(184		)	—			—			—			44			(140		)
Balance at December 31, 2018	$	1,543		$	2,409		$	317		$	—		$	1,066		$	—		$	5,335

Convertible Notes and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of December 31, 2018 and December 31, 2017 (in thousands, except for years and percentages):



	December 31,
	2018			2017
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(11,996		)	(17,404		)
Less: Debt issuance costs, net of amortization	(1,446		)	(2,098		)
Carrying amount	$	114,808		$	108,748
Remaining amortization period (years)	1.9 years			2.9 years
Effective interest rate on liability component	9.94		%	9.94		%
Carrying amount of equity component	$	26,062		$	26,062

Convertible Interest Expense Recognized

The following table presents interest expense recognized related to the Notes (in thousands):



	Year ended December 31,
	2018		2017		2016
Contractual interest expense	$	5,130	$	5,130	$	5,130
Amortization of debt discount	5,408		4,898		4,430
Amortization of debt issuance costs	652		591		534
Total interest expense recognized	$	11,190	$	10,619	$	10,094

Schedule of Debt

The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):



	December 31,
	2018			2017
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	18,783		$	20,565
Term loans	914			1,282
Obligations under capital leases	162			1,099
Total debt obligations	19,859			22,946
Less: current portion	(7,175		)	(7,610		)
Long-term portion	$	12,684		$	15,336

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of other debts and capital lease obligations as of December 31, 2018 (in thousands):



Years ending December 31,	Capital lease obligations		Other Debt obligations
2019	91		7,084
2020	49		6,607
2021	22		5,333
2022	—		452
2023	—		155
Thereafter	—		66
Total	$	162	$	19,697

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Options Outstanding

The following table summarizes the Company’s stock option activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms):



	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance at December 31, 2017	3,880		$	6.04
Granted	—		—
Exercised	(239	)	3.79
Forfeited	(35	)	4.76
Canceled or expired	(538	)	8.75
Balance at December 31, 2018	3,068		5.76		2.3	$	1,148.7
As of December 31, 2018
Vested and expected to vest	3,067		$	5.76	2.3	$	1,147.7
Exercisable	2,994		$	5.78	2.3	$	1,082.0

Summary of Restricted Stock Units Outstanding

The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2018 (in thousands, except per share amounts and terms):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2017	2,904		$	5.09
Granted	3,906		3.97
Vested	(3,177	)	4.91
Forfeited	(230	)	4.89
Balance at December 31, 2018	3,403		$	3.99

Schedule of Defined Benefit Plans Disclosures

The Company’s pension obligations as of December 31, 2018 and December 31, 2017 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands):



	December 31,
	2018			2017
Projected benefit obligation:
Balance at January 1	$	5,033		$	4,264
Service cost	243			259
Interest cost	74			71
Actuarial (gains) losses	(202		)	(528		)
Benefits paid	(13		)	—
Adjustment for prior year balance	—			343
Foreign currency translation adjustment	(254		)	624
Balance at December 31	$	4,881		$	5,033

Presented on the Consolidated Balance Sheets under:
Current portion (presented under “Accrued and other current liabilities”)	$	63		34
Long-term portion (presented under “Other non-current liabilities”)	$	4,818		4,999

Components of Net Periodic Benefit Costs

The table below presents the components of net periodic benefit costs (in thousands):



	Year ended December 31,
	2018		2017
Service cost	$	243	$	259
Interest cost	74		71
Amortization of net actuarial loss (gain) ⁽¹⁾	—		—
Net periodic benefit cost included in operating loss	$	317	$	330

Schedule of Pension Obligations Assumptions Used

The following assumptions were used in determining the Company’s pension obligation:



	December 31,
	2018		2017
Discount rate	1.7	%	1.5	%
Mobility rate	6.0	%	6.0	%
Salary progression rate	2.0	%	2.0	%

Schedule of Expected Benefit Payments

As of December 31, 2018, future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands):



Years ending December 31,
2019	$	63
2020	—
2021	41
2022	80
2023	479
2024 - 2028	2,626
	$	3,289

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense for all plans (in thousands):



	Year ended December 31,
	2018		2017		2016
Stock-based compensation in:
Cost of revenue	$	1,953	$	2,370	$	1,554
Research and development expense	5,192		5,313		3,711
Selling, general and administrative expense	10,144		8,927		7,795
Total stock-based compensation in operating expense	15,336		14,240		11,506
Total stock-based compensation recognized in net loss	$	17,289	$	16,610	$	13,060

Valuation Assumptions for Stock Options

At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions:



	Employee Stock Options				ESPP
	2017		2016		2018		2017		2016
Expected term (in years)	4.30		4.30		0.50		0.50		0.50
Volatility	42	%	36	%	55	%	48	%	70	%
Risk-free interest rate	1.8	%	1.4	%	1.9	%	1.2	%	0.6	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands):



	December 31,
	2018			2017
Foreign currency translation adjustments	$	(779	)	$	4,310
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(888		)	(1,177		)
Actuarial gain	451			249
Total accumulated other comprehensive income (loss)	$	(1,216	)	$	3,382

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Tax Provision

Loss from operations before income taxes consists of the following (in thousands):



	Year ended December 31,
	2018			2017			2016
United States	$	(19,780	)	$	(50,041	)	$	(53,833	)
International	2,832			(34,666		)	(26,597		)
Loss before income taxes	$	(16,948	)	$	(84,707	)	$	(80,430	)

Provision for Income Taxes

The components of the benefit from income taxes consist of the following (in thousands):



	Year ended December 31,
	2018			2017			2016
Current:
Federal	$	(305	)	$	(4,530	)	$	(950	)
State	116			129			181
International	2,958			273			2,738
Deferred:
Federal	—			—			(713		)
International	1,318			2,376			(9,372		)
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

Reconciliation of Provision for Income Taxes



	Year ended December 31,
	2018			2017			2016
Benefit from for income taxes at U.S. Federal statutory rate	$	(3,559	)	$	(29,648	)	$	(28,150	)
Differential in rates on foreign earnings	4,299			15,920			11,741
Non-deductible amortization expense	—			—			617
Tax Reform tax rate reduction	—			14,527			—
Change in valuation allowance	1,449			(2,834		)	4,465
Change in liabilities for uncertain tax positions	(250		)	(2,009		)	(960		)
Non-deductible stock-based compensation	1,363			1,934			1,480
Permanent Differences	1,096			380			441
Adjustments related to tax positions taken during prior years	184			(473		)	(163		)
Adjustments made under intercompany transactions	—			—			1,779
Tax refund	(305		)	(834		)	—
Other	(190		)	1,285			634
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

Components of Deferred Tax Assets and Liabilities

The components of net deferred tax assets included in the Consolidated Balance Sheets are as follows (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Reserves and accruals	$	17,090		$	17,247
Net operating loss carryforwards	29,900			34,915
Research and development credit carryforwards	36,446			34,419
Deferred stock-based compensation	2,201			2,677
Intangibles	2,585			2,062
Other	939			1,441
Gross deferred tax assets	89,161			92,761
Valuation allowance	(77,144		)	(77,756		)
Gross deferred tax assets after valuation allowance	12,017			15,005
Deferred tax liabilities:
Depreciation and amortization	(391		)	(259		)
Convertible notes	(2,931		)	(4,284		)
Gross deferred tax liabilities	(3,322		)	(4,543		)
Net deferred tax assets	$	8,695		$	10,462

The following table summarizes the activities related to the Company’s valuation allowance (in thousands):



	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	77,756		$	74,480		$	64,545
Additions	928			9,028			18,291
Deductions	(1,540		)	(5,752		)	(8,356		)
Balance at end of period	$	77,144		$	77,756		$	74,480

The following table summarizes the activities related to the Company’s gross unrecognized tax benefits (in millions):



	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	18.8		$	19.2		$	15.6
Increase in balance related to tax positions taken during current year	1.0			1.4			4.6
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(2.2		)	(1.0		)
Decrease in balance due to settlement with tax authorities	(1.6		)	—			—
Increase in balance related to tax positions taken during prior years	0.2			1.8			—
Decrease in balance related to tax positions taken during prior years	(0.3		)	(1.4		)	—
Balance at end of period	$	18.0		$	18.8		$	19.2

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):



	Year Ended December 31,
	2018			2017			2016
Numerator:
Net loss	$	(21,035	)	$	(82,955	)	$	(72,314	)
Denominator:
Weighted average number of shares outstanding:
Basic and diluted	85,615			80,974			77,705
Net loss per share:
Basic and diluted	$	(0.25	)	$	(1.02	)	$	(0.93	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	December 31,
	2018	2017	2016
Stock options	3,327	4,470	5,295
Restricted stock units	2,997	3,059	2,536
Stock purchase rights under the ESPP	609	620	659
Warrants ⁽¹⁾	1,268	782	206
Total ⁽²⁾	8,201	8,931	8,696

