View Filing Data

Income Taxes Receivable, Current

$ 23,200

^[1]

7,343

$ 7,305

Income Taxes Receivable, Noncurrent

15,899

19,249

Condensed Financial Statements, Captions [Line Items]

Proceeds from Income Tax Refunds

6,400

$ 6,400

Prepaid Expenses and Other Current Assets [Member]

23,200

Condensed Financial Statements, Captions [Line Items]

Income Taxes Receivable, Current

^[1]

7,343

Other Noncurrent Assets [Member]

Condensed Financial Statements, Captions [Line Items]

Income Taxes Receivable, Noncurrent

$ 15,899

[1]

The Company’s French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2019 and 2018, the French government approved the 2015 and 2014 claims and refunded $6.4 million to the French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2019 were approximately $23.2 million and are expected to be recoverable from 2020 through 2023 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $15.9 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.

Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Valuation Allowance [Abstract]
Balance at beginning of period	$ 77,144	$ 77,756	$ 74,480
Additions	23,929	928	9,028
Deductions	(5,555)	(1,540)	(5,752)
Balance at end of period	$ 95,518	$ 77,144	$ 77,756

Restructuring and Excess Facilities

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Excess Facilities

RESTRUCTURING AND RELATED CHARGES

The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenues, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of excess facilities, severance payments and termination benefits related to headcount reductions.

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



	Year ended December 31,
Restructuring and related charges in:	2019		2018		2017
Cost of revenue	$	1,391	$	857	$	1,279
Operating expenses - Restructuring and related charges	3,141		2,918		5,307
Total restructuring and related charges	$	4,532	$	3,775	$	6,586

As of December 31, 2019 and December 31, 2018, the Company’s total restructuring liability was $4.9 million and $5.3 million, respectively, of which $1.5 million and $3.3 million, respectively, were reported as a component of “Accrued and other current liabilities,” and the remaining $3.4 million and $2.0 million, respectively, were reported as a component of “Other non-current liabilities” on the Company’s Consolidated Balance Sheets.

For the year ended December 31, 2019, the Company recorded an aggregate amount of $4.1 million 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 $0.8 million in payments in 2019, with the remaining $3.3 million liability outstanding as of December 31, 2019.

As of December 31, 2019, total liabilities related to restructuring plans initiated prior to fiscal 2019 were $1.5 million.

The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2019 (in thousands):



	Excess facilities			Severance and Benefits			French VDP			Others			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	—		$	5,335
Charges for current period	—			4,102			50			380			4,532
Adjustments to restructuring provisions and others	(334		)	11			(28		)	—			(351		)
Cash payments	(1,872		)	(819		)	(1,625		)	(350		)	(4,666		)
Balance at December 31, 2019	$	720		$	3,294		$	806		$	30		$	4,850

Convertible Notes and Credit Facilities - Convertible Roll Forward 2020 Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2015
Debt Instrument [Line Items]
Carrying amount	$ 88,629	$ 114,808
Convertible Note due 2020 [Member]
Debt Instrument [Line Items]
Principal amount	45,785	128,250	$ 128,250
Less: Debt discount, net of amortization	(2,151)	(11,996)
Less: Debt issuance costs, net of amortization	(259)	(1,446)
Carrying amount	$ 43,375	$ 114,808
Remaining amortization period (years)	10 months 28 days	1 year 10 months 28 days
Effective interest rate on liability component	9.94%	9.94%

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 10, 2019	Sep. 29, 2017
Other Commitments [Line Items]
Non-cancelable purchase commitments	$ 62.3
Indemnification [Member]
Other Commitments [Line Items]
Accrual for indemnification provisions	0.0
ISRAEL
Other Commitments [Line Items]
Royalty expenses	4.1	$ 4.2	$ 5.2
Property Lease Guarantee [Member] \| Performance Guarantee [Member]
Other Commitments [Line Items]
Guarantees, Fair Value Disclosure	2.7	2.3
JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 0.0
Debt Instrument, Interest Rate, Stated Percentage	1.25%
Letters of Credit Outstanding, Amount	$ 0.3
JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Other Commitments [Line Items]
Line of Credit Facility, Current Borrowing Capacity	25.0
Silicon Valley Bank [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
Line of Credit Facility, Current Borrowing Capacity				$ 0.0	$ 15.0
Letters of Credit Outstanding, Amount				$ 2.2
Outstanding Borrowing Limit Based on Eligible Receivables, Percentage					85.00%
Foreign Line of Credit [Member] \| Performance Guarantee [Member]
Other Commitments [Line Items]
Long-term Line of Credit			2.0
Indemnity issued to secure credit facility			$ 2.2
Line of Credit Facility, Fair Value of Amount Outstanding	$ 0.0	$ 0.0
London Interbank Offered Rate (LIBOR) [Member] \| JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.50%
LIBOR for interest period of one, two or three months [Member] \| JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%
One Month LIBOR [Member] \| JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
LIBOR interest period	1 month
Two Month LIBOR [Member] \| JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
LIBOR interest period	2 months
Three Month LIBOR [Member] \| JPMORGAN CHASE BANK N.A. [Member] \| Revolving Credit Facility [Member]
Other Commitments [Line Items]
LIBOR interest period	3 months

Net Income (Loss) Per Share - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Company average common stock price for a given period exceeds conversion price $5.75 for 2020 Notes [Member] \| Convertible Note due 2020 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares \| shares	7,962,609
Debt Instrument, Convertible, Conversion Price \| $ / shares	$ 5.75
Company average common stock price for a given period exceeds conversion price $8.66 for 2024 Notes [Member] \| Convertible Note due 2024 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares \| shares	13,337,182
Debt Instrument, Convertible, Conversion Price \| $ / shares	$ 8.66

Label	Element	Value
Restricted Cash, Current	us-gaap_RestrictedCashCurrent	$ 530,000
Restricted Cash, Current	us-gaap_RestrictedCashCurrent	0
Restricted Cash, Current	us-gaap_RestrictedCashCurrent	0
Restricted Cash, Noncurrent	us-gaap_RestrictedCashNoncurrent	1,203,000
Restricted Cash, Noncurrent	us-gaap_RestrictedCashNoncurrent	0
Restricted Cash, Noncurrent	us-gaap_RestrictedCashNoncurrent	$ 0

Summary of Significant Accounting Policies - Additional Information (Detail)
$ in Thousands

3 Months Ended

12 Months Ended

Jan. 01, 2019

USD ($)

Jan. 01, 2017

USD ($)

Mar. 29, 2019

USD ($)

Dec. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

Customer

ReportingUnit

segment

Dec. 31, 2018

USD ($)

Customer

Dec. 31, 2017

USD ($)

Sep. 27, 2019

USD ($)

Dec. 31, 2015

USD ($)

Cash and cash equivalents maximum maturity

3 months

Investments in Equity Securities

$ 3,593

Cash and cash equivalents

93,058

65,989

$ 57,024

Accounts receivable, net

88,500

81,795

Debts with French government agencies & other

17,224

19,859

Capitalized Software Development Costs for Software Sold to Customers

1,100

900

1,100

Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, before Accumulated Amortization

3,600

Goodwill

$ 239,780

240,618

242,827

Number of reporting units | ReportingUnit

Goodwill, Impairment Loss

$ 0

Impairment of Intangible Assets, Finite-lived

Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net

Advertising expense

$ 700

$ 1,000

700

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

10.00%

More Likely Than Not Threshold Recognition of Uncertain Tax Position

50.00%

Number of reportable segments | segment

Operating lease right-of-use assets

$ 27,491

Operating Lease, Liability

35,214

Operating Lease, Payments

$ 9,702

Furniture and Fixtures [Member]

Property, plant and equipment estimated useful life

5 years

Internal Use Software [Member]

Property, plant and equipment estimated useful life

3 years

Machinery and Equipment [Member]

Property, plant and equipment estimated useful life

4 years

Leasehold Improvements [Member]

Property, plant and equipment leasehold improvements useful lives

shorter of the remaining useful lives of the assets or the lease term of the respective assets

Leaseholds and Leasehold Improvements [Member] | Minimum [Member]

Lessee, Operating Lease, Term of Contract

1 year

Leaseholds and Leasehold Improvements [Member] | Maximum [Member]

Lessee, Operating Lease, Term of Contract

11 years

Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument, Trading [Member]

Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net

$ 0

Forward Contracts [Member]

Derivative, Term of Contract

12 months

Software [Member]

Property, plant and equipment estimated useful life

3 years

Accounts Receivable [Member]

Entity-wide revenue, major customer, revenue or accounts receivable percentage

10.00%

Research and Development Tax Credits Receivables from French Government

$ 4,700

$ 5,900

5,900

Other Expense [Member]

Remeasurement Losses, Reporting Currency Denominated, Value

1,500

$ 600

$ 2,200

Accounting Standards Update 2016-09 [Member]

Accounting Standards Update 2016-02 [Member]

^[1]

$ 1,400

Operating lease right-of-use assets

23,300

Operating Lease, Liability

23,300

Operating Lease, Payments

Accounting Standards Update 2018-07 [Member]

JPMORGAN CHASE BANK N.A. [Member] | Revolving Credit Facility [Member]

^[1]

$ 1,400

Line of Credit Facility, Current Borrowing Capacity

$ 0

JPMORGAN CHASE BANK N.A. [Member] | Revolving Credit Facility [Member] | Maximum [Member]

1.25%

Line of Credit Facility, Current Borrowing Capacity

$ 25,000

Cash Flow Hedging [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member]

Derivative, Term of Contract

12 months

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

Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member]

1,400

^[1]

$ (69)

Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09 [Member]

$ 0

Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit

$ 69

Forecast [Member]

$ 0

Credit Concentration Risk [Member] | Accounts Receivable [Member]

Number of significant customers for accounts receivable | Customer

Convertible Note due 2024 [Member]

$ 115,500

Convertible Note due 2020 [Member]

2.00%

$ 45,785

$ 128,250

Comcast [Member] | Net Revenue [Member]

4.00%

Entity-wide revenue, major customer, revenue or accounts receivable percentage

10.00%

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

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

Entity-wide revenue, major customer, revenue or accounts receivable percentage

23.00%

15.00%

[1]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 718, Compensation-Stock Compensation (“Topic 718”) issued by the Financial Accounting Standards Board.

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

3 Months Ended

12 Months Ended

Jun. 28, 2019

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Intrinsic value of options exercised

$ 1,800,000

$ 300,000

Company discretionary employee match

$ 12,074,000

17,289,000

16,610,000

^[1]

25.00%

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

4.00%

Employer contributions made

$ 300,000

300,000

Dividend, Share-based Payment Arrangement, Cash

Payments of Dividends

$ 0

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

Maximum [Member]

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

Employer contributions made

$ 1,000

Stock Options [Member]

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

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

$ 5.83

$ 5.76

Share-based Payment Arrangement, Exercise of Option, Tax Benefit

$ 0

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

Fair value of options vested

$ 100,000

$ 700,000

$ 1,700,000

Restricted Stock Units (RSUs) [Member]

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

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount

$ 12,700,000

Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition

1 year 3 months 26 days

Performance Shares PRSUs [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

405,261

1,443,168

1,165,685

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

220,261

1,343,168

1,165,685

Restricted Stock [Member]

$ 100,000

$ 6,100,000

$ 3,200,000

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

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

2,717,000

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

2,421,000

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

$ 9,700,000

$ 15,600,000

$ 13,000,000

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

$ 5.78

Employee Stock Purchase Plan

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

Price at which stock options or ESPP may be granted

85.00%

Additional shares authorized

1,000,000

Common stock reserved for issuance

1,244,992

ESPP Employee Percentage of Payroll Deductions, Minimum

1.00%

ESPP Employee Percentage of Payroll Deductions, Maximum

10.00%

Common stock issued under the 2002 ESPP

1,037,366

1,132,438

1,291,875

Stock contributions value under 2002 ESPP

$ 4,100,000

$ 4,000,000

$ 4,400,000

Discount Percentage On Purchase Of Stock

15.00%

Value Of Stock Purchase Right Percentage Of Put Option

15.00%

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

$ 1.33

$ 1.50

1995 Stock Plan [Member]

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

Price at which stock options or ESPP may be granted

100.00%

Expiration period

7 years

Common stock reserved for issuance

9,903,989

Shares available for grant

4,622,927

1995 Stock Plan [Member] | Minimum [Member]

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

1995 Stock Plan [Member] | Maximum [Member]

2 years

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

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

4 years

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

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

$ 0

Reduced Number Of Shares Reserved For Every Unit Granted

1.5

Increased Number Of Shares Reserved For Every Unit Forfeited

1.5

1995 Stock Plan [Member] | Market-based awards [Member] | MRSU 2017 Award [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

18 months

3 years

40,000

344,500

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

110,937

1995 Stock Plan [Member] | Market-based awards [Member] | MRSU 2019 Award [Member]

$ 200,000

$ 900,000

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

Share-based Compensation Arrangement by Share-based Payment Award, Awards, Grants in Period, Fair Value

3 years

$ 1,100,000

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, Equity Instruments Other than Options, Vested in Period

Amended 1995 Stock Plan Approved at 2019 Annual Meeting [Member] | Stock Options [Member]

$ 300,000

$ 200,000

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

Additional shares authorized

3,500,000

Amended 1995 Stock Plan Approved at 2019 Annual Meeting [Member] | Restricted Stock Units (RSUs) [Member]

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

Reduced Number Of Shares Reserved For Every Unit Granted

Increased Number Of Shares Reserved For Every Unit Forfeited

2002 Director Plan [Member]

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

Price at which stock options or ESPP may be granted

100.00%

Common stock reserved for issuance

650,257

Shares available for grant

442,918

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

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

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

3 years

Expiration period

7 years

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

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

1 year

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

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

$ 0

Reduced Number Of Shares Reserved For Every Unit Granted

1.5

Increased Number Of Shares Reserved For Every Unit Forfeited

1.5

Amended 2002 Director Plan Approved at 2019 Annual Meeting [Member] | Restricted Stock Units (RSUs) [Member]

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

Reduced Number Of Shares Reserved For Every Unit Granted

Increased Number Of Shares Reserved For Every Unit Forfeited

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

Payment for Pension and Other Postretirement Benefits

$ 0

Forecast [Member] | TVN [Member]

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

Payment for Pension and Other Postretirement Benefits

$ 0

[1]

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

$ 12,074

$ 17,289

$ 16,610

^[1]

Cost of Sales [Member]

Research and Development Expense [Member]

1,124

1,953

2,370

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

Selling General And Administrative Expense [Member]

3,261

5,192

5,313

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

Operating expense [Member]

7,689

10,144

8,927

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]

Derivative Instruments and Hedging Activities Disclosure [Abstract]

$ 10,950

$ 15,336

$ 14,240

[1]

Derivative and Hedging Activities

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure

DERIVATIVES AND HEDGING ACTIVITIES

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

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

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



		Year ended December 31,
	Financial Statement Location	2019		2018			2017
Derivatives not designated as hedging instruments:
Gains (losses) recognized in income	Other expense, net	$	1,374	$	(2,325	)	$	155



	December 31,
	2019		2018
Derivatives not designated as hedging instruments:
Purchase	$	14,806	$	28,975
Sell	$	2,629	$	—

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



		Asset Derivatives
	Balance Sheet Location	December 31, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	43	$	—
		$	43	$	—



		Liability Derivatives
	Balance Sheet Location	December 31, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	112	$	333
		$	112	$	333

Offsetting of Derivative Assets and Liabilities

The Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of December 31, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets		Net Amounts of Derivatives Presented in the Consolidated Balance Sheets
Derivative assets	$	43	$	—	$	43
Derivative liabilities	$	112	$	—	$	112

In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of December 31, 2019 and 2018, the total compensating balance maintained was $1.0 million.

