0000851310-23-000083 | 10-K/A | XBRL Viewer

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EMPLOYEE BENEFIT PLANS - Expected Future Benefits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Share-Based Payment Arrangement [Abstract]
2023	$ 242
2024	255
2025	395
2026	683
2027	534
2028 – 2032	3,436
Total	$ 5,545

RESTRUCTURING AND RELATED CHARGES - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0.5
Operating Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 3.3

DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Israel
Derivative [Line Items]
Compensating balance, amount	$ 1.0	$ 1.0
Not Designated as Hedging Instrument \| Other Nonoperating Income (Expense)
Derivative [Line Items]
Gain (loss) recorded in other expense, net	$ 0.3	$ 0.7	$ 2.2
Foreign Exchange Forward
Derivative [Line Items]
Derivative, term of contract (in months)	3 months
Foreign Exchange Forward \| Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, term of contract (in months)	3 months

REVENUE - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
REVENUE - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included within the deferred revenue balance	$ 47.9	$ 52.2
Amortization of capitalized contract costs	$ 2.2	$ 2.3	$ 1.6

REVENUE

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

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.

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.

Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). The Company may exercise judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. To determine the standalone selling price, the Company first looks to establish the standalone selling price through an observable price when the good or service is sold separately in similar circumstances. If the standalone selling price cannot be established through an observable standalone price, we make an estimate which 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.

If the Company has not yet established a selling 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.

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

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.

Professional services. Revenue from professional services is recognized over time as the services are performed or 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.

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

Revenue recognized during the year ended December 31, 2022 that was included in the deferred revenue balance at January 1, 2022 was $47.9 million. Revenue recognized during the year ended December 31, 2021 that was included within the deferred revenue balance at January 1, 2021 was $52.2 million.

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

Contract assets and deferred revenue consisted of the following:


	As of December 31,
(in thousands)	2022		2021
Contract assets	$	5,580	$	8,101
Deferred revenue	$	80,471	$	78,167

Contract assets and the non-current portion of Deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities”, respectively, on the Consolidated Balance Sheets.

Remaining performance obligations represent contracted revenues that had not yet been recognized and future revenue recognition is expected. The aggregate balance of the Company’s remaining performance obligations as of December 31, 2022, was $473.4 million, of which approximately 80% is expected to be recognized as revenue over the next 12 months and the remainder thereafter.

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

The balances of net capitalized contract costs included in the Company’s Consolidated Balance Sheets were as follows:


(in thousands)	As of December 31,
Balance Sheet Location	2022		2021
Prepaid expenses and other current assets	$	1,766	$	1,907
Other non-current assets	1,337		1,636
Total net capitalized contract costs	$	3,103	$	3,543

The amortization of the capitalized contract costs for the years ended December 31, 2022, 2021 and 2020 was $2.2 million, $2.3 million and $1.6 million.

Refer to Note 17, “Segment Information, Geographic Information and Customer Concentration” for disaggregated revenue information.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

ACCOUNTS RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Accounts Receivable, Net of Allowances

Accounts receivable, net of allowances, consisted of the following:


	As of December 31,
(in thousands)	2022		2021
Accounts receivable	$	110,576	$	91,382
Less: allowance for expected credit losses and sales returns	(2,149)		(2,853)
Total	$	108,427	$	88,529

Schedule of Allowances for Expected Credit Losses and Sales Returns

The following table is a summary of activities in allowances for expected credit losses and sales returns:


(in thousands)	Balance at Beginning of Period		Charges to Revenue		Charges (Credits) to Expense		Deductions from Reserves		Balance at End of Period
Year ended December 31,
2022	$	2,853	$	1,118	$	836	$	(2,658)	$	2,149
2021	$	2,068	$	2,609	$	1,533	$	(3,357)	$	2,853
2020	$	3,013	$	1,367	$	299	$	(2,611)	$	2,068

STOCKHOLDERS’ EQUITY	12 Months Ended
STOCKHOLDERS’ EQUITY	Dec. 31, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Share Repurchase Program On February 3, 2022, the Board of Directors authorized the Company to repurchase up to $100 million of the Company’s outstanding shares of common stock through February 2025. The Company is authorized to repurchase, from time-to-time, shares of its outstanding common stock through open market purchases and 10b5-1 trading plans, in accordance with applicable rules and regulations, at such time and such prices as management may decide. The program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. During the fiscal year ended December 31, 2022, the company repurchased and retired approximately 0.6 million shares of the Company’s common stock for an aggregate amount of $5.1 million. As of December 31, 2022, approximately $94.9 million of the share repurchase authorization remained available for repurchases under this program. There were no share repurchases authorized during fiscal year 2021 and 2020.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