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Summary of Revenue by Product Type

The following table provides summary financial information by reportable segment (in thousands):



	Year ended December 31,
	2018			2017⁽¹⁾			2016
Video
Revenue	$	313,828		$	319,473		$	351,489
Gross profit	178,170			173,414			194,044
Operating income (loss)	26,170			(2,024		)	11,963
Cable Access
Revenue	$	89,730		$	38,773		$	54,422
Gross profit	39,029			8,892			21,174
Operating loss	(1,756		)	(23,154		)	(12,131		)
Total
Revenue	$	403,558		$	358,246		$	405,911
Gross profit	217,199			182,306			215,218
Operating income (loss)	24,414			(25,178		)	(168		)

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):



	Year ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Total segment operating income (loss)	$	24,414		$	(25,178	)	$	(168	)
Unallocated corporate expenses ⁽¹⁾	(3,769		)	(20,767		)	(38,972		)
Stock-based compensation	(17,289		)	(16,610		)	(13,060		)
Amortization of intangibles	(8,367		)	(8,322		)	(14,836		)
Consolidated loss from operations	(5,011		)	(70,877		)	(67,036		)
Non-operating expense, net	(11,937		)	(13,830		)	(13,394		)
Loss before income taxes	$	(16,948	)	$	(84,707	)	$	(80,430	)

Summary of Revenue, Property and Equipment, Net by Geographic Region

The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands):



	Year ended December 31,
	2018		2017		2016
Net revenue ⁽¹⁾:
United States	$	181,965	$	131,773	$	171,016
Other countries	221,593		226,473		234,895
Total	$	403,558	$	358,246	$	405,911

(1) Revenue is attributed to countries based on the location of the customer.

Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2018, 2017 and 2016.

Reconciliation of Assets from Segment to Consolidated [Table Text Block]



	As of December 31,
	2018		2017
Property and equipment, net:
United States	$	10,376	$	13,786
Israel	6,975		8,904
France	3,519		4,573
Other countries	1,451		2,002
Total	$	22,321	$	29,265

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments Under Noncancelable Operating Leases

Future minimum lease payments under non-cancellable operating leases at December 31, 2018, are as follows (in thousands):



	Operating Leases
Year ending December 31,
2019	$	13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total minimum payments	$	39,179

Summary of Warranty Accrual Included in Accrued Liabilities

Activities for the Company’s warranty accrual for each fiscal year, which is included in accrued and other current liabilities, is summarized below (in thousands):



	2018			2017			2016
Balance at beginning of period	$	4,381		$	4,862		$	3,913
Accrual for current period warranties	6,612			5,117			5,482
Balance assumed from TVN acquisition	—			—			1,012
Warranty costs incurred	(6,124		)	(5,598		)	(5,545		)
Balance at end of period	$	4,869		$	4,381		$	4,862

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data [Abstract]

Summary of Quarterly Financial Data



	Fiscal 2018
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	90,127		$	99,160		$	100,616		$	113,655
Gross profit ⁽²⁾	47,183			51,603			50,102			60,321
Net income (loss) ^{(1) (3) (4)}	(13,694		)	(2,913		)	(7,758		)	3,330
Net income (loss) per share:
Basic and diluted	$	(0.16	)	$	(0.03	)	$	(0.09	)	$	0.04
Shares used in per share calculations:
Basic	83,912			85,304			86,321			86,846
Diluted	83,912			85,304			86,321			89,028
	Fiscal 2017
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	82,943		$	82,315		$	92,014		$	100,974
Gross profit ⁽²⁾	40,408			33,815			47,025			48,572
Net loss ^{(1) (4)}	(24,027		)	(31,500		)	(15,583		)	(11,516		)
Net loss per share:
Basic and diluted	$	(0.30	)	$	(0.39	)	$	(0.19	)	$	(0.14	)
Shares used in per share calculations:
Basic and diluted	79,810			80,590			81,445			82,014

(2) Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018

Description of Business (Details) - segment	3 Months Ended	12 Months Ended
Description of Business (Details) - segment	Dec. 31, 2014	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2	2

Summary of Significant Accounting Policies - Additional Information (Detail)		3 Months Ended	12 Months Ended
	Jan. 01, 2017 USD ($)	Dec. 31, 2014 segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($) Customer ReportingUnit segment	Dec. 31, 2017 USD ($) Customer	Dec. 31, 2016 USD ($)	Jan. 01, 2019 USD ($)	Jan. 01, 2018 USD ($)	Sep. 29, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)
Cash and cash equivalents maximum maturity				3 months	3 months	3 months
Restricted Cash				$ 0	$ 1,700,000
Restricted cash included in prepaid expenses and other current assets				0	530,000	$ 732,000
Cost Method Investments				3,593,000	3,593,000
Cash and cash equivalents				65,989,000	57,024,000	55,635,000
Accounts receivable, net				81,795,000	69,844,000
Debt Instrument, Face Amount				$ 128,250,000	128,250,000						$ 128,250,000
Debt Instrument, Interest Rate, Stated Percentage				4.00%							4.00%
Debt and Capital Lease Obligations				$ 19,859,000	22,946,000
Capitalized Software Development Costs for Software Sold to Customers				900,000	1,100,000
Goodwill				$ 240,618,000	242,827,000	237,279,000
Number of reporting units \| ReportingUnit				2
Goodwill, Impairment Loss				$ 0	0	0
Research and Development Expense				89,163,000	95,978,000	98,401,000
Advertising expense				$ 1,000,000	$ 700,000	1,400,000
Net Accumulated Gain or Loss as a Percentage of Projected Plan Benefit Obligation				10.00%	10.00%
More Likely Than Not Threshold Recognition of Uncertain Tax Position				50.00%
Number of reportable segments \| segment		2		2
Retained Earnings (Accumulated Deficit)				$ (2,067,416,000)	$ (2,057,812,000)
Capitalized Contract Cost, Net				1,600,000
Capitalized Contract Cost, Amortization				1,300,000
Contract with Customer, Liability, Revenue Recognized				46,900,000
Short-term investments				0	0
Impairment of Intangible Assets, Finite-lived				0
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net				$ 0	$ 0	0
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]				true
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false]				true
Revenue, Practical Expedient, Financing Component [true false]				true
Lease, Practical Expedients, Package [true false]				true
Discount rate				1.70%	1.50%
Defined Benefit Plan, Benefit Obligation				$ 4,881,000	$ 5,033,000	4,264,000
Deferred Tax Assets, Net				8,695,000	10,462,000
Deferred Tax Assets, Valuation Allowance				$ 77,144,000	$ 77,756,000	74,480,000					$ 64,545,000
Minimum [Member]
Capitalized Contract Cost, Amortization Period								1 year
Maximum [Member]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration				1 year
Revenue, Financing Payment Term				1 year
Furniture and Fixtures [Member]
Property, plant and equipment estimated useful life				5 years
Internal Use Software [Member]
Property, plant and equipment estimated useful life				3 years
Machinery and Equipment [Member]
Property, plant and equipment estimated useful life				4 years
Leasehold Improvements [Member]
Property, plant and equipment leasehold improvements useful lives				shorter of the remaining useful lives of the assets or the lease term of the respective assets
Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument, Trading [Member]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net				$ 0
Forward Contracts [Member]
Derivative, Term of Contract				12 months
Software [Member]
Property, plant and equipment estimated useful life				3 years
Accounts Receivable [Member]
Number of significant customers for accounts receivable \| Customer				2	0
Entity-wide revenue, major customer, revenue or accounts receivable percentage				10.00%	10.00%
Net Revenue [Member]
Entity-wide revenue, major customer, revenue or accounts receivable percentage				10.00%	10.00%
TVN [Member]
Goodwill						41,670,000
R&D Tax Credits				$ 5,900,000	$ 5,900,000	6,100,000
Other Expense [Member]
Remeasurement Losses, Reporting Currency Denominated, Value				600,000	2,200,000	200,000
Prepaid Expenses and Other Current Assets [Member]
Capitalized Contract Cost, Net				1,100,000
Other Assets [Member]
Restricted Cash and Investments, Noncurrent					1,200,000
Other long-term assets[Member]
Capitalized Contract Cost, Net				500,000
Accounting Standards Update 2016-18 [Member]
Restricted Cash				0	$ 1,700,000	$ 1,800,000
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	$ 0
Accounting Standards Update 2016-09 [Member] \| Deferred Tax Assets Gross [Member]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	4,600,000
Accounting Standards Update 2014-09 [Member]
Accounts receivable, net								$ 71,625,000
Accounting Standards Update 2016-16 [Member]
Cumulative Effect on Retained Earnings, Net of Tax	1,434,000
Deferred Tax Assets, Net										$ 1,100,000
Deferred Tax Assets, Valuation Allowance										2,100,000
Deferred Tax Assets, Tax Deferred Expense										$ 300,000
Accounting Standards Update 2017-01 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification				0
Silicon Valley Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Current Borrowing Capacity				$ 15,000,000					$ 15,000,000
Cash Flow Hedging [Member] \| Forward Contracts [Member] \| Designated as Hedging Instrument [Member]
Derivative, Term of Contract				12 months
Sales Commission Contract Costs [Member] \| Accounting Standards Update 2014-09 [Member]
Retained Earnings (Accumulated Deficit)								$ 1,400,000
Practical Expedient, Expense As Incurred [Member] \| Maximum [Member]
Capitalized Contract Cost, Amortization Period				1 year
Additional Paid-in Capital [Member] \| Accounting Standards Update 2016-09 [Member]
Cumulative Effect on Retained Earnings, Net of Tax	$ 69,000
Scenario, Forecast [Member]
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit			$ 0
Scenario, Forecast [Member] \| Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset							$ 23,000,000
Operating Lease, Liability							$ 23,000,000
Customer Concentration Risk [Member] \| Net Revenue [Member] \| Comcast [Member]
Entity-wide revenue, major customer, revenue or accounts receivable percentage				15.00%
Number Of Customers Accounting For More Than Ten Percent of Revenue \| Customer				1	0

