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Selling, general and administrative

^[1]

$ 115,725

$ 100,616

$ 280,696

$ 289,903

Total cost of revenue

40,185

50,514

119,379

141,015

Total gross profit

75,540

50,102

161,317

148,888

Operating expenses:

Research and development

20,197

22,251

62,911

67,250

31,148

29,723

88,478

88,874

Amortization of intangibles

785

792

2,357

2,396

Restructuring and related charges

861

987

1,194

2,704

Total operating expenses

52,991

53,753

154,940

161,224

Income (loss) from operations

22,549

(3,651)

6,377

(12,336)

Interest expense, net

(3,000)

(2,872)

(8,862)

(8,492)

Loss on debt extinguishment

(5,695)

Other expense, net

(1,594)

(365)

(2,333)

(698)

Income (loss) before income taxes

12,260

(6,888)

(10,513)

(21,526)

Provision for income taxes

603

870

981

2,839

Shares used in per share calculation:

$ 11,657

$ (7,758)

$ (11,494)

$ (24,365)

Net income (loss) per share:

Basic

$ 0.13

$ (0.09)

$ (0.13)

$ (0.29)

Diluted

$ 0.12

$ (0.09)

$ (0.13)

$ (0.29)

Basic

89,964

86,321

89,030

85,188

Diluted

97,596

86,321

89,030

85,188

Appliance & Integration [Member]

$ 83,082

$ 71,965

$ 189,864

$ 204,385

Total cost of revenue

26,812

38,945

83,178

106,183

SaaS & Service [Member]

Common Stock, Beginning at Dec. 31, 2017

32,643

28,651

90,832

85,518

Total cost of revenue

$ 13,373

$ 11,569

$ 36,201

$ 34,832

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Net income (loss)	$ 11,657	$ (7,758)	$ (11,494)	$ (24,365)
Other comprehensive income (loss) before tax:
Loss reclassified into earnings	0	0	56	0
Change in foreign currency translation adjustments	(3,431)	447	(3,874)	(2,577)
Other comprehensive income (loss) before tax	(3,431)	447	(3,818)	(2,577)
Less: Provision for (benefit from) income taxes	284	(78)	335	291
Other comprehensive income (loss), net of tax	(3,715)	525	(4,153)	(2,868)
Total comprehensive income (loss)	$ 7,942	$ (7,233)	$ (15,647)	$ (27,233)

- Definition

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

+ References + Details

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

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Convertible Note due 2020

Convertible Note due 2024

82,554

Balance at Dec. 31, 2017

$ 218,343

$ 83

$ 2,272,690

$ (2,057,812)

$ 3,382

Cumulative effect to retained earnings related to adoption of Topic 718 | Accounting Standards Update 2014-09 [Member]

11,431

Common Stock, Ending at Jan. 01, 2018

82,554

Balance at Jan. 01, 2018

229,774

$ 83

2,272,690

(2,046,381)

3,382

Common Stock, Beginning at Dec. 31, 2017

82,554

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

(24,365)

Issuance of common stock under option, stock award and purchase plans, Shares

(2,868)

4,133

Issuance of common stock under option, stock award and purchase plans, Value

4,134

$ 4

4,130

14,059

Common Stock, Ending at Sep. 28, 2018

2,295

86,687

Balance at Sep. 28, 2018

223,029

$ 87

2,293,174

(2,070,746)

514

Common Stock, Beginning at Jun. 29, 2018

85,439

Balance at Jun. 29, 2018

220,735

$ 85

2,283,649

(2,062,988)

(11)

(7,758)

Issuance of common stock under option, stock award and purchase plans, Shares

525

1,248

Issuance of common stock under option, stock award and purchase plans, Value

1,821

$ 2

1,819

5,411

Common Stock, Ending at Sep. 28, 2018

2,295

86,687

Balance at Sep. 28, 2018

223,029

$ 87

2,293,174

(2,070,746)

514

Common Stock, Beginning at Dec. 31, 2018

87,057

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

Cumulative effect to retained earnings related to adoption of Topic 718 | Accounting Standards Update 2016-09 [Member]

^[1]

1,400

Common Stock, Ending at Jan. 01, 2019

87,057

Balance at Jan. 01, 2019

229,650

$ 87

2,296,795

(2,066,016)

(1,216)

Common Stock, Beginning at Dec. 31, 2018

87,057

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

(11,494)

Issuance of common stock under option, stock award and purchase plans, Shares

(4,153)

3,258

Issuance of common stock under option, stock award and purchase plans, Value

4,295

$ 3

4,292

8,843

Portion of repurchase price recorded in additional paid-in capital in connection with partial repurchase of convertible notes due 2020

16,142

(27,111)

Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt

24,878

Common Stock, Ending at Sep. 27, 2019

90,315

Balance at Sep. 27, 2019

241,050

$ 90

2,323,839

(2,077,510)

(5,369)

Common Stock, Beginning at Jun. 28, 2019

89,074

Balance at Jun. 28, 2019

212,066

$ 89

2,302,798

(2,089,167)

(1,654)

11,657

Issuance of common stock under option, stock award and purchase plans, Shares

(3,715)

1,241

Issuance of common stock under option, stock award and purchase plans, Value

2,976

$ 1

2,975

4,157

Portion of repurchase price recorded in additional paid-in capital in connection with partial repurchase of convertible notes due 2020

16,142

(27,111)

Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt

24,878

Common Stock, Ending at Sep. 27, 2019

90,315

Balance at Sep. 27, 2019

$ 241,050

$ 90

$ 2,323,839

$ (2,077,510)

$ (5,369)

Revenue from Contract with Customer [Abstract]

4.00%

2.00%

[1]	See Note 2, “Recent Accounting Pronouncements” for more information on the adoption of Accounting Standard Update (“ASU”) No. 2018-07, Compensation-Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting issued by the Financial Accounting Standards Board.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018
Cash flows from operating activities:
Net income (loss)	$ (11,494)	$ (24,365)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of intangibles	6,242	6,281
Depreciation	8,480	9,910
Stock-based compensation	8,719	14,202
Amortization of discount on convertible debt and issuance cost	4,960	4,482
Amortization of non-cash warrant	13,137	1,185
Restructuring, asset impairment and loss on retirement of fixed assets	85	1,105
Loss on debt extinguishment	5,695	0
Deferred income taxes, net	75	1,056
Foreign currency adjustments	(1,719)	(1,034)
Provision for excess and obsolete inventories	704	1,259
Allowance for doubtful accounts and returns	988	1,357
Other non-cash adjustments, net	1,150	286
Changes in operating assets and liabilities:
Accounts receivable	(20,521)	(9,585)
Inventories	(4,170)	997
Prepaid expenses and other assets	(5,703)	2,507
Accounts payable	(2,839)	(4,032)
Deferred revenue	8,002	1,783
Income taxes payable	(114)	461
Accrued and other liabilities	(10,536)	(2,188)
Net cash provided by operating activities	1,141	5,667
Cash flows from investing activities:
Proceeds from sales of investments	0	104
Purchases of property and equipment	(4,973)	(4,703)
Net cash used in investing activities	(4,973)	(4,599)
Cash flows from financing activities:
Proceeds from convertible debt	115,500
Payments of convertible debt	(109,603)
Payment of convertible debt issuance costs	(3,465)	0
Proceeds from other debts and finance leases	4,684	5,066
Repayment of other debts and finance leases	(6,387)	(6,568)
Proceeds from common stock issued to employees	5,573	4,299
Payment of tax withholding obligations related to net share settlements of restricted stock units	(1,278)	(166)
Net cash provided by financing activities	5,024	2,631
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(486)	(580)
Net increase in cash, cash equivalents and restricted cash	706	3,119
Cash, cash equivalents and restricted cash at beginning of period	65,989	58,757
Cash, cash equivalents and restricted cash at end of period	66,695	61,876
Supplemental disclosures of cash flow information:
Income tax payments, net	980	1,209
Interest payments, net	3,432	2,727
Supplemental schedule of non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	543	664
Issuance of warrant	16,142	2,295
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Total cash, cash equivalents and restricted cash	$ 65,989	$ 58,757

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 27, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) which Harmonic Inc. (“Harmonic,” or the “Company”) considers necessary to present fairly the results of operations for the interim periods covered and the consolidated financial condition of the Company at the date of the balance sheets. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019 (the “2018 Form 10-K”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019, or any other future period. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter, which ends on December 31. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited financial statements, and the unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. As permitted under those requirements, certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. Reclassifications Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements. Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statements of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The Company has also reclassified revenue into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue did not have an impact on total revenue or any segment revenue for any periods presented. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2018 Form 10-K. There have been no significant changes to these policies during the nine months ended September 27, 2019 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 27, 2019
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Accounting Standards Codification (ASC) Topic 842, “Leases” On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification. Adoption of the standard resulted in the balance sheet recognition of additional lease assets and liabilities of approximately $23.3 million; however, the adoption of the standard did not have an impact on the Company’s beginning retained earnings, results from operations or cash flows. See Note 4, “Leases” for additional information. ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) 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 Company adopted this new standard in the first quarter of fiscal 2019, and the adoption resulted in an adjustment of $1.4 million as the cumulative effect adjustment to opening retained earnings relating to the accounting of warrants which were previously granted to Comcast. This represents the cumulative impact of the remeasurement of unvested Comcast warrants on the date of adoption. See Note 15, “Warrants” for additional information. ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) 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. 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. Recently Issued Accounting Pronouncements 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 adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance will become effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted upon issuance of this updated guidance. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. The Company does not currently hold any level 3 assets or liabilities which require recurring measurements and the Company expects the impact to its disclosure will be relatively limited. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Revenue

9 Months Ended

Sep. 27, 2019

Revenue from Contract with Customer [Text Block]

REVENUE

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.

Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statement of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The “Appliance and integration” revenue category includes hardware, licenses and professional services and is reflective of non-recurring revenue, while the “SaaS and service” category includes usage fees for the Company’s SaaS platform and support revenue stream from the Company’s appliance-based customers and reflects the Company’s recurring revenue stream.

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 has revenue arrangements that include multiple performance obligations. The Company allocates the transaction price to all separate performance obligations based on the relative standalone selling prices (“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.

If the Company has not yet established a price because the good or service has not previously been sold on a standalone basis, SSP for such good and service in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the good or service for which the price has not yet been established.

Contract Balances. Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. The Company’s payment terms vary by the type and location of its customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer.

Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer).

Contract assets and deferred revenue consisted of the following (in thousands):



	As of
	September 27, 2019		December 31, 2018
Contract assets	$	6,774	$	3,834
Deferred revenue	54,817		46,922

Contract assets and Deferred revenue (long-term) are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities”, respectively, on the Condensed Consolidated Balance Sheets. See Note 8, “Balance Sheet Components” for additional information.

During the three months ended September 27, 2019 and September 28, 2018, the Company recognized revenue of $6.1 million and $7.8 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year. During the nine months ended September 27, 2019 and September 28, 2018, the Company recognized revenue of $37.4 million and $43.2 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year.

The Company elected the practical expedient under Topic 606 to not disclose the transaction price allocated to remaining performance obligations, since the majority of the Company’s arrangements have original expected durations of one year or less, or the invoicing corresponds to the value of the Company’s performance completed to date. These performance obligations primarily relate to the Company’s support and maintenance contracts which have a duration of one year or less and subscriptions services for which invoicing corresponds to the value of the Company’s performance completed to date.