EARNINGS PER SHARE - Weighted Average Common Shares Outstanding Excluded from Earnings per Share Computation (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	38	425	5,679
2020 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	312
2022 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	192
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	8	1,603
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	38	27	3,041
Stock purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	390	531

CERTAIN BALANCE SHEET COMPONENTS - Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Accrued employee compensation and related expenses	$ 29,675	$ 26,820
Other	37,049	26,824
Total	$ 66,724	$ 53,644

EMPLOYEE BENEFIT PLANS - Stock Options (Details) - Stock Options Outstanding shares in Thousands	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	388
Exercised (in shares) \| shares	(388)
Canceled (in shares) \| shares	0
Ending balance (in shares) \| shares	0
Weighted-Average Exercise Price (per share)
Beginning balance (in dollars per share) \| $ / shares	$ 3.15
Exercised (in dollars per share) \| $ / shares	3.15
Canceled (in dollars per share) \| $ / shares	0
Ending balance (in dollars per share) \| $ / shares	$ 0

CERTAIN BALANCE SHEET COMPONENTS

12 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

CERTAIN BALANCE SHEET COMPONENTS


Inventories:	December 31,
(in thousands)	2022		2021
Finished goods	$	65,308	$	37,545
Raw materials	46,081		22,245
Work-in-process	3,251		3,993
Service-related spares	6,309		7,412
Total	$	120,949	$	71,195


Prepaid expenses and other current assets:	December 31,
(in thousands)	2022		2021
Prepaid expenses	$	5,558	$	8,074
Contract assets (1)	5,583		8,101
Other current assets	15,196		13,797
Total	$	26,337	$	29,972

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


Property and equipment, net:	December 31,
(in thousands)	2022		2021
Machinery and equipment	$	75,589	$	78,461
Capitalized software	30,588		38,306
Leasehold improvements	39,199		40,658
Furniture and fixtures	2,739		2,820
Construction-in-progress	2,691		1,892
Property and equipment, gross	150,806		162,137
Less: accumulated depreciation and amortization	(110,992)		(119,416)
Total	$	39,814	$	42,721


Other current liabilities:	December 31,
(in thousands)	2022		2021
Accrued employee compensation and related expenses	$	29,675	$	26,820
Other	37,049		26,824
Total	$	66,724	$	53,644

CERTAIN BALANCE SHEET COMPONENTS (Tables)

12 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventories


Inventories:	December 31,
(in thousands)	2022		2021
Finished goods	$	65,308	$	37,545
Raw materials	46,081		22,245
Work-in-process	3,251		3,993
Service-related spares	6,309		7,412
Total	$	120,949	$	71,195

Schedule of Prepaid Expenses and Other Current Assets


Prepaid expenses and other current assets:	December 31,
(in thousands)	2022		2021
Prepaid expenses	$	5,558	$	8,074
Contract assets (1)	5,583		8,101
Other current assets	15,196		13,797
Total	$	26,337	$	29,972

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

Schedule of Property and Equipment, Net


Property and equipment, net:	December 31,
(in thousands)	2022		2021
Machinery and equipment	$	75,589	$	78,461
Capitalized software	30,588		38,306
Leasehold improvements	39,199		40,658
Furniture and fixtures	2,739		2,820
Construction-in-progress	2,691		1,892
Property and equipment, gross	150,806		162,137
Less: accumulated depreciation and amortization	(110,992)		(119,416)
Total	$	39,814	$	42,721

Schedule of Other Current Liabilities


Other current liabilities:	December 31,
(in thousands)	2022		2021
Accrued employee compensation and related expenses	$	29,675	$	26,820
Other	37,049		26,824
Total	$	66,724	$	53,644

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Audit Information [Abstract]
Auditor Firm ID	42	42	32
Auditor Name	Ernst & Young LLP	Ernst & Young LLP	Armanino LLP
Auditor Location	San Jose, California	San Jose, California	San Ramon, California