Employee Benefit Plans - Summary of Company's Stock Option (Detail) - USD ($) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	0	0
Stock Options Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance	3,068
Number of Shares, Granted	0
Number of Shares, Options exercised	(801)
Number of Shares, Forfeited	0
Number of Shares, Canceled or expired	(379)
Number of Shares, Ending balance	1,888	3,068
Weighted Average Exercise Price, Beginning balance	$ 5.76
Weighted Average Exercise Price, Granted	0.00
Weighted Average Exercise Price, Options exercised	5.40
Weighted Average Exercise Price, Forfeited	0.00
Weighted Average Exercise Price, Canceled or Expired	6.14
Weighted Average Exercise Price, Ending balance	$ 5.83	$ 5.76
Weighted Average Remaining Contractual Term	1 year 9 months 18 days
Aggregate Intrinsic Value	$ 3,715,500
Vested and expected to vest, number of shares	1,888
Vested and expected to vest, Weighted Average Exercise Price (per share)	$ 5.83
Vested and expected to vest, Weighted Average Remaining Contractual Term (years)	1 year 9 months 18 days
Vested and Expected to Vest, Aggregate Intrinsic Value	$ 3,715,500
Exercisable, Number of shares	1,888
Exercisable, Weighted Average Exercise Price	$ 5.83
Exercisable, Weighted Average Remaining Contractual Term (Years)	1 year 9 months 18 days
Exercisable, Aggregate Intrinsic Value	$ 3,715,500

Convertible Notes and Credit Facilities - Additional Information (Detail)

3 Months Ended

12 Months Ended

Sep. 27, 2019

USD ($)

day

$ / shares

Dec. 31, 2019

USD ($)

day

$ / shares

Dec. 31, 2018

USD ($)

$ / shares

Dec. 31, 2017

USD ($)

Dec. 31, 2015

USD ($)

day

$ / shares

Sep. 10, 2019

USD ($)

Sep. 29, 2017

USD ($)

Common Stock, Par Value Per Share | $ / shares

$ 0.001

Payments of Debt Issuance Costs

$ 5,695,000

$ 0

4,277,000

Proceeds from convertible debt

115,500,000

$ 0

Reclassification from APIC to Convertible Debt in Mezzanine Equity

2,410,000

Loans Payable to Bank

^[1]

16,566,000

18,783,000

Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

$ 23,200,000

Line of Credit Facility, Current Borrowing Capacity

1.25%

$ 0

Letters of Credit Outstanding, Amount

300,000

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

Line of Credit Facility, Current Borrowing Capacity

$ 0

$ 15,000,000

Letters of Credit Outstanding, Amount

$ 2,200,000

Outstanding Borrowing Limit Based on Eligible Receivables, Percentage

85.00%

Revolving Credit Facility [Member] | Maximum [Member] | JPMORGAN CHASE BANK N.A. [Member]

Line of Credit Facility, Current Borrowing Capacity

$ 25,000,000

London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Debt Instrument, Basis Spread on Variable Rate

2.50%

One Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Two Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

1 month

Three Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

2 months

3 months

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

$ 23,200,000

Debt Instrument, Basis Spread on Variable Rate

0.60%

Loans Payable to Bank

$ 15,100,000

16,700,000

1.30%

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

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

1 month

Convertible Note due 2024 [Member]

Loans Payable to Bank

$ 1,500,000

2,100,000

2.00%

Common Stock, Par Value Per Share | $ / shares

$ 115,500,000

$ 0.001

Debt Instrument, Convertible, Conversion Ratio

115.5001

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 8.66

Debt Instrument, Convertible, Carrying Amount of Equity Component

$ 24,900,000

Convertible Note due 2024 [Member] | Stock price greater or equal 130 percent of Note Conversion Price [Member]

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

130.00%

Convertible Note due 2024 [Member] | Note price less than 98 percent of stock price times conversion rate [Member]

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

98.00%

Convertible Note due 2020 [Member]

4.00%

Debt Instrument, Convertible, Conversion Ratio

$ 45,785,000

$ 128,250,000

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Debt Instrument, Repurchase Amount

$ 109,600,000

Debt Instrument, Convertible, Carrying Amount of Equity Component

$ 26,100,000

Reclassification from APIC to Convertible Debt in Mezzanine Equity

$ 2,400,000

Convertible Note due 2020 [Member] | Stock price greater or equal 130 percent of Note Conversion Price [Member]

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

130.00%

Convertible Note due 2020 [Member] | Note price less than 98 percent of stock price times conversion rate [Member]

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

98.00%

Convertible Debt [Member] | Convertible Note due 2020 [Member]

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

5,700,000

Extinguishment of Debt, Amount

82,500,000

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

Extinguishment of Debt, Amount

$ 27,100,000

[1]

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Preferred Stock

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

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

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



	December 31,
	2019			2018
Foreign currency translation adjustments	$	(2,449	)	$	(779	)
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(857		)	(888		)
Actuarial gain	241			451
Total accumulated other comprehensive income (loss)	$	(3,065	)	$	(1,216	)

Employee Benefit Plans And Stock-Based Compensation Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Postemployment Benefits [Abstract]
Service cost	$ 227	$ 243
Interest cost	78	74
Net periodic benefit cost included in operating loss	$ 305	$ 317

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

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

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

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


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

•

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


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

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

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. As of December 31, 2019 and 2018, the fair value of the Company’s 2020 Notes was approximately $66.8 million and $136.5 million, respectively. The fair value of Company’s 2024 Notes was approximately $131.9 million. The Company’s other debts assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and 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 December 31, 2019 and 2018 were in the aggregate of $17.2 million and $19.7 million, respectively. See Note 12, “Convertible Notes, Other Debts and Finance Leases,” for additional information.

The fair value of the Company’s French defined pension benefit plan liability as of December 31, 2019 and 2018 was $5.3 million and $4.9 million, respectively. See Note 13, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information.

During the years ended December 31, 2019, 2018 and 2017 there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

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



	Level 1		Level 2		Level 3		Total
As of December 31, 2019
Prepaid and other current assets
Derivative assets	$	—	$	43	$	—	$	43
Total assets measured and recorded at fair value	$	—	$	43	$	—	$	43
Accrued and other current liabilities
Derivative liabilities	$	—	$	112	$	—	$	112
Total liabilities measured and recorded at fair value	$	—	$	112	$	—	$	112



	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 French VDP at December 31, 2019 and 2018 was $0.8 million and $2.4 million, respectively. This amount is not included in the table above because its fair value at inception, based on Level 3 inputs, was determined during the fourth quarter of fiscal 2016. Subsequently there is no recurring fair value remeasurement for this liability based on the applicable accounting guidance.

- Definition

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

+ References + Details

Certain Balance Sheet Components Certain Balance Sheet Components - Other non-current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Operating Lease liability (long-term)	$ 25,766
Deferred revenue (long-term)	6,333	$ 5,330
Others	9,155	12,898
Other Liabilities, Noncurrent	$ 41,254	$ 18,228

Segment Information - Narratives (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2019

USD ($)

Customer

segment

country

Dec. 31, 2018

USD ($)

Customer

country

Dec. 31, 2017

USD ($)

Customer

country

Number of reportable segments | segment

Unallocated Corporate Expenses

$ 209,929

$ 214,220

$ 240,697

Corporate, Non-Segment [Member]

Unallocated Corporate Expenses

$ 4,532

$ 3,769

$ 20,767

^[1]

Revenue Benchmark [Member]

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

Non-US [Member] | Revenue Benchmark [Member]

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

Concentration Risk, Percentage

10.00%

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

Litigation Settlement, Expense

$ 8,000

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

Impact of methodology change on Video and Cable Access Segments

5,900

Comcast [Member] | Revenue Benchmark [Member]

Concentration Risk, Percentage

10.00%

Comcast [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member]

Concentration Risk, Percentage

23.00%

15.00%

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

French TVN Acquisition, Integration-related Expenses and French Voluntary Costs | Corporate, Non-Segment [Member]

Unallocated Corporate Expenses

$ 7,900

[1]

Leases - Future Minimum Lease Payments under Non-cancellable leases under Previous Accounting Guidance (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total minimum payments	$ 39,179

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 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 year ended December 31, 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
Granted	—		—
Exercised	(801	)	5.40
Forfeited	—		—
Canceled or expired	(379	)	6.14
Balance at December 31, 2019	1,888		5.83		1.8	$	3,715.5
As of December 31, 2019
Vested and expected to vest	1,888		$	5.83	1.8	$	3,715.5
Exercisable	1,888		$	5.83	1.8	$	3,715.5

Summary of Restricted Stock Units Outstanding

The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2019 (in thousands, except per share amounts and terms):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	2,717		5.78
Vested	(2,421	)	4.02
Forfeited	(98	)	5.10
Balance at December 31, 2019	3,601		$	5.18

Schedule of Defined Benefit Plans Disclosures

The Company’s pension obligations as of December 31, 2019 and December 31, 2018 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands):



	December 31,
	2019			2018
Projected benefit obligation:
Balance at January 1	$	4,881		$	5,033
Service cost	227			243
Interest cost	78			74
Actuarial (gains) losses	206			(202		)
Benefits paid	(31		)	(13		)
Foreign currency translation adjustment	(102		)	(254		)
Balance at December 31	$	5,259		$	4,881

Presented on the Consolidated Balance Sheets under:
Current portion (presented under “Accrued and other current liabilities”)	$	30		63
Long-term portion (presented under “Other non-current liabilities”)	$	5,229		4,818

Components of Net Periodic Benefit Costs

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



	Year ended December 31,
	2019		2018
Service cost	$	227	$	243
Interest cost	78		74
Net periodic benefit cost included in operating loss	$	305	$	317

Schedule of Pension Obligations Assumptions Used

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



	December 31,
	2019		2018
Discount rate	0.7	%	1.7	%
Mobility rate	5.0	%	6.0	%
Salary progression rate	2.0	%	2.0	%

Schedule of Expected Benefit Payments

As of December 31, 2019, future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands):



Years ending December 31,
2020	$	30
2021	12
2022	—
2023	315
2024	370
2025 - 2029	3,105
	$	3,832

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

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



	Year ended December 31,
	2019		2018		2017
Stock-based compensation in:
Cost of revenue	$	1,124	$	1,953	$	2,370
Research and development expense	3,261		5,192		5,313
Selling, general and administrative expense	7,689		10,144		8,927
Total stock-based compensation in operating expense	10,950		15,336		14,240
Total stock-based compensation recognized in net loss	$	12,074	$	17,289	$	16,610

Valuation Assumptions for Stock Options

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



	Employee Stock Options		ESPP
	2017		2019		2018		2017
Expected term (in years)	4.30		0.50		0.50		0.50
Volatility	42	%	38	%	55	%	48	%
Risk-free interest rate	1.8	%	2.3	%	1.9	%	1.2	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Reserves and accruals	$ 20,622	$ 17,090
Net operating loss carryforwards	33,811	29,900
Research and development credit carryforwards	36,914	36,446
Deferred stock-based compensation	1,675	2,201
Intangibles	8,224	2,585
Operating lease liabilities	5,877
Capitalized research and development expenses	10,897
Other	0	939
Gross deferred tax assets	118,020	89,161
Valuation allowance	(95,518)	(77,144)	$ (77,756)	$ (74,480)
Gross deferred tax assets after valuation allowance	22,502	12,017
Deferred tax liabilities:
Depreciation	(1,272)	(391)
Convertible notes	(6,275)	(2,931)
Operating lease right-of-use assets	(4,061)
Other	(319)
Gross deferred tax liabilities	(11,927)	(3,322)
Net deferred tax assets	$ 10,575	$ 8,695

Goodwill and Identified Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

(in thousands):



	Video			Cable Access			Total
Balance as of December 31, 2017	$	182,012		$	60,815		$	242,827
Foreign currency translation adjustment	(2,173		)	(36		)	(2,209		)
Balance as of December 31, 2018	$	179,839		$	60,779		$	240,618
Foreign currency translation adjustment	(857		)	19			(838		)
Balance as of December 31, 2019	$	178,982		$	60,798		$	239,780

Summary of Identified Intangible Assets

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



		December 31, 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	0.2	$	31,707	$	(30,757	)	$	950	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.2	44,577		(41,092		)	3,485		44,650		(38,146		)	6,504
Trademarks and tradenames	0.2	609		(583		)	26		623		(441		)	182
Maintenance agreements and related relationships	N/A	5,500		(5,500		)	—		5,500		(5,500		)	—
Order Backlog	N/A	3,085		(3,085		)	—		3,112		(3,112		)	—
Total identifiable intangibles		$	85,478	$	(81,017	)	$	4,461	$	85,592	$	(72,775	)	$	12,817

Purchased Intangibles Amortization Expense Allocation

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



	Year Ended December 31,
	2019		2018		2017
Included in cost of revenue	$	5,180	$	5,180	$	5,180
Included in operating expenses	3,139		3,187		3,142
Total amortization expense	$	8,319	$	8,367	$	8,322

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

The estimated future amortization expense of identifiable intangible assets with definite lives as of December 31, 2019 is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2020	$	951	$	3,012	$	3,963
2021	—		498		498
Total future amortization expense	$	951	$	3,510	$	4,461

Income Taxes - Activities Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at beginning of period	$ 18.0	$ 18.8	$ 19.2
Increase in balance related to tax positions taken during current year	0.2	1.0	1.4
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1)	(0.1)	(2.2)
Decrease in balance due to settlement with tax authorities	0.0	(1.6)	0.0
Increase in balance related to tax positions taken during prior years	0.0	0.2	1.8
Decrease in balance related to tax positions taken during prior years	(1.1)	(0.3)	(1.4)
Balance at end of period	$ 17.0	$ 18.0	$ 18.8

Convertible Notes and Credit Facilities - Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Contractual interest expense	$ 4,835	$ 5,130	$ 5,130
Amortization of Debt Discount	6,013	5,408	4,898
Amortization of debt issuance costs	743	652	591
Total interest expense recognized	$ 11,591	$ 11,190	$ 10,619

Income Taxes - Reconciliation of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Benefit from for income taxes at U.S. Federal statutory rate	$ (1,384)	$ (3,559)	$ (29,648)
Differential in rates on foreign earnings	2,422	4,299	15,920
Tax Reform tax rate reduction	0	0	14,527
Change in valuation allowance	(923)	1,449	(2,834)
Change in liabilities for uncertain tax positions	(411)	(250)	(2,009)
Non-deductible stock-based compensation	553	1,363	1,934
Permanent Differences	(698)	1,096	380
Adjustments related to tax positions taken during prior years	(403)	184	(473)
Tax refund	0	(305)	(834)
Other	172	(190)	1,285
Total provision for (benefit from) income taxes	$ (672)	$ 4,087	$ (1,752)

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal	$ (180)	$ (305)	$ (4,530)
State	108	116	129
International	1,525	2,958	273
Deferred:
International	(2,125)	1,318	2,376
Total provision for (benefit from) income taxes	$ (672)	$ 4,087	$ (1,752)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Tax Provision

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



	Year ended December 31,
	2019			2018			2017
United States	$	1,769		$	(19,780	)	$	(50,041	)
International	(8,365		)	2,832			(34,666		)
Loss before income taxes	$	(6,596	)	$	(16,948	)	$	(84,707	)