In July 2019, Comcast elected enterprise license pricing for the Company’s CableOS software as contemplated under certain existing commercial agreements between the Company and Comcast (the “CableOS software license agreement”), which also includes maintenance and support services, and material rights. As of September 27, 2019, the aggregate amount of the transaction price under this agreement allocated to the remaining performance obligations is $110.3 million, and the Company will recognize this revenue as the related performance obligations are delivered over the next three years to four years.

See Note 16, “Segment Information” for disaggregated revenue information.

Lease

9 Months Ended

Sep. 27, 2019

Leases [Abstract]

Lessee, Operating Leases

LEASES

Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to eleven years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

The Company elected certain practical expedients under Topic 842 which are: (i) to not record leases with an initial term of twelve months or less on the balance sheet; (ii) to combine the lease and non-lease components in determining the lease liabilities and right-of-use assets, and (iii) to carry forward prior conclusions about lease identification and classification.

The Company’s lease contracts do not provide an implicit borrowing rate, hence the Company determined the incremental borrowing rate based on information available at lease commencement to determine the present value of lease liability. The Company uses the parent entity’s incremental borrowing rates as the treasury operations are managed centrally by the parent entity and, consequently, the pricing of leases at a subsidiary level is typically significantly influenced by the credit risk evaluated at the parent or consolidated group level on the basis of guarantees or other payment mechanisms that allow the lessor to look beyond just the subsidiary for payment.

During the second quarter of fiscal 2019, the Company entered into a lease for a new facility which is intended to become the Company’s new headquarters in 2020. The new lease commenced in May 2019, as the facility was made available to the Company for constructing leasehold improvements. The lease was assessed under Topic 842 to be an operating lease and has a term of approximately eleven years.

The new lease resulted in the balance sheet recognition of $10.3 million in “Operating lease right-of use assets”, $4.0 million in “Prepaid expenses and other current assets”, $14.0 million in “Other non-current liabilities”, and $0.3 million in “Accrued and other current liabilities”.

The components of lease expense are as follows (in thousands):



	Three months ended		Nine months ended
	September 27, 2019		September 27, 2019
Operating lease cost	$	2,641	$	6,868
Variable lease cost	837		2,360
Total lease cost	$	3,478	$	9,228

Supplemental cash flow information related to leases are as follows (in thousands):



	Three months ended		Nine months ended
	September 27, 2019		September 27, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,655	$	6,937
ROU assets obtained in exchange for operating lease obligations	$	—	$	10,305

Other information related to leases are as follows:



	Nine months ended
	September 27, 2019
Operating leases
Weighted-average remaining lease term (years)	7.2
Weighted-average discount rate	6.8	%

Future minimum lease payments under non-cancelable operating leases as of September 27, 2019 are as follows (in thousands):



Years ending December 31,
2019 (remaining three months)	$	2,795
2020	9,429
2021	5,732
2022	4,360
2023	4,131
Thereafter	20,347
Total future minimum lease payments	$	46,794
Less: imputed interest	(10,954		)
Total	$	35,840

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows (in thousands):



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

Investments in Equity Securities	9 Months Ended
Investments in Equity Securities	Sep. 27, 2019
Investments, All Other Investments [Abstract]
Investments in Equity Securities	INVESTMENTS IN EQUITY SECURITIES 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 September 27, 2019 that the EDC investment was impaired. The Company’s maximum exposure to loss from the EDC’s investment at September 27, 2019 and December 31, 2018, was limited to its investment cost of $3.6 million, including $0.1 million of transaction costs.

Derivative and Hedging Activities

9 Months Ended

Sep. 27, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

DERIVATIVES AND HEDGING ACTIVITIES

The Company uses forward contracts to manage exposures to foreign currency exchange rates. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with fluctuations in foreign currency exchange rates and the Company does not use derivative instruments for trading purposes. The use of derivative instruments exposes the Company to credit risk to the extent that the counterparties may be unable to meet their contractual obligations. As such, the potential risk of loss with any one counterparty is closely monitored by the Company.

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

The Company’s balance sheet hedges consist of foreign currency forward contracts that generally mature within three months, are carried at fair value, and 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 Condensed Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged.

Losses on the non-designated derivative instruments recognized during the periods presented were as follows (in thousands):



		Three months ended						Nine months ended
	Financial Statement Location	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Derivatives not designated as hedging instruments:
Losses recognized in income	Other expense, net	$	(1,357	)	$	(30	)	$	(1,966	)	$	(1,412	)

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



	September 27, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Purchase	$	26,233	$	28,975

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



		Asset Derivatives					Derivative Liabilities
	Balance Sheet Location	September 27, 2019		December 31, 2018		Balance Sheet Location	September 27, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	—	$	—	Accrued and other current liabilities	$	182	$	333
Total derivatives		$	—	$	—		$	182	$	333

Offsetting of Derivative Assets and Liabilities

The Company recognizes all derivative instruments on a gross basis in the Condensed 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 September 27, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets
Derivative liabilities	$	182	—	$	182

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 September 27, 2019, the total compensating balance maintained was $1.0 million.

Fair Value Measurements

9 Months Ended

Sep. 27, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The authoritative accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. Fair value is defined 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. 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.

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 following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):



	Level 1		Level 2		Level 3		Total
As of September 27, 2019
Accrued and other current liabilities
Derivative liabilities	$	—	$	182	$	—	$	182
Total liabilities measured and recorded at fair value	$	—	$	182	$	—	$	182
	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

The Company’s liability for the TVN VDP (as defined below) was $1.1 million and $2.4 million as of September 27, 2019 and December 31, 2018, 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. The fair value of this liability has not been subsequently remeasured based on the applicable accounting guidance. See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP 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 value of the Company’s 4.00% Senior Convertible Notes due 2020 (the “2020 Notes”) was approximately $60.3 million and $136.5 million as of September 27, 2019 and December 31, 2018, respectively. The fair value of Company’s 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) was approximately $120.0 million as of September 27, 2019. The 2020 Notes and 2024 Notes are classified as Level 2 valuations. The Company’s other debts assumed from the Thomson Video Networks (“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 finance leases, outstanding as of September 27, 2019 and December 31, 2018 were in the aggregate of $17.3 million and $19.7 million, respectively. (See Note 11, “Convertible Notes, Other debts and Finance Leases” for additional information).

During the nine months ended September 27, 2019, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

- 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

Balance Sheet Components

9 Months Ended

Sep. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

BALANCE SHEET COMPONENTS

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



	September 27, 2019			December 31, 2018
Accounts receivable, net:
Accounts receivable	$	103,460		$	85,292
Less: allowances for doubtful accounts and sales returns	(2,555		)	(3,497		)
Total	$	100,905		$	81,795



	September 27, 2019		December 31, 2018
Inventories:
Raw materials	$	1,218	$	1,705
Work-in-process	1,329		991
Finished goods	16,377		12,267
Service-related spares	10,046		10,675
Total	$	28,970	$	25,638



	September 27, 2019		December 31, 2018
Prepaid expenses and other current assets:
Deferred cost of revenue	$	9,290	$	3,671
Prepaid expenses	7,595		4,834
French R&D tax credits receivable⁽¹⁾	7,172		7,305
Contract assets⁽²⁾	6,774		3,834
Capitalized sales commissions	1,378		1,098
Other	8,108		2,538
Total	$	40,317	$	23,280

(1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche 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. The R&D tax credits receivable at September 27, 2019 were approximately $22.3 million and are expected to be recoverable from 2020 through 2023.

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



	September 27, 2019			December 31, 2018
Property and equipment, net:
Machinery and equipment	$	75,321		$	75,094
Capitalized software	33,760			32,696
Leasehold improvements	15,050			14,951
Furniture and fixtures	6,001			6,049
Property and equipment, gross	130,132			128,790
Less: accumulated depreciation and amortization	(111,231		)	(106,469		)
Total	$	18,901		$	22,321



	September 27, 2019		December 31, 2018
Other long-term assets:
French R&D tax credits receivable	$	15,131	$	19,249
Deferred tax assets	8,500		8,695
Equity investment	3,593		3,593
Other	12,248		6,840
Total	$	39,472	$	38,377



	September 27, 2019		December 31, 2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	17,270	$	21,451
Operating lease liability (short-term)	9,453		—
Accrued warranty	4,581		4,869
Contingent inventory reserves	2,143		2,500
Accrued Avid litigation settlement, current	2,000		1,500
Accrued TVN VDP, current ⁽³⁾	1,106		1,585
Others	22,707		20,856
Total	$	59,260	$	52,761

(3) See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.



	September 27, 2019		December 31, 2018
Other non-current liabilities:
Operating lease liability (long-term)	$	25,395	$	—
Deferred revenue (long-term)	6,944		5,330
Others	7,497		12,898
Total	$	39,836	$	18,228

Goodwill and Identified Intangible Assets

9 Months Ended

Sep. 27, 2019

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 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. No impairment indicators were identified as of September 27, 2019.

The changes in the carrying amount of goodwill for the nine months ended September 27, 2019 were as follows (in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618
Foreign currency translation adjustment, net	(1,869		)	(15		)	(1,884		)
Balance as of September 27, 2019	$	177,970		$	60,764		$	238,734

Intangible Assets, Net

The following is a summary of intangible assets, net (in thousands):



		September 27, 2019							December 31, 2018
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	0.4	$	31,707	$	(29,461	)	$	2,246	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.4	44,501		(40,291		)	4,210		44,650		(38,146		)	6,504
Trademarks and trade names	0.4	595		(533		)	62		623		(441		)	182
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,056		(3,056		)	—		3,112		(3,112		)	—
Total identifiable intangibles, net		$	85,359	$	(78,841	)	$	6,518	$	85,592	$	(72,775	)	$	12,817

Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 27, 2019 and September 28, 2018 was allocated as follows (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Included in cost of revenue	$	1,295	$	1,295	$	3,885	$	3,885
Included in operating expenses	785		792		2,357		2,396
Total amortization expense	$	2,080	$	2,087	$	6,242	$	6,281

The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019 (remaining three months)	$	1,295	$	780	$	2,075
2020	951		2,997		3,948
2021	—		495		495
Total future amortization expense	$	2,246	$	4,272	$	6,518

Restructuring and Related Charges

9 Months Ended

Sep. 27, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Charges

RESTRUCTURING AND RELATED CHARGES

The Company has implemented several restructuring plans in an effort to better align its resources with its business strategy. The goal of these plans was to bring operational expenses to appropriate levels relative to its net revenues, while simultaneously implementing extensive company-wide expense control programs. These restructuring plans have primarily been comprised of excess facilities, severance payments and termination benefits related to headcount reductions.

In the three and nine months ended September 27, 2019, the Company recorded an aggregate amount of $1.1 million and $1.5 million, respectively, of restructuring and related charges for severance and employee benefits for certain employees within the Company’s general and administrative functions and one specific function within the Video segment. The Company made $0.4 million in payments in the nine months ended September 27, 2019, with the remaining $1.1 million liability outstanding as of September 27, 2019.

As of September 27, 2019, total liabilities related to restructuring plans initiated prior to fiscal 2019 were $2.2 million.

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Restructuring and related charges in:
Cost of revenue	$	331	$	7	$	723	$	884
Operating expenses - Restructuring and related charges	861		987		1,194		2,704
Total restructuring and related charges	$	1,192	$	994	$	1,917	$	3,588

As of September 27, 2019 and December 31, 2018, the Company’s total restructuring liability was $3.4 million and $5.3 million, respectively, of which $3.0 million and $3.3 million, respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $0.4 million and $2.0 million, respectively, were reported as a component of “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets.