Summary of Significant Accounting Policies - Revenue from Contracts with Customers Beginning Balance Sheet Impact (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Jan. 01, 2018

Dec. 31, 2017

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 81,795

$ 69,844

23,280

18,931

38,377

42,913

41,592

52,429

18,228

22,626

Accounting Standards Update 2014-09 [Member]

(2,067,416)

(2,057,812)

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 71,625

22,509

43,686

47,603

Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

22,153

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

1,841

1,781

4,213

3,578

505

773

(5,525)

(4,826)

(306)

(473)

Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

12,390

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

79,954

19,067

37,872

47,117

18,534

Retained Earnings [Member]

(2,079,806)

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member]

$ (2,067,416)

$ (2,057,812)

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

(2,046,381)

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

^[1]

$ 11,431

[1]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board.

Summary of Significant Accounting Policies - Revenue from Contracts with Customers, Financial Statement Impact (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2017

Sep. 29, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Jan. 01, 2018

Total net revenue

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 100,974

$ 92,014

$ 82,315

$ 82,943

$ 403,558

^[1]

$ 358,246

^[1]

$ 405,911

^[1]

194,349

188,426

205,161

60,321

^[2]

50,102

^[2]

51,603

^[2]

47,183

^[2]

48,572

^[2]

47,025

^[2]

33,815

^[2]

40,408

^[2]

209,209

169,820

200,750

118,952

136,270

144,381

(5,011)

(70,877)

^[3]

(67,036)

^[3]

(16,948)

(84,707)

^[3]

(80,430)

^[3]

3,330

^[4],[5],[6]

$ (7,758)

^[4],[5],[6]

$ (2,913)

^[4],[5],[6]

$ (13,694)

^[4],[5],[6]

(11,516)

^[5],[6]

$ (15,583)

^[5],[6]

$ (31,500)

^[5],[6]

$ (24,027)

^[5],[6]

(21,035)

(82,955)

(72,314)

81,795

69,844

81,795

69,844

23,280

18,931

23,280

18,931

38,377

42,913

38,377

42,913

41,592

52,429

41,592

52,429

18,228

22,626

18,228

22,626

Accounting Standards Update 2014-09 [Member]

(2,067,416)

(2,057,812)

(2,067,416)

(2,057,812)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

$ 71,625

22,509

43,686

47,603

Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

22,153

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Total net revenue

402,550

194,101

208,449

119,151

(5,970)

(17,907)

(21,994)

79,954

19,067

37,872

47,117

18,534

Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

(2,079,806)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Total net revenue

1,008

248

760

(199)

959

959

959

1,841

1,781

4,213

3,578

505

773

(5,525)

(4,826)

(306)

(473)

Retained Earnings [Member]

12,390

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

(21,035)

(82,955)

$ (72,314)

Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member]

$ (2,067,416)

$ (2,057,812)

$ (2,067,416)

$ (2,057,812)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained Earnings [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]

(2,046,381)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Derivative Instruments, Gain (Loss) [Line Items]

^[7]

$ 11,431

[1]	Revenue is attributed to countries based on the location of the customer.
[2]	Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017.
[3]	For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.
[4]	During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.
[5]	During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries.
[6]	In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018.
[7]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board.

Investments in Other Equity Securities (Details) - EDC [Member] $ in Millions	Oct. 22, 2014 USD ($)
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31)
Noncontrolling Interest, Ownership Percentage by Parent	18.40%
Cost Method Investments, Original Cost	$ 3.5

Derivative and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net	$ 0	$ 0	$ 0
Compensating Balance, Amount	$ 1,000	$ 1,000
Fair Value Hedging [Member] \| Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative, Term of Contract	3 months

Derivative and Hedging Activities - Gain Loss in Statement of Operations (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Unrealized gain, net arising during the period

$ 0

$ 202

Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion

^[1]

(44)

Cost of revenue [Member] | Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion

^[1]

(6)

Operating expense [Member] | Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion

^[1]

(38)

Other Nonoperating Income (Expense) [Member] | Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

(Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing

^[1]

(63)

Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) recorded in other expense, net

(2,325)

155

343

Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Unrealized gain, net arising during the period

^[1]

$ 0

$ 202

[1]	The Company did not enter into any new cash flow hedge contracts since December 31, 2016.

Derivative and Hedging Activities - Notional Values (Details) - Foreign Exchange Forward [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Long [Member]
Derivatives, Fair Value [Line Items]
Purchase	$ 28,975	$ 12,875
Short [Member]
Derivatives, Fair Value [Line Items]
Sell	$ 0	$ 1,509

Derivative and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	$ 0	$ 33
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value	333	4
Prepaid Expenses and Other Current Assets [Member] \| Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member]
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	0	33
Accrued Liabilities [Member] \| Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member]
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value	$ 333	$ 4

Derivative and Hedging Activities - Offsetting of Derivative Assets and Liabiltiies (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 0
Derivative Asset, Fair Value, Gross Liability	0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	0
Derivative Liability, Fair Value, Gross Liability	333
Derivative Liability, Fair Value, Gross Asset	0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 333

Fair Value Measurements Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined Benefit Plan, Benefit Obligation	$ 4,881	$ 5,033	$ 4,264
Assets, Fair Value Disclosure		55
Financial and Nonfinancial Liabilities, Fair Value Disclosure	333	4
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	136,500	129,900
Other Debts, excluding capital leases	19,700	21,800
Assets, Fair Value Disclosure		33
Financial and Nonfinancial Liabilities, Fair Value Disclosure	333	4
TVN Voluntary Departure Plan [Member] \| TVN [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Postemployment Benefits Liability	2,400	5,100
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 0	$ 0	$ 0

Business Acquisition Narratives (Details) - USD ($) $ in Thousands		12 Months Ended
	Feb. 29, 2016	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 237,279	$ 240,618	$ 242,827
TVN [Member]
Business Acquisition [Line Items]
Total purchase consideration	$ 82,500	82,512
Goodwill		$ 41,670

Business Acquisition - Preliminary allocation of the estimated purchase consideration (Details) - USD ($)
$ in Thousands

12 Months Ended

Feb. 29, 2016

Dec. 31, 2016

Dec. 31, 2018

Dec. 31, 2017

Business Combination, Separately Recognized Transactions [Line Items]

Goodwill

$ 237,279

$ 240,618

$ 242,827

Business Combination, Separately Recognized Transactions [Line Items]

Cash and cash equivalents

6,843

14,933

3,462

2,412

French R&D tax credit receivables (1)

9,942

^[1]

26,421

Other debts and capital lease obligations, current

2,134

Total assets

66,147

8,362

Accounts payable

12,494

Accrued and other current liabilities

2,504

18,365

Other debts and capital lease obligations, long-term

16,087

Total purchase consideration

6,467

Deferred tax liabilities

2,126

Total liabilities

66,405

Goodwill

41,670

Intangibles

41,100

$ 82,500

$ 82,512

[1]	See Note 9, “Certain Balance Sheet Components-Prepaid expenses and other current assets,” for more information on French R&D tax credit receivables.

Business Acquisition, Intangible Assets Useful Lives (Details) - TVN [Member] $ in Thousands	3 Months Ended
	Dec. 31, 2016 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles	$ 41,100
Order or Production Backlog [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 months
Intangibles	$ 3,600
Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	4 years
Intangibles	$ 21,700
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	5 years
Intangibles	$ 15,200
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	4 years
Intangibles	$ 600

Business Acquisition - Acquisition and Integration Expenses (Details) - TVN [Member] - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Cost of Goods, Product Line [Member]

^[1]

$ 342

$ 1,049

Research and Development Expense [Member]

^[1]

974

Selling, General and Administrative Expenses [Member]

^[1]

2,469

11,058

Operating expense [Member]

3,855

^[1]

$ 2,818

13,081

Finite-Lived Intangible Assets [Line Items]

$ 3,855

[1]

Integration-related costs include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. All integration efforts were completed by 2017 and the Company does not expect any more such expenses to continue after 2017.