Provision for Income Taxes

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



	Year ended December 31,
	2019			2018			2017
Current:
Federal	$	(180	)	$	(305	)	$	(4,530	)
State	108			116			129
International	1,525			2,958			273
Deferred:
International	(2,125		)	1,318			2,376
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)

Reconciliation of Provision for Income Taxes

The differences between the provision for (benefit from) income taxes computed at the U.S. federal statutory rate at 21% for 2019 and 2018, and 35% for 2017, and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands):



	Year ended December 31,
	2019			2018			2017
Benefit from for income taxes at U.S. Federal statutory rate	$	(1,384	)	$	(3,559	)	$	(29,648	)
Differential in rates on foreign earnings	2,422			4,299			15,920
Tax Reform tax rate reduction	—			—			14,527
Change in valuation allowance	(923		)	1,449			(2,834		)
Change in liabilities for uncertain tax positions	(411		)	(250		)	(2,009		)
Non-deductible stock-based compensation	553			1,363			1,934
Permanent Differences	(698		)	1,096			380
Adjustments related to tax positions taken during prior years	(403		)	184			(473		)
Tax refund	—			(305		)	(834		)
Other	172			(190		)	1,285
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)

Components of Deferred Tax Assets and Liabilities

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



	December 31,
	2019			2018
Deferred tax assets:
Reserves and accruals	$	20,622		$	17,090
Net operating loss carryforwards	33,811			29,900
Research and development credit carryforwards	36,914			36,446
Deferred stock-based compensation	1,675			2,201
Intangibles	8,224			2,585
Operating lease liabilities	5,877			—
Capitalized research and development expenses	10,897			—
Other	—			939
Gross deferred tax assets	118,020			89,161
Valuation allowance	(95,518		)	(77,144		)
Gross deferred tax assets after valuation allowance	22,502			12,017
Deferred tax liabilities:
Depreciation	(1,272		)	(391		)
Convertible notes	(6,275		)	(2,931		)
Operating lease right-of-use assets	(4,061		)	—
Other	(319		)	—
Gross deferred tax liabilities	(11,927		)	(3,322		)
Net deferred tax assets	$	10,575		$	8,695

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



	Year ended December 31,
	2019			2018			2017
Balance at beginning of period	$	77,144		$	77,756		$	74,480
Additions	23,929			928			9,028
Deductions	(5,555		)	(1,540		)	(5,752		)
Balance at end of period	$	95,518		$	77,144		$	77,756

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



	Year ended December 31,
	2019			2018			2017
Balance at beginning of period	$	18.0		$	18.8		$	19.2
Increase in balance related to tax positions taken during current year	0.2			1.0			1.4
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(0.1		)	(2.2		)
Decrease in balance due to settlement with tax authorities	—			(1.6		)	—
Increase in balance related to tax positions taken during prior years	—			0.2			1.8
Decrease in balance related to tax positions taken during prior years	(1.1		)	(0.3		)	(1.4		)
Balance at end of period	$	17.0		$	18.0		$	18.8

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Feb. 25, 2020	Jun. 28, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	HARMONIC INC
Entity Central Index Key	0000851310
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		95,891,967
Entity Public Float			$ 160,833,000

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease, Cost

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



	Year ended December 31,
	2019
Operating lease cost	$	9,574
Variable lease cost	3,232
Total lease cost	$	12,806

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



	Year ended December 31,
	2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	9,702
ROU assets obtained in exchange for operating lease obligations	$	12,032

Other information related to leases are as follows:



	Year ended December 31,
	2019
Operating leases
Weighted-average remaining lease term (years)	7.0
Weighted-average discount rate	7.1	%

Lessee, Operating Lease, Liability, Maturity

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are as follows (in thousands):



Years ending December 31,
2020	$	9,169
2021	6,181
2022	4,814
2023	4,524
2024	4,503
Thereafter	17,569
Total future minimum lease payments	$	46,760
Less: imputed interest	(11,546		)
Total	$	35,214

Future Minimum Lease Payments Under Non-cancelable 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

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION

Equity Award Plans

1995 Stock Plan

The 1995 Stock Plan provides for the grant of incentive stock options, non-statutory stock options and RSUs. Incentive stock options may be granted only to employees. All other awards may be granted to employees and consultants. Under the terms of the 1995 Stock Plan, no incentive stock option or non-statutory stock option may be granted in the ordinary course with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Company’s Board of Directors (the “Board”), generally two to four years, and expire seven years from the date of grant. Until the Company’s 2019 Annual Meeting of stockholders, grants of RSUs decreased the plan reserve by 1.5 shares for every unit or share granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit or share forfeited. The Company’s stockholders approved an amendment to the 1995 Stock Plan at the 2019 Annual Meeting to (i) modify the effect of grants of RSUs on the plan reserve such that grants of RSUs would decrease the plan reserve by one share for every unit or share granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by one share for every unit or share forfeited, and (ii) increase the number of shares of common stock reserved for issuance thereunder by 3,500,000 shares. As of December 31, 2019, an aggregate of 9,903,989 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 4,622,927 shares remained available for grant.

2002 Director Plan

The 2002 Director Plan provides for the grant of non-statutory stock options and RSUs to non-employee directors of the Company. Under the terms of the 2002 Director Plan, no non-statutory stock option may be granted with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Board, generally three years for the initial grant and one year for subsequent grants to a non-employee director, and expire seven years from the date of grant. Until the 2019 Annual Meeting, grants of RSUs decreased the plan reserve by 1.5 shares for every unit granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by 1.5 shares for every unit forfeited. The Company’s stockholders approved an amendment to the 2002 Director Plan at the 2019 Annual Meeting to modify the effect of grants of RSUs on the plan reserve such that grants of RSUs would decrease the plan reserve by one share for every unit granted, and any forfeitures of these awards due to their not vesting would increase the plan reserve by one share for every unit forfeited. As of December 31, 2019, an aggregate of 650,257 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 442,918 shares remained available for grant.

Employee Stock Purchase Plan

The 2002 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of share purchase rights to employees of the Company. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. The ESPP enables employees to purchase shares at 85% of the fair market value of the Common Stock at the beginning or end of the offering period, whichever is lower. Offering periods generally begin on the first trading day on or after January 1 and July 1 of each year. Employees may participate through payroll deductions of 1% to 10% of their earnings. In the event that there are insufficient shares in the plan to fully fund the issuance, the available shares will be allocated across all participants based on their contributions relative to the total contributions received for the offering period. The Company’s stockholders approved an amendment to the ESPP at the 2019 Annual Meeting which increased the number of shares of common stock reserved for issuance under the ESPP by 1,000,000 shares. Under the ESPP, 1,037,366, 1,132,438 and 1,291,875 shares were issued during fiscal 2019, 2018 and 2017, respectively, representing $4.1 million, $4.0 million and $4.4 million in contributions. As of December 31, 2019, 1,244,992 shares were reserved for future purchases by eligible employees.

Stock Option Activities

The following table summarizes the Company’s stock option activities and related information during the year ended December 31, 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
Granted	—		—
Exercised	(801	)	5.40
Forfeited	—		—
Canceled or expired	(379	)	6.14
Balance at December 31, 2019	1,888		5.83		1.8	$	3,715.5
As of December 31, 2019
Vested and expected to vest	1,888		$	5.83	1.8	$	3,715.5
Exercisable	1,888		$	5.83	1.8	$	3,715.5

Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of the Company’s common stock. The intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 was $1.8 million, $0.3 million and $0.3 million, respectively.

The Company realized no income tax benefit from stock option exercises for the years ended December 31, 2019, 2018 and 2017 due to recurring losses and valuation allowances.

Restricted Stock Units (“RSUs”) Activities

The following table summarizes the Company’s RSUs activities and related information during the year ended December 31, 2019 (in thousands, except per share amounts and terms):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	2,717		5.78
Vested	(2,421	)	4.02
Forfeited	(98	)	5.10
Balance at December 31, 2019	3,601		$	5.18

The estimated fair value of RSUs is based on the market price of the Company’s common stock on the grant date. The fair value of all restricted stock units vested during the years ended December 31, 2019, 2018 and 2017 was $9.7 million, $15.6 million and $13.0 million, respectively.

Performance- and Market-based awards

Starting 2015, the Company began to settle a portion of its incentive bonus payment to eligible employees by issuing PRSUs from the 1995 Stock Plan. The Company granted 405,261, 1,443,168 and 1,165,685 PRSUs to its employees during the years ended December 31, 2019, 2018 and 2017, respectively, of which 220,261, 1,343,168 and 1,165,685 PRSUs vested during the years ended December 31, 2019, 2018 and 2017, respectively, for the purpose of settling amounts earned under the Company’s incentive bonus plans. The vesting of the remaining PRSUs were based on the achievement of certain financial and non-financial operating goals of the Company, subject to the Board’s approval. The stock-based compensation recognized for PRSUs were $0.1 million, $6.1 million and $3.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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 included 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 year ended December 31, 2019 and December 31, 2018 was $0.3 million and $0.2 million respectively. None of these MRSUs had vested as of December 31, 2019.

In 2017, the Company granted 344,500 MRSUs under the 1995 Stock Plan to its key executives and certain eligible employees that may vest during a three-year period as part of its long-term incentive program. In 2018, the Company granted 40,000 MRSUs that may vest during an eighteen-month period from the date of grant. The vesting conditions of these awards are based on the market value of the Company's common stock. The fair value of these shares was estimated using a Monte-Carlo simulation and the stock-based compensation recognized in 2019 for these MRSUs was immaterial, and for 2018 and 2017 was $0.2 million and $0.9 million, respectively. 110,937 shares of these MRSUs had vested as of December 31, 2019.

French Retirement Benefit Plan

Under French law, the Company’s subsidiaries in France, including the French Subsidiary, are obligated to make certain payments to their employees upon their retirement from the Company. These payments are based on the retiring employee’s salary for a number of months that varies according to the employee’s period of service and position. Salary used in the calculation is the employee’s average monthly salary for the twelve months prior to retirement. The payments are made in one lump-sum at the time of retirement. The French pension plan is unfunded and there are no contributions to the plan required by related laws or funding regulations. No required contributions are expected in fiscal 2020, but the Company, at its discretion, may make contributions to the defined benefit plan.

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

The Company’s pension obligations as of December 31, 2019 and December 31, 2018 and the changes to the Company’s pension obligations for each of those years were as follows (in thousands):



	December 31,
	2019			2018
Projected benefit obligation:
Balance at January 1	$	4,881		$	5,033
Service cost	227			243
Interest cost	78			74
Actuarial (gains) losses	206			(202		)
Benefits paid	(31		)	(13		)
Foreign currency translation adjustment	(102		)	(254		)
Balance at December 31	$	5,259		$	4,881

Presented on the Consolidated Balance Sheets under:
Current portion (presented under “Accrued and other current liabilities”)	$	30		63
Long-term portion (presented under “Other non-current liabilities”)	$	5,229		4,818

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



	Year ended December 31,
	2019		2018
Service cost	$	227	$	243
Interest cost	78		74
Net periodic benefit cost included in operating loss	$	305	$	317

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



	December 31,
	2019		2018
Discount rate	0.7	%	1.7	%
Mobility rate	5.0	%	6.0	%
Salary progression rate	2.0	%	2.0	%

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

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

As of December 31, 2019, future benefits expected to be paid in each of the next five years, and in the aggregate for the five year period thereafter are as follows (in thousands):



Years ending December 31,
2020	$	30
2021	12
2022	—
2023	315
2024	370
2025 - 2029	3,105
	$	3,832

401(k) Plan

The Company has a retirement/savings plan for its U.S. employees, which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. The Company can make discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. The Company’s contributions to the plan were $0.3 million, $0.3 million and $0.3 million for fiscal 2019, 2018 and 2017, respectively.

Stock-based Compensation

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



	Year ended December 31,
	2019		2018		2017
Stock-based compensation in:
Cost of revenue	$	1,124	$	1,953	$	2,370
Research and development expense	3,261		5,192		5,313
Selling, general and administrative expense	7,689		10,144		8,927
Total stock-based compensation in operating expense	10,950		15,336		14,240
Total stock-based compensation recognized in net loss	$	12,074	$	17,289	$	16,610

As of December 31, 2019, total unrecognized stock-based compensation cost related to unvested RSUs was $12.7 million and is expected to be recognized over a weighted-average period of approximately 1.32 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. At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions:



	Employee Stock Options		ESPP
	2017		2019		2018		2017
Expected term (in years)	4.30		0.50		0.50		0.50
Volatility	42	%	38	%	55	%	48	%
Risk-free interest rate	1.8	%	2.3	%	1.9	%	1.2	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%

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

There were no stock options granted during the years ended December 31, 2019 and 2018.

The fair value of stock options vested during the years ended December 31, 2019, 2018 and 2017 was $0.1 million, $0.7 million and $1.7 million, respectively.

The estimated weighted-average fair value per share of stock purchase rights under the ESPP, granted for the years ended December 31, 2019, 2018 and 2017 was $1.33, $1.33 and $1.50, respectively.

Restructuring and Excess Facilities - Restructuring and Asset Impairment Charges COS vs OPEX (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Cost of revenue	$ 1,391	$ 857	$ 1,279
Restructuring and Related Cost	3,141	2,918	5,307
Restructuring and related Charges	$ 4,532	$ 3,775	$ 6,586

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

3 Months Ended

12 Months Ended

Nov. 12, 2019

Mar. 29, 2019

Dec. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

U.S. Statutory Federal Tax Rate

21.00%

35.00%

World Consolidated Loss Before Tax

$ 6,596

$ 16,948

$ 84,707

^[1]

Income Tax Expense (Benefit)

$ (672)

$ 4,087

$ (1,752)

Effective Income Tax Rate Reconciliation, Percent

10.00%

(24.00%)

2.00%

One-time benefit due to changes in Company's global tax structure

$ 2,000

Benefit from a Valuation Allowance Release

923

$ (1,449)

$ 2,834

Valuation Allowance Deferred Tax Asset Addition

23,929

928

9,028

Valuation Allowance Deferred Tax Asset Deductions

5,555

1,540

5,752

Deferred Tax Assets, Valuation Allowance

$ 77,144

95,518

$ 77,144

77,756

$ 74,480

Number of Days to Petition the U.S. Supreme Court

90 days

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

$ 20,500

More Likely Than Not Threshold Recognition of Uncertain Tax Position

50.00%

Gross unrecognized tax benefits including interest and penalties

$ 15,700

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

Benefit from a Valuation Allowance Release

$ 2,600

Foreign [Member]

Benefit from a Valuation Allowance Release

$ 800

800

159,800

Federal [Member]

Year that federal tax credits expire

31,200

Tax credit carryovers

$ 13,700

Jan. 01, 2031

California Franchise Tax Board [Member]

$ 27,000

Tax credit carryovers

$ 35,700

Tax credit expiration

will not expire

State [Member]

Israel Tax Authority [Member]

$ 55,300

Valuation Allowance Deferred Tax Asset Deductions

$ 5,600

Minimum [Member] | Federal [Member]

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

Jan. 01, 2026

Maximum [Member] | Federal [Member]

Jan. 01, 2026

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

Jan. 01, 2039

Jan. 01, 2039

[1]

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 27, 2019

Jun. 28, 2019

Mar. 29, 2019

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Quarterly Financial Data [Abstract]

$ 122,178

$ 115,725

$ 84,865

$ 80,106

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 402,874

^[1]

$ 403,558

^[1]

$ 358,246

^[1]

Net loss per share, Basic and diluted

61,695

^[2]

75,540

^[2]

43,928

^[2]

41,849

^[2]

60,321

^[2]

50,102

^[2]