The following table summarizes the activities related to the Company’s restructuring plans during the nine months ended September 27, 2019 (in thousands):



	Excess facilities			Severance and benefits			TVN VDP ⁽¹⁾			Others			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	—		$	5,335
Charges for current period	—			1,476			50			367			1,893
Adjustments to restructuring provisions	47			—			(23		)	—			24
Cash payments	(1,409		)	(382		)	(1,324		)	(252		)	(3,367		)
Others	(382		)	—			(62		)	—			(444		)
Balance at September 27, 2019	$	1,182		$	1,094		$	1,050		$	115		$	3,441

(1) “TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

TVN VDP

The amount of restructuring-related costs recorded for the nine months ended September 27, 2019 was immaterial. The amount of restructuring-related costs recorded for the nine months ended September 28, 2018 was $1.8 million. The TVN VDP liability balance as of September 27, 2019 was $1.1 million, payable through 2020.

Convertible Notes, Other Debts And Finance Lease

9 Months Ended

Sep. 27, 2019

Debt Disclosure [Abstract]

Convertible Notes, Other Debts And Capital Leases

CONVERTIBLE NOTES, OTHER DEBTS AND FINANCE LEASES

2.00% Convertible Senior Notes due 2024

In September 2019, the Company issued $115.5 million of 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank National Association, as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semiannually on March 1 and September 1 of each year, beginning March 1, 2020. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms.

The 2024 Notes are convertible into cash, shares of the Company’s common stock, par value $0.001 (“Common Stock”), or a combination thereof, at the Company’s election, at an initial conversion rate of 115.5001 shares of Common Stock per $1,000 principal amount of 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 per share). The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture.

Prior to the close of business on the business day immediately preceding June 1, 2024, the 2024 Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on December 31, 2019, and only during such fiscal quarter, if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the 2024 Notes on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Common Stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2024 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or any portion of their 2024 Notes regardless of the foregoing conditions.

The Company may not redeem the 2024 Notes prior to September 6, 2022. The Company may redeem for cash all or any portion of the 2024 Notes at its option, on or after September 6, 2022, if the last reported sale price of its Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice at a redemption price equal to 100% of the principal amount of the 2024 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

If a fundamental change occurs, holders of the 2024 Notes may require the Company to purchase all or any portion of their 2024 Notes for cash at a repurchase price equal to 100% of the principal amount of the 2024 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Concurrent with the closing of the 2024 Notes, the Company used $109.6 million of the proceeds to repurchase a portion of the outstanding principal of the 4.00% Senior Convertible Notes due 2020 (the “2020 Notes”) in privately negotiated transactions. In addition, the Company paid $0.9 million in accrued and unpaid interest on the repurchased portion and incurred approximately $4.3 million of debt issuance cost, resulting in net proceeds to the Company of approximately $0.7 million, which was used to fund general corporate expenses.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2024 Notes is being amortized to interest expense at the effective interest rate over the contractual term of the 2024 Notes. The following table presents the components of the 2024 Notes as of September 27, 2019 (in thousands, except for years and percentages):



	September 27, 2019
Liability:
Principal amount	$	115,500
Less: Debt discount, net of amortization	(24,686		)
Less: Debt issuance costs, net of amortization	(3,350		)
Carrying amount	$	87,464
Remaining amortization period (years)	4.9
Effective interest rate on liability component	7.95		%

4.00% Convertible Senior Notes due 2020

In December 2015, the Company issued $128.25 million in aggregate principal amount of the 2020 Notes pursuant to an indenture (the “2020 Notes Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The 2020 Notes bear interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year and the 2020 Notes will mature on December 1, 2020 unless earlier repurchased or converted.

In September 2019, the Company used approximately $109.6 million of the net proceeds from the issuance of the 2024 Notes to repurchase $82.5 million aggregate principal of the 2020 Notes in privately negotiated transactions. The repurchase of the 2020 Notes was accounted for as a debt extinguishment, and the consideration transferred was allocated between the equity and liability components by determining the fair value of the conversion option immediately prior to the debt extinguishment and allocating that portion of the repurchase price to additional paid-in capital for $27.1 million, with the residual repurchase price allocated to the liability component, respectively. The partial repurchase of the 2020 Notes resulted in the recognition of a $5.7 million loss on debt extinguishment for the three months ended September 27, 2019.

The 2020 Notes are convertible into cash, shares of the Company’s Common Stock, or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of 2020 Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances, in each case, as set forth in the 2020 Notes Indenture.

Prior to the close of business on the business day immediately preceding September 1, 2020, the 2020 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 2020 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 2020 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 2020 Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances. The 2020 Notes do not have a redemption feature.

If a fundamental change occurs, holders of the 2020 Notes may require the Company to purchase all or any portion of their 2020 Notes for cash at a repurchase price equal to 100% of the principal amount of the 2020 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2020 Notes was initially valued at $26.1 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2020 Notes is being amortized to interest expense at the effective interest rate over the contractual term of the 2020 Notes. The following table presents the components of the 2020 Notes as of September 27, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	September 27, 2019			December 31, 2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,706		)	(11,996		)
Less: Debt issuance costs, net of amortization	(326		)	(1,446		)
Carrying amount	$	42,753		$	114,808
Remaining amortization period (years)	1.2			1.9
Effective interest rate on liability component	9.94		%	9.94		%

The following table presents interest expense recognized for the 2020 Notes and 2024 Notes (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Contractual interest expense	$	1,235	$	1,283	$	3,800	$	3,848
Amortization of debt discount	1,513		1,364		4,425		4,001
Amortization of debt issuance costs	185		164		535		481
Total interest expense recognized	$	2,933	$	2,811	$	8,760	$	8,330

Other Debts and Finance 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):



	September 27, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	16,607		$	18,783
Term loans	655			914
Obligations under finance leases	84			162
Total debt obligations	17,346			19,859
Less: current portion	(6,962		)	(7,175		)
Long-term portion	$	10,384		$	12,684

(1) As of September 27, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $14.7 million and $16.7 million, respectively. As of September 27, 2019, the TVN French Subsidiary had an aggregate of $22.3 million of R&D tax credit receivables from the French government from 2020 through 2023. See Note 8, “Balance Sheet Components” for additional information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2020 through 2022. The remaining loans of $1.9 million at September 27, 2019, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2019 through 2025.

Future minimum repayments

The table below presents the future minimum repayments of debts and finance lease obligations for TVN as of September 27, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining three months)	$	62	$	704
2020	22		6,313
2021	—		5,095
2022	—		4,783
2023	—		148
Thereafter	—		219
Total	$	84	$	17,262

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 provided 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 could exceed up to 85% of the Company’s eligible receivables. Under the terms of the Loan Agreement, the Company could request letters of credit from the Bank.

The Loan Agreement with the Bank was terminated effective September 10, 2019, in conjunction with the issuance of the 2024 Notes. There were no borrowings under the Loan Agreement prior to the termination, except $2.1 million committed towards security for letters of credit, which were unsecured as of September 27, 2019. The Company was in compliance with the covenants under the Loan Agreement prior to the termination.

Employee Benefit Plans and Stock-based Compensation

9 Months Ended

Sep. 27, 2019

Share-based Payment Arrangement [Abstract]

Employee Benefit Plans and Stock-based compensation

EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION

Equity Award Plans

The Company’s stock benefit plans include the 2002 Employee Stock Purchase Plan (“ESPP”) and current active stock plans adopted in 1995 and 2002. See Note 12, “Employee Benefit Plans and Stock-based Compensation” of Notes to Consolidated Financial Statements in the 2018 Form 10-K for details pertaining to each plan.

The Company’s stockholders approved an amendment to the ESPP at the 2019 annual meeting of stockholders (the “2019 Annual Meeting”) to increase the number of shares of common stock reserved for issuance under the ESPP by 1,000,000 shares. The Company’s stockholders also approved an amendment to the 1995 Stock Plan at the 2019 Annual Meeting to increase the number of shares of common stock reserved for issuance thereunder by 3,500,000 shares. As of September 27, 2019, there were 1.2 million and 5.1 million shares of common stock reserved for future grants under the Company’s ESPP and active stock plans, respectively.

Stock Option Activities

The following table summarizes the Company’s stock option activities and related information during the nine months ended September 27, 2019 (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, 2018	3,068		$	5.76
Exercised	(308	)	4.85
Canceled or expired	(379	)	6.14
Balance at September 27, 2019	2,381		5.81		2.0	$	2,719.0
As of September 27, 2019
Vested and expected to vest	2,381		5.81		2.0	$	2,719.0
Exercisable	2,380		5.82		2.0	$	2,715.6

The aggregate intrinsic value disclosed above represents the difference between the exercise price of the options and the fair value of the Company’s common stock. There were no employee stock options granted in the nine months ended September 27, 2019.

There were no realized tax benefits attributable to stock options exercised in jurisdictions where this expense is deductible for tax purposes for the nine months ended September 27, 2019 and September 28, 2018, respectively.

Restricted Stock Units (“RSUs”) Activities

The following table summarizes the Company’s RSUs activities and related information during the nine months ended September 27, 2019 (in thousands, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	2,671		5.75
Vested	(2,126	)	3.96
Forfeited	(72	)	4.90
Balance at September 27, 2019	3,876		5.10

Market-based awards

In the second quarter of 2019, the Company granted 200,000 market-based RSUs (“MRSUs”) under the 1995 Stock Plan to a key executive that is expected to vest during a three-year period. The vesting condition for the MRSUs include performance of the Company’s total shareholder return (“TSR”) relative to the TSR of the NASDAQ Telecommunication Index. The aggregate grant-date fair value of these shares was estimated to be $1.1 million using a Monte-Carlo simulation valuation method. The stock-based compensation recognized for the MRSUs for the three and nine months ended September 27, 2019 was $0.1 million and $0.2 million, respectively. The unrecognized stock-based compensation of the MRSUs as of September 27, 2019 was $0.9 million. None of these MRSUs had vested as of September 27, 2019.

French Retirement Benefit Plan

The Company assumed obligations under a defined benefit pension plan in connection with the acquisition of TVN in 2016. The plan is unfunded and there are no contributions required by laws or funding regulations, discretionary contributions or non-cash contributions expected to be made. The table below presents the components of net periodic benefit costs (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Service cost	$	57	$	59	$	171	$	185
Interest cost	20		18		59		56
Net periodic benefit cost	$	77	$	77	$	230	$	241

The present value of the Company’s pension obligation as of September 27, 2019 was $4.9 million, of which $0.1 million was reported as a component of “Accrued and other current liabilities” and $4.8 million was reported as a component of “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets. The present value of the Company’s pension obligation as of December 31, 2018 was $4.9 million.

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 has made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. The contributions for the nine months ended September 27, 2019 and September 28, 2018 were $245,000 and $259,000, respectively.

Stock-based Compensation

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Stock-based compensation in:
Cost of revenue	$	410	$	614	$	830	$	1,577
Research and development expense	1,120		1,676		2,318		4,298
Selling, general and administrative expense	2,566		3,143		5,571		8,327
Total stock-based compensation in operating expense	3,686		4,819		7,889		12,625
Total stock-based compensation	$	4,096	$	5,433	$	8,719	$	14,202

As of September 27, 2019, total unrecognized stock-based compensation cost related to unvested RSUs was $15.7 million and is expected to be recognized over a weighted-average period of approximately 1.49 years.

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.