Goodwill and Identified Intangible Assets Narrative (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) ReportingUnit	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Goodwill [Line Items]
Number of reporting units \| ReportingUnit	2
Goodwill, Impairment Loss \| $	$ 0	$ 0	$ 0

Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Balance at beginning of period	$ 242,827	$ 237,279
Foreign currency translation adjustment	(2,209)	5,548
Balance at end of period	240,618	242,827
Video [Member]
Goodwill [Line Items]
Balance at beginning of period	182,012	176,519
Foreign currency translation adjustment	(2,173)	5,493
Balance at end of period	179,839	182,012
Cable Edge [Member]
Goodwill [Line Items]
Balance at beginning of period	60,815	60,760
Foreign currency translation adjustment	(36)	55
Balance at end of period	$ 60,779	$ 60,815

Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 85,592	$ 85,857
Accumulated Amortization	(72,775)	(64,578)
Total future amortization expense	$ 12,817	21,279
Developed core technology [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	1 year 2 months 12 days
Gross Carrying Amount	$ 31,707	31,707
Accumulated Amortization	(25,576)	(20,396)
Total future amortization expense	$ 6,131	11,311
Customer relationships/contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	2 years 2 months 12 days
Gross Carrying Amount	$ 44,650	44,819
Accumulated Amortization	(38,146)	(35,205)
Total future amortization expense	$ 6,504	9,614
Trademarks and tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	1 year 2 months 12 days
Gross Carrying Amount	$ 623	654
Accumulated Amortization	(441)	(300)
Total future amortization expense	182	354
Maintenance agreements and related relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,500	5,500
Accumulated Amortization	(5,500)	(5,500)
Total future amortization expense	0	0
Order or Production Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,112	3,177
Accumulated Amortization	(3,112)	(3,177)
Total future amortization expense	$ 0	$ 0

Goodwill and Identified Intangible Assets - Allocation (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Amortization expense for identified intangibles

$ 3,187

$ 3,142

$ 10,402

Amortization

8,367

8,322

^[1]

14,836

^[1]

Cost of revenue [Member]

Finite-Lived Intangible Assets [Line Items]

Amortization expense for identified intangibles

5,180

4,434

Operating expense [Member]

Finite-Lived Intangible Assets [Line Items]

Amortization expense for identified intangibles

$ 3,187

$ 3,142

$ 10,402

[1]

Goodwill and Intangible Assets - Estimated Future Amortized Intangible Expense by Purchased Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Acquired Indefinite-lived Intangible Assets [Line Items]
2019	$ 8,338
2020	3,979
2021	500
Total future amortization expense	12,817	$ 21,279
Cost of Sales [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
2019	5,180
2020	951
2021	0
Total future amortization expense	6,131
Operating expense [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
2019	3,158
2020	3,028
2021	500
Total future amortization expense	$ 6,686

Accounts Receivable - Accounts Receivable, Net of Allowances (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 85,292	$ 74,475
Less: allowance for doubtful accounts and sales returns	(3,497)	(4,631)
Accounts Receivable, Net, Current, Total	$ 81,795	$ 69,844

Accounts Receivable - Summary of Activity in Allowances for Doubtful Accounts, Returns and Discounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Balance at Beginning of Period	$ 4,631	$ 4,831	$ 4,340
Charges to Revenue	1,949	4,030	1,488
Charges (Credits) to Expense	572	881	1,100
Additions to (Deductions from) Reserves	(3,655)	(5,111)	(2,097)
Balance at End of Period	$ 3,497	$ 4,631	$ 4,831

Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Raw materials	$ 1,705	$ 2,881
Work-in-process	991	933
Finished goods	12,267	10,130
Service-related spares	10,675	12,032
Inventories	$ 25,638	$ 25,976

Certain Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

French R&D tax credits receivable (1)

^[1]

$ 7,305

$ 6,609

Contract assets (2)

^[2]

3,834

Deferred cost of revenue

3,671

4,440

Prepaid maintenance, royalty, rent, property taxes and VAT

3,497

3,867

Capitalized commission

1,098

Restricted cash

530

$ 732

Other

3,875

3,485

Prepaid Expense and Other Assets, Total

$ 23,280

$ 18,931

[1]

The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2018 and 2017, the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.

[2]

Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.

Certain Balance Sheet Components - Narratives (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Condensed Financial Statements, Captions [Line Items]

Income Taxes Receivable, Noncurrent

$ 19,249

$ 22,322

Income Taxes Receivable, Current

^[1]

7,305

6,609

Restricted Cash, Noncurrent

1,203

$ 1,053

Condensed Financial Statements, Captions [Line Items]

Proceeds from Income Tax Refunds

6,400

$ 6,400

Research Tax Credit Carryforward [Member] | TVN [Member]

Condensed Financial Statements, Captions [Line Items]

Income Taxes Receivable, Noncurrent

26,500

Other Noncurrent Assets [Member] | Research Tax Credit Carryforward [Member] | TVN [Member]

Condensed Financial Statements, Captions [Line Items]

Income Taxes Receivable, Noncurrent

$ 19,200

[1]

Certain Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 128,790	$ 143,845
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(106,469)	(114,580)
Property, Plant and Equipment, Net	22,321	29,265
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	75,094	87,121
Capitalized software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	32,696	35,139
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	14,951	15,051
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 6,049	$ 6,534

Certain Balance Sheet Components - Other long-term assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
French R&D tax credits receivable	$ 19,249	$ 22,322
Deferred tax assets	8,695	10,462
Equity investment	3,593	3,593
Other	6,840	6,536
Other long-term assets, Total	$ 38,377	$ 42,913

Certain Balance Sheet Components - Accrued and other current liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued employee compensation and related expenses

$ 21,451

$ 16,414

Accrued warranty

4,869

4,381

Customer deposits

4,642

5,020

Contingent inventory reserves

2,500

3,806

Accrued TVN VDP, current (1)

^[1]

1,585

3,186

Accrued royalty payments

1,998

2,195

Accrued Avid litigation settlement fees, current

1,500

Other

14,216

13,703

Total

$ 52,761

$ 48,705

[1]	See Note 10, “Restructuring and Related Charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Restructuring and Excess Facilities - Restructuring and Asset Impairment Charges COS vs OPEX (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

^[1]

Restructuring and Related Activities [Abstract]

$ 857

$ 1,279

$ 3,400

Restructuring and related Charges

2,918

5,307

14,602

$ 3,775

$ 6,586

$ 18,002

[1]

The restructuring and related charges for the fiscal year ended December 31, 2016 is net of $0.6 million and $1.4 million, in Cost of revenue and Operating expenses - Restructuring and related charges, respectively, of gain from TVN pension curtailment. See “Harmonic 2016 Restructuring Plan” below for additional information.

Restructuring and Excess Facilities - Additional Information (Detail)
$ in Thousands

1 Months Ended

12 Months Ended

36 Months Ended

Aug. 31, 2018

USD ($)

Jan. 31, 2016

USD ($)

Dec. 31, 2018

USD ($)

Employees

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Employees

Dec. 31, 2018

USD ($)

Aug. 01, 2018

USD ($)

Jan. 04, 2016

USD ($)

Restructuring Reserve, Current

$ 0

$ 1,955

3,335

4,443

$ 3,335

Restructuring Reserve, Noncurrent

2,000

3,600

2,000

3,056

6,675

5,335

8,043

5,335

2,918

5,307

14,602

^[1]

Defined Benefit Plan, Net Periodic Benefit Cost (Credit)

719

317

330

Payments of Voluntary Plan Benefit Obligation

Harmonic 2018 Restructuring Plan [Member] | Severance and benefits [Member]

2,124

2,052

Restructuring and Related Cost, Number of Positions Eliminated | Employees

$ 0

Harmonic 2018 Restructuring Plan [Member] | Excess Facilities [Member]

$ (116)

932

203

1,066

Harmonic 2017 Restructuring Plan [Member]

Harmonic 2017 Restructuring Plan [Member] | Severance and benefits [Member]

2,500

2,100

193

Harmonic 2017 Restructuring Plan [Member] | Excess Facilities [Member]

193

Restructuring Reserve, Noncurrent

200

400

146

317

296

317

Harmonic 2016 Restructuring Plan [Member]

167

Harmonic 2016 Restructuring Plan [Member] | Excess Facilities [Member]

20,000

1,015

1,543

2,426

1,543

2,200

Harmonic 2016 Restructuring Plan [Member] | Severance [Member]

132

Restructuring and Related Cost, Number of Positions Eliminated | Employees

$ 17,800

118

Harmonic 2016 Restructuring Plan [Member] | TVN Voluntary Departure Plan [Member]