51,603

^[2]

47,183

^[2]

223,012

209,209

169,820

Net income (loss)

$ 5,570

$ 11,657

$ (11,845)

$ (11,306)

$ 3,330

^[3],[4]

$ (7,758)

^[3],[4]

$ (2,913)

^[3],[4]

$ (13,694)

^[3],[4]

$ (5,924)

$ (21,035)

$ (82,955)

Earnings Per Share, Basic

$ 0.06

$ 0.13

$ (0.13)

Earnings Per Share, Diluted

$ 0.06

$ 0.12

$ (0.13)

Denominator:

Cash flows from operating activities:

$ 0.04

$ (0.09)

$ (0.03)

$ (0.16)

$ (0.07)

$ (0.25)

$ (1.02)

Basic

91,124

89,964

88,931

88,165

86,846

86,321

85,304

83,912

Diluted

97,499

97,596

88,931

88,165

89,028

86,321

85,304

83,912

[1]	Revenue is attributed to countries based on the location of the customer.
[2]	Gross margin in the first, second and fourth quarter of fiscal 2019 was 52.2%, 51.8% and 50.5%. The movement in gross margin in these quarters was primarily due to product mix. Gross margin increased to 65.3% in the third quarter of 2019 primarily due to the recognition of $37.5 million in software license revenue from the Comcast CableOS software license agreement during the third quarter of fiscal 2019. Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix.
[3]	During the fourth quarter of 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure. In addition, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the first quarter of 2019. During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries.
[4]	During the third and the fourth quarter of 2019, the Company recorded net income primarily due to growing success of our Cable OS solution and with stronger gross margins due to increase in revenue from Software. During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	91,875,000	87,057,000
Common stock, shares outstanding	91,875,000	87,057,000

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

$ (5,924)

$ (21,035)

$ (82,955)

Amortization of intangibles

8,319

8,367

8,322

^[1]

Depreciation

11,287

12,971

14,599

Amortization of discount on convertible debt

12,074

17,289

16,610

6,756

6,060

5,489

Amortization of non-cash warrant

13,576

1,178

153

Restructuring, asset impairment and loss on retirement of fixed assets

124

1,491

1,906

Loss on impairment of long-term investments

530

Foreign currency adjustments

(290)

(1,906)

2,369

Deferred income taxes, net

5,695

(2,076)

661

2,189

Provision for doubtful accounts, returns and discounts

1,500

2,521

4,912

Provision for excess and obsolete inventories

1,479

1,649

6,005

Other non-cash adjustments, net

1,225

407

445

Changes in operating assets and liabilities:

Accounts receivable

(8,388)

(14,700)

12,598

Inventories

(4,819)

(2,045)

11,687

Prepaid expenses and other assets

(3,347)

3,227

6,642

Accounts payable

5,086

1,018

3,432

Deferred revenues

(3,436)

(4,808)

(392)

Income taxes payable

(136)

440

(2,978)

Accrued and other liabilities

(7,410)

(501)

(8,499)

Net cash provided by operating activities

31,295

12,284

3,064

Cash flows from investing activities:

Proceeds from maturities of investments

3,106

Proceeds from sales of investments

104

3,792

Purchases of property and equipment

(10,328)

(7,044)

(11,399)

Net cash used in investing activities

(10,328)

(6,940)

(4,501)

Cash flows from financing activities:

Proceeds from convertible debt

115,500

Payments of convertible debt

(109,603)

Payment of convertible debt issuance costs

(4,277)

Proceeds from other debts and finance leases

4,684

5,066

6,344

Repayment of other debts and finance leases

(6,913)

(7,132)

(7,408)

Proceeds from common stock issued to employees

8,406

4,947

4,716

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

(1,492)

(230)

(2,757)

Net cash provided by financing activities

6,305

2,651

895

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

(203)

(763)

1,879

Net increase in cash, cash equivalents and restricted cash

27,069

7,232

1,337

Cash, cash equivalents and restricted cash at beginning of period

65,989

58,757

57,420

Cash, cash equivalents and restricted cash at end of period

93,058

65,989

58,757

Supplemental disclosures of cash flow information:

Income tax payments, net

1,138

2,031

2,141

Interest payments, net

4,260

5,273

5,515

Supplemental schedule of non-cash investing and financing activities:

Capital expenditures incurred but not yet paid

2,055

148

337

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

16,142

2,295

Cash and cash equivalents

93,058

65,989

57,024

Total cash, cash equivalents and restricted cash

$ 65,989

$ 58,757

$ 57,420

[1]

Convertible Notes and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

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



	December 31,
	2019			2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,151		)	(11,996		)
Less: Debt issuance costs, net of amortization	(259		)	(1,446		)
Carrying amount	$	43,375		$	114,808
Remaining amortization period (years)	0.9 years			1.9 years
Effective interest rate on liability component	9.94		%	9.94		%

Convertible Interest Expense Recognized

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



	Year ended December 31,
	2019		2018		2017
Contractual interest expense	$	4,835	$	5,130	$	5,130
Amortization of debt discount	6,013		5,408		4,898
Amortization of debt issuance costs	743		652		591
Total interest expense recognized	$	11,591	$	11,190	$	10,619

Schedule of Debt

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



	December 31,
	2019			2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	16,566		$	18,783
Term loans	587			914
Obligations under finance leases	71			162
Total debt obligations	17,224			19,859
Less: current portion	(6,713		)	(7,175		)
Long-term portion	$	10,511		$	12,684

(1) Loans backed by French R&D tax credit receivables were $15.1 million and $16.7 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the French Subsidiary had an aggregate of $23.2 million of R&D tax credit receivables from the French government from 2020 through 2023. (See Note 10, “Certain Balance Sheet Components-Prepaid expenses and other current assets” for more information). These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month plus 1.3% and mature between 2020 through 2022. The remaining loans of $1.5 million and $2.1 million as of December 31, 2019 and 2018, respectively, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and the loans outstanding at December 31, 2019 mature between 2020 through 2025.

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of debts and finance lease obligations in France as of December 31, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2020	49		6,664
2021	22		5,216
2022	—		4,897
2023	—		151
2024	—		112
Thereafter	—		112
Total	$	71	$	17,152

Convertible Note due 2024 [Member]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments



	December 31,
	2019
Liability:
Principal amount	115,500
Less: Debt discount, net of amortization	(23,652		)
Less: Debt issuance costs, net of amortization	(3,219		)
Carrying amount	$	88,629
Remaining amortization period (years)	4.7 years
Effective interest rate on liability component	7.95		%

Convertible Note due 2020 [Member]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

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



	December 31,
	2019			2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,151		)	(11,996		)
Less: Debt issuance costs, net of amortization	(259		)	(1,446		)
Carrying amount	$	43,375		$	114,808
Remaining amortization period (years)	0.9 years			1.9 years
Effective interest rate on liability component	9.94		%	9.94		%

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

Segment Information

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

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



	Year ended December 31,
	2019		2018⁽¹⁾			2017
Video
Revenue	$	278,028	$	313,828		$	319,473
Gross profit	162,156		178,170			173,414
Operating income (loss)	15,837		26,170			(2,024		)
Cable Access
Revenue	$	124,846	$	89,730		$	38,773
Gross profit	68,548		39,029			8,892
Operating income (loss)	22,171		(1,756		)	(23,154		)
Total
Revenue	$	402,874	$	403,558		$	358,246
Gross profit	230,704		217,199			182,306
Operating income (loss)	38,008		24,414			(25,178		)

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

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



	Year ended December 31,
	2019			2018			2017⁽¹⁾
Total segment operating income (loss)	$	38,008		$	24,414		$	(25,178	)
Unallocated corporate expenses ⁽¹⁾	(4,532		)	(3,769		)	(20,767		)
Stock-based compensation	(12,074		)	(17,289		)	(16,610		)
Amortization of intangibles	(8,319		)	(8,367		)	(8,322		)
Consolidated income (loss) from operations	13,083			(5,011		)	(70,877		)
Loss on debt extinguishment	(5,695		)	—			—
Non-operating expense, net	(13,984		)	(11,937		)	(13,830		)
Loss before income taxes	(6,596		)	$	(16,948	)	$	(84,707	)

(1) For the year ended December 31, 2017, the unallocated corporate expenses included acquisition- and integration-related costs, French VDP costs (see Note 11, “Restructuring and Related charges,” for more information on French VDP) and Cable Access product line inventory obsolescence costs, totaling $7.9 million. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 20, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.

Unallocated Corporate Expenses

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

Geographic Information

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



	Year ended December 31,
	2019		2018		2017
Net revenue ⁽¹⁾:
United States	$	202,272	$	181,965	$	131,773
Other countries	200,602		221,593		226,473
Total	$	402,874	$	403,558	$	358,246

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

Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2019, 2018 and 2017.



	As of December 31,
	2019		2018
Property and equipment, net:
United States	$	13,301	$	10,376
Israel	5,919		6,975
France	2,615		3,519
Other countries	1,093		1,451
Total	$	22,928	$	22,321

Customer Concentration

Net revenue from Comcast accounted for 23% and 15% of the total revenue during the years ended December 31, 2019 and 2018, respectively.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2019
Prepaid and other current assets
Derivative assets	$	—	$	43	$	—	$	43
Total assets measured and recorded at fair value	$	—	$	43	$	—	$	43
Accrued and other current liabilities
Derivative liabilities	$	—	$	112	$	—	$	112
Total liabilities measured and recorded at fair value	$	—	$	112	$	—	$	112



	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

Certain Balance Sheet Components

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Certain Balance Sheet Components

CERTAIN BALANCE SHEET COMPONENTS

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



	December 31,
	2019		2018
Inventories, net:
Raw materials	$	4,179	$	1,705
Work-in-process	1,633		991
Finished goods	14,080		12,267
Service-related spares	9,150		10,675
Total	$	29,042	$	25,638



	December 31,
	2019		2018
Prepaid expenses and other current assets:
Contract assets ⁽¹⁾	$	13,969	3,834
French R&D tax credits receivable ⁽²⁾	7,343		$	7,305
Deferred cost of revenue	2,631		3,671
Prepaid maintenance, royalty, rent, and property taxes	1,594		3,497
Capitalized commission	1,309		1,098
Other	13,916		3,875
Total	$	40,762	$	23,280

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

(2) The Company’s French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the year ended December 31, 2019 and 2018, the French government approved the 2015 and 2014 claims and refunded $6.4 million to the French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2019 were approximately $23.2 million and are expected to be recoverable from 2020 through 2023 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $15.9 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.



	December 31,
	2019			2018
Property and equipment, net:
Machinery and equipment	$	75,229		$	75,094
Capitalized software	34,190			32,696
Leasehold improvements	15,170			14,951
Furniture and fixtures	6,036			6,049
Construction in progress	5,506			—
Property and equipment, gross	136,131			128,790
Less: accumulated depreciation and amortization	(113,203		)	(106,469		)
Total	$	22,928		$	22,321



	December 31,
	2019		2018
Other long-term assets:
French R&D tax credits receivable	$	15,899	$	19,249
Deferred tax assets	10,575		8,695
Equity investment	3,593		3,593
Other	11,238		6,840
Total	$	41,305	$	38,377



	December 31,
	2019		2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	19,454	$	21,451
Operating lease liability (short-term)	8,881		—
Accrued warranty	4,308		4,869
Customer deposits	3,557		4,642
Accrued royalty payments	2,642		1,998
Contingent inventory reserves	2,208		2,500
Accrued French VDP, current ⁽¹⁾	2,055		1,585
Accrued Avid litigation settlement fees, current	2,000		1,500
Other	17,430		14,216
Total	$	62,535	$	52,761

(1) See Note 11, “Restructuring and Related Charges,” for additional information on the Company’s French VDP liabilities.



	December 31,
	2019		2018
Other non-current liabilities:
Operating lease liability (long-term)	$	25,766	$	—
Deferred revenue (long-term)	6,333		5,330
Others	9,155		12,898
Total	$	41,254	$	18,228

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Warranty

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



	2019			2018			2017
Balance at beginning of period	$	4,869		$	4,381		$	4,862
Accrual for current period warranties	5,524			6,612			5,117
Warranty costs incurred	(6,079		)	(6,124		)	(5,598		)
Balance at end of period	$	4,314		$	4,869		$	4,381

Bank Guarantees and standby Letters of Credit

As of December 31, 2019 and 2018, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.7 million and $2.3 million, respectively, consisting of building leases and performance bonds issued to customers.

On December 19, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as lender, and Harmonic International GmbH, as co-borrower. The Credit Agreement provides for a secured revolving loan facility in an aggregate principal amount of up to $25.0 million, based on a borrowing base of eligible accounts receivable and inventory, with a maturity date of October 31, 2020. The Company may use availability under the revolving loan facility for the issuance of letters of credit. The proceeds of the revolving loans may be used for general corporate purposes.

The revolving loans bear interest, at the Company’s election, at a floating rate per annum equal to either (1) 1.25% plus the greater of (i) 1 month LIBOR on any day plus 2.50% and (ii) the prime rate as reported in the Wall Street Journal from time to time or (2) 2.25% plus LIBOR for an interest period of one, two or three months. Interest on the revolving loans is payable monthly in arrears, in the case of prime rate loans, and at the end of the applicable interest period, in the case of LIBOR loans.

The Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, dispose of assets, enter into transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the Credit Agreement. The Company is also required to maintain compliance with an adjusted quick ratio, a minimum EBITDA covenant (tested quarterly) and a minimum liquidity covenant, in each case, determined in accordance with the terms of the Credit Agreement. As of December 31, 2019, the Company was in compliance with the covenants under the Credit Agreement.

As of December 31, 2019, there were $0.3 million of outstanding letters of credit issued under the Credit Agreement. There were no revolving borrowings under the Credit Agreement from the closing of the Credit Agreement through December 31, 2019.

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 cannot exceed up to 85% of the Company’s eligible receivables. Under the terms of the Loan Agreement, the Company may also request letters of credit from the Bank. The 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 $2.2 million committed towards security for letters of credit, which were unsecured as of December 31, 2019. The Company was in compliance with the covenants under the Loan Agreement prior to the termination.

During 2017, one of the Company’s subsidiaries entered into a $2.0 million credit facility with a foreign bank for the purpose of issuing performance guarantees. The credit facility is secured by a $2.2 million guarantee issued by the parent company. There were no amounts outstanding under this credit facility as of December 31, 2019 and December 31, 2018.

Indemnification

The Company is obligated to indemnify its officers and its directors pursuant to its bylaws and contractual indemnity agreements. The Company also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of the indemnification provisions through December 31, 2019.

Royalties

The Company has licensed certain technologies from various companies. It incorporates these technologies into its own products and is required to pay royalties for such use, usually based on shipment of the related products. In addition, the Company has obtained research and development grants under various Israeli government programs that require the payment of royalties on sales of certain products resulting from such research. Royalty expenses were $4.1 million, $4.2 million and $5.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, and they are included in cost of revenue in the Company’s Consolidated Statements of Operations.

Purchase Obligations

The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. The Company had approximately $62.3 million of non-cancelable commitments to purchase inventories and other commitments as of December 31, 2019.