	ESPP Purchase Period Ending
	December 31, 2019		July 1, 2019		December 31, 2018		July 2, 2018
Expected term (years)	0.5		0.5		0.5		0.5
Volatility	33	%	43	%	51	%	60	%
Risk-free interest rate	2.1	%	2.5	%	2.1	%	1.7	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$1.36		$1.31		$1.32		$1.34

The expected term of the stock purchase rights under the 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 assumption 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.

Income Taxes

9 Months Ended

Sep. 27, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company reported the following operating results for the periods presented (in thousands):



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Income (loss) before income taxes	$	12,260		$	(6,888	)	$	(10,513	)	$	(21,526	)
Provision for income taxes	603			870			981			2,839
Effective income tax rate	4.9		%	(12.6		)%	(9.3		)%	(13.2		)%

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, or 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 one-time, discrete items that benefited or decremented the tax rates in the previous years.

The Company's effective income tax rate of (9.3)% for the nine months ended September 27, 2019 was different 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. In addition, during the nine months ended September 27, 2019, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries. This release of valuation allowance was due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the first quarter of 2019.

The Company's effective income tax rate of (13.2)% for the nine months ended September 28, 2018 was different from the U.S. federal statutory rate of 21%, primarily due to the Company’s geographical income mix and tax rates associated with certain earnings from operations in lower-tax jurisdictions, 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 discrete tax adjustments. For the nine months ended September 28, 2018, the discrete adjustments to the Company's tax expense were primarily withholding taxes.

The Company files U.S. federal and state, and foreign income tax returns in jurisdictions with varying statutes of limitations during which such tax returns may be audited and adjusted by the relevant tax authorities. The 2015 through 2018 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In significant foreign jurisdictions, the 2013 through 2018 tax years generally remain subject to examination by their respective tax authorities. If, upon the conclusion of an audit, the ultimate determination of taxes owed in the jurisdictions under audit 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.

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 June 7, 2019, the Ninth Circuit overturned the earlier Tax Court decision and ruled to include share-based compensation in the cost sharing pool. The company continues to include share-based compensation in the cost base consistent with the Ninth Circuit’s ruling.

As of September 27, 2019, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $17.3 million, of which $16.2 million would affect the Company’s effective tax rate if the benefits are eventually recognized, subject to valuation allowance considerations. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $28 thousand of gross interest and penalties accrued as of September 27, 2019. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. For the nine months ended September 27, 2019, the Company released $0.6 million of unrecognized tax benefits due to closures of tax audits in foreign jurisdictions.

Net Income (Loss) Per Share

9 Months Ended

Sep. 27, 2019

Earnings Per Share [Abstract]

Income (Loss) Per Share

NET INCOME (LOSS) PER SHARE

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



	Three months ended					Nine months ended
	September 27, 2019		September 28, 2018			September 27, 2019			September 28, 2018
Numerator:
Net income (loss)	$	11,657	$	(7,758	)	$	(11,494	)	$	(24,365	)
Denominator:
Weighted average number of common shares outstanding
Basic	89,964		86,321			89,030			85,188
Effect of dilutive securities from stock options, restricted stock units and ESPP	1,855		—			—			—
Effect of dilutive securities from convertible debt	3,468		—			—			—
Effect of dilutive securities from warrant	2,309		—			—			—
Diluted shares	97,596		86,321			89,030			85,188
Net income (loss) per share:
Basic	$	0.13	$	(0.09	)	$	(0.13	)	$	(0.29	)
Diluted	$	0.12	$	(0.09	)	$	(0.13	)	$	(0.29	)

Basic net loss per share was the same as diluted net loss per share for the three months ended September 28, 2018 and nine months ended September 27, 2019 and September 28, 2018, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the periods presented. The following table sets forth the potential weighted common shares outstanding and the anti-dilutive weighted shares that were excluded from the computation of basic and diluted net income (loss) per share calculations (in thousands):



	Three months ended		Nine months ended
	September 27, 2019	September 28, 2018	September 27, 2019	September 28, 2018
Stock options	678	3,219	2,699	3,386
RSUs	8	3,266	2,860	2,933
Stock purchase rights under the ESPP	—	529	475	635
Convertible Debt	—	—	1,156	—
Warrants ⁽¹⁾	—	1,555	4,128	1,039
Total	686	8,569	11,318	7,993

(1) See Note 15, “Warrants” for additional information.

The Company’s intent is to settle the principal amount of the 2020 Notes and the 2024 Notes in cash. The treasury stock method is used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable.


•	The conversion spread of 7,962,609 shares 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 for the 2020 Notes.


•	The conversion spread of 13,337,182 shares 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 $8.66 per share for the 2024 Notes.

See Note 11, “Convertible Notes, Other Debts and Finance Leases” for additional information on the 2020 Notes and the 2024 Notes.

Warrants	9 Months Ended
Warrants	Sep. 27, 2019
Equity [Abstract]
Warrants Disclosure	WARRANTS On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76. 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. Prior to the third quarter of fiscal 2019, Comcast had vested in 1,954,042 Warrant shares as a result of the achievement of certain milestones. In July 2019, in connection with entering into the Comcast CableOS software license agreement, the Company deemed that all of the remaining milestones and thresholds required to fulfill each of the vesting requirements of the Warrant were satisfied and achieved or otherwise waived such that all Warrant shares were fully vested and exercisable as of July 1, 2019. The remaining terms of the Warrant have not been modified or amended. The fair value of the Warrant was considered as a payment made to the customer in the form of an equity instrument, and therefore was reduced from the transaction price of the Comcast CableOS software license agreement. As of September 27, 2019, the total fair value of the Warrant was $19.6 million, which includes $3.5 million in unamortized fair value for the Warrant shares which were vested prior to July 2019. The fair value of the Warrant that vested in connection with the CableOS software license agreement was estimated to be $16.1 million on July 8, 2019, using the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model included the risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate was based on the U.S. Treasury yield curve rates with maturity terms similar to the expected life of the Warrant, which was determined to be 1.9%. Expected volatility was determined utilizing historical volatility over a period of time equal to the expected life of the Warrant, which was determined to be 48.6%. Expected life was equal to the remaining contractual term of the Warrant, which was determined to be 4.2 years. The dividend yield was assumed to be zero since the Company had not historically declared dividends and did not have any plans to declare dividends in the future. The fair value of the Warrant was recorded as a component of “Prepaid expenses and other current assets” and “Other long-term assets” with a corresponding offset to “Additional paid-in capital” on the Company’s Condensed Consolidated Balance Sheets. This asset will be amortized as a reduction to the Company’s revenue, based on the recognition pattern of the related transaction price. During the three and nine months ended September 27, 2019, the Company recorded $13.1 million, as a reduction to revenues in connection with amortization of the Warrant. During the three and nine months ended September 28, 2018, the Company recorded $0.8 million and $1.2 million, respectively, as a reduction to revenues in connection with amortization of the Warrant.

Segment Information

9 Months Ended

Sep. 27, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engages in business activities for which separate financial information is available and evaluated by the Company’s Chief Operating Decision Maker (the “CODM”), which for Harmonic 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 sells 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 sells cable access solutions and related services to cable operators globally.

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



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019		September 28, 2018
Video
Revenue	$	60,055		$	73,344		$	198,856	$	224,300
Gross profit	34,646			41,937			114,692		126,721
Operating income (loss)	(1,696		)	5,258			4,731		13,492
Cable Access
Revenue	$	55,670		$	27,272		$	81,840	$	65,603
Gross profit	42,925			10,081			52,056		28,513
Operating income (loss)	31,611			(395		)	18,523		(1,763		)
Total
Revenue	$	115,725		$	100,616		$	280,696	$	289,903
Gross profit	77,571			52,018			166,748		155,234
Operating income	$	29,915		$	4,863		$	23,254	$	11,729

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



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Total segment operating income	$	29,915		$	4,863		$	23,254		$	11,729
Unallocated corporate expenses	(1,190		)	(994		)	(1,916		)	(3,582		)
Stock-based compensation	(4,096		)	(5,433		)	(8,719		)	(14,202		)
Amortization of intangibles	(2,080		)	(2,087		)	(6,242		)	(6,281		)
Income (loss) from operations	22,549			(3,651		)	6,377			(12,336		)
Non-operating expense, net	(10,289		)	(3,237		)	(16,890		)	(9,190		)
Income (loss) before income taxes	$	12,260		$	(6,888	)	$	(10,513	)	$	(21,526	)

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Net Revenue (in thousands) ⁽¹⁾
United States	$	73,566	$	44,694	$	139,391	$	126,938
Other Countries	42,159		55,922		141,305		162,965
Total	$	115,725	$	100,616	$	280,696	$	289,903

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

Market Information



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Market (in thousands)
Service Provider	$	77,886	$	66,737	$	165,536	$	173,096
Broadcast and Media	37,839		33,879		115,160		116,807
Total	$	115,725	$	100,616	$	280,696	$	289,903

Commitments and Contingencies

9 Months Ended

Sep. 27, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Warranties

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



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Balance at beginning of period	$	4,802		$	4,647		$	4,869		$	4,381
Accrual for current period warranties	1,170			1,563			4,143			5,013
Warranty costs incurred	(1,391		)	(1,461		)	(4,431		)	(4,645		)
Balance at end of period	$	4,581		$	4,749		$	4,581		$	4,749

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 $45.8 million of non-cancelable commitments to purchase inventories and other commitments as of September 27, 2019.

Standby Letters of Credit and Guarantees

As of September 27, 2019 and December 31, 2018, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.5 million and $2.3 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 Company. There were no amounts outstanding under this credit facility as of September 27, 2019 and December 31, 2018, respectively.

Indemnification

Harmonic is obligated to indemnify its officers and the members of its Board of Directors (the “Board”) pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of these indemnification provisions through September 27, 2019.

Legal proceedings

From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably 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.

Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 27, 2019

Accounting Policies [Abstract]

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.

Reclassification

Reclassifications

Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements.

Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statements of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The Company has also reclassified revenue into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue did not have an impact on total revenue or any segment revenue for any periods presented.

Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2018 Form 10-K. There have been no significant changes to these policies during the nine months ended September 27, 2019 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Accounting Standards Codification (ASC) Topic 842, “Leases”

On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification.

Adoption of the standard resulted in the balance sheet recognition of additional lease assets and liabilities of approximately $23.3 million; however, the adoption of the standard did not have an impact on the Company’s beginning retained earnings, results from operations or cash flows. See Note 4, “Leases” for additional information.

ASU No. 2018-07, Compensation-Stock Compensation (Topic 718)

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 Company adopted this new standard in the first quarter of fiscal 2019, and the adoption resulted in an adjustment of $1.4 million as the cumulative effect adjustment to opening retained earnings relating to the accounting of warrants which were previously granted to Comcast. This represents the cumulative impact of the remeasurement of unvested Comcast warrants on the date of adoption. See Note 15, “Warrants” for additional information.

ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)

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.

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.

Recently Issued Accounting Pronouncements

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 adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance will become effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted upon issuance of this updated guidance. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. The Company does not currently hold any level 3 assets or liabilities which require recurring measurements and the Company expects the impact to its disclosure will be relatively limited.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Revenue

Derivatives and Hedging Activities

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

Offsetting of Derivative Assets and Liabilities

Fair Value of Financial Instruments


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

•


•	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.