CONVERTIBLE NOTES AND OTHER DEBTS - Narrative (Details) $ / shares in Units, € in Millions, shares in Millions				1 Months Ended	12 Months Ended
	Oct. 28, 2022	Jun. 02, 2020 USD ($) $ / shares	Sep. 13, 2019 USD ($) $ / shares	Jun. 30, 2020 EUR (€)	Dec. 31, 2022 USD ($) day shares	Dec. 31, 2021 USD ($)	Dec. 19, 2019 USD ($)
Debt Instrument [Line Items]
Convertible debt, non-current					$ 0	$ 98,941,000
Relief loans					5,337,000	5,651,000
Societe Generale S.A.
Debt Instrument [Line Items]
Stated interest rate (as a percent)				0.51%
Proceeds from loans \| €				€ 5
Relief loans					5,300,000
Societe Generale S.A. \| Other Debts, Current
Debt Instrument [Line Items]
Relief loans					1,300,000
Societe Generale S.A. \| Other Debts, Non-current
Debt Instrument [Line Items]
Relief loans					4,000,000
JPMORGAN CHASE BANK N.A. \| Revolving Credit Facility
Debt Instrument [Line Items]
Stated interest rate (as a percent)	2.00%
Line of credit facility, maturity factor, period required	90 days
Borrowings outstanding					$ 0
Maximum \| JPMORGAN CHASE BANK N.A. \| Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, current borrowing capacity							$ 25,000,000
One Month LIBOR \| JPMORGAN CHASE BANK N.A. \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
SOFR for interest period of one, three or six months \| JPMORGAN CHASE BANK N.A. \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.00%
2022 Notes
Debt Instrument [Line Items]
Debt conversion, converted instrument, shares issued (in shares) \| shares					3.9
2022 Notes \| Senior Notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)		4.375%
Debt instrument, face amount		$ 37,700,000
Debt instrument, convertible, conversion ratio		0.1739978
Debt instrument, convertible, conversion price (in dollars per share) \| $ / shares		$ 5.75
2024 Notes
Debt Instrument [Line Items]
Debt instrument, face amount					$ 115,500,000	$ 115,500,000
2024 Notes \| Senior Notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)			2.00%
Debt instrument, face amount			$ 115,500,000
Debt instrument, convertible, conversion ratio			0.1155001
Debt instrument, convertible, conversion price (in dollars per share) \| $ / shares			$ 8.66
Carrying amount of equity component of debt instrument			$ 24,900,000
Convertible debt, non-current					$ 114,000,000
2024 Notes \| Senior Notes \| Stock price greater or equal 130 percent of Note Conversion Price
Debt Instrument [Line Items]
Debt instrument, convertible, threshold trading days \| day					20
Debt instrument, convertible, threshold consecutive trading days \| day					30
Threshold of stock price trigger (as a percent)					130.00%

EARNINGS PER SHARE - Narrative (Details) shares in Millions	12 Months Ended
EARNINGS PER SHARE - Narrative (Details) shares in Millions	Dec. 31, 2022 shares
2022 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of contingently issuable (in shares)	6.6
2024 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of contingently issuable (in shares)	13.3

- Definition

Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of contingently issuable shares. Contingently issuable shares are those shares that are issuable for little or no cash contingent on certain conditions being met.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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-Paragraph 54
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e2603-109256

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LEASES - Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 7,106
2024	7,066
2025	5,884
2026	4,847
2027	3,770
Thereafter	8,877
Total future minimum lease payments	37,550
Less: imputed interest	(6,667)
Total lease liability balance	$ 30,883

LEGAL PROCEEDINGS	12 Months Ended
LEGAL PROCEEDINGS	Dec. 31, 2022
Loss Contingency [Abstract]
LEGAL PROCEEDINGS	LEGAL PROCEEDINGS From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably probable losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 89,586	$ 133,431
Accounts receivable, net	108,427	88,529
Inventories	120,949	71,195
Prepaid expenses and other current assets	26,337	29,972
Total current assets	345,299	323,127
Property and equipment, net	39,814	42,721
Operating lease right-of-use assets	25,469	30,968
Goodwill	237,739	240,213
Other non-current assets	61,697	56,657
Total assets	710,018	693,686
Current liabilities:
Convertible debt, current	113,981	36,824
Other debts, current	4,756	4,992
Accounts payable	67,455	64,429
Deferred revenue	62,383	57,226
Operating lease liabilities, current	6,773	7,346
Other current liabilities	66,724	53,644
Total current liabilities	322,072	224,461
Convertible debt, non-current	0	98,941
Other debts, non-current	11,161	12,989
Operating lease liabilities, non-current	24,110	29,120
Other non-current liabilities	28,169	31,379
Total liabilities	385,512	396,890
Commitments and contingencies (Note 18)
Convertible debt (Note 12)	0	883
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value, 150,000 shares authorized; 109,871 and 102,959 shares issued and outstanding at December 31, 2022 and 2021, respectively	110	103
Additional paid-in capital	2,380,651	2,387,039
Accumulated deficit	(2,046,569)	(2,087,957)
Accumulated other comprehensive loss	(9,686)	(3,272)
Total stockholders’ equity	324,506	295,913
Total liabilities and stockholders’ equity	$ 710,018	$ 693,686