Accounts Receivable

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Accounts Receivable

ACCOUNTS RECEIVABLE

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



	December 31,
	2019			2018
Accounts receivable, net:
Accounts receivable	$	91,513		$	85,292
Less: allowance for doubtful accounts and sales returns	(3,013		)	(3,497		)
Total	$	88,500		$	81,795

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

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



	Balance at Beginning of Period		Charges to Revenue		Charges (Credits) to Expense			Additions to (Deductions from) Reserves			Balance at End of Period
Year ended December 31,
2019	$	3,497	$	1,896	$	(396	)	$	(1,984	)	$	3,013
2018	$	4,631	$	1,949	$	572		$	(3,655	)	$	3,497
2017	$	4,831	$	4,030	$	881		$	(5,111	)	$	4,631

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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



	Year ended December 31,
	2019			2018			2017
United States	$	1,769		$	(19,780	)	$	(50,041	)
International	(8,365		)	2,832			(34,666		)
Loss before income taxes	$	(6,596	)	$	(16,948	)	$	(84,707	)

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



	Year ended December 31,
	2019			2018			2017
Current:
Federal	$	(180	)	$	(305	)	$	(4,530	)
State	108			116			129
International	1,525			2,958			273
Deferred:
International	(2,125		)	1,318			2,376
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)



	Year ended December 31,
	2019			2018			2017
Benefit from for income taxes at U.S. Federal statutory rate	$	(1,384	)	$	(3,559	)	$	(29,648	)
Differential in rates on foreign earnings	2,422			4,299			15,920
Tax Reform tax rate reduction	—			—			14,527
Change in valuation allowance	(923		)	1,449			(2,834		)
Change in liabilities for uncertain tax positions	(411		)	(250		)	(2,009		)
Non-deductible stock-based compensation	553			1,363			1,934
Permanent Differences	(698		)	1,096			380
Adjustments related to tax positions taken during prior years	(403		)	184			(473		)
Tax refund	—			(305		)	(834		)
Other	172			(190		)	1,285
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)

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

In 2019, the Company had a worldwide consolidated loss before tax of $6.6 million and tax benefit of $0.7 million, with an annual effective income tax rate of 10%. The Company’s 2019 effective income tax rate differed from the U.S. federal statutory rate of 21% primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal, California and other states deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax jurisdictions. In addition, during 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure, and a $0.8 million benefit from a valuation allowance release for one of its foreign subsidiaries. This release of the valuation allowance was due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during 2019.

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

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

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



	December 31,
	2019			2018
Deferred tax assets:
Reserves and accruals	$	20,622		$	17,090
Net operating loss carryforwards	33,811			29,900
Research and development credit carryforwards	36,914			36,446
Deferred stock-based compensation	1,675			2,201
Intangibles	8,224			2,585
Operating lease liabilities	5,877			—
Capitalized research and development expenses	10,897			—
Other	—			939
Gross deferred tax assets	118,020			89,161
Valuation allowance	(95,518		)	(77,144		)
Gross deferred tax assets after valuation allowance	22,502			12,017
Deferred tax liabilities:
Depreciation	(1,272		)	(391		)
Convertible notes	(6,275		)	(2,931		)
Operating lease right-of-use assets	(4,061		)	—
Other	(319		)	—
Gross deferred tax liabilities	(11,927		)	(3,322		)
Net deferred tax assets	$	10,575		$	8,695

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



	Year ended December 31,
	2019			2018			2017
Balance at beginning of period	$	77,144		$	77,756		$	74,480
Additions	23,929			928			9,028
Deductions	(5,555		)	(1,540		)	(5,752		)
Balance at end of period	$	95,518		$	77,144		$	77,756

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

In 2019, the Company continued to record a valuation allowance against all of its United States deferred tax assets due to cumulative losses in the United States. In addition, during the 2019, it recorded a partial valuation allowance on its deferred tax assets in Switzerland due to the generation of current year losses in excess of the amount that can be realized. This results in an increase to the valuation allowance of $23.9 million. This increase in the valuation allowance is offset partially by the release of $5.6 million valuation allowance against its Israel subsidiary due to a reduced tax rate as a result of a local tax authority ruling. As of December 31, 2019, the Company had a valuation allowance of $95.5 million against all of its U.S. federal and states net deferred tax assets and certain foreign deferred tax assets.

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. On July 22, 2019, Altera Corp. filed a petition for an en banc rehearing before the U.S. Court of Appeals for the Ninth Circuit, which was denied on November 12, 2019. Altera Corp. has 90 days from this date to petition the U.S. Supreme Court for review of the decision. During 2019, the Company continued to include share-based compensation in the cost base consistent with the Ninth Circuit's ruling.

As of December 31, 2019, the Company had $159.8 million, $31.2 million, $27.0 million and $55.3 million of foreign, U.S. federal, U.S. California state, and U.S. other states net operating loss carryforwards (“NOL”), respectively. Certain foreign NOLs expire beginning in 2027, if not utilized, while the majority of the foreign NOLs carryforward indefinitely. The U.S. federal and California NOLs begin to expire at various dates beginning in 2026 through 2039, if not utilized.

As of December 31, 2019, the Company had U.S. federal and California state tax credit carryforwards of approximately $13.7 million and $35.7 million, respectively. If not utilized, the U.S. federal tax credit carryforwards will begin to expire in 2031, while the California tax credit carryforward will not expire.

The Company has not provided U.S. state income taxes and foreign withholding taxes, on approximately $20.5 million of cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable.

The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in our judgment, is more than fifty percent likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions to be recognized in earnings in the period in which such determination is made. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of December 31, 2019, the Company had $15.7 million of unrecognized future tax benefits that would favorably impact the effective tax rate in future periods if recognized. The following table summarizes the activities related to the Company’s gross unrecognized tax benefits (in millions):



	Year ended December 31,
	2019			2018			2017
Balance at beginning of period	$	18.0		$	18.8		$	19.2
Increase in balance related to tax positions taken during current year	0.2			1.0			1.4
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(0.1		)	(2.2		)
Decrease in balance due to settlement with tax authorities	—			(1.6		)	—
Increase in balance related to tax positions taken during prior years	—			0.2			1.8
Decrease in balance related to tax positions taken during prior years	(1.1		)	(0.3		)	(1.4		)
Balance at end of period	$	17.0		$	18.0		$	18.8

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expenses on the Consolidated Statements of Operations. The net interest and penalties charges recorded for the years ended December 31, 2017 through 2019, were not material.

The 2016 through 2019 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Selling, general and administrative

^[1]

$ 402,874

$ 403,558

$ 358,246

Total cost of revenue

179,862

194,349

188,426

Total gross profit

223,012

209,209

169,820

Operating expenses:

Research and development

84,614

89,163

95,978

119,035

118,952

136,270

Amortization of intangibles

3,139

3,187

3,142

Restructuring and related charges

3,141

2,918

5,307

Total operating expenses

209,929

214,220

240,697

Income (loss) from operations

13,083

(5,011)

(70,877)

^[2]

Interest expense, net

(11,651)

(11,401)

(11,078)

Loss on impairment of long-term investments

(5,695)

Other expense, net

(2,333)

(536)

(2,222)

(530)

Loss before income taxes

(6,596)

(16,948)

(84,707)

^[2]

Provision for (benefit from) income taxes

(672)

4,087

(1,752)

$ (5,924)

$ (21,035)

$ (82,955)

Net loss per share:

Shares used in per share calculations:

$ (0.07)

$ (0.25)

$ (1.02)

Appliance & Integration [Member]

89,575

85,615

80,974

$ 275,797

$ 287,564

$ 246,353

Total cost of revenue

130,284

148,472

142,545

SaaS and service

Accrued employee compensation and related expenses

127,077

115,994

111,893

Total cost of revenue

$ 49,578

$ 45,877

$ 45,881

[1]

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

[2]

Derivative and Hedging Activities - Notional Values (Details) - Foreign Exchange Forward [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Long [Member]
Derivatives, Fair Value [Line Items]
Purchase	$ 14,806	$ 28,975
Short [Member]
Derivatives, Fair Value [Line Items]
Sell	$ 2,629	$ 0

Legal Proceedings - Additional Information (Detail) $ in Thousands		3 Months Ended	12 Months Ended
	Oct. 24, 2017 USD ($)	Jun. 28, 2019 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 29, 2017 USD ($)	Jun. 29, 2012 Patents	Oct. 31, 2011 Patents
Loss Contingencies [Line Items]
Estimated Litigation Liability, Noncurrent				$ 2,000	$ 1,500
Avid [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability						$ 6,000
Payments for Legal Settlements	$ 2,500
Settled Litigation Payment Second Quarter of 2019 [Member] \| Avid [Member]
Loss Contingencies [Line Items]
Payments for Legal Settlements		$ 1,500
Settled Litigation Payment Third Quarter of 2020 [Member] \| Avid [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability, Noncurrent				$ 2,000
Media grid [Member] \| Avid Technology Inc. [Member]
Loss Contingencies [Line Items]
Infringements of number of patents held \| Patents								2
Spectrum [Member] \| Avid Technology Inc. [Member]
Loss Contingencies [Line Items]
Infringements of number of patents held \| Patents							1
Selling, General and Administrative Expenses [Member] \| Avid [Member]
Loss Contingencies [Line Items]
Litigation Settlement, Expense			$ 6,000

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

Dec. 31, 2019

Dec. 31, 2018

Payables and Accruals [Abstract]

$ 19,454

$ 21,451

Operating lease liability (short-term)

8,881

Accrued warranty

4,308

4,869

Customer deposits

3,557

4,642

Accrued royalty payments

2,642

1,998

Contingent inventory reserves

2,208

2,500

Accrued French VDP, current (1)

^[1]

2,055

1,585

Accrued Avid litigation settlement fees, current

2,000

1,500

Other

17,430

14,216

Total

$ 62,535

$ 52,761

[1]	See Note 11, “Restructuring and Related Charges,” for additional information on the Company’s French VDP liabilities.

Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Raw materials	$ 4,179	$ 1,705
Work-in-process	1,633	991
Finished goods	14,080	12,267
Service-related spares	9,150	10,675
Inventories	$ 29,042	$ 25,638

Convertible Notes and Credit Facilities

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Credit Facilities

CONVERTIBLE NOTES, OTHER DEBTS AND FINANCE LEASES

2.00% Convertible Senior Notes due 2024

In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank National Association, as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable 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.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2024 Notes is being amortized to interest expense at the effective interest rate over the contractual term of the 2024 Notes. The following table presents the components of the 2024 Notes as of December 31, 2019 (in thousands, except for years and percentages):



	December 31,
	2019
Liability:
Principal amount	115,500
Less: Debt discount, net of amortization	(23,652		)
Less: Debt issuance costs, net of amortization	(3,219		)
Carrying amount	$	88,629
Remaining amortization period (years)	4.7 years
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 year ended December 31, 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 were 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 were also scheduled to be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances.

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



	December 31,
	2019			2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,151		)	(11,996		)
Less: Debt issuance costs, net of amortization	(259		)	(1,446		)
Carrying amount	$	43,375		$	114,808
Remaining amortization period (years)	0.9 years			1.9 years
Effective interest rate on liability component	9.94		%	9.94		%

The 2020 Notes became convertible as of December 31, 2019, as the last reported sale price of the Company’s common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter was greater than or equal to 130% of the conversion price of the 2020 Notes on each applicable trading day. As a result of the 2020 Notes becoming currently convertible for cash up to the principal amount of $45.8 million, the Company reclassified the unamortized debt discount for the 2020 Notes in the amount of $2.4 million from “Additional paid-in-capital” to convertible debt in the mezzanine equity section in the Consolidated Balance Sheet as of December 31, 2019.

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



	Year ended December 31,
	2019		2018		2017
Contractual interest expense	$	4,835	$	5,130	$	5,130
Amortization of debt discount	6,013		5,408		4,898
Amortization of debt issuance costs	743		652		591
Total interest expense recognized	$	11,591	$	11,190	$	10,619

Other Debts and Finance Leases



	December 31,
	2019			2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	16,566		$	18,783
Term loans	587			914
Obligations under finance leases	71			162
Total debt obligations	17,224			19,859
Less: current portion	(6,713		)	(7,175		)
Long-term portion	$	10,511		$	12,684

Future minimum repayments

The table below presents the future minimum repayments of debts and finance lease obligations in France as of December 31, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2020	49		6,664
2021	22		5,216
2022	—		4,897
2023	—		151
2024	—		112
Thereafter	—		112
Total	$	71	$	17,152

Line of Credit

On December 19, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as lender. The Credit Agreement provides for a secured revolving loan facility in an aggregate principal amount of up to $25.0 million, based on a borrowing base of eligible accounts receivable and inventory, with a maturity date of October 31, 2020. The Company may use availability under the revolving loan facility for the issuance of letters of credit. The proceeds of the revolving loans may be used for general corporate purposes.

As of December 31, 2019, there was $0.3 million of outstanding letters of credit issued under the Credit Agreement. There were no revolving borrowings under the Credit Agreement from the closing of the Credit Agreement through December 31, 2019.

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 $2.2 million committed towards security for letters of credit, which were unsecured as of December 31, 2019. The Company was in compliance with the covenants under the Loan Agreement prior to the termination.

Derivative and Hedging Activities - Offsetting of Derivative Assets and Liabiltiies (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Fair Value, Gross Asset	$ 43
Derivative Asset, Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets	0
Derivative Asset, Net Amounts of Derivatives Presented in the Consolidated Balance Sheets	43
Derivative Liability, Fair Value, Gross Liability	112
Derivative Liability, Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets	0
Derivative Liability, Net Amounts of Derivatives Presented in the Consolidated Balance Sheets	$ 112

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

SELECTED QUARTERLY FINANCIAL DATA

(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2019. In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data.



	Fiscal 2019
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	80,106		$	84,865		$	115,725		$	122,178
Gross profit ⁽¹⁾	41,849			43,928			75,540			61,695
Net income (loss)	(11,306		)	(11,845		)	11,657			5,570
Net income (loss) per share:
Basic	$	(0.13	)	$	(0.13	)	$	0.13		$	0.06
Diluted	$	(0.13	)	$	(0.13	)	$	0.12		$	0.06
Shares used in per share calculations:
Basic	88,165			88,931			89,964			91,124
Diluted	88,165			88,931			97,596			97,499
	Fiscal 2018
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	90,127		$	99,160		$	100,616		$	113,655
Gross profit ⁽¹⁾	47,183			51,603			50,102			60,321
Net income (loss) ^{(2) (3)}	(13,694		)	(2,913		)	(7,758		)	3,330
Net income (loss) per share:
Basic and diluted	$	(0.16	)	$	(0.03	)	$	(0.09	)	$	0.04
Shares used in per share calculations:
Basic	83,912			85,304			86,321			86,846
Diluted	83,912			85,304			86,321			89,028

(1) Gross margin in the first, second and fourth quarter of fiscal 2019 was 52.2%, 51.8% and 50.5%. The movement in gross margin in these quarters was primarily due to product mix. Gross margin increased to 65.3% in the third quarter of 2019 primarily due to the recognition of $37.5 million in software license revenue from the Comcast CableOS software license agreement during the third quarter of fiscal 2019. Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix.

(2) During the third and the fourth quarter of 2019, the Company recorded net income primarily due to growing success of our Cable OS solution and with stronger gross margins due to increase in revenue from Software. During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.