Goodwill and Intangible Assets, Goodwill

Share-based Compensation Expense

Segment Information

Unallocated Corporate Expenses

Warranties and Indemnification

Revenue (Tables)

9 Months Ended

Sep. 27, 2019

Revenue from Contract with Customer [Abstract]

Contract assets and Deferred Revenue

Contract assets and deferred revenue consisted of the following (in thousands):



	As of
	September 27, 2019		December 31, 2018
Contract assets	$	6,774	$	3,834
Deferred revenue	54,817		46,922

Lease (Tables)

9 Months Ended

Sep. 27, 2019

Leases [Abstract]

Components of Lease Expenses

The components of lease expense are as follows (in thousands):



	Three months ended		Nine months ended
	September 27, 2019		September 27, 2019
Operating lease cost	$	2,641	$	6,868
Variable lease cost	837		2,360
Total lease cost	$	3,478	$	9,228

Supplemental cash flow information related to leases are as follows (in thousands):



	Three months ended		Nine months ended
	September 27, 2019		September 27, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,655	$	6,937
ROU assets obtained in exchange for operating lease obligations	$	—	$	10,305

Other information related to leases are as follows:



	Nine months ended
	September 27, 2019
Operating leases
Weighted-average remaining lease term (years)	7.2
Weighted-average discount rate	6.8	%

Future Minimum Lease Payments under non-cancellable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of September 27, 2019 are as follows (in thousands):



Years ending December 31,
2019 (remaining three months)	$	2,795
2020	9,429
2021	5,732
2022	4,360
2023	4,131
Thereafter	20,347
Total future minimum lease payments	$	46,794
Less: imputed interest	(10,954		)
Total	$	35,840

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows (in thousands):



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

Derivative and Hedging Activities (Tables)

9 Months Ended

Sep. 27, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments gain and losses by Statement of Operations locations

Losses on the non-designated derivative instruments recognized during the periods presented were as follows (in thousands):



		Three months ended						Nine months ended
	Financial Statement Location	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Derivatives not designated as hedging instruments:
Losses recognized in income	Other expense, net	$	(1,357	)	$	(30	)	$	(1,966	)	$	(1,412	)

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):



	September 27, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Purchase	$	26,233	$	28,975

Schedule of Derivatives Instruments Balance Sheet Location

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



		Asset Derivatives					Derivative Liabilities
	Balance Sheet Location	September 27, 2019		December 31, 2018		Balance Sheet Location	September 27, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	—	$	—	Accrued and other current liabilities	$	182	$	333
Total derivatives		$	—	$	—		$	182	$	333

Changes in fair values of non-designated foreign currency forward contracts

As of September 27, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets
Derivative liabilities	$	182	—	$	182

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 27, 2019

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 September 27, 2019
Accrued and other current liabilities
Derivative liabilities	$	—	$	182	$	—	$	182
Total liabilities measured and recorded at fair value	$	—	$	182	$	—	$	182
	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

Balance Sheet Components (Tables)

9 Months Ended

Sep. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

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



	September 27, 2019			December 31, 2018
Accounts receivable, net:
Accounts receivable	$	103,460		$	85,292
Less: allowances for doubtful accounts and sales returns	(2,555		)	(3,497		)
Total	$	100,905		$	81,795

Inventories



	September 27, 2019		December 31, 2018
Inventories:
Raw materials	$	1,218	$	1,705
Work-in-process	1,329		991
Finished goods	16,377		12,267
Service-related spares	10,046		10,675
Total	$	28,970	$	25,638

Prepaid, and Other Current Assets



	September 27, 2019		December 31, 2018
Prepaid expenses and other current assets:
Deferred cost of revenue	$	9,290	$	3,671
Prepaid expenses	7,595		4,834
French R&D tax credits receivable⁽¹⁾	7,172		7,305
Contract assets⁽²⁾	6,774		3,834
Capitalized sales commissions	1,378		1,098
Other	8,108		2,538
Total	$	40,317	$	23,280

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

Property, Plant and Equipment



	September 27, 2019			December 31, 2018
Property and equipment, net:
Machinery and equipment	$	75,321		$	75,094
Capitalized software	33,760			32,696
Leasehold improvements	15,050			14,951
Furniture and fixtures	6,001			6,049
Property and equipment, gross	130,132			128,790
Less: accumulated depreciation and amortization	(111,231		)	(106,469		)
Total	$	18,901		$	22,321

Other Long Term Assets



	September 27, 2019		December 31, 2018
Other long-term assets:
French R&D tax credits receivable	$	15,131	$	19,249
Deferred tax assets	8,500		8,695
Equity investment	3,593		3,593
Other	12,248		6,840
Total	$	39,472	$	38,377

Accrued Liabilities



	September 27, 2019		December 31, 2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	17,270	$	21,451
Operating lease liability (short-term)	9,453		—
Accrued warranty	4,581		4,869
Contingent inventory reserves	2,143		2,500
Accrued Avid litigation settlement, current	2,000		1,500
Accrued TVN VDP, current ⁽³⁾	1,106		1,585
Others	22,707		20,856
Total	$	59,260	$	52,761

(3) See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Other Non-current Liabilities



	September 27, 2019		December 31, 2018
Other non-current liabilities:
Operating lease liability (long-term)	$	25,395	$	—
Deferred revenue (long-term)	6,944		5,330
Others	7,497		12,898
Total	$	39,836	$	18,228

Goodwill and Identified Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 27, 2019 were as follows (in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618
Foreign currency translation adjustment, net	(1,869		)	(15		)	(1,884		)
Balance as of September 27, 2019	$	177,970		$	60,764		$	238,734

Summary of Goodwill and Identified Intangible Assets

The following is a summary of intangible assets, net (in thousands):



		September 27, 2019							December 31, 2018
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	0.4	$	31,707	$	(29,461	)	$	2,246	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.4	44,501		(40,291		)	4,210		44,650		(38,146		)	6,504
Trademarks and trade names	0.4	595		(533		)	62		623		(441		)	182
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,056		(3,056		)	—		3,112		(3,112		)	—
Total identifiable intangibles, net		$	85,359	$	(78,841	)	$	6,518	$	85,592	$	(72,775	)	$	12,817

Amortization Expense for Identifiable Purchased Intangible Assets

Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 27, 2019 and September 28, 2018 was allocated as follows (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Included in cost of revenue	$	1,295	$	1,295	$	3,885	$	3,885
Included in operating expenses	785		792		2,357		2,396
Total amortization expense	$	2,080	$	2,087	$	6,242	$	6,281

Estimated Future Amortization Expense of Purchased Intangible Assets

The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019 (remaining three months)	$	1,295	$	780	$	2,075
2020	951		2,997		3,948
2021	—		495		495
Total future amortization expense	$	2,246	$	4,272	$	6,518

Restructuring and Related Charges (Tables)

9 Months Ended

Sep. 27, 2019

Restructuring and Related Activities [Abstract]

Summary of restructuring activities

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Restructuring and related charges in:
Cost of revenue	$	331	$	7	$	723	$	884
Operating expenses - Restructuring and related charges	861		987		1,194		2,704
Total restructuring and related charges	$	1,192	$	994	$	1,917	$	3,588

Schedule of Restructuring Reserve by Type of Cost

The following table summarizes the activities related to the Company’s restructuring plans during the nine months ended September 27, 2019 (in thousands):



	Excess facilities			Severance and benefits			TVN VDP ⁽¹⁾			Others			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	—		$	5,335
Charges for current period	—			1,476			50			367			1,893
Adjustments to restructuring provisions	47			—			(23		)	—			24
Cash payments	(1,409		)	(382		)	(1,324		)	(252		)	(3,367		)
Others	(382		)	—			(62		)	—			(444		)
Balance at September 27, 2019	$	1,182		$	1,094		$	1,050		$	115		$	3,441

Convertible Notes, Other Debts And Finance Lease (Tables)

9 Months Ended

Sep. 27, 2019

Convertible Debt Interest

The following table presents interest expense recognized for the 2020 Notes and 2024 Notes (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Contractual interest expense	$	1,235	$	1,283	$	3,800	$	3,848
Amortization of debt discount	1,513		1,364		4,425		4,001
Amortization of debt issuance costs	185		164		535		481
Total interest expense recognized	$	2,933	$	2,811	$	8,760	$	8,330

Schedule of Other Debt 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):



	September 27, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	16,607		$	18,783
Term loans	655			914
Obligations under finance leases	84			162
Total debt obligations	17,346			19,859
Less: current portion	(6,962		)	(7,175		)
Long-term portion	$	10,384		$	12,684

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of debts and finance lease obligations for TVN as of September 27, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining three months)	$	62	$	704
2020	22		6,313
2021	—		5,095
2022	—		4,783
2023	—		148
Thereafter	—		219
Total	$	84	$	17,262

Convertible Note due 2024

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2024 Notes as of September 27, 2019 (in thousands, except for years and percentages):



	September 27, 2019
Liability:
Principal amount	$	115,500
Less: Debt discount, net of amortization	(24,686		)
Less: Debt issuance costs, net of amortization	(3,350		)
Carrying amount	$	87,464
Remaining amortization period (years)	4.9
Effective interest rate on liability component	7.95		%

Convertible Note due 2020

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2020 Notes as of September 27, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	September 27, 2019			December 31, 2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,706		)	(11,996		)
Less: Debt issuance costs, net of amortization	(326		)	(1,446		)
Carrying amount	$	42,753		$	114,808
Remaining amortization period (years)	1.2			1.9
Effective interest rate on liability component	9.94		%	9.94		%

Employee Benefit Plans and Stock-based Compensation (Tables)

9 Months Ended

Sep. 27, 2019

Share-based Payment Arrangement [Abstract]

Summary of Stock Options Outstanding

The following table summarizes the Company’s stock option activities and related information during the nine months ended September 27, 2019 (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, 2018	3,068		$	5.76
Exercised	(308	)	4.85
Canceled or expired	(379	)	6.14
Balance at September 27, 2019	2,381		5.81		2.0	$	2,719.0
As of September 27, 2019
Vested and expected to vest	2,381		5.81		2.0	$	2,719.0
Exercisable	2,380		5.82		2.0	$	2,715.6

Summary of Restricted Stock Units Outstanding

The following table summarizes the Company’s RSUs activities and related information during the nine months ended September 27, 2019 (in thousands, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	2,671		5.75
Vested	(2,126	)	3.96
Forfeited	(72	)	4.90
Balance at September 27, 2019	3,876		5.10

Schedule of Defined Benefit Plans Obligations

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Service cost	$	57	$	59	$	171	$	185
Interest cost	20		18		59		56
Net periodic benefit cost	$	77	$	77	$	230	$	241

Summary of Stock-Based Compensation Expense

Stock-based Compensation

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Stock-based compensation in:
Cost of revenue	$	410	$	614	$	830	$	1,577
Research and development expense	1,120		1,676		2,318		4,298
Selling, general and administrative expense	2,566		3,143		5,571		8,327
Total stock-based compensation in operating expense	3,686		4,819		7,889		12,625
Total stock-based compensation	$	4,096	$	5,433	$	8,719	$	14,202

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions



	ESPP Purchase Period Ending
	December 31, 2019		July 1, 2019		December 31, 2018		July 2, 2018
Expected term (years)	0.5		0.5		0.5		0.5
Volatility	33	%	43	%	51	%	60	%
Risk-free interest rate	2.1	%	2.5	%	2.1	%	1.7	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$1.36		$1.31		$1.32		$1.34

Income Taxes (Tables)

9 Months Ended

Sep. 27, 2019

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The Company reported the following operating results for the periods presented (in thousands):



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Income (loss) before income taxes	$	12,260		$	(6,888	)	$	(10,513	)	$	(21,526	)
Provision for income taxes	603			870			981			2,839
Effective income tax rate	4.9		%	(12.6		)%	(9.3		)%	(13.2		)%

Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 27, 2019

Earnings Per Share [Abstract]

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

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



	Three months ended					Nine months ended
	September 27, 2019		September 28, 2018			September 27, 2019			September 28, 2018
Numerator:
Net income (loss)	$	11,657	$	(7,758	)	$	(11,494	)	$	(24,365	)
Denominator:
Weighted average number of common shares outstanding
Basic	89,964		86,321			89,030			85,188
Effect of dilutive securities from stock options, restricted stock units and ESPP	1,855		—			—			—
Effect of dilutive securities from convertible debt	3,468		—			—			—
Effect of dilutive securities from warrant	2,309		—			—			—
Diluted shares	97,596		86,321			89,030			85,188
Net income (loss) per share:
Basic	$	0.13	$	(0.09	)	$	(0.13	)	$	(0.29	)
Diluted	$	0.12	$	(0.09	)	$	(0.13	)	$	(0.29	)

Anti-dilutive Securities

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



	Three months ended		Nine months ended
	September 27, 2019	September 28, 2018	September 27, 2019	September 28, 2018
Stock options	678	3,219	2,699	3,386
RSUs	8	3,266	2,860	2,933
Stock purchase rights under the ESPP	—	529	475	635
Convertible Debt	—	—	1,156	—
Warrants ⁽¹⁾	—	1,555	4,128	1,039
Total	686	8,569	11,318	7,993

Segment Information (Tables)

9 Months Ended

Sep. 27, 2019

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019		September 28, 2018
Video
Revenue	$	60,055		$	73,344		$	198,856	$	224,300
Gross profit	34,646			41,937			114,692		126,721
Operating income (loss)	(1,696		)	5,258			4,731		13,492
Cable Access
Revenue	$	55,670		$	27,272		$	81,840	$	65,603
Gross profit	42,925			10,081			52,056		28,513
Operating income (loss)	31,611			(395		)	18,523		(1,763		)
Total
Revenue	$	115,725		$	100,616		$	280,696	$	289,903
Gross profit	77,571			52,018			166,748		155,234
Operating income	$	29,915		$	4,863		$	23,254	$	11,729

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

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



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Total segment operating income	$	29,915		$	4,863		$	23,254		$	11,729
Unallocated corporate expenses	(1,190		)	(994		)	(1,916		)	(3,582		)
Stock-based compensation	(4,096		)	(5,433		)	(8,719		)	(14,202		)
Amortization of intangibles	(2,080		)	(2,087		)	(6,242		)	(6,281		)
Income (loss) from operations	22,549			(3,651		)	6,377			(12,336		)
Non-operating expense, net	(10,289		)	(3,237		)	(16,890		)	(9,190		)
Income (loss) before income taxes	$	12,260		$	(6,888	)	$	(10,513	)	$	(21,526	)

Revenue from External Customers by Geographic Areas



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Net Revenue (in thousands) ⁽¹⁾
United States	$	73,566	$	44,694	$	139,391	$	126,938
Other Countries	42,159		55,922		141,305		162,965
Total	$	115,725	$	100,616	$	280,696	$	289,903

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

Revenue from External Customers by Products and Services

Market Information



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Market (in thousands)
Service Provider	$	77,886	$	66,737	$	165,536	$	173,096
Broadcast and Media	37,839		33,879		115,160		116,807
Total	$	115,725	$	100,616	$	280,696	$	289,903

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 27, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Warranty Accrual Included in Accrued Liabilities

Activity for the Company’s warranty accrual, which is included in “Accrued and other current liabilities”, is summarized below (in thousands):



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Balance at beginning of period	$	4,802		$	4,647		$	4,869		$	4,381
Accrual for current period warranties	1,170			1,563			4,143			5,013
Warranty costs incurred	(1,391		)	(1,461		)	(4,431		)	(4,645		)
Balance at end of period	$	4,581		$	4,749		$	4,581		$	4,749

Recent Accounting Pronouncements - Narratives (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 01, 2019	Sep. 27, 2019	Sep. 27, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 27,694	$ 27,694
Operating Lease, Liability		35,840	35,840
Impact of Topic 842 on Statement of Cash Flow		2,655	6,937
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 23,300
Operating Lease, Liability	23,300
Cumulative Effect on Retained Earnings, Net of Tax	0
Impact of Topic 842 on Statement of Cash Flow	0
Accounting Standards Update 2018-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect on Retained Earnings, Net of Tax	$ 1,400
Level 3 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets measured and recorded at fair value		0	0
Financial Liabilities Fair Value Disclosure		$ 0	$ 0

Revenue Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Prepaid Expenses and Other Current Assets [Member]
Capitalized Contract Cost [Line Items]
Contract assets	$ 6,774	$ 3,834
Other Noncurrent Liabilities [Member]
Capitalized Contract Cost [Line Items]
Deferred revenue	$ 54,817	$ 46,922

Revenue Narratives (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Revenue Narratives (Details) - USD ($) $ in Millions	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract with Customer, Liability, Revenue Recognized	$ 6.1	$ 7.8	$ 37.4	$ 43.2
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false]			true
Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year		1 year
Comcast CableOS Software License Agreement [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 110.3		$ 110.3
Comcast CableOS Software License Agreement [Member] \| Minimum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 years		3 years
Comcast CableOS Software License Agreement [Member] \| Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	4 years		4 years
Support and Maintenance Contracts [Member] \| Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year		1 year

Lease - Narratives (Details) - USD ($) $ in Thousands	9 Months Ended
Lease - Narratives (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Jun. 28, 2019
Operating Leased Assets [Line Items]
Operating lease right-of-use assets	$ 27,694
Operating Lease, Liability, Current	9,453
Operating Lease, Liability, Noncurrent	$ 25,395
Minimum [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	11 years
Lessee, Operating Lease, Initial Term Not Capitalized	12 months
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract		11 years
Operating lease right-of-use assets		$ 10,300
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Prepaid Expenses and Other Current Assets [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Lease Incentive Receivable, Current		4,000
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Other Noncurrent Liabilities [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Operating Lease, Liability, Current		14,000
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Accrued Liabilities [Member] \| Leaseholds and Leasehold Improvements [Member]
Operating Leased Assets [Line Items]
Operating Lease, Liability, Noncurrent		$ 300

Lease - Lease Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
Lease - Lease Information (Details) $ in Thousands	Sep. 27, 2019 USD ($)	Sep. 27, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 2,641	$ 6,868
Variable lease cost	837	2,360
Total lease cost	3,478	9,228
Cash paid for amounts included in the measurement of operating lease liabilities	2,655	6,937
Right-of-Use assets obtained in exchange for operating lease obligations	$ 0	$ 10,305
Weighted-average remaining lease term (years), Operating leases	7 years 2 months 12 days	7 years 2 months 12 days
Weighted-average discount rate, Operating leases	6.80%	6.80%

Lease - Future Minimum Lease Payments from non-cancellable Operating Leases (Details) $ in Thousands	Sep. 27, 2019 USD ($)
Leases [Abstract]
2019 (remaining three months)	$ 2,795
2020	9,429
2021	5,732
2022	4,360
2023	4,131
Thereafter	20,347
Total future minimum lease payments	46,794
Less: imputed interest	(10,954)
Operating Lease, Liability	$ 35,840

Leases Future Mimimum Lease Payments under Non Cancellable Operating Lease as of December 31, 2018 (Details) $ 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 future minimum lease payments	$ 39,179

Investments in Equity Securities (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - EDC [Member] - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 27, 2019	Dec. 31, 2018	Oct. 22, 2014
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
Cost-method Investments, Other than Temporary Impairment	$ 0.0
Maximum Exposure to Loss from Investment	3.6	$ 3.6
Variable Interest Entity, Transaction Costs, Amount	$ 0.1	$ 0.1

Derivatives and Hedging Activities - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 27, 2019 USD ($)
Not Designated as Hedging Instrument [Member] \| Forward Contracts [Member]
Derivative [Line Items]
Derivative, Term of Contract	3 months
Israel [Member]
Derivative [Line Items]
Compensating Balance, Amount	$ 1.0

Derivative and Hedging Activities gain losses in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Other Nonoperating Income (Expense) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Losses recognized in income	$ (1,357)	$ (30)	$ (1,966)	$ (1,412)

Derivatives and Hedging Activities Notional Amounts (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Long [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Purchase	$ 26,233	$ 28,975

Derivatives and Hedging Activities Assets Liabilities Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	$ 0	$ 0
Derivative Liability, Current	182	333
Not Designated as Hedging Instrument [Member] \| Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	0	0
Not Designated as Hedging Instrument [Member] \| Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Current	$ 182	$ 333

Derivatives and Hedging Activities Asset and Liability Offset (Details) $ in Thousands	Sep. 27, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities, Gross Amounts of Derivatives	$ 182
Derivative Liabilities, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	0
Net Amounts of Derivatives Liability Presented in the Condensed Consolidated Balance Sheets	$ 182

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy (Detail) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	$ 182	$ 333
Foreign exchange forward contracts [Member] \| Fair Value, Recurring [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	182	333
Level 1 [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	0	0
Level 1 [Member] \| Foreign exchange forward contracts [Member] \| Fair Value, Recurring [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value		0
Level 2 [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	182	333
Level 2 [Member] \| Foreign exchange forward contracts [Member] \| Fair Value, Recurring [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	182	333
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0
Total liabilities measured and recorded at fair value	0
Level 3 [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	$ 0	0
Level 3 [Member] \| Foreign exchange forward contracts [Member] \| Fair Value, Recurring [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value		$ 0

Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018	Dec. 31, 2015
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Debts, Excluding Finance Leases	$ 17,300	$ 19,700
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0
Total liabilities measured and recorded at fair value	0
TVN [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Postemployment Benefits Liability, Current	1,100
Postemployment Benefits Liability		2,400
Other Debts, Excluding Finance Leases	$ 17,262
Convertible Note due 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.00%		4.00%
Convertible Note due 2020 \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 60,300	$ 136,500
Convertible Note due 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Convertible Note due 2024 \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 120,000

Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 103,460	$ 85,292
Less: allowances for doubtful accounts and sales returns	(2,555)	(3,497)
Accounts Receivable, after Allowance for Credit Loss, Current	$ 100,905	$ 81,795

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 1,218	$ 1,705
Work-in-process	1,329	991
Finished goods	16,377	12,267
Service-related spares	10,046	10,675
Inventory, Net	$ 28,970	$ 25,638

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

Sep. 27, 2019

Dec. 31, 2018

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

Deferred cost of revenue

$ 9,290

$ 3,671

Prepaid expenses

7,595

4,834

French R&D tax credits receivable(1)

^[1]

7,172

7,305

Contract assets(2)

^[2]

6,774

3,834

Capitalized sales commissions

1,378

1,098

Other

8,108

2,538

Prepaid Expense and Other Assets, Current

$ 40,317

$ 23,280

[1]

The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche 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. The R&D tax credits receivable at September 27, 2019 were approximately $22.3 million and are expected to be recoverable from 2020 through 2023.