RESTRUCTURING AND RELATED CHARGES (Tables)

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Plan

The following table summarizes the activities related to the Company’s restructuring plans accrual, reported as components of “Other current liabilities” on the Consolidated Balance Sheets:


(in thousands)	Severance and Benefits
Balance at December 31, 2021	$	2,092
Charges for current period	3,739
Cash payments	(4,438)
Other	(349)
Balance at December 31, 2022	$	1,044

DESCRIPTION OF BUSINESS	12 Months Ended
DESCRIPTION OF BUSINESS	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Harmonic Inc. (“Harmonic” or the “Company”) is a leading global provider of (i) versatile and high performance video delivery software, products, system solutions and services that enable our customers to efficiently create, prepare, store, playout and deliver a full range of high-quality broadcast and streaming video services to consumer devices, including televisions, personal computers, laptops, tablets and smart phones and (ii) broadband access solutions that enable broadband operators to more efficiently and effectively deploy high-speed internet, for data, voice and video services to consumers’ homes. The Company operates in two segments, Video and Broadband. The Video business sells video processing and production and playout solutions and services worldwide to broadband operators and satellite and telecommunications (“telco”) pay-TV service providers, which are collectively referred to as “service providers,” and to broadcast and media companies, including streaming media companies. The Video business infrastructure solutions are delivered either through shipment of our products, software licenses or as software-as-a-service (“SaaS”) subscriptions. The Broadband business sells broadband access solutions and related services, including our CableOS software-based broadband access solution, to broadband operators globally.

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION - Summary of Revenue, Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenues:
Total net revenue	$ 624,957	$ 507,149	$ 378,831
Property and equipment, net:
Property and equipment, net	39,814	42,721
United States
Net revenues:
Total net revenue	393,991	282,912	191,854
Property and equipment, net:
Property and equipment, net	25,395	29,740
Other countries
Net revenues:
Total net revenue	230,966	224,237	$ 186,977
Israel
Property and equipment, net:
Property and equipment, net	10,621	8,715
France
Property and equipment, net:
Property and equipment, net	3,372	3,656
Other countries
Property and equipment, net:
Property and equipment, net	$ 426	$ 610

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DERIVATIVES AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts were as follows:


	As of December 31,
(in thousands)	2022		2021
Purchase	$	7,971	$	2,926
Sell	$	—	$	5,175

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

EMPLOYEE BENEFIT PLANS

Equity Award Plans

1995 Stock Plan

The 1995 Stock Plan provides for the grant of incentive stock options, non-statutory stock options and restricted stock units (“RSUs”). Incentive stock options may be granted only to employees. All other awards may be granted to employees and non-employees. Under the terms of the 1995 Stock Plan, no incentive stock option or non-statutory stock option may be granted in the ordinary course of business with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Company’s Board of Directors (the “Board”), generally two to four years, and options expire seven years from the date of grant. Some of the RSUs granted by the Company have performance-based vesting terms, where vesting is dependent on achievement of certain financial and non-financial operating goals of the Company (performance-based RSUs, or “PRSUs”), or where vesting is dependent on performance of the Company’s total shareholder return (“TSR”) relative to the TSR of the NASDAQ Telecommunication Index (market-based RSUs, or “MRSUs”). The Company’s stockholders approved an amendment to the 1995 Stock Plan at the 2022 annual meeting of stockholders (the “2022 Annual Meeting”) to increase the number of shares of common stock reserved for issuance thereunder by 7,000,000 shares. As of December 31, 2022, an aggregate of 10,984,093 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 7,667,045 shares remained available for future grants.

2002 Director Plan

The 2002 Director Plan provides for the grant of non-statutory stock options and RSUs to non-employee directors of the Company. Under the terms of the 2002 Director Plan, no non-statutory stock option may be granted with a per share exercise price that is less than 100% of the fair value of the Company’s common stock on the date of grant. RSUs have no exercise price. Both options and RSUs vest over a period of time as determined by the Board, generally one year for RSUs and three years for options, and options expire seven years from the date of grant. As of December 31, 2022, an aggregate of 706,377 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 524,199 shares remained available for future grants.