(3) During the fourth quarter of 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure. In addition, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the first quarter of 2019. During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of Harmonic include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter which ends on December 31. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. Reclassifications Certain prior period balances have been reclassified to conform to the current year presentation. These reclassifications did not have material impact on previously reported financial statements. Beginning in fiscal 2019, the Company changed the way total revenue and cost of revenue is classified in the Consolidated Statements of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The Company has also adjusted revenue and cost of revenue retrospectively into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue and cost of revenue did not have an impact on total revenue, cost of revenue or segment revenue for any periods presented. Cash and Cash Equivalents Cash and cash equivalents include all cash and highly liquid investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments. Investments in Equity Securities From time to time, the Company may acquire certain equity investments for the promotion of business and strategic objectives and these investments may be in marketable equity securities or non-marketable equity securities. Effective January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for its equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, the Company measure these investments at cost minus impairment, if any, The Company’s equity investments are classified as long-term investments and reported as a component of “Other long-term assets” on the Company’s Consolidated Balance Sheets. Prior to January 1, 2018, the Company accounted for its investments in entities that it did not have significant influence under the cost method. Investments in equity securities were carried at fair value if the fair value of the security is readily determinable. Unrealized gains and losses, net of taxes, on the long-term investments were included in the Company’s Consolidated Balance Sheet as a component of accumulated other comprehensive loss. Investments in equity securities that did not qualify for fair value accounting or equity method accounting were accounted for under the cost method. The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2019 and 2018, respectively. Liquidity As of December 31, 2019, the Company’s principal sources of liquidity consisted of cash and cash equivalents of $93.1 million, net accounts receivable of $88.5 million, and an aggregate principal amount of up to $25.0 million in revolving credit facility with JPMorgan Chase Bank, N.A., and financing from French government agencies. As of December 31, 2019, the Company had $115.5 million in principal amount of convertible senior notes outstanding, bearing interest at a rate of 2.00% per year, payable semiannually on March 1 and September 1 of each year (the “2024 Notes”) which are due on September 1, 2024, and $45.8 million in principal amount of convertible notes outstanding, bearing interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year (the “2020 Notes”) which are due on December 1, 2020. The Company also had debts with French government agencies and to a lesser extent, with other financial institutions, primarily in France, in the aggregate of $17.2 million at December 31, 2019. The Company’s principal uses of cash will include repayments of debt and related interest, purchases of inventory, payroll, restructuring expenses, and other operating expenses related to the development and marketing of our products, purchases of property and equipment and other contractual obligations for the foreseeable future. The Company believes that its cash and cash equivalents of $93.1 million at December 31, 2019 will be sufficient to fund its principal uses of cash for at least the next 12 months. However, if its expectations are incorrect, it may need to raise additional funds to fund our operations, to take advantage of unanticipated strategic opportunities or to strengthen our financial position. Additional funds may not be available on terms favorable to us or at all. Credit Risk and Major Customers/Supplier Concentration Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are invested in short-term, highly liquid, investment-grade obligations of commercial or governmental issuers, in accordance with the Company’s investment policy. The investment policy limits the amount of credit exposure to any one financial institution, commercial or governmental issuer. The Company’s accounts receivable are derived from sales to worldwide cable, satellite, telco, and broadcast and media companies. The Company generally does not require collateral from its customers, and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. One customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2019 and two customers had a balance greater than 10% as of December 31, 2018. During the year ended December 31, 2019 and 2018, Comcast accounted for more than 10% of the Company’s revenue. Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those sole source and limited source suppliers, the partial or complete loss of certain of these sources could have at least a temporary adverse effect on the Company’s results of operations and damage customer relationships. Revenue Recognition The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions. Beginning in fiscal 2019, the Company changed the way total revenue was classified in the 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. Revenue from contracts with customers is recognized using the following five steps: a) Identify the contract(s) with a customer; b) Identify the performance obligations in the contract; c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract; and e) Recognize revenue when (or as) the Company satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a Company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation. A contract may contain one or more performance obligations, including hardware, software, professional services and support and maintenance. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise performance obligations will be combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price also reflects the impact of the time value of money if there is a significant financing component present in an arrangement. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time depending on the nature of the arrangement. Refer to Note 3, “Revenue” for additional information. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The cost of inventories is comprised of material, labor and manufacturing overhead. The Company’s manufacturing overhead standards for product costs are calculated assuming full absorption of forecasted spending over projected volumes. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations. Capitalized Software Development Costs External-use software. Research and development costs are generally charged to expense as incurred. The Company has not capitalized any such development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product is available for general release to customers has been insignificant. Internal-use software. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. These capitalized costs are amortized on a straight-line basis, generally three years. During the years ended December 31, 2019, 2018 and 2017, the Company capitalized $1.1 million, $0.9 million and $1.1 million, respectively, of its software development costs related to the development of its SaaS offerings. Capitalized Software Implementation Costs In a hosting arrangement that is a service contract, the Company capitalizes costs for implementation activities in the application development stage depending on the nature of the costs. The costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement, which is the fixed, noncancelable term of the arrangement, plus any reasonably certain renewal periods. The capitalized implementation costs and amortization expense related to these costs are included in “Other long-term assets” and “Selling, general and administrative” in the Consolidated Balance Sheets and Consolidated Statements of Operations, respectively. The payments for capitalized implementation costs are included as operating activities in the Consolidated Statements of Cash Flows. During the year ended December 31, 2019, the Company capitalized $3.6 million of its software implementation costs. During the year ended December 31, 2018, the amount of capitalized software implementation cost was not significant. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally, five years for furniture and fixtures, three years for software and four years for machinery and equipment. Depreciation for leasehold improvements are computed using the shorter of the remaining useful lives of the assets or the lease term of the respective assets. Goodwill As of December 31, 2019, the Company had goodwill of $239.8 million which represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has two reporting units, which are the same as its operating segments. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, which is performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit’s net assets other than goodwill and the fair value of the reporting unit. If this difference is less than the net book value of goodwill, an impairment exists and is recorded. In the first step, the fair value of each of the Company’s reporting units is determined using both the income and market valuation approaches. Under the income approach, the fair value of the reporting unit is based on the present value of estimated future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, the value of the reporting unit is based on an analysis that compares the value of the reporting unit to values of publicly-traded companies in similar lines of business. In the application of the income and market valuation approaches, the Company is required to make estimates of future operating trends and judgments on discount rates and other variables. Determining the fair value of a reporting unit is highly judgmental in nature and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but that are unpredictable and inherently uncertain. Actual future results related to assumed variables could differ from these estimates. In addition, the Company makes certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of its reporting units. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business's ability to execute on the projected cash flows. Under the market approach, the Company estimates the fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting units, and then apply a control premium which is determined by considering control premiums offered as part of the acquisitions that have occurred in market segments that are comparable with its reporting units. There was no impairment of goodwill resulting from the Company’s fiscal 2019 annual impairment testing. (See Note 8, “Goodwill and Identified Intangible Assets,” for additional information). Long-lived Assets Long-lived assets represent property and equipment and purchased intangible assets. Purchased intangible assets from business combinations and asset acquisitions include customer contracts, trademarks and trade names, and maintenance agreements and related relationships, the amortization of which is charged to general and administrative expenses, and core technology and developed technology, the amortization of which is charged to cost of revenue. The Company evaluates the recoverability of intangible assets and other long-lived assets when indicators of impairment are present. When impairment indicators are present, the Company evaluates the recoverability of intangible assets and other long-lived assets on the basis of undiscounted cash flows expected to result from the use of each asset group and its eventual disposition. If the undiscounted expected future cash flows are less than the carrying amount of the asset, an impairment loss is recognized in order to write down the carrying value of the asset to its estimated fair market value. There were no impairment charges for long-lived assets in the years ended December 31, 2019, 2018 and 2017. Leases On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification. Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 11 years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. Refer to Note 4, “Leases” for additional information. Foreign Currency The functional currency of the Company’s Israeli, Cayman and Swiss operations is the U.S. dollar. All other foreign subsidiaries use the respective local currency as the functional currency. When the local currency is the functional currency, gains and losses from translation of these foreign currency financial statements into U.S. dollars are recorded as a separate component of other comprehensive income (loss) in stockholders’ equity. The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its subsidiaries in their nonfunctional currencies. These monetary assets and monetary liabilities are being remeasured into the functional currencies of the subsidiaries using exchange rates prevailing on the balance sheet date. Such remeasurement gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2019, 2018 and 2017, the Company recorded remeasurement losses of approximately $1.5 million, $0.6 million and $2.2 million, respectively. Derivative Instruments The Company enters into derivative instruments, primarily foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities as well as certain foreign currencies denominated expenses. The Company does not enter into derivative instruments for trading purposes and these derivatives generally have maturities within twelve months. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheet. For derivative instruments designated and qualifying as cash flow hedges of forecasted foreign currency denominated transactions expected to occur within twelve months, the effective portion of the gain or loss on these hedges is reported as a component of “Accumulated other comprehensive loss” in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is (or becomes) ineffective, the gain or loss on the associated financial instrument is recorded immediately in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged. The Company did not enter into any cash flow hedges during the year ended December 31, 2019 and 2018. Research and Development Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products. The Company’s French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D tax credits receivable from the French government for spending on innovative R&D under the CIR program is recorded as an offset to R&D expenses. In the years ended December 31, 2019, 2018 and 2017, the Company had R&D tax credits of $4.7 million, $5.9 million and $5.9 million respectively. Restructuring and Related Charges The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements. See Note 11, “Restructuring and Related Charges” for additional information. Warranty The Company accrues for estimated warranty costs at the time of revenue recognition and records such accrued liabilities as part of cost of revenue. Management periodically reviews its warranty liability and adjusts the accrued liability based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Advertising Expenses All advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations. Advertising expense was $0.7 million, $1.0 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based compensation awards made to employees, including stock options, restricted stock units (“RSUs”) and awards related to the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. Prior to January 1, 2017, stock-based compensation was recorded net of estimated forfeitures over the requisite service period and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. Upon the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), issued by the Financial Accounting Standards Board (“FASB”), the Company changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective approach with a cumulative effect adjustment of $69,000 to retained earnings as of January 1, 2017 (which increased the accumulated deficit). The fair value of the Company’s stock options and ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs is calculated based on the market value of the Company’s stock at the grant date. The fair value of the Company’s market-based RSUs (“MRSUs”) is estimated using the Monte-Carlo valuation model with market vesting conditions. The Company recognizes the stock-based compensation for performance-based RSUs (“PRSUs”) based on the probability of achieving certain performance criteria, as defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next. Pension Plan Under French law, the Company’s subsidiaries in France, including the acquired TVN French Subsidiary, is obligated to provide for a defined benefit plan to its employees upon their retirement from the Company. The Company’s defined benefit pension plan in France is unfunded. The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its pension plan are reasonable based on its experience, market conditions and input from its actuaries. The Company accounts for the actuarial gains (losses) in accordance with ASC 715, “Compensation - Retirement Benefits”. If the net accumulated gain or loss exceeds 10% of the projected plan benefit obligation, a portion of the net gain or loss is amortized and included in expense for the following year based upon the average remaining service period of active plan participants, unless the Company’s policy is to recognize all actuarial gains (losses) when they occur. The Company elected to defer actuarial gains (losses) in accumulated other comprehensive income (loss). As of December 31, 2019, the Company did not meet the 10% threshold, and therefore no amortization of 2019 actuarial gain would be recorded in 2020. See Note 13, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information. Income Taxes In preparing the Company’s financial statements, the Company estimates the income taxes for each of the jurisdictions in which the Company operates. This involves estimating the Company’s current tax expense and assessing temporary and permanent differences resulting from differing treatment of items, such as reserves and accruals, for tax and accounting purposes. These temporary differences result in deferred tax assets and liabilities, which are included within the Company’s Consolidated Balance Sheet. The Company’s income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the Company’s accompanying Consolidated Balance Sheets, as well as operating loss and tax credit carryforwards. The Company follows the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the Consolidated Balance Sheet and provides any necessary allowances as required. Determining necessary allowances requires the Company to make assessments about the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. A history of operating losses in recent years has led to uncertainty with respect to our ability to realize certain of our net deferred tax assets, and as a result we applied a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2019. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected. The Company is subject to examination of its income tax returns by various tax authorities on a periodic basis. The Company regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of its provision for income taxes. The Company has applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes, which requires application of a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the Company to recognize a tax benefit measured at the largest amount of tax benefit that, in the Company’s judgment, is more than 50% likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. The Company files annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves and penalties, as well as the related interest, in light of changing facts and circumstances. Changes in the Company’s assessment of its uncertain tax positions or settlement of any particular position could materially and adversely impact the Company’s income tax rate, operating results, financial position and cash flows. Segment Reporting Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and is evaluated by the Chief Operating Decision Maker (“CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has two operating segments: Video and Cable Access. Comprehensive Income (Loss) Comprehensive income (loss) includes net loss and other comprehensive income (loss). Other comprehensive income (loss) includes cumulative translation adjustments, unrealized foreign exchange gains and losses on intercompany long-term loans, unrealized gains and losses on certain foreign currency forward contracts that qualify as cash flow hedges and available-for-sale securities, as well as actuarial gains and losses on pension plan. Recently Adopted Accounting Pronouncements 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 17, “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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The new ASU will be effective for the Company beginning in the first quarter of 2021 on a prospective basis. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements. In November 2019, the FASB issued ASU 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers. The new ASU will be effective for the Company effective in the first quarter of 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 expects the impact to its disclosure to be relatively limited.

Warrants Disclosure (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($) Measurement_Input	Dec. 31, 2017 USD ($)	Dec. 20, 2019 shares	Dec. 17, 2019 shares	Jul. 08, 2019 USD ($)	Jul. 01, 2019 USD ($) shares	Jun. 28, 2019 USD ($)	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
Measurement Input, Risk Free Interest Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input		0.019
Measurement Input, Option Volatility [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input		0.486
Measurement Input, Expected Term [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Term		4 years 2 months 12 days
Measurement Input, Expected Dividend Rate [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input		0
Comcast Milestones Achievement [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding							1,954,042
Comcast CableOS Software License Agreement [Member]
Class of Warrant or Right [Line Items]
Fair Value of Fully Vested Warrants \| $						$ 16.1
Comcast Warrants Vested Prior to July 2019 [Member]
Class of Warrant or Right [Line Items]
Fair Value of Fully Vested Warrants \| $								$ 3.9
Comcast Warrants Vested July 2019 [Member]
Class of Warrant or Right [Line Items]
Fair Value of Fully Vested Warrants \| $							$ 20.0
Comcast Warrants Exercise in its Entirety [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding					3,217,547
Comcast Warrants Exercise Shares Delivered [Member]
Class of Warrant or Right [Line Items]
Warrant shares exercised delivered to Comcast				804,387
Comcast Warrants Exercised Shares Remaining to be Issued [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	2,413,160
Revenue from Contract with Customer Benchmark [Member]
Class of Warrant or Right [Line Items]
Reduction to Revenues In Connection with Amortization of the Warrant \| $	$ 13.6	$ 1.2	$ 0.2
Maximum [Member] \| Comcast Warrant Expires September 26, 2023 [Member]
Class of Warrant or Right [Line Items]
Warrant grants to Comcast subject to vesting									7,816,162

Leases

12 Months Ended

Dec. 31, 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 1 year to 11 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 year, the Company entered into new lease facilities, which were assessed under Topic 842 to be operating leases. The new leases resulted in the balance sheet recognition of $12.0 million in “Operating lease right-of use assets,” $4.0 million in “Prepaid expenses and other current assets,” $0.6 million in “Other non-current liabilities,” and $15.5 million in “Accrued and other current liabilities.”