[2]

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

Balance Sheet Components Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2019	Dec. 31, 2018
French R&D tax credits receivable, noncurrent	$ 15,131	$ 19,249
TVN [Member] \| Research Tax Credit Carryforward [Member]
The number of years R&D tax credits can be used to offset against income tax payable after incurred	4 years
Other Noncurrent Assets [Member] \| TVN [Member] \| Research Tax Credit Carryforward [Member]
French R&D tax credits receivable, noncurrent	$ 22,300

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 130,132	$ 128,790
Less: accumulated depreciation and amortization	(111,231)	(106,469)
Property and Equipment, Net	18,901	22,321
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	75,321	75,094
Capitalized Software [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	33,760	32,696
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	15,050	14,951
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 6,001	$ 6,049

Balance Sheet Components - Other Long Term Assets (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
French R&D tax credits receivable	$ 15,131	$ 19,249
Deferred tax assets	8,500	8,695
Equity investment	3,593	3,593
Other	12,248	6,840
Other Assets, Noncurrent	$ 39,472	$ 38,377

Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($)
$ in Thousands

Sep. 27, 2019

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued employee compensation and related expenses

$ 17,270

$ 21,451

Operating lease liability (short-term)

9,453

Accrued warranty

4,581

4,869

Contingent inventory reserves

2,143

2,500

Accrued Avid litigation settlement, current

2,000

1,500

Accrued TVN VDP, current (3)

^[1]

1,106

1,585

Accrued Liabilities, Current

22,707

20,856

$ 59,260

$ 52,761

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

Balance Sheet Components - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Operating lease liability (long-term)	$ 25,395
Deferred revenue (long-term)	6,944	$ 5,330
Others	7,497	12,898
Other Liabilities, Noncurrent	$ 39,836	$ 18,228

Goodwill and Intangible Assets - Narratives (Details) $ in Millions	9 Months Ended
	Sep. 27, 2019 USD ($) ReportingUnit
Goodwill [Line Items]
Number of Reporting Units \| ReportingUnit	2
Goodwill, Impairment Loss \| $	$ 0.0

Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	9 Months Ended
	Sep. 27, 2019 USD ($)
Goodwill [Line Items]
Balance at beginning of period	$ 240,618
Foreign currency translation adjustment, net	(1,884)
Balance at end of period	238,734
Video [Member]
Goodwill [Line Items]
Balance at beginning of period	179,839
Foreign currency translation adjustment, net	(1,869)
Balance at end of period	177,970
Cable Access [Member]
Goodwill [Line Items]
Balance at beginning of period	60,779
Foreign currency translation adjustment, net	(15)
Balance at end of period	$ 60,764

Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 85,359	$ 85,592
Accumulated Amortization	(78,841)	(72,775)
Total future amortization expense	$ 6,518	12,817
Developed Core Technology
Finite-Lived Intangible Assets [Line Items]
Useful Life	4 months 24 days
Gross Carrying Amount	$ 31,707	31,707
Accumulated Amortization	(29,461)	(25,576)
Total future amortization expense	$ 2,246	6,131
Customer relationships/contracts
Finite-Lived Intangible Assets [Line Items]
Useful Life	1 year 4 months 24 days
Gross Carrying Amount	$ 44,501	44,650
Accumulated Amortization	(40,291)	(38,146)
Total future amortization expense	$ 4,210	6,504
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Useful Life	4 months 24 days
Gross Carrying Amount	$ 595	623
Accumulated Amortization	(533)	(441)
Total future amortization expense	62	182
Maintenance Agreements and Related Relationships
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 Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,056	3,112
Accumulated Amortization	(3,056)	(3,112)
Total future amortization expense	$ 0	$ 0

Goodwill and Identified Intangible Assets - Amortization Expense for Identifiable Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Included in cost of revenue	$ 1,295	$ 1,295	$ 3,885	$ 3,885
Included in operating expenses	785	792	2,357	2,396
Total amortization expense	$ 2,080	$ 2,087	$ 6,242	$ 6,281

Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining three months)	$ 2,075
2020	3,948
2021	495
Total future amortization expense	6,518	$ 12,817
Cost of Revenue [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining three months)	1,295
2020	951
2021	0
Total future amortization expense	2,246
Operating Expense [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining three months)	780
2020	2,997
2021	495
Total future amortization expense	$ 4,272

Restructuring and Related Charges - Additional Information (Detail) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Dec. 31, 2018

$ 1,893

3,367

Restructuring Reserve, Current

$ 3,441

3,441

$ 5,335

3,000

3,300

Restructuring Reserve, Noncurrent

400

2,000

Excess facilities

1,409

Excess facilities | Prior Restructuring Plans

1,182

2,926

2,200

Severance and benefits

1,476

382

Severance and benefits | Harmonic 2019 Restructuring Plan [Member]

1,094

1,100

1,500

400

TVN Voluntary Departure Plan

1,100

^[1]

^[1]

1,324

^[1]

1,050

$ 2,409

TVN [Member]

TVN VDP liability balance payable through 2020

$ 1,100

TVN [Member] | TVN Voluntary Departure Plan

$ 1,800

[1]	“TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

Restructuring and Related Charges Restructuring and Related Charges, COS & OPEX (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Restructuring and Related Activities [Abstract]
Cost of revenue - restructuring and related charges	$ 331	$ 7	$ 723	$ 884
Operating expenses - Restructuring and related charges	861	987	1,194	2,704
Restructuring Charges	$ 1,192	$ 994	$ 1,917	$ 3,588

Restructuring and Related Charges Schedule of Restructuring Cost by Types (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

$ 5,335

Adjustments to restructuring provisions

1,893

(3,367)

(444)

$ 3,441

3,441

Excess facilities

Adjustments to restructuring provisions

2,926

(1,409)

(382)

1,182

Severance and benefits

1,476

(382)

TVN Voluntary Departure Plan

1,094

^[1]

2,409

Adjustments to restructuring provisions

^[1]

^[1]

(23)

^[1]

(1,324)

^[1]

(62)

^[1]

1,050

367

(252)

Harmonic 2019 Restructuring Plan [Member] | Severance and benefits

115

1,100

1,500

(400)

$ 1,100

[1]	“TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

Convertible Notes, Other Debts And Finance Lease - Narratives (Details)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 27, 2019

USD ($)

day

$ / shares

Sep. 27, 2019

USD ($)

$ / shares

Sep. 28, 2018

USD ($)

Dec. 31, 2015

USD ($)

day

$ / shares

Sep. 10, 2019

USD ($)

Dec. 31, 2018

USD ($)

$ / shares

Sep. 27, 2017

USD ($)

Payments of Debt Issuance Costs

$ 3,465,000

$ 0

Common stock, par value | $ / shares

$ 0.001

Proceeds from convertible debt

$ 115,500,000

Loss on debt extinguishment

$ 5,695,000

5,695,000

$ 0

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

^[1]

16,607,000

$ 18,783,000

Letters of Credit Outstanding, Amount

2,500,000

2,300,000

TVN [Member]

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

Income Taxes Receivable

$ 22,300,000

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

0.60%

^[1]

$ 14,700,000

16,700,000

Debt Instrument, Basis Spread on Variable Rate

1.30%

Loans From French Government For R&D Innovation Projects [Member]

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

^[1]

1,900,000

$ 1,900,000

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

Line of Credit Facility, Current Borrowing Capacity

$ 0

Letters of Credit Outstanding, Amount

$ 2,100,000

Convertible Note due 2024

Common stock, par value | $ / shares

2.00%

$ 0.001

Debt Instrument, Face Amount

$ 115,500,000

Debt Instrument, Convertible, Conversion Ratio

115.5001

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 8.66

Proceeds from Debt, Net of Issuance Costs

$ 700,000

Debt Instrument, Repurchase Amount

109,600,000

$ 109,600,000

Carrying amount of equity component

$ 24,900,000

Convertible Note due 2024 | 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%

Convertible Note due 2024 | 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%

Convertible Note due 2020

Debt Instrument, Accrued and Unpaid Interest

4.00%

$ 900,000

Payments of Debt Issuance Costs

4,300,000

Debt Instrument, Face Amount

45,785,000

$ 128,250,000

128,250,000

Debt Instrument, Convertible, Conversion Ratio

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Debt Instrument, Repurchase Amount

$ 109,600,000

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

100.00%

Carrying amount of equity component

$ 26,100,000

Convertible Note due 2020 | 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%

Convertible Note due 2020 | 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%

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

Line of Credit Facility, Current Borrowing Capacity

$ 15,000,000

Outstanding Borrowing Limit Based on Eligible Receivables, Percentage

85.00%

Optional Note Redemption on or after September 6, 2022 [Member] | Convertible Note due 2024 | 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, Redemption Price, Percentage

100.00%

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

130.00%

Fundamental Change [Member] | Notes Indenture 2024

Debt Instrument, Redemption Price, Percentage

100.00%

Convertible Debt | Convertible Note due 2020

Loss on debt extinguishment

$ 5,700,000

Convertible Debt | Long-term Debt [Member] | Convertible Note due 2020 | Privately Negotiated Transactions [Member]

Extinguishment of Debt, Amount

82,500,000

Convertible Debt | Additional Paid-in Capital [Member] | Convertible Note due 2020 | Privately Negotiated Transactions [Member]

Extinguishment of Debt, Amount

$ 27,100,000

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

Adjusted EURIBOR Rate, Term

1 month

[1]

As of September 27, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $14.7 million and $16.7 million, respectively. As of September 27, 2019, the TVN French Subsidiary had an aggregate of $22.3 million of R&D tax credit receivables from the French government from 2020 through 2023. See Note 8, “Balance Sheet Components” for additional information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2020 through 2022. The remaining loans of $1.9 million at September 27, 2019, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2019 through 2025.

Convertible Notes, Other Debts And Finance Leases - 2024 Convertible Notes Roll Forward (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Carrying amount	$ 130,217	$ 114,808
Convertible Note due 2024
Debt Instrument [Line Items]
Principal amount	115,500
Less: Debt discount, net of amortization	(24,686)
Less: Debt issuance costs, net of amortization	(3,350)
Carrying amount	$ 87,464
Remaining amortization period (years)	4 years 10 months 24 days
Effective interest rate on liability component	7.95%

Convertible Notes, Other Debts And Capital Leases - 2020 Convertible Note Roll Forward (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 27, 2019	Dec. 31, 2018	Dec. 31, 2015
Debt Instrument [Line Items]
Carrying amount	$ 130,217	$ 114,808
Convertible Note due 2020
Debt Instrument [Line Items]
Principal amount	45,785	128,250	$ 128,250
Less: Debt discount, net of amortization	(2,706)	(11,996)
Less: Debt issuance costs, net of amortization	(326)	(1,446)
Carrying amount	$ 42,753	$ 114,808
Remaining amortization period (years)	1 year 2 months 12 days	1 year 10 months 24 days
Effective interest rate on liability component	9.94%	9.94%

Convertible Notes, Other Debts And Finance Leases - Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,235	$ 1,283	$ 3,800	$ 3,848
Amortization of debt discount	1,513	1,364	4,425	4,001
Amortization of debt issuance costs	185	164	535	481
Total interest expense recognized	$ 2,933	$ 2,811	$ 8,760	$ 8,330

Convertible Notes , Other Debts And Finance Leases - Other Debt and Capital Lease Obligations (Details) - USD ($)
$ in Thousands

Sep. 27, 2019

Dec. 31, 2018

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

^[1]

$ 16,607

$ 18,783

Term loans

655

914

Obligations under finance leases

162

Total debt obligations

17,346

19,859

Less: current portion

(6,962)

(7,175)

Long-term portion

$ 10,384

$ 12,684

[1]

Convertible Notes, Other Debts And Finance Leases - Debt Maturities (Details) - TVN [Member] $ in Thousands	Sep. 27, 2019 USD ($)
Debt Instrument [Line Items]
Finance Leases, 2019 (remaining three months)	$ 62
Finance Leases, 2020	22
Finance Leases, Total	84
Other debt obligations - 2019 (remaining three months)	704
Other debt obligations - 2020	6,313
Other debt obligations - 2021	5,095
Other debt obligations - 2022	4,783
Other debt obligations - 2023	148
Other debt obligations - thereafter	219
Other debt obligations Total	$ 17,262