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 Plan at the 2022 Annual Meeting to increase the number of shares of common stock reserved for issuance thereunder by 1,000,000 shares. As of December 31, 2022, 1,366,962 shares were reserved for future purchases by eligible employees. Under the ESPP, 817,243, 1,024,244 and 1,036,543 shares were issued during fiscal 2022, 2021 and 2020, respectively, representing $5.9 million, $5.1 million and $4.5 million in contributions.

Stock Options


(in thousands, except per share amounts)	Number of Shares	Weighted-Average Exercise Price (per share)
Balance at December 31, 2021	388	$	3.15
Exercised	(388)	3.15
Canceled	—	—
Balance at December 31, 2022	—	$	—

All stock options are fully vested and exercised as of December 31, 2022. Aggregate intrinsic value represents the difference between the exercise price of the stock options and the fair value of the Company’s common stock as of December 31, 2022. The intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was $3.9 million, $2.1 million and $0.2 million, respectively.

No stock options were granted nor vested during the years ended December 31, 2022, 2021 and 2020.

The Company realized income tax benefit of $0.3 million from stock option exercises for the year ended December 31, 2022. The Company realized no income tax benefit from stock option exercises for the years ended December 31, 2021 and 2020 due to recurring tax losses and valuation allowances.

Restricted Stock Units


(in thousands, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
Balance at December 31, 2021	3,878	$	7.31
Granted	2,767	9.47
Vested	(2,990)	7.50
Forfeited	(156)	8.27
Balance at December 31, 2022	3,499	$	8.93

The fair value of RSUs vested during the years ended December 31, 2022, 2021 and 2020 was $22.4 million, $18.3 million and $15.5 million, respectively.

Share-based Compensation Cost

The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Consolidated Statements of Operations:


	Year ended December 31,
(in thousands)	2022		2021		2020
Share-based compensation expense included in:
Cost of revenue	$	2,233	$	2,345	$	1,712
Research and development expense	7,519		7,164		4,850
Selling, general and administrative expense	15,460		14,547		11,478
Total	$	25,212	$	24,056	$	18,040

Share-based compensation expense by type of award:

RSUs	17,786		14,573		11,522
PRSUs	3,865		6,231		4,022
MRSUs	1,558		1,304		711
Employee stock purchase rights under ESPP	2,003		1,948		1,785
Total	$	25,212	$	24,056	$	18,040

As of December 31, 2022, total unrecognized share-based compensation cost related to unvested RSUs was $19.7 million and is expected to be recognized over a weighted-average period of approximately 1.4 years.

French Pension Plan

Under French law, the Company’s subsidiaries in France are obligated to make certain payments to their employees upon their retirement from the Company. These payments are based on the retiring employee’s salary for a number of months that varies according to the employee’s period of service and position. Salary used in the calculation is the employee’s average monthly salary for the twelve months prior to retirement. The payments are made in one lump-sum at the time of retirement. The French pension plan is unfunded and there are no contributions to the plan required by related laws or funding regulations. No required contributions are expected in fiscal 2023, but the Company, at its discretion, may make contributions to the defined benefit plan.

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

The Company’s pension obligations as of December 31, 2022 and 2021, and the changes to the Company’s pension obligations for each of those years, were as follows:


(in thousands)	2022		2021
Projected benefit obligation:
Balance at January 1	$	6,003	$	6,057
Service cost	259		272
Interest cost	50		20
Actuarial (gains) losses	(626)		233
Benefits paid	(107)		(94)
Foreign currency translation adjustment	(296)		(485)
Balance at December 31	$	5,283	$	6,003

Presented on the Consolidated Balance Sheets as:
Current portion (included in “Accrued and other current liabilities”)	$	242	$	32
Long-term portion (included in “Other non-current liabilities”)	$	5,041	$	5,971

The table below presents the components of net periodic benefit costs:


	Year ended December 31,
(in thousands)	2022		2021		2020
Service cost	$	259	$	272	$	227
Interest cost	50		20		78
Net periodic benefit cost included in result of operations	$	309	$	292	$	305

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


	As of December 31,
	2022		2021
Discount rate	3.3	%	0.9	%
Mobility rate	6.6	%	4.7	%
Salary progression rate	3.0	%	2.5	%

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, 2022, 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):


Year ending December 31,
2023	$	242
2024	255
2025	395
2026	683
2027	534
2028 – 2032	3,436
Total	$	5,545

Valuation Assumptions

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


	Year ended December 31,
		2022		2021		2020
Expected term (in years)		0.50		0.50		0.50
Volatility		47	%	45	%	56	%
Risk-free interest rate		1.4	%	0.1	%	0.9	%
Expected dividends		0.0	%	0.0	%	0.0	%

The expected term of the stock purchase right under ESPP represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has not paid and does not plan to pay any cash dividends in the foreseeable future.