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



	Year ended December 31,
	2019
Operating lease cost	$	9,574
Variable lease cost	3,232
Total lease cost	$	12,806

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



	Year ended December 31,
	2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	9,702
ROU assets obtained in exchange for operating lease obligations	$	12,032

Other information related to leases are as follows:



	Year ended December 31,
	2019
Operating leases
Weighted-average remaining lease term (years)	7.0
Weighted-average discount rate	7.1	%

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are as follows (in thousands):



Years ending December 31,
2020	$	9,169
2021	6,181
2022	4,814
2023	4,524
2024	4,503
Thereafter	17,569
Total future minimum lease payments	$	46,760
Less: imputed interest	(11,546		)
Total	$	35,214

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 - Balance Sheet Location (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	$ 43	$ 0
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value	112	333
Foreign Exchange Forward [Member] \| Prepaid Expenses and Other Current Assets [Member] \| Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	43	0
Foreign Exchange Forward [Member] \| Accrued Liabilities [Member] \| Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value	$ 112	$ 333

Employee Benefit Plans - Expected Future Benefits (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Retirement Benefits [Abstract]
2020	$ 30
2021	12
2022	0
2023	315
2024	370
2025 - 2029	3,105
Defined Benefit Plan Expected Future Benefit Payments	$ 3,832

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data [Abstract]

Summary of Quarterly Financial Data



	Fiscal 2019
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	80,106		$	84,865		$	115,725		$	122,178
Gross profit ⁽¹⁾	41,849			43,928			75,540			61,695
Net income (loss)	(11,306		)	(11,845		)	11,657			5,570
Net income (loss) per share:
Basic	$	(0.13	)	$	(0.13	)	$	0.13		$	0.06
Diluted	$	(0.13	)	$	(0.13	)	$	0.12		$	0.06
Shares used in per share calculations:
Basic	88,165			88,931			89,964			91,124
Diluted	88,165			88,931			97,596			97,499
	Fiscal 2018
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	90,127		$	99,160		$	100,616		$	113,655
Gross profit ⁽¹⁾	47,183			51,603			50,102			60,321
Net income (loss) ^{(2) (3)}	(13,694		)	(2,913		)	(7,758		)	3,330
Net income (loss) per share:
Basic and diluted	$	(0.16	)	$	(0.03	)	$	(0.09	)	$	0.04
Shares used in per share calculations:
Basic	83,912			85,304			86,321			86,846
Diluted	83,912			85,304			86,321			89,028

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

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

Use of Estimates

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

Reclassifications

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

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

Cash and Cash Equivalents

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

Investments in Equity Securities

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

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

The Company’s total investments in equity securities of other privately and publicly held companies were $3.6 million as of December 31, 2019 and 2018, respectively.

Liquidity

As of December 31, 2019, the Company’s principal sources of liquidity consisted of cash and cash equivalents of $93.1 million, net accounts receivable of $88.5 million, and an aggregate principal amount of up to $25.0 million in revolving credit facility with JPMorgan Chase Bank, N.A., and financing from French government agencies. As of December 31, 2019, the Company had $115.5 million in principal amount of convertible senior notes outstanding, bearing interest at a rate of 2.00% per year, payable semiannually on March 1 and September 1 of each year (the “2024 Notes”) which are due on September 1, 2024, and $45.8 million in principal amount of convertible notes outstanding, bearing interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year (the “2020 Notes”) which are due on December 1, 2020. The Company also had debts with French government agencies and to a lesser extent, with other financial institutions, primarily in France, in the aggregate of $17.2 million at December 31, 2019.

The Company’s principal uses of cash will include repayments of debt and related interest, purchases of inventory, payroll, restructuring expenses, and other operating expenses related to the development and marketing of our products, purchases of property and equipment and other contractual obligations for the foreseeable future. The Company believes that its cash and cash equivalents of $93.1 million at December 31, 2019 will be sufficient to fund its principal uses of cash for at least the next 12 months. However, if its expectations are incorrect, it may need to raise additional funds to fund our operations, to take advantage of unanticipated strategic opportunities or to strengthen our financial position. Additional funds may not be available on terms favorable to us or at all.

Credit Risk and Major Customers/Supplier Concentration

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

The Company’s accounts receivable are derived from sales to worldwide cable, satellite, telco, and broadcast and media companies. The Company generally does not require collateral from its customers, and performs ongoing credit evaluations of its customers and provides for expected losses. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable. One customer had a balance greater than 10% of the Company’s net accounts receivable balance as of December 31, 2019 and two customers had a balance greater than 10% as of December 31, 2018. During the year ended December 31, 2019 and 2018, Comcast accounted for more than 10% of the Company’s revenue.

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

Revenue Recognition

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

Beginning in fiscal 2019, the Company changed the way total revenue was classified in the 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.

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

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

b) Identify the performance obligations in the contract;

c) Determine the transaction price;

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

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

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

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

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

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

Refer to Note 3, “Revenue” for additional information.

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

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

Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). See “Significant Judgments” for additional information.

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

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

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

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

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

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

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

b) Identify the performance obligations in the contract;

c) Determine the transaction price;

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

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

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.

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

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

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

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

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

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

Inventories

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

Capitalized Software Development Costs

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

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

During the years ended December 31, 2019, 2018 and 2017, the Company capitalized $1.1 million, $0.9 million and $1.1 million, respectively, of its software development costs related to the development of its SaaS offerings.

Capitalized Software Implementation Costs

In a hosting arrangement that is a service contract, the Company capitalizes costs for implementation activities in the application development stage depending on the nature of the costs. The costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement, which is the fixed, noncancelable term of the arrangement, plus any reasonably certain renewal periods. The capitalized implementation costs and amortization expense related to these costs are included in “Other long-term assets” and “Selling, general and administrative” in the Consolidated Balance Sheets and Consolidated Statements of Operations, respectively. The payments for capitalized implementation costs are included as operating activities in the Consolidated Statements of Cash Flows.

During the year ended December 31, 2019, the Company capitalized $3.6 million of its software implementation costs. During the year ended December 31, 2018, the amount of capitalized software implementation cost was not significant.

Property and Equipment

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

Goodwill

As of December 31, 2019, the Company had goodwill of $239.8 million which represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has two reporting units, which are the same as its operating segments.

The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of fiscal October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, which is performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit’s net assets other than goodwill and the fair value of the reporting unit. If this difference is less than the net book value of goodwill, an impairment exists and is recorded.

There was no impairment of goodwill resulting from the Company’s fiscal 2019 annual impairment testing. (See Note 8, “Goodwill and Identified Intangible Assets,” for additional information).

Long-lived Assets

Long-lived assets represent property and equipment and purchased intangible assets. Purchased intangible assets from business combinations and asset acquisitions include customer contracts, trademarks and trade names, and maintenance agreements and related relationships, the amortization of which is charged to general and administrative expenses, and core technology and developed technology, the amortization of which is charged to cost of revenue. The Company evaluates the recoverability of intangible assets and other long-lived assets when indicators of impairment are present. When impairment indicators are present, the Company evaluates the recoverability of intangible assets and other long-lived assets on the basis of undiscounted cash flows expected to result from the use of each asset group and its eventual disposition. If the undiscounted expected future cash flows are less than the carrying amount of the asset, an impairment loss is recognized in order to write down the carrying value of the asset to its estimated fair market value. There were no impairment charges for long-lived assets in the years ended December 31, 2019, 2018 and 2017.

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.

Refer to Note 4, “Leases” for additional information.

Foreign Currency

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

The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its subsidiaries in their nonfunctional currencies. These monetary assets and monetary liabilities are being remeasured into the functional currencies of the subsidiaries using exchange rates prevailing on the balance sheet date. Such remeasurement gains and losses are included in other expense, net in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2019, 2018 and 2017, the Company recorded remeasurement losses of approximately $1.5 million, $0.6 million and $2.2 million, respectively.

Derivative Instruments

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

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

The Company did not enter into any cash flow hedges during the year ended December 31, 2019 and 2018.

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

Research and Development

Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products.

The Company’s French Subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D tax credits receivable from the French government for spending on innovative R&D under the CIR program is recorded as an offset to R&D expenses. In the years ended December 31, 2019, 2018 and 2017, the Company had R&D tax credits of $4.7 million, $5.9 million and $5.9 million respectively.

Restructuring and Related Charges

The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements. See Note 11, “Restructuring and Related Charges” for additional information.

Warranty

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

Advertising Expenses

All advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations. Advertising expense was $0.7 million, $1.0 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Stock-based Compensation Expense

Stock-based Compensation

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

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

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

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

Valuation Assumptions



	Employee Stock Options		ESPP
	2017		2019		2018		2017
Expected term (in years)	4.30		0.50		0.50		0.50
Volatility	42	%	38	%	55	%	48	%
Risk-free interest rate	1.8	%	2.3	%	1.9	%	1.2	%
Expected dividends	0.0	%	0.0	%	0.0	%	0.0	%

Pension Plan

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

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

The Company accounts for the actuarial gains (losses) in accordance with ASC 715, “Compensation - Retirement Benefits”. If the net accumulated gain or loss exceeds 10% of the projected plan benefit obligation, a portion of the net gain or loss is amortized and included in expense for the following year based upon the average remaining service period of active plan participants, unless the Company’s policy is to recognize all actuarial gains (losses) when they occur. The Company elected to defer actuarial gains (losses) in accumulated other comprehensive income (loss). As of December 31, 2019, the Company did not meet the 10% threshold, and therefore no amortization of 2019 actuarial gain would be recorded in 2020.

See Note 13, “Employee Benefit Plans and Stock-based Compensation-French Retirement Benefit Plan,” for additional information.

Income Taxes

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

The Company’s income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the Company’s accompanying Consolidated Balance Sheets, as well as operating loss and tax credit carryforwards. The Company follows the guidelines set forth in the applicable accounting guidance regarding the recoverability of any tax assets recorded on the Consolidated Balance Sheet and provides any necessary allowances as required. Determining necessary allowances requires the Company to make assessments about the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. A history of operating losses in recent years has led to uncertainty with respect to our ability to realize certain of our net deferred tax assets, and as a result we applied a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2019. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected.

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

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

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

Segment Reporting

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

Segment Information

Comprehensive Income (Loss)

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

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

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

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 17, “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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The new ASU will be effective for the Company beginning in the first quarter of 2021 on a prospective basis. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2019, the FASB issued ASU 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers. The new ASU will be effective for the Company effective in the first quarter of 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 expects the impact to its disclosure to be relatively limited.

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

11,644

8,201

8,931

Convertible Debt Securities [Member]

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

1,322

Stock Options [Member]

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

2,568

3,327

4,470

Restricted Stock Units (RSUs) [Member]

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

2,955

2,997

3,059

Employee Stock Purchase Plan

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

478

609

620

Warrant [Member]

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

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

^[1]

4,321

1,268

782

[1]	See Note 17, “Warrants,” for additional information.

Derivative and Hedging Activities - Gain Loss in Statement of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Nonoperating Income (Expense) [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recorded in other expense, net	$ 1,374	$ (2,325)	$ 155

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2019
Loss Contingency [Abstract]
Legal Proceedings	LEGAL PROCEEDINGS In October 2011, Avid Technology, Inc. (“Avid”) filed a complaint in the United States District Court for the District of Delaware alleging that Harmonic’s Media Grid product infringes two patents held by Avid. A jury trial on this complaint commenced on January 23, 2014 and, on February 4, 2014, the jury returned a unanimous verdict in favor of us, rejecting Avid’s infringement allegations in their entirety. In January 2015, Avid filed an appeal with respect to the jury’s verdict with the Federal Circuit. In January 2016, the Federal Circuit issued an order vacating the verdict of noninfringement and remanding the case to the trial court for a new trial on infringement. In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that the Company’s Spectrum product infringes one patent held by Avid. The complaint sought injunctive relief and unspecified damages. In September 2013, the U.S. Patent Trial and Appeal Board (“PTAB”) authorized an inter partes review to be instituted as to claims 1-16 of the patent asserted in this second complaint. In July 2014, the PTAB issued a decision finding claims 1-10 invalid and claims 11-16 not invalid. We filed an appeal with respect to the PTAB’s decision on claims 11-16 in September 2014, and the Federal Circuit affirmed the PTAB’s decision in April 2016. In July 2017, the court issued a scheduling order consolidating both cases and setting the trial date for November 6, 2017. On October 19, 2017, the parties agreed to settle the consolidated cases by entering into a settlement and patent portfolio cross-license agreement, and the cases were dismissed with prejudice. In connection with the agreement, the Company recorded a $6.0 million litigation settlement expense in “Selling, general and administrative expenses” in the Company’s 2017 Consolidated Statement of Operations. Of the associated $6.0 million settlement liability, $2.5 million was paid in October 2017, $1.5 million was paid in April 2019 and $2.0 million will be paid in the third quarter of 2020. 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.

Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Foreign currency translation adjustments	$ (2,449)	$ (779)
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(857)	(888)
Actuarial gain	241	451
Total accumulated other comprehensive loss	$ (3,065)	$ (1,216)

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

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

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Accumulated Deficit [Member]

Accumulated Other Comprehensive Loss [Member]

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

Accumulated Deficit [Member]

Convertible Note due 2020 [Member]

Convertible Note due 2024 [Member]

Balance, Shares at Dec. 31, 2016

78,456

Balance, Shares at Jan. 01, 2017

78,456

Balance at Dec. 31, 2016

$ 270,641

$ 78

$ 2,254,055

$ (1,976,222)

$ (7,270)

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

(69)

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

1,434

Balance at Jan. 01, 2017

272,075

$ 78

2,254,124

(1,974,857)

(7,270)

Balance, Shares at Dec. 31, 2016

78,456

Balance, Shares at Dec. 31, 2017

82,554

Balance at Dec. 31, 2016

270,641

$ 78

2,254,055

(1,976,222)

(7,270)

Other Comprehensive income or loss, net of tax

(82,955)

10,652

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

1,959

$ 5

1,954

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

4,098

16,612

Balance, Shares at Jan. 01, 2018

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

82,554

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

^[1]

$ 11,431

Balance at Jan. 01, 2018

229,774

$ 83

2,272,690

(2,046,381)

3,382

Balance, Shares at Dec. 31, 2017

82,554

Balance, Shares at Dec. 31, 2018

87,057

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

Other Comprehensive income or loss, net of tax

(21,035)

(4,598)

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

4,717

$ 4

4,713

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

4,503

17,097

Balance, Shares at Jan. 01, 2019

2,295

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

87,057

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

^[2]

1,400

Balance at Jan. 01, 2019

229,650

$ 87

2,296,795

(2,066,016)

(1,216)

Balance, Shares at Dec. 31, 2018

87,057

Balance, Shares at Dec. 31, 2019

91,875

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

Other Comprehensive income or loss, net of tax

(5,924)

(1,849)

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

6,914

$ 4

6,910

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

4,014

12,156

Exercise of warrant, Amount

16,142

Exercise of warrants

804

$ 1

Adjustments to Additional Paid in Capital - Exercise of Warrants

(1)

Reclassification from equity to mezzanine equity for 4.00% Convertible Senior Notes due in 2020

(2,410)

Portion of repurchase price recorded in additional paid-in capital in connection with partial repurchase of 4.00% convertible notes due 2020

(27,111)

Conversion feature of 2.00% convertible notes due 2024

24,878

Balance at Dec. 31, 2019

252,446

$ 92

2,327,359

(2,071,940)

(3,065)

Balance, Shares at Dec. 31, 2019

2.00%

91,875

5,570

Balance at Dec. 31, 2019

$ 252,446

$ 92

$ 2,327,359

$ (2,071,940)

$ (3,065)

Schedule of Accumulated Other Comprehensive Loss

4.00%

2.00%

[1]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 606, Revenue from Contracts with Customers (“Topic 606”) issued by the Financial Accounting Standards Board.
[2]	See Note 2, “Summary of Significant Accounting Policies-Recently Adopted Accounting Pronouncements,” for more information on the adoption of ASC 718, Compensation-Stock Compensation (“Topic 718”) issued by the Financial Accounting Standards Board.