3,066

2,409

5,128

2,409

Defined Benefit Plan, Net Periodic Benefit Cost (Credit)

531

500

1,800

$ 13,100

Payments of Voluntary Plan Benefit Obligation

13,800

TVN [Member] | Cost of revenue [Member]

2,000

TVN [Member] | Restructuring Charges [Member]

600

TVN [Member] | TVN Voluntary Departure Plan [Member]

$ 1,400

Postemployment Benefits Liability

2,400

5,100

2,400

TVN [Member] | Harmonic 2016 Restructuring Plan [Member] | Severance [Member]

Restructuring and Related Cost, Number of Positions Eliminated | Employees

San Jose CA Excess Facility [Member] | Harmonic 2018 Restructuring Plan [Member] | Excess Facilities [Member]

$ 900

San Jose CA Excess Facility [Member] | Harmonic 2016 Restructuring Plan [Member] | Excess Facilities [Member]

1,100

$ 1,400

$ 1,500

Other Liabilities, Fair Value Disclosure

$ 1,200

$ 1,200

$ 2,500

Deferred Rent Credit

$ 300

$ 1,100

[1]

Restructuring and Excess Facilities - Schedule of Restructuring Costs By Type (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 8,043
Charges for current period	3,056
Adjustments to restructuring provisions	719
Reclassification of deferred rent	332
Cash payments	(6,675)
Foreign exchange effect	(140)
Restructuring Reserve	5,335	$ 8,043
Harmonic 2017 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charges for current period		2,500
Excess Facilities [Member] \| Harmonic 2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	2,426
Adjustments to restructuring provisions	132
Cash payments	(1,015)
Restructuring Reserve	1,543	2,426
Excess Facilities [Member] \| Harmonic 2017 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	296
Charges for current period		400
Adjustments to restructuring provisions	167
Cash payments	(146)
Restructuring Reserve	317	296
Excess Facilities [Member] \| Harmonic 2018 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charges for current period	932
Adjustments to restructuring provisions	5
Reclassification of deferred rent	332
Cash payments	(203)
Restructuring Reserve	1,066
TVN Voluntary Departure Plan [Member] \| Harmonic 2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	5,128
Adjustments to restructuring provisions	531
Cash payments	(3,066)
Foreign exchange effect	(184)
Restructuring Reserve	2,409	5,128
Severance and benefits [Member] \| Harmonic 2017 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	193
Charges for current period		2,100
Cash payments	(193)
Restructuring Reserve	0	$ 193
Severance and benefits [Member] \| Harmonic 2018 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charges for current period	2,124
Adjustments to restructuring provisions	(116)
Cash payments	(2,052)
Foreign exchange effect	44
Restructuring Reserve	$ 0

Convertible Notes and Credit Facilities - Additional Information (Detail)

12 Months Ended

Dec. 14, 2015

Dec. 31, 2018

USD ($)

$ / shares

Dec. 31, 2017

USD ($)

$ / shares

Dec. 31, 2016

Dec. 31, 2015

USD ($)

day

$ / shares

Sep. 29, 2017

USD ($)

Debt Instrument, Face Amount

$ 128,250,000

Debt Instrument, Interest Rate, Stated Percentage

4.00%

Common Stock, Par Value Per Share | $ / shares

$ 0.001

Debt Instrument, Convertible, Conversion Ratio

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Stock Repurchased and Retired During Period, Shares | shares

Debt Issuance Cost

$ 4,100,000

Percentage Of Principal Amount Of Convertible Notes Is Equal To Repurchase Price

100.00%

Loans Payable to Bank

^[1]

$ 18,783,000

$ 20,565,000

Debt Instrument, Convertible, Carrying Amount of Equity Component

26,062,000

Stock price greater or equal 130 percent of Note Conversion Price [Member]

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

130.00%

Note price less than 98 percent of stock price times conversion rate [Member]

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

98.00%

Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Line of Credit Facility, Current Borrowing Capacity

15,000,000

$ 15,000,000

Outstanding Borrowing Limit Based on Eligible Receivables, Percentage

85.00%

Minimum Net Worth Required for Compliance

20,000,000

Minimum Liquidity Amount on and after November 1, 2017

10,000,000

Letters of Credit Outstanding, Amount

1,800,000

Line of Credit Facility, Fair Value of Amount Outstanding

Performance Guarantee [Member] | Foreign Line of Credit [Member]

Line of Credit Facility, Fair Value of Amount Outstanding

Privately Negotiated Transactions [Member]

Proceeds from convertible debt

$ 49,900,000

Stock Repurchased and Retired During Period, Shares | shares

11,100,000

Proceeds from convertible debt

$ 74,200,000

Income Taxes Receivable

$ 26,500,000

Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member]

Debt Instrument, Interest Rate, Stated Percentage

0.60%

Loans Payable to Bank

$ 16,700,000

17,700,000

Adjusted EURIBOR Rate, Term

1 month

Loans Backed By French Government Agencies for R&D Innovation Projects [Member] | TVN [Member]

1.30%

London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Loans Payable to Bank

$ 2,100,000

$ 2,900,000

Not Comply with Liquidity Requirement [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

2.25%

Comply with Liquidity Requirement [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

0.25%

Financing from French government agencies related to various government incentive programs (1)

0.00%

[1]

Loans backed by French R&D tax credit receivables were $16.7 million and $17.7 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the TVN French Subsidiary had an aggregate of $26.5 million of R&D tax credit receivables from the French government from 2019 through 2022. (See Note 9, “Certain Balance Sheet Components” for more information). These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2019 through 2021. The remaining loans of $2.1 million and $2.9 million as of December 31, 2018 and 2017, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2018 mature between 2019 through 2025.

Convertible Notes and Credit Facilities - Convertible Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015
Debt Disclosure [Abstract]
Principal amount	$ 128,250	$ 128,250	$ 128,250
Less: Debt discount, net of amortization	(11,996)	(17,404)
Less: Debt issuance costs, net of amortization	(1,446)	(2,098)
Carrying amount	$ 114,808	$ 108,748
Remaining amortization period (years)	1 year 10 months 28 days	2 years 10 months 28 days
Effective interest rate on liability component	9.94%	9.94%
Carrying amount of equity component	$ 26,062	$ 26,062

Convertible Notes and Credit Facilities - Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Contractual interest expense	$ 5,130	$ 5,130	$ 5,130
Amortization of Debt Discount	5,408	4,898	4,430
Amortization of debt issuance costs	652	591	534
Total interest expense recognized	$ 11,190	$ 10,619	$ 10,094

Convertible Notes - Other Debts and Capital Leases (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Debt Disclosure [Abstract]

^[1]

$ 18,783

$ 20,565

Term loans

914

1,282

Obligations under capital leases

162

1,099

Total debt obligations

19,859

22,946

Less: current portion

(7,175)

(7,610)

Long-term portion

$ 12,684

$ 15,336

[1]

Convertible Notes, Other Debts and Capital Leases - Debt Maturities (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Debt Disclosure [Abstract]
Capital Lease Obligations 2019	$ 91
Capital lease obligation 2020	49
Capital Lease Obligations 2021	22
Capital Lease Obligations 2022	0
Capital lease obligation 2023	0
Capital Lease Obligations Thereafter	0
Capital Lease Obligations Total	162
Other debt obligations 2019	7,084
Other Debt Obligations 2020	6,607
Other Debt Obligations 2021	5,333
Other Debt Obligations 2022	452
Other Debt Obligations 2023	155
Other Debt Obligations Thereafter	66
Other Debt Obligations Total	$ 19,697

Employee Benefit Plans - Additional Information (Detail) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Intrinsic value of options exercised

$ 300,000

$ 100,000

Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment

17,289,000

16,610,000

^[1]

13,060,000

^[1]

$ 0

1,955,000

Net Accumulated Gain or Loss as a Percentage of Projected Plan Benefit Obligation

10.00%

Company discretionary employee match

25.00%

Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay

4.00%

Employer contributions made

$ 300,000

$ 400,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

Dividends, Share-based Compensation, Cash

$ 0

Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employer contributions made

$ 1,000

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price

$ 5.76

$ 6.04

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$ 100,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

3 months 18 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

Dividend yield

0.00%

Weighted-average fair value per share of option granted

$ 1.85

$ 0.99

Fair value of options vested

$ 700,000

$ 1,700,000

$ 2,300,000

Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options

$ 0

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$ 8,500,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

1 year 6 months

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

1,443,168

1,165,685

898,533

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period

1,343,168

1,165,685

610,579

Market-based awards [Member]

$ 6,100,000

$ 3,200,000

$ 2,800,000

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

18 months

3 years

40,000

344,500

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period

Restricted Stock [Member]

$ 200,000

$ 900,000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

3,906,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period

3,177,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number

3,403,000

2,904,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 3.97

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value

$ 15,600,000

$ 13,000,000

$ 9,700,000

Employee Stock Purchase Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Price at which stock options or ESPP may be granted