The estimated weighted-average fair value per share of stock purchase rights under the ESPP, granted for the years ended December 31, 2022, 2021 and 2020 was $2.91, $2.24 and $1.80, respectively.

GOODWILL - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Balance at beginning of period	$ 240,213	$ 243,674
Foreign currency translation adjustment	(2,474)	(3,461)
Balance at end of period	237,739	240,213
Video
Goodwill [Roll Forward]
Balance at beginning of period	179,398	182,855
Foreign currency translation adjustment	(2,409)	(3,457)
Balance at end of period	176,989	179,398
Broadband
Goodwill [Roll Forward]
Balance at beginning of period	60,815	60,819
Foreign currency translation adjustment	(65)	(4)
Balance at end of period	$ 60,750	$ 60,815

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

CONVERTIBLE NOTES AND OTHER DEBTS - 2024 Convertible Notes (Details) - 2024 Notes - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Debt Instrument [Line Items]
Principal amount	$ 115,500	$ 115,500
Less: Debt discount, net of amortization	(14,576)	0
Less: Debt issuance costs, net of amortization	(1,983)	(1,519)
Carrying amount	$ 98,941	$ 113,981
Remaining amortization period (years)	2 years 8 months 12 days
Effective interest rate on liability component	7.95%

LEASES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 25,469	$ 30,968
Operating lease liabilities, non-current	24,110	29,120
Operating lease liabilities, current	6,773	$ 7,346
2022 New or Modified Lease Agreements
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	900
Operating lease liabilities, non-current	700
Operating lease liabilities, current	$ 200

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Segments

The following table provides summary financial information by reportable segment:


	Year ended December 31,
(in thousands)	2022		2021		2020
Video
Revenue	$	274,189	$	288,507	$	242,510
Gross profit	165,618		169,468		132,092
Operating income	22,322		28,460		1,326
Broadband
Revenue	$	350,768	$	218,642	$	136,321
Gross profit	153,031		93,191		66,661
Operating income	52,283		15,599		11,651
Total
Revenue	$	624,957	$	507,149	$	378,831
Gross profit	$	318,649	$	262,659	$	198,753
Operating income	$	74,605	$	44,059	$	12,977

Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated

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


	Year ended December 31,
(in thousands)	2022		2021		2020
Total segment operating income	$	74,605	$	44,059	$	12,977
Unallocated corporate expenses (1)	(3,874)		(681)		(3,416)
Stock-based compensation	(25,212)		(24,062)		(18,040)
Amortization of intangibles	—		(507)		(3,970)
Income (loss) from operations	45,519		18,809		(12,449)
Loss on convertible debt extinguishment	—		—		(1,362)
Non-operating expense, net	(1,034)		(9,938)		(12,406)
Income (loss) before income taxes	$	44,485	$	8,871	$	(26,217)

(1) Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges and certain other non-recurring charges to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments.

Schedule of Net Revenue by Geographic Region

Geographic Information


Net revenue (1):	Year ended December 31,
(in thousands)	2022		2021		2020
United States	$	393,991	$	282,912	$	191,854
Other countries	230,966		224,237		186,977
Total	$	624,957	$	507,149	$	378,831

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

Schedule of Property and Equipment, Net by Geographic Region


Property and equipment, net:	As of December 31,
(in thousands)	2022		2021
United States	$	25,395	$	29,740
Israel	10,621		8,715
France	3,372		3,656
Other countries	426		610
Total	$	39,814	$	42,721