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

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



	December 31,
	2019			2018
Foreign currency translation adjustments	$	(2,449	)	$	(779	)
Unrealized foreign exchange loss on intercompany long-term loans, net of taxes	(857		)	(888		)
Actuarial gain	241			451
Total accumulated other comprehensive income (loss)	$	(3,065	)	$	(1,216	)

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 27, 2019

Jun. 28, 2019

Mar. 29, 2019

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 122,178

$ 115,725

$ 84,865

$ 80,106

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 402,874

^[1]

$ 403,558

^[1]

$ 358,246

^[1]

$ 61,695

^[2]

$ 75,540

^[2]

$ 43,928

^[2]

$ 41,849

^[2]

$ 60,321

^[2]

$ 50,102

^[2]

$ 51,603

^[2]

$ 47,183

^[2]

223,012

209,209

169,820

Operating Segments [Member]

13,083

(5,011)

(70,877)

^[3]

402,874

403,558

^[4]

358,246

230,704

217,199

^[4]

182,306

Operating Segments [Member] | Video [Member]

38,008

24,414

^[4]

(25,178)

^[3]

278,028

313,828

^[4]

319,473

162,156

178,170

^[4]

173,414

Operating Segments [Member] | Cable Access [Member]

15,837

26,170

^[4]

(2,024)

124,846

89,730

^[4]

38,773

68,548

39,029

^[4]

8,892

Derivative Instruments and Hedging Activities Disclosure [Abstract]

$ 22,171

$ (1,756)

^[4]

$ (23,154)

[1]	Revenue is attributed to countries based on the location of the customer.
[2]	Gross margin in the first, second and fourth quarter of fiscal 2019 was 52.2%, 51.8% and 50.5%. The movement in gross margin in these quarters was primarily due to product mix. Gross margin increased to 65.3% in the third quarter of 2019 primarily due to the recognition of $37.5 million in software license revenue from the Comcast CableOS software license agreement during the third quarter of fiscal 2019. Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix.
[3]	For the year ended December 31, 2017, the unallocated corporate expenses included acquisition- and integration-related costs, French VDP costs (see Note 11, “Restructuring and Related charges,” for more information on French VDP) and Cable Access product line inventory obsolescence costs, totaling $7.9 million. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 20, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.
[4]	The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments.

Derivative and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

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



		Year ended December 31,
	Financial Statement Location	2019		2018			2017
Derivatives not designated as hedging instruments:
Gains (losses) recognized in income	Other expense, net	$	1,374	$	(2,325	)	$	155



	December 31,
	2019		2018
Derivatives not designated as hedging instruments:
Purchase	$	14,806	$	28,975
Sell	$	2,629	$	—

Schedule of Notional Amounts of Outstanding Derivative Positions



	December 31,
	2019		2018
Derivatives not designated as hedging instruments:
Purchase	$	14,806	$	28,975
Sell	$	2,629	$	—

Schedule of Foreign Exchange Contracts - Balance Sheet

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



		Asset Derivatives
	Balance Sheet Location	December 31, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	43	$	—
		$	43	$	—



		Liability Derivatives
	Balance Sheet Location	December 31, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	112	$	333
		$	112	$	333

Offsetting of Derivative Assets and Liabilities

As of December 31, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets		Net Amounts of Derivatives Presented in the Consolidated Balance Sheets
Derivative assets	$	43	$	—	$	43
Derivative liabilities	$	112	$	—	$	112

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 27, 2019

Jun. 28, 2019

Mar. 29, 2019

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Numerator:

$ 5,570

$ 11,657

$ (11,845)

$ (11,306)

$ 3,330

^[1],[2]

$ (7,758)

^[1],[2]

$ (2,913)

^[1],[2]

$ (13,694)

^[1],[2]

$ (5,924)

$ (21,035)

$ (82,955)

Denominator:

Net loss per share, Basic and diluted

89,575

85,615

80,974

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

$ 0.04

$ (0.09)

$ (0.03)

$ (0.16)

$ (0.07)

$ (0.25)

$ (1.02)

[1]

During the fourth quarter of 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure. In addition, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the first quarter of 2019. During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries.

[2]

During the third and the fourth quarter of 2019, the Company recorded net income primarily due to growing success of our Cable OS solution and with stronger gross margins due to increase in revenue from Software. During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.

- Definition

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

+ References + Details

Convertible Notes, Other Debts and Capital Leases - Debt Maturities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
Capital Lease Obligations 2020	$ 49
Capital lease obligation 2021	22
Capital Lease Obligations 2022	0
Capital Lease Obligations Total	71
Other debt obligations 2020	6,664
Other Debt Obligations 2021	5,216
Other Debt Obligations 2022	4,897
Other Debt Obligations 2023	151
Other Debt Obligations 2024	112
Other Debt Obligations Thereafter	112
Other Debt Obligations Total	$ 17,152

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

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



	Year Ended December 31,
	2019			2018			2017
Numerator:
Net loss	$	(5,924	)	$	(21,035	)	$	(82,955	)
Denominator:
Weighted average number of shares outstanding:
Basic and diluted	89,575			85,615			80,974
Net loss per share:
Basic and diluted	$	(0.07	)	$	(0.25	)	$	(1.02	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

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



	December 31,
	2019	2018	2017
Convertible notes	1,322	—	—
Stock options	2,568	3,327	4,470
Restricted stock units	2,955	2,997	3,059
Stock purchase rights under the ESPP	478	609	620
Warrants ⁽¹⁾	4,321	1,268	782
Total	11,644	8,201	8,931

Restructuring and Excess Facilities - Schedule of Restructuring Costs By Type (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 5,335
Charges for current period	4,532
Adjustments to restructuring provisions and others	(351)
Cash payments	(4,666)
Restructuring Reserve	4,850
Excess Facilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	2,926
Adjustments to restructuring provisions and others	(334)
Cash payments	(1,872)
Restructuring Reserve	720
Severance and benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0
Charges for current period	4,102
Adjustments to restructuring provisions and others	11
Cash payments	(819)
Restructuring Reserve	3,294
French Voluntary Departure Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	2,409
Charges for current period	50
Adjustments to restructuring provisions and others	(28)
Cash payments	(1,625)
Restructuring Reserve	806
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0
Charges for current period	380
Cash payments	(350)
Restructuring Reserve	$ 30

Stockholders' Equity - Additional Information (Detail) - shares	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Preferred stock authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Balance at beginning of period	$ 240,618	$ 242,827
Foreign currency translation adjustment	(838)	(2,209)
Balance at end of period	239,780	240,618
Video [Member]
Goodwill [Line Items]
Balance at beginning of period	179,839	182,012
Foreign currency translation adjustment	(857)	(2,173)
Balance at end of period	178,982	179,839
Cable Edge [Member]
Goodwill [Line Items]
Balance at beginning of period	60,779	60,815
Foreign currency translation adjustment	19	(36)
Balance at end of period	$ 60,798	$ 60,779

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Income Tax Disclosure [Abstract]

United States

$ 1,769

$ (19,780)

$ (50,041)

International

(8,365)

2,832

(34,666)

Loss before income taxes

$ (6,596)

$ (16,948)

$ (84,707)

^[1]

[1]

Certain Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Inventories

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



	December 31,
	2019		2018
Inventories, net:
Raw materials	$	4,179	$	1,705
Work-in-process	1,633		991
Finished goods	14,080		12,267
Service-related spares	9,150		10,675
Total	$	29,042	$	25,638

Prepaid Expenses and Other Current Assets



	December 31,
	2019		2018
Prepaid expenses and other current assets:
Contract assets ⁽¹⁾	$	13,969	3,834
French R&D tax credits receivable ⁽²⁾	7,343		$	7,305
Deferred cost of revenue	2,631		3,671
Prepaid maintenance, royalty, rent, and property taxes	1,594		3,497
Capitalized commission	1,309		1,098
Other	13,916		3,875
Total	$	40,762	$	23,280

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

Property and Equipment



	December 31,
	2019			2018
Property and equipment, net:
Machinery and equipment	$	75,229		$	75,094
Capitalized software	34,190			32,696
Leasehold improvements	15,170			14,951
Furniture and fixtures	6,036			6,049
Construction in progress	5,506			—
Property and equipment, gross	136,131			128,790
Less: accumulated depreciation and amortization	(113,203		)	(106,469		)
Total	$	22,928		$	22,321

Other long-term assets



	December 31,
	2019		2018
Other long-term assets:
French R&D tax credits receivable	$	15,899	$	19,249
Deferred tax assets	10,575		8,695
Equity investment	3,593		3,593
Other	11,238		6,840
Total	$	41,305	$	38,377

Accrued and other current liabilities



	December 31,
	2019		2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	19,454	$	21,451
Operating lease liability (short-term)	8,881		—
Accrued warranty	4,308		4,869
Customer deposits	3,557		4,642
Accrued royalty payments	2,642		1,998
Contingent inventory reserves	2,208		2,500
Accrued French VDP, current ⁽¹⁾	2,055		1,585
Accrued Avid litigation settlement fees, current	2,000		1,500
Other	17,430		14,216
Total	$	62,535	$	52,761

(1) See Note 11, “Restructuring and Related Charges,” for additional information on the Company’s French VDP liabilities.

Other non-current liabilities



	December 31,
	2019		2018
Other non-current liabilities:
Operating lease liability (long-term)	$	25,766	$	—
Deferred revenue (long-term)	6,333		5,330
Others	9,155		12,898
Total	$	41,254	$	18,228

Leases - Narratives (Details) $ in Thousands	12 Months Ended
Leases - Narratives (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Lease, Practical Expedients, Package [true false]	true
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 12,032
Operating lease liability (short-term)	8,881
Operating Lease, Liability, Noncurrent	$ 25,766
Lease, Practical Expedient, Lessor Single Lease Component [true false]	true
Minimum [Member] \| Leaseholds and Leasehold Improvements [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum [Member] \| Leaseholds and Leasehold Improvements [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	11 years
Initial Lease Term Threshold Not Capitalized as Operating Lease	12 months
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Prepaid Expenses and Other Current Assets [Member] \| Leaseholds and Leasehold Improvements [Member]
Lessee, Lease, Description [Line Items]
Lease Incentive Receivable, Current	$ 4,000
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Other Noncurrent Liabilities [Member] \| Leaseholds and Leasehold Improvements [Member]
Lessee, Lease, Description [Line Items]
Operating lease liability (short-term)	600
Harmonic Headquarter Lease Commencing May 2019 [Member] \| Accrued Liabilities [Member] \| Leaseholds and Leasehold Improvements [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Liability, Noncurrent	$ 15,500

Fair Value Measurements Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt	$ 17,152
Defined Benefit Plan, Benefit Obligation	5,259	$ 4,881	$ 5,033
Assets, Fair Value Disclosure	43
Financial and Nonfinancial Liabilities, Fair Value Disclosure	112	333
Restructuring Reserve	4,850	5,335
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt	17,200	19,700
Assets, Fair Value Disclosure	43
Financial and Nonfinancial Liabilities, Fair Value Disclosure	112	333
French Voluntary Departure Plan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Restructuring Reserve	806	2,409
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0	$ 0
Convertible Note due 2020 [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	66,800	$ 136,500
Convertible Note due 2024 [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 131,900

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Unallocated corporate expenses

$ (209,929)

$ (214,220)

$ (240,697)

Stock-based compensation expense

(12,074)

(17,289)

(16,610)

^[1]

Amortization

(8,319)

(8,367)

(8,322)

^[1]

Gain (Loss) on Extinguishment of Debt

13,083

(5,011)

(70,877)

^[1]

(5,695)

Non-operating expense, net

(13,984)

(11,937)

(13,830)

^[1]

Loss before income taxes

(6,596)

(16,948)

(84,707)

^[1]

Operating Segments [Member]

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

Corporate, Non-Segment [Member]

38,008

24,414

^[2]

(25,178)

^[1]

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

Unallocated corporate expenses

$ (4,532)

$ (3,769)

$ (20,767)

^[1]

[1]

[2]

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

Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE

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

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

b) Identify the performance obligations in the contract;

c) Determine the transaction price;

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

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

Revenue recognized during the year ended December 31, 2019 that was included within the deferred revenue balance at January 1, 2019 was $41.1 million. Revenue recognized during the year ended December 31, 2018 that was included within the deferred revenue balance at January 1, 2018 was $46.9 million.

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

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



	December 31,
	2019		2018
Contract assets	$	13,969	$	3,834
Deferred revenue	43,450		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 Consolidated Balance Sheets. See Note 10, “Certain Balance Sheet Components” for additional information.

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

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

The net capitalized contract costs as of December 31, 2019 were $2.0 million, of which $1.3 million and $0.7 million were reported as components of “Prepaid expenses and other current assets” and “Other long-term assets” on the Consolidated Balance Sheets, respectively. The amortization of the capitalized contract costs for the year ended December 31, 2019 was $1.5 million.

In July 2019, Comcast elected enterprise license pricing for the Company’s CableOS software as contemplated under certain existing commercial agreements between the Company and Comcast (the “CableOS software license agreement”), which also includes maintenance and support services, and material rights. As of December 31, 2019, the aggregate amount of the transaction price under this agreement allocated to the remaining performance obligations is $102.5 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 18, “Segment Information” for disaggregated revenue information.

Restructuring and Excess Facilities (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs [Table Text Block]

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



	Year ended December 31,
Restructuring and related charges in:	2019		2018		2017
Cost of revenue	$	1,391	$	857	$	1,279
Operating expenses - Restructuring and related charges	3,141		2,918		5,307
Total restructuring and related charges	$	4,532	$	3,775	$	6,586

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

The following table summarizes the activities related to the Company’s restructuring plans during the fiscal year ended December 31, 2019 (in thousands):



	Excess facilities			Severance and Benefits			French VDP			Others			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	—		$	5,335
Charges for current period	—			4,102			50			380			4,532
Adjustments to restructuring provisions and others	(334		)	11			(28		)	—			(351		)
Cash payments	(1,872		)	(819		)	(1,625		)	(350		)	(4,666		)
Balance at December 31, 2019	$	720		$	3,294		$	806		$	30		$	4,850

Accounts Receivable - Accounts Receivable, Net of Allowances (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 91,513	$ 85,292
Less: allowance for doubtful accounts and sales returns	(3,013)	(3,497)
Accounts Receivable, Net, Current, Total	$ 88,500	$ 81,795

Goodwill and Identified Intangible Assets Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) ReportingUnit	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Goodwill [Line Items]
Number of reporting units \| ReportingUnit	2
Goodwill, Impairment Loss \| $	$ 0	$ 0	$ 0

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

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



	December 31,
	2019		2018
Contract assets	$	13,969	$	3,834
Deferred revenue	43,450		46,922

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 27, 2019

Jun. 28, 2019

Mar. 29, 2019

Dec. 31, 2018

Sep. 28, 2018

Jun. 29, 2018

Mar. 30, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Net revenues:

$ 122,178

$ 115,725

$ 84,865

$ 80,106

$ 113,655

$ 100,616

$ 99,160

$ 90,127

$ 402,874

^[1]

$ 403,558

^[1]

$ 358,246

^[1]

22,928

22,321

22,928

22,321

United States

Net revenues:

^[1]

202,272

181,965

131,773

13,301

10,376

13,301

10,376

Other countries

Net revenues:

^[1]

200,602

221,593

$ 226,473

Israel

5,919

6,975

5,919

6,975

France

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

2,615

3,519

2,615

3,519