85.00%

Additional shares authorized

1,300,000

Common stock reserved for issuance

1,282,358

ESPP Employee Percentage of Payroll Deductions, Minimum

1.00%

ESPP Employee Percentage of Payroll Deductions, Maximum

10.00%

Common stock issued under the 2002 ESPP

1,132,438

1,291,875

1,265,458

Stock contributions value under 2002 ESPP

$ 4,000,000

$ 4,400,000

$ 3,700,000

Discount Percentage On Purchase Of Stock

15.00%

Value Of Stock Purchase Right Percentage Of Put Option

15.00%

Dividend yield

0.00%

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 1.33

$ 1.50

$ 1.04

1995 Stock Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Price at which stock options or ESPP may be granted

100.00%

Expiration period

7 years

Reduced the number of shares reserved for every unit granted

1.5

Increased number of shares reserved for every unit forfeited

1.5

Common stock reserved for issuance

9,915,865

Shares available for grant

3,819,736

1995 Stock Plan [Member] | Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

1995 Stock Plan [Member] | Maximum [Member]

2 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

1995 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member]

4 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price

$ 0

2002 Director Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Price at which stock options or ESPP may be granted

100.00%

Reduced the number of shares reserved for every unit granted

1.5

Increased number of shares reserved for every unit forfeited

1.5

Additional shares authorized

400,000

Common stock reserved for issuance

947,536

Shares available for grant

643,661

2002 Director Plan [Member] | Options and Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

2002 Director Plan [Member] | Options and Restricted Stock Units [Member] | Subsequent Grants [Member]

3 years

Expiration period

7 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

2002 Director Plan [Member] | Restricted Stock Units (RSUs) [Member]

1 year

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

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Payment for Pension and Other Postretirement Benefits

$ 0

Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment

$ 2,000,000

Cost of Sales [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Cost of Sales [Member] | TVN [Member]

$ 1,953,000

$ 2,370,000

1,554,000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment

600,000

Restructuring Charges [Member] | TVN [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment

$ 1,400,000

Scenario, Forecast [Member] | TVN [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Payment for Pension and Other Postretirement Benefits

$ 0

[1]

Employee Benefit Plans - Summary of Company's Stock Option (Detail) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	0
Stock Options Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance	3,880
Number of Shares, Granted	0
Number of Shares, Options exercised	(239)
Number of Shares, Forfeited	(35)
Number of Shares, Canceled or expired	(538)
Number of Shares, Ending balance	3,068
Weighted Average Exercise Price, Beginning balance \| $ / shares	$ 6.04
Weighted Average Exercise Price, Granted \| $ / shares	0.00
Weighted Average Exercise Price, Options exercised \| $ / shares	3.79
Weighted Average Exercise Price, Forfeited \| $ / shares	4.76
Weighted Average Exercise Price, Canceled or Expired \| $ / shares	8.75
Weighted Average Exercise Price, Ending balance \| $ / shares	$ 5.76
Weighted Average Remaining Contractual Term	2 years 3 months 18 days
Aggregate Intrinsic Value \| $	$ 1,148,700
Vested and expected to vest, number of shares	3,067
Vested and expected to vest, Weighted Average Exercise Price (per share) \| $ / shares	$ 5.76
Vested and expected to vest, Weighted Average Remaining Contractual Term (years)	2 years 3 months 18 days
Vested and Expected to Vest, Aggregate Intrinsic Value \| $	$ 1,147,700
Exercisable, Number of shares	2,994
Exercisable, Weighted Average Exercise Price \| $ / shares	$ 5.78
Exercisable, Weighted Average Remaining Contractual Term (Years)	2 years 3 months 18 days
Exercisable, Aggregate Intrinsic Value \| $	$ 1,082,000

Employee Benefit Plans - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, RSUs outstanding, Beginning Balance \| shares	2,904
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Beginning Balance \| $ / shares	$ 5.09
Number of Shares, Granted RSUs outstanding \| shares	3,906
Weighted Average Grant Date Fair Value Per Share, Granted RSUs outstanding \| $ / shares	$ 3.97
Number of Shares, Vested, RSUs outstanding \| shares	(3,177)
Weighted Average Grant Date Fair Value Per Share, Vested, RSUs outstanding \| $ / shares	$ 4.91
Number of shares, Forfeited, RSUs outstanding \| shares	(230)
Weighted Average Grant Date Fair Value Per Share, Forfeited, RSUs outstanding \| $ / shares	$ 4.89
Number of Shares, RSUs outstanding, Ending Balance \| shares	3,403
Weighted Average Grant Date Fair Value Per Share, RSUs outstanding, Ending Balance \| $ / shares	$ 3.99

Employee Benefit Plans - Pension Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Defined Benefit Plan, Benefit Obligation, Beginning Balance	$ 4,881	$ 5,033	$ 4,881	$ 5,033	$ 4,264
Service cost	243	259
Interest cost	74	71
Actuarial (gains) losses	(202)	(528)
Defined Benefit Plan, Benefit Obligation, Benefits Paid	(13)
Adjustment for prior year balance	0	343
Foreign currency translation adjustment	(254)	624
Defined Benefit Plan, Benefit Obligation, Ending Balance	$ 4,881	$ 5,033
Current portion (presented under “Accrued and other current liabilities”)			63	34
Long-term portion (presented under “Other non-current liabilities”)			$ 4,818	$ 4,999

Employee Benefit Plans And Stock-Based Compensation Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Postemployment Benefits [Abstract]

Service cost

$ 243

$ 259

Interest cost

Amortization of net actuarial loss (gain)

^[1]

Net periodic benefit cost included in operating loss

$ 317

$ 330

[1]	The Company uses the allowable 10% corridor approach to determine the amount of actuarial gains or losses subject to amortization in pension cost. Gains or losses are amortized on a straight-line basis over the average future remaining service period of active plan participants.

Employee Benefits - Pension Obligations Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Discount rate	1.70%	1.50%
Mobility rate	6.00%	6.00%
Salary progression rate	2.00%	2.00%

Employee Benefit Plans - Expected Future Benefits (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Retirement Benefits [Abstract]
2019	$ 63
2020	0
2021	41
2022	80
2023	479
2024 - 2028	2,626
Defined Benefit Plan Expected Future Benefit Payments	$ 3,289

Employee Benefits Plans - Summary of Stock-Based Compensation Expenses (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total employee stock-based compensation recognized in income (loss) from continuing operations

$ 17,289

$ 16,610

^[1]

$ 13,060

^[1]

Cost of Sales [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total employee stock-based compensation recognized in income (loss) from continuing operations

1,953

2,370

1,554

Research and Development Expense [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total employee stock-based compensation recognized in income (loss) from continuing operations

5,192

5,313

3,711

Selling General And Administrative Expense [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total employee stock-based compensation recognized in income (loss) from continuing operations

10,144

8,927

7,795

Operating expense [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total employee stock-based compensation recognized in income (loss) from continuing operations

$ 15,336

$ 14,240

$ 11,506

[1]

Employee Benefits Plan - Stock-Based Compensation - Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		4 years 3 months 18 days	4 years 3 months 18 days
Volatility		42.00%	36.00%
Risk-free interest rate		1.80%	1.40%
Dividend yield		0.00%	0.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	6 months
Volatility	55.00%	48.00%	70.00%
Risk-free interest rate	1.90%	1.20%	0.60%
Dividend yield	0.00%	0.00%	0.00%

Stockholders' Equity - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Preferred stock authorized	5,000,000	5,000,000
Common stock repurchased and retired, shares	0	0	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Foreign currency translation adjustments	$ (779)	$ 4,310
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(888)	(1,177)
Actuarial gain	451	249
Total accumulated other comprehensive loss	$ (1,216)	$ 3,382

Income Taxes - Income (Loss) Before Income Tax Provision (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Income Tax Disclosure [Abstract]

United States

$ (19,780)

$ (50,041)

$ (53,833)

International

2,832

(34,666)

(26,597)

Debt Instrument, Face Amount

$ (16,948)

$ (84,707)

^[1]

$ (80,430)

^[1]

[1]

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ (305)	$ (4,530)	$ (950)
State	116	129	181
International	2,958	273	2,738
Deferred:
Federal	0	0	(713)
International	1,318	2,376	(9,372)
Total provision for (benefit from) income taxes	$ 4,087	$ (1,752)	$ (8,116)

Income Taxes - Additional Information (Detail) - USD ($)

3 Months Ended

6 Months Ended

12 Months Ended

Jan. 01, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Mar. 31, 2017

Dec. 31, 2015

$ 128,250,000

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent

21.00%

35.00%

Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount

$ (1,449,000)

$ 2,834,000

$ (4,465,000)

Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Amount

305,000

834,000

World Consolidated Loss Before Tax

16,948,000

84,707,000

^[1]

80,430,000

^[1]

Income Tax Expense (Benefit)

$ 4,087,000

$ (1,752,000)

$ (8,116,000)