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2022	Feb. 22, 2023	Jul. 01, 2022
Cover [Abstract]
Document Type	10-K/A
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-25826
Entity Registrant Name	HARMONIC INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0201147
Entity Address, Address Line One	2590 Orchard Parkway
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95131
City Area Code	408
Local Phone Number	542-2500
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	HLIT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 398.6
Entity Common Stock, Shares Outstanding		111,070,678
Documents Incorporated by Reference	Portions of the Proxy Statement for the Registrant’s 2023 Annual Meeting of Stockholders (which will be filed with the Securities and Exchange Commission within 120 days of the end of the fiscal year ended December 31, 2022) are incorporated by reference in Part III of this Annual Report on Form 10-K.
Amendment Flag	true
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0000851310
Amendment Description	Harmonic, Inc. (the “Company”) is filing this Amendment No. 1 (this “Amendment”) to its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Form 10-K”) solely to include Armanino LLP’s Report of Independent Registered Public Accounting Firm for the consolidated financial statements for the fiscal year ended December 31, 2020, which was inadvertently omitted in the as-filed version. The signed report was received by us prior to the original filing. No other changes have been made to the Form 10-K. Updated consents from each of Armanino LLP and Ernst & Young LLP dated as of the date of this Amendment are filed herewith as exhibits to this Amendment. This Amendment does not reflect events occurring after the filing of the Form 10-K, does not update disclosures contained in the Form 10-K and does not modify or amend the Form 10-K except as specifically described above. Pursuant to Rule 12b-15 of the Securities Exchange Act of 1934, as amended, this Amendment contains the complete text of Item 8. Financial Statements and certifications of the Company’s Principal Executive Officer and Principal Financial Officer required under Items 302 and 906 of the Sarbanes-Oxley Act of 2002, as amended, dated as of the date of this Amendment, as well as updated inline XBRL exhibits.

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION - Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total net revenue	$ 624,957	$ 507,149	$ 378,831
Gross profit	315,884	259,742	194,997
Operating income (loss)	45,519	18,809	(12,449)
Operating Segments
Segment Reporting Information [Line Items]
Total net revenue	624,957	507,149	378,831
Gross profit	318,649	262,659	198,753
Operating income (loss)	74,605	44,059	12,977
Operating Segments \| Video
Segment Reporting Information [Line Items]
Total net revenue	274,189	288,507	242,510
Gross profit	165,618	169,468	132,092
Operating income (loss)	22,322	28,460	1,326
Operating Segments \| Broadband
Segment Reporting Information [Line Items]
Total net revenue	350,768	218,642	136,321
Gross profit	153,031	93,191	66,661
Operating income (loss)	$ 52,283	$ 15,599	$ 11,651

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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EMPLOYEE BENEFIT PLANS - Restricted Stock Units Outstanding (Details) - RSUs shares in Thousands	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	3,878
Granted (in shares) \| shares	2,767
Vested (in shares) \| shares	(2,990)
Forfeited (in shares) \| shares	(156)
Ending balance (in shares) \| shares	3,499
Weighted Average Grant-Date Fair Value Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 7.31
Granted (in dollars per share) \| $ / shares	9.47
Vested (in dollars per share) \| $ / shares	7.50
Forfeited (in dollars per share) \| $ / shares	8.27
Ending balance (in dollars per share) \| $ / shares	$ 8.93

INCOME TAXES - Activities Related to Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 13.8	$ 17.6	$ 17.0
Increase in balance related to tax positions taken during current year	0.3	0.3	0.3
Decrease in balance as a result of a lapse of the applicable statutes of limitations	0.0	(0.2)	0.0
Increase in balance related to tax positions taken during prior years	0.0	0.0	0.3
Decrease in balance related to tax positions taken during prior years	(3.0)	(3.9)	0.0
Balance at end of period	$ 11.1	$ 13.8	$ 17.6

EMPLOYEE BENEFIT PLANS - Pension Obligations Assumptions (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Discount rate	3.30%	0.90%
Mobility rate	6.60%	4.70%
Salary progression rate	3.00%	2.50%

INVESTMENTS IN EQUITY SECURITIES	12 Months Ended
INVESTMENTS IN EQUITY SECURITIES	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS IN EQUITY SECURITIES	INVESTMENTS IN EQUITY SECURITIES In May 2022, the Company sold its investment in Encoding.com, Inc. for total consideration of up to approximately $10.7 million. The Company received $7.8 million in May 2022 and recognized a gain of $4.2 million. The balance of the consideration of up to approximately $2.9 million will be payable to the Company within 18 months from the date of sale, subject to certain conditions and indemnity obligations, and will be recorded upon receipt by the Company.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as follows:

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

•Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

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

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

The Company's financial instruments not measured at fair value on a recurring basis were as follows:


	December 31, 2022								December 31, 2021
	Carrying		Fair Value						Carrying		Fair Value
(in thousands)	Value		Level 1		Level 2		Level 3		Value		Level 1		Level 2		Level 3
2022 Notes	$	—	$	—	$	—	$	—	$	36,824	$	—	$	78,619	$	—
2024 Notes	$	113,981	$	—	$	181,139	$	—	$	98,941	$	—	$	173,419	$	—
French and other loans	$	11,161	$	—	$	11,161	$	—	$	17,981	$	—	$	17,981	$	—

The fair value of the Company’s Notes is influenced by interest rates, the Company’s stock price and stock market volatility. The difference between the carrying value and the fair value is primarily due to the spread between the conversion price and the market value of the shares underlying the conversion as of each respective balance sheet date. The Company’s French and other loans are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities; therefore, the carrying value of these debts approximate its fair value. Refer to Note 12, “Convertible Notes and Other Debts,” for additional information.