Employee Benefit Plans and Stock-based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 27, 2019	Jun. 28, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Exercise of Option, Tax Benefit				$ 0	$ 0
Defined Benefit Plan, Benefit Obligation	$ 4,900,000			4,900,000		$ 4,900,000
Liability, Defined Benefit Pension Plan, Current	100,000			100,000
Liability, Defined Benefit Pension Plan, Noncurrent	4,800,000			$ 4,800,000
Discretionary contributions of plan				25.00%
Percent of employees' gross pay eligible for matching				4.00%
Maximum contribution amount per participant				$ 1,000
Contributions in period				245,000	259,000
Dividend, Share-based Payment Arrangement, Cash				0
Total stock-based compensation	$ 4,096,000		$ 5,433,000	$ 8,719,000	$ 14,202,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized				1,000,000
Common Stock, Capital Shares Reserved for Future Issuance	1,200,000			1,200,000
Discount Percentage On Purchase Of Stock				15.00%
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized				3,500,000
Common Stock, Capital Shares Reserved for Future Issuance	5,100,000			5,100,000
Grants in Period, Number of Shares				0
Market-based awards [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		200,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Awards, Grants in Period, Fair Value		$ 1,100,000
Total stock-based compensation	$ 100,000			$ 200,000
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	900,000			$ 900,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 15,700,000			$ 15,700,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition				1 year 5 months 27 days
TVN [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment for Pension and Other Postretirement Benefits				$ 0
Call Option [Member] \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of Common Stock to purchase shares				85.00%
Put Option [Member] \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of Common Stock to purchase shares				15.00%

Employee Benefit Plans and Stock-based Compensation - Summary of Stock Options Outstanding (Detail) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands	9 Months Ended
	Sep. 27, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance \| shares	3,068
Weighted Average Exercise Price, Beginning balance \| $ / shares	$ 5.76
Exercised \| shares	(308)
Weighted Average Exercise Price, Options exercised \| $ / shares	$ 4.85
Canceled or expired \| shares	(379)
Canceled or Expired, Weighted Average Exercise Price \| $ / shares	$ 6.14
Number of Shares, Ending balance \| shares	2,381
Weighted Average Exercise Price, Ending balance \| $ / shares	$ 5.81
Weighted Average Remaining Contractual Term	2 years
Aggregate Intrinsic Value \| $	$ 2,719,000
Vested and expected to vest \| shares	2,381
Weighted Average Exercise Price, Vested and expected to vest \| $ / shares	$ 5.81
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest	2 years
Aggregate Intrinsic Value, Vested and expected to vest \| $	$ 2,719,000
Number of Shares, Exercisable \| shares	2,380
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 5.82
Weighted Average Remaining Contractual Term (Years), Exercisable	2 years
Aggregate Intrinsic Value, Exercisable \| $	$ 2,715,600

Employee Benefit Plans and Stock-based Compensation - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands	9 Months Ended
	Sep. 27, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Beginning balance \| shares	3,403
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 3.99
Granted \| shares	2,671
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 5.75
Vested \| shares	(2,126)
Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 3.96
Forfeited \| shares	(72)
Weighted Average Grant Date Fair Value, Forfeited or cancelled \| $ / shares	$ 4.90
Number of Units, Ending balance \| shares	3,876
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 5.10

Employee Benefit Plans and Stock-based Compensation - Summary of Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]
Service cost	$ 57	$ 59	$ 171	$ 185
Interest cost	20	18	59	56
Net periodic benefit cost	$ 77	$ 77	$ 230	$ 241

Employee Benefit Plans and Stock-based compensation - Stock-based Compensation in Opex (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 4,096	$ 5,433	$ 8,719	$ 14,202
Cost of Revenue [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	410	614	830	1,577
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,120	1,676	2,318	4,298
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,566	3,143	5,571	8,327
Operating Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,686	$ 4,819	$ 7,889	$ 12,625

Employee Benefit Plans and Stock-based Compensation - Summary of Stock Awards Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Dec. 31, 2019	Jul. 01, 2019	Dec. 31, 2018	Jul. 01, 2018
Purchase Period July 1, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 months
Volatility		43.00%
Risk-free interest rate		2.50%
Expected dividends		0.00%
Estimated weighted average fair value per share at purchase date		$ 1.31
Purchase Period December 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)			6 months
Volatility			51.00%
Risk-free interest rate			2.10%
Expected dividends			0.00%
Estimated weighted average fair value per share at purchase date			$ 1.32
Purchase Period July 2, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)				6 months
Volatility				60.00%
Risk-free interest rate				1.70%
Expected dividends				0.00%
Estimated weighted average fair value per share at purchase date				$ 1.34
Forecast [Member] \| Purchase Period December 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 months
Volatility	33.00%
Risk-free interest rate	2.10%
Expected dividends	0.00%
Estimated weighted average fair value per share at purchase date	$ 1.36

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ 12,260	$ (6,888)	$ (10,513)	$ (21,526)
Provision for income taxes	$ 603	$ 870	$ 981	$ 2,839
Effective income tax rate	4.90%	(12.60%)	(9.30%)	(13.20%)

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Income Tax Contingency [Line Items]
Effective income tax rate	4.90%	(12.60%)	(9.30%)	(13.20%)
Federal statutory income tax rate			21.00%	21.00%
Unrecognized Tax Benefits	$ 17,300		$ 17,300
Unrecognized tax benefits that would impact the provision for income taxes	16,200		16,200
Interest and possible penalties related to uncertain tax positions	$ 28		28
Unrecognized Tax Benefit Decrease			600
One foreign subsidiary
Income Tax Contingency [Line Items]
One-time benefit due to valuation allowance release			$ 800

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		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Numerator:
Net income (loss)	$ 11,657	$ (7,758)	$ (11,494)	$ (24,365)
Denominator:
Weighted Average Number of Shares Outstanding, Basic	89,964	86,321	89,030	85,188
Effect of dilutive securities from stock options, restricted stock units and ESPP	1,855	0	0	0
Effect of dilutive securities from convertible debt	3,468
Effect of dilutive securities from warrant	2,309
Diluted shares	97,596	86,321	89,030	85,188
Net income (loss) per share:
Earnings Per Share, Basic	$ 0.13	$ (0.09)	$ (0.13)	$ (0.29)
Earnings Per Share, Diluted	$ 0.12	$ (0.09)	$ (0.13)	$ (0.29)

Net Income (Loss) Per Share - Anti-dilutive Securities (Detail) - $ / shares

3 Months Ended

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Sep. 27, 2019

Sep. 28, 2018

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

Effect of dilutive securities from convertible debt

686,000

8,569,000

11,318,000

7,993,000

3,468,000

Stock Option

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

Restricted Stock Units (RSUs)

678,000

3,219,000

2,699,000

3,386,000

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

Employee Stock Purchase Plan

8,000

3,266,000

2,860,000

2,933,000

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

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

529,000

475,000

635,000

Convertible Debt

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

1,156,000

Warrant

Company average common stock price for a given period exceeds conversion price $5.75 for 2020 Notes [Member] | Convertible Note due 2020

^[1]

1,555,000

4,128,000

1,039,000

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

Debt Instrument, Convertible, Conversion Price

$ 5.75

Effect of dilutive securities from convertible debt

7,962,609

Company average common stock price for a given period exceeds conversion price $8.66 for 2024 Notes [Member] | Convertible Note due 2024

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

Debt Instrument, Convertible, Conversion Price

$ 8.66

Effect of dilutive securities from convertible debt

13,337,182

[1]	See Note 15, “Warrants” for additional information.

Warrants (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
Warrants (Details) $ / shares in Units, $ in Thousands	Sep. 27, 2019 USD ($)	Sep. 28, 2018 USD ($)	Sep. 27, 2019 USD ($)	Sep. 28, 2018 USD ($)	Jul. 08, 2019 USD ($)	Jul. 01, 2019 shares	Jun. 28, 2019 USD ($)	Dec. 31, 2018 Measurement_Input	Sep. 26, 2016 $ / shares shares
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares									$ 4.76
Reduction to net revenues - amortization of the Warrant			$ 13,137	$ 1,185
Comcast Milestones Achievement [Member]
Class of Warrant or Right [Line Items]
Right to purchase shares vested \| shares						1,954,042
Warrants and Rights Outstanding	$ 19,600		19,600				$ 3,500
Comcast CableOS Software License Agreement [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding					$ 16,100
Measurement Input, Risk Free Interest Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input								0.019
Measurement Input, Option Volatility [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input								0.486
Measurement Input, Expected Term [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Term								4 years 2 months 12 days
Measurement Input, Expected Dividend Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input								0
Maximum [Member] \| Comcast Warrant Expires September 26, 2023 [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
Revenue from Contract with Customer Benchmark [Member]
Class of Warrant or Right [Line Items]
Reduction to net revenues - amortization of the Warrant	$ 13,100	$ 800	$ 13,100	$ 1,200

Segment Information - Summary Financial Infomation by reportable segments (Details)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

USD ($)

Sep. 28, 2018

USD ($)

Sep. 27, 2019

USD ($)

segment

Sep. 28, 2018

USD ($)

^[1]

$ 115,725

$ 100,616

$ 280,696

$ 289,903

75,540

50,102

161,317

148,888

Number of Reportable Segments | segment

22,549

(3,651)

$ 6,377

(12,336)

Operating Segments [Member]

115,725

100,616

$ 280,696

289,903

77,571

52,018

166,748

155,234

Operating Segments [Member] | Video [Member]

29,915

4,863

23,254

11,729

60,055

73,344

198,856

224,300

34,646

41,937

114,692

126,721

Operating Segments [Member] | Cable Access [Member]

(1,696)

5,258

4,731

13,492

55,670

27,272

81,840

65,603

42,925

10,081

52,056

28,513

$ 31,611

$ (395)

$ 18,523

$ (1,763)

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

Segment Information Segment Income or Loss Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Segment Reporting Information [Line Items]
Operating income (loss)	$ 22,549	$ (3,651)	$ 6,377	$ (12,336)
Unallocated Corporate Expenses	(52,991)	(53,753)	(154,940)	(161,224)
Stock-based compensation	(4,096)	(5,433)	(8,719)	(14,202)
Amortization of intangibles	(2,080)	(2,087)	(6,242)	(6,281)
Nonoperating Income (Expense)	(10,289)	(3,237)	(16,890)	(9,190)
Income (loss) before income taxes	12,260	(6,888)	(10,513)	(21,526)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	29,915	4,863	23,254	11,729
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Unallocated Corporate Expenses	$ (1,190)	$ (994)	$ (1,916)	$ (3,582)

Segment - Geographic Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Sep. 27, 2019

Sep. 28, 2018

^[1]

$ 115,725

$ 100,616

$ 280,696

$ 289,903

UNITED STATES

^[1]

73,566

44,694

139,391

126,938

Other countries

Revenue from External Customer [Line Items]

^[1]

$ 42,159

$ 55,922

$ 141,305

$ 162,965

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

Segment Information Segment - Market Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Sep. 27, 2019

Sep. 28, 2018

Service Provider [Member]

^[1]

$ 115,725

$ 100,616

$ 280,696

$ 289,903

Revenue from External Customer [Line Items]

Broadcast and Media [Member]

77,886

66,737

165,536

173,096

Revenue from External Customer [Line Items]