Effective Income Tax Rate Reconciliation, Percent

(24.00%)

2.00%

10.00%

Deferred Tax Assets, Valuation Allowance

77,144,000

77,756,000

$ 77,144,000

$ 77,756,000

$ 74,480,000

$ 64,545,000

Decrease in balance as a result of a lapse of the applicable statues of limitations

2,400,000

100,000

2,200,000

1,000,000

Gross unrecognized tax benefits including interest and penalties

16,600,000

Accrued potential interest related to unrecognized tax benefits

24,000

500,000

24,000

500,000

Cumulative Undistributed Earnings of non-U.S. subsidiaries intended to be indefinitely reinvested

$ 15,300,000

More Likely Than Not Threshold Recognition of Uncertain Tax Position

50.00%

Deferred Tax Assets, Net

$ 8,695,000

$ 10,462,000

$ 8,695,000

10,462,000

US Tax Cuts Jobs Act [Member] | AMT credit carryover [Member]

Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount

2,600,000

Foreign [Member]

95,900,000

Federal [Member]

Year that federal tax credits expire

38,000,000

Tax credit carryovers

13,200,000

$ 13,200,000

Jan. 01, 2031

California Franchise Tax Board [Member]

21,600,000

$ 21,600,000

Tax credit carryovers

34,900,000

State [Member]

Tax savings due to reduction in tax rate

48,000,000

$ 48,000,000

Tax credit expiration

will not expire

Switzerland [Member]

$ 400,000

$ 600,000

$ 700,000

Increase in diluted earnings per share

$ 0.005

$ 0.007

$ 0.008

Benefits from a tax ruling

The Company’s operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland.

Additional period for renewal for investment and employment in foreign country

effective through the end of 2018

SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward [Member]

Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount

$ 900,000

Foreign [Member]

Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount

$ (1,000,000)

$ (1,500,000)

Minimum [Member] | Federal [Member]

Minimum [Member] | California Franchise Tax Board [Member]

Jan. 01, 2026

Maximum [Member] | Federal [Member]

Jan. 01, 2026

Maximum [Member] | California Franchise Tax Board [Member]

Jan. 01, 2039

US Tax Cuts Jobs Act [Member]

Jan. 01, 2039

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent

21.00%

One-time transition tax on foreign sourced earnings

$ 0

Accounting Standards Update 2016-16 [Member]

Deferred Tax Assets, Valuation Allowance

$ 2,100,000

Deferred Tax Assets, Tax Deferred Expense

300,000

Cumulative Effect on Retained Earnings, Net of Tax

$ 1,434,000

Deferred Tax Assets, Net

$ 1,100,000

Deferred Tax Assets Gross [Member] | Accounting Standards Update 2016-09 [Member]

New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income

4,600,000

Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member]

New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income

$ 0

[1]

Income Taxes - Reconciliation of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Benefit from for income taxes at U.S. Federal statutory rate	$ (3,559)	$ (29,648)	$ (28,150)
Differential in rates on foreign earnings	4,299	15,920	11,741
Non-deductible amortization expense	0	0	617
Tax Reform Tax rate reduction	0	14,527
Change in valuation allowance	1,449	(2,834)	4,465
Change in liabilities for uncertain tax positions	(250)	(2,009)	(960)
Non-deductible stock-based compensation	1,363	1,934	1,480
Permanent Differences	1,096	380	441
Adjustments related to tax positions taken during prior years	184	(473)	(163)
Adjustments made under intercompany transactions	0	0	1,779
Tax Refund	(305)	(834)
Other	(190)	1,285	634
Total provision for (benefit from) income taxes	$ 4,087	$ (1,752)	$ (8,116)

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Reserves and accruals	$ 17,090	$ 17,247
Net operating loss carryforwards	29,900	34,915
Research and development credit carryforwards	36,446	34,419
Deferred stock-based compensation	2,201	2,677
Intangibles	2,585	2,062
Other	939	1,441
Gross deferred tax assets	89,161	92,761
Valuation allowance	(77,144)	(77,756)	$ (74,480)	$ (64,545)
Gross deferred tax assets after valuation allowance	12,017	15,005
Deferred tax liabilities:
Depreciation and amortization	(391)	(259)
Convertible notes	(2,931)	(4,284)
Gross deferred tax liabilities	(3,322)	(4,543)
Net deferred tax assets	$ 8,695	$ 10,462

Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation Allowance [Abstract]
Balance at beginning of period	$ 77,756	$ 74,480	$ 64,545
Additions	928	9,028	18,291
Deductions	(1,540)	(5,752)	(8,356)
Balance at end of period	$ 77,144	$ 77,756	$ 74,480

Income Taxes - Activities Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Balance at beginning of period		$ 18.8	$ 19.2	$ 15.6
Increase in balance related to tax positions taken during current year		1.0	1.4	4.6
Decrease in balance as a result of a lapse of the applicable statues of limitations	$ (2.4)	(0.1)	(2.2)	(1.0)
Decrease in balance due to settlement with tax authorities		(1.6)	0.0	0.0
Increase in balance related to tax positions taken during prior years		0.2	1.8	0.0
Decrease in balance related to tax positions taken during prior years		(0.3)	(1.4)	0.0
Balance at end of period	$ 18.8	$ 18.0	$ 18.8	$ 19.2

Net Income (Loss) Per Share - Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2017

Sep. 29, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Numerator:

$ 3,330

^[1],[2],[3]

$ (7,758)

^[1],[2],[3]

$ (2,913)

^[1],[2],[3]

$ (13,694)

^[1],[2],[3]

$ (11,516)

^[2],[3]

$ (15,583)

^[2],[3]

$ (31,500)

^[2],[3]

$ (24,027)

^[2],[3]

$ (21,035)

$ (82,955)

$ (72,314)

Denominator:

Net loss per share, Basic and diluted

82,014

81,445

80,590

79,810

85,615

80,974

77,705

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

$ 0.04

$ (0.09)

$ (0.03)

$ (0.16)

$ (0.14)

$ (0.19)

$ (0.39)

$ (0.30)

$ (0.25)

$ (1.02)

$ (0.93)

[1]	During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.
[2]	During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries. During the third and fourth quarter of 2017, the Company recorded $2.4 million of tax benefit associated with the release of tax reserves for uncertain tax positions as a result of the expiration of statute of limitations and $2.5 million of tax benefits associated with the alternative minimum tax refund related to the TCJA, respectively. These tax benefits were offset by $3.0 million tax expense recorded during the fourth quarter of 2017, related to tax law changes in one of the Company’s foreign subsidiaries.
[3]	In 2017, the Company incurred TVN acquisition- and integration-related expenses of $2.2 million, $0.5 million, $0.1 million and $0.1 million during the first through fourth quarter of 2017. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred and the Company did not incur any TVN acquisition- and integration-related expenses in 2018.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Income (Loss) Per Share Net Income (Loss) Per Share - Anti Diluted Shares Excluded (Details) - shares
shares in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

^[1]

8,201

8,931

8,696

Stock Options [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

3,327

4,470

5,295

Restricted Stock Units (RSUs) [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

2,997

3,059

2,536

Employee Stock Purchase Plan

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

609

620

659

Warrant [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

^[2]

1,268

782

206

[1]

Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. See Note 11, “Convertible Notes, Other Debts and Capital Leases,” for additional information on the Notes. Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.

[2]

In 2016, in connection with the execution of a product supply agreement the Company granted Comcast a warrant to purchase shares of its common stock. See Note 16, “Warrants,” for additional information. The warrants will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the warrant exercise price of $4.76 per share.

Net Income (Loss) Per Share - Additional Information (Detail) - $ / shares

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Sep. 26, 2016

Dec. 31, 2015

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Potential Common Shares Upon Notes Conversion If Only Settled In Shares

^[1]

8,201,000

8,931,000

8,696,000

Debt Instrument, Convertible, Conversion Price

$ 5.75

Convertible Debt Securities [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Potential Common Shares Upon Notes Conversion If Only Settled In Shares

22,304,348

Comcast Milestones Achievement [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 4.76

[1]

Warrants Disclosure (Details) $ / shares in Units, $ in Millions		12 Months Ended
	Jul. 31, 2018 USD ($) Measurement_Input shares	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 26, 2016 USD ($) Measurement_Input $ / shares shares
Comcast Product Supply Agreement [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding \| shares					781,617
Comcast Product Supply Agreement [Member] \| Measurement Input, Price Volatility [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input	0.029
Comcast Product Supply Agreement [Member] \| Measurement Input, Expected Dividend Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input	0.000				0
Comcast Product Supply Agreement [Member] \| Measurement Input, Expected Term [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Term	5 years 2 months 12 days
Comcast Product Supply Agreement [Member] \| Measurement Input, Risk Free Interest Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input	0.45
Comcast Milestones Achievement [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares					7,816,162
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares		$ 4.76			$ 4.76
Comcast Warrant Vesting Tranche September 26, 2016 [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding \| $					$ 1.6
Comcast Warrant Vesting Tranche September 26, 2016 [Member] \| Measurement Input, Price Volatility [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input					0.014
Comcast Warrant Vesting Tranche September 26, 2016 [Member] \| Measurement Input, Expected Dividend Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input					0.000
Comcast Warrant Vesting Tranche September 26, 2016 [Member] \| Measurement Input, Expected Term [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Term					7 years
Comcast Warrant Vesting Tranche September 26, 2016 [Member] \| Measurement Input, Risk Free Interest Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input					0.42
Comcast Warrant Vesting Tranche July 31, 2018 [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding \| shares	1,172,425
Class of Warrant or Right, Unissued \| shares					1,172,425
Issuance of Stock and Warrants for Services or Claims \| $	$ 2.3
Sales Revenue, Goods, Net [Member] \| Comcast Product Supply Agreement [Member]
Class of Warrant or Right [Line Items]
Reduction to Net Revenues in connection with amortization of the Warrant \| $		$ 1.2	$ 0.2	$ 0.4

Segment Information - Narratives (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2014

segment

Dec. 31, 2018

USD ($)

Customer

segment

country

Dec. 31, 2017

USD ($)

Customer

country

Dec. 31, 2016

USD ($)

Customer

country

Feb. 29, 2016

Number of reportable segments | segment

Sales Revenue, Net [Member]

$ 2,918

$ 5,307

$ 14,602

^[1]

Concentration Risk, Percentage

10.00%

Number Of Customers Accounting For More Than Ten Percent Of Revenue Other Than Comcast | Customer

Customer concentration risk ten percent or more of net revenue [Member]

Number Of Customers Accounting For More Than Ten Percent of Revenue | Customer

Non-US [Member] | Sales Revenue, Net [Member]

Number Of Countries Accounting For More Than Ten Percent of Non United States Revenue | country

Concentration Risk, Percentage

10.00%

Harmonic Two Thousand And Sixteen Restructuring [Member] | Corporate, Non-Segment [Member]

Avid Technology Inc. [Member] | Corporate, Non-Segment [Member]

$ 7,900

$ 32,200

Litigation Settlement, Expense

8,000

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

Operating expense [Member] | Change in Accounting Method Accounted for as Change in Estimate [Member]

New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification

$ 5,900

Comcast [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]

Concentration Risk, Percentage

15.00%

Number Of Customers Accounting For More Than Ten Percent of Revenue | Customer

[1]

Segment Information, Geographic Information And Customer Concentration Segment Information - Summary Financial Information by Reportable Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2017

Sep. 29, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 100,974

$ 92,014

$ 82,315

$ 82,943

$ 403,558

^[1]

$ 358,246

^[1]

$ 405,911

^[1]

$ 60,321

^[2]

$ 50,102

^[2]

$ 51,603

^[2]

$ 47,183

^[2]

$ 48,572

^[2]

$ 47,025

^[2]

$ 33,815

^[2]

$ 40,408

^[2]

209,209

169,820

200,750

Operating Segments [Member]

(5,011)

(70,877)

^[3]

(67,036)

^[3]

403,558

358,246

^[4]

405,911

217,199

182,306

^[4]

215,218

Operating Segments [Member] | Video [Member]

24,414

(25,178)

^[3],[4]

(168)

^[3]

313,828

319,473

^[4]

351,489

178,170

173,414

^[4]

194,044

Operating Segments [Member] | Cable Access [Member]

26,170

(2,024)

^[4]

11,963

89,730

38,773

^[4]

54,422

39,029

8,892

^[4]

21,174

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ (1,756)

$ (23,154)

^[4]

$ (12,131)

[1]	Revenue is attributed to countries based on the location of the customer.
[2]	Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix. Gross margin decreased to 41.1% during the second quarter of 2017 compared to 48.7% during the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin during the second quarter of 2017 were mostly absent during the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% during the third quarter of 2017 compared to 41.1% during the second quarter of 2017.
[3]	For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.
[4]	The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments.

Segment Information - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Unallocated corporate expenses

$ (214,220)

$ (240,697)

$ (267,786)

Stock-based compensation expense

(17,289)

(16,610)

^[1]

(13,060)

^[1]

Amortization

(8,367)

(8,322)

^[1]

(14,836)

^[1]

Non-operating expense, net

(5,011)

(70,877)

^[1]

(67,036)

^[1]

(11,937)

(13,830)

^[1]

(13,394)

^[1]

Operating Segments [Member]

(16,948)

(84,707)

^[1]

(80,430)

^[1]

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Corporate, Non-Segment [Member]

24,414

(25,178)

^[1],[2]

(168)

^[1]

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Unallocated corporate expenses

$ (3,769)

$ (20,767)

^[1]

$ (38,972)

^[1]

[1]

[2]

The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments.

Segment Information - Summary of Revenue, Property and Equipment, Net by Geographic Region (Detail) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2017

Sep. 29, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Net revenues:

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 100,974

$ 92,014

$ 82,315

$ 82,943

$ 403,558

^[1]

$ 358,246

^[1]

$ 405,911

^[1]

22,321

29,265

22,321

29,265

United States

Net revenues:

^[1]

181,965

131,773

171,016

10,376

13,786

10,376

13,786

Other countries

Net revenues:

^[1]

221,593

226,473

$ 234,895

Israel

6,975

8,904

6,975

8,904

France

All countries except United States, Israel and France [Member] [Member]

3,519

4,573

3,519

4,573

$ 1,451

$ 2,002

$ 1,451

$ 2,002

[1]	Revenue is attributed to countries based on the location of the customer.

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Commitments [Line Items]
Operating leases, rent expense	$ 10,100,000	$ 10,200,000	$ 9,700,000
Non-cancelable purchase commitments	35,900,000
Indemnification [Member]
Other Commitments [Line Items]
Accrual for indemnification provisions	0
ISRAEL
Other Commitments [Line Items]
Royalty expenses	$ 4,200,000	5,200,000	$ 4,100,000
Property Subject to Operating Lease [Member] \| Maximum [Member]
Other Commitments [Line Items]
Lease Expiration Date	Jun. 29, 2028
Property Lease Guarantee [Member] \| Performance Guarantee [Member]
Other Commitments [Line Items]
Guarantees, Fair Value Disclosure	$ 2,300,000	2,700,000
Foreign Line of Credit [Member] \| Performance Guarantee [Member]
Other Commitments [Line Items]
Long-term Line of Credit		2,000,000
Indemnity issued to secure credit facility		$ 2,200,000
Line of Credit Facility, Fair Value of Amount Outstanding	$ 0

Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total minimum payments	$ 39,179

Commitments and Contingencies - Summary of Warranty Accrual Included in Accrued Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Balance at beginning of period	$ 4,381	$ 4,862	$ 3,913
Accrual for current period warranties	6,612	5,117	5,482
Balance assumed from TVN acquisition	0	0	1,012
Warranty costs incurred	(6,124)	(5,598)	(5,545)
Balance at end of period	$ 4,869	$ 4,381	$ 4,862

Legal Proceedings - Additional Information (Detail) $ in Millions		12 Months Ended
	Oct. 24, 2017 USD ($)	Dec. 31, 2017 USD ($)	Sep. 29, 2017 USD ($)	Jun. 29, 2012 Patents	Oct. 31, 2011 Patents
Avid [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability			$ 6.0
Payments for Legal Settlements	$ 2.5
Settled Litigation Payment Second Quarter of 2019 [Member] \| Avid [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability, Noncurrent			1.5
Settled Litigation Payment Third Quarter of 2020 [Member] \| Avid [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability, Noncurrent			$ 2.0
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		$ 6.0

Selected Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2017

Sep. 29, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Quarterly Financial Data [Abstract]

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 100,974

$ 92,014

$ 82,315

$ 82,943

$ 403,558

^[1]

$ 358,246

^[1]

$ 405,911

^[1]

60,321

^[2]

50,102

^[2]

51,603

^[2]

47,183

^[2]

48,572

^[2]

47,025

^[2]

33,815

^[2]

40,408

^[2]

209,209

169,820

200,750

Basic net income (loss) per share from:

$ 3,330

^[3],[4],[5]

$ (7,758)

^[3],[4],[5]

$ (2,913)

^[3],[4],[5]

$ (13,694)

^[3],[4],[5]

$ (11,516)

^[4],[5]

$ (15,583)

^[4],[5]

$ (31,500)

^[4],[5]

$ (24,027)

^[4],[5]

$ (21,035)

$ (82,955)

$ (72,314)

$ 0.04

$ (0.09)

$ (0.03)

$ (0.16)

$ (0.14)

$ (0.19)

$ (0.39)

$ (0.30)

$ (0.25)

$ (1.02)

$ (0.93)

Denominator:

Basic

86,846

86,321

85,304

83,912

Diluted

89,028

86,321

85,304

83,912