During the years ended December 31, 2022, 2021, and 2020, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

- Definition

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

+ References + Details

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION - Narrative (Details) - segment	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Number of operating segments	2
Customer Concentration Risk \| Revenue Benchmark \| Comcast
Segment Reporting Information [Line Items]
Concentration risk (as a percent)	39.00%	26.00%	20.00%

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Video and Broadband. During the third quarter of fiscal 2022, the Company’s Cable Access segment was renamed the Broadband segment to reflect a broader strategic view of the category. There has been no change to the composition of the segment; therefore, no prior periods were restated. 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, broadband operators, and satellite and telco Pay-TV service providers. The Broadband segment provides CableOS broadband access solutions and related services to broadband operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

The following table provides summary financial information by reportable segment:


	Year ended December 31,
(in thousands)	2022		2021		2020
Video
Revenue	$	274,189	$	288,507	$	242,510
Gross profit	165,618		169,468		132,092
Operating income	22,322		28,460		1,326
Broadband
Revenue	$	350,768	$	218,642	$	136,321
Gross profit	153,031		93,191		66,661
Operating income	52,283		15,599		11,651
Total
Revenue	$	624,957	$	507,149	$	378,831
Gross profit	$	318,649	$	262,659	$	198,753
Operating income	$	74,605	$	44,059	$	12,977

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


	Year ended December 31,
(in thousands)	2022		2021		2020
Total segment operating income	$	74,605	$	44,059	$	12,977
Unallocated corporate expenses (1)	(3,874)		(681)		(3,416)
Stock-based compensation	(25,212)		(24,062)		(18,040)
Amortization of intangibles	—		(507)		(3,970)
Income (loss) from operations	45,519		18,809		(12,449)
Loss on convertible debt extinguishment	—		—		(1,362)
Non-operating expense, net	(1,034)		(9,938)		(12,406)
Income (loss) before income taxes	$	44,485	$	8,871	$	(26,217)

Geographic Information


Net revenue (1):	Year ended December 31,
(in thousands)	2022		2021		2020
United States	$	393,991	$	282,912	$	191,854
Other countries	230,966		224,237		186,977
Total	$	624,957	$	507,149	$	378,831

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

Other than the United States, no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2022, 2021 and 2020.


Property and equipment, net:	As of December 31,
(in thousands)	2022		2021
United States	$	25,395	$	29,740
Israel	10,621		8,715
France	3,372		3,656
Other countries	426		610
Total	$	39,814	$	42,721

Customer Concentration

One customer, Comcast, accounted for 39%, 26% and 20% of the Company’s total net revenues during the years ended December 31, 2022, 2021 and 2020, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders for the applicable period by the weighted average number of common shares outstanding during the period. Potentially dilutive shares, consisting of outstanding stock options, RSUs, ESPP awards, and the Company’s Notes, are included in calculation of diluted net income (loss) per share when their effect is dilutive.

The following table sets forth the computation of the basic and diluted net income (loss) per share:


	Year ended December 31,
(in thousands, except per share amounts)	2022		2021		2020
Numerator:
Net income (loss)	$	28,182	$	13,254	$	(29,271)
Denominator:
Weighted average number of shares outstanding:
Basic	105,080		101,484		96,971
2022 Notes	2,681		2,175		—
2024 Notes	2,441		653		—
Stock options	213		292		—
Restricted stock units	1,884		1,525		—
Stock purchase rights under ESPP	79		42		—
Diluted	112,378		106,171		96,971
Net income (loss) per share:
Basic	$	0.27	$	0.13	$	(0.30)
Diluted	$	0.25	$	0.12	$	(0.30)

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effect was anti-dilutive:


	Year ended December 31,
(in thousands)	2022	2021	2020
2020 Notes	—	—	312
2022 Notes	—	—	192
Stock options	—	8	1,603
Restricted stock units	38	27	3,041
Stock purchase rights under the ESPP	—	390	531

Total	38	425	5,679

The Company applies the treasury stock method to determine the potential dilutive effect of its convertible debt on earnings per share. The 2020 Notes, 2022 Notes, and 2024 Notes are excluded from the calculation of diluted earnings per share under the treasury stock method for the periods when their respective conversion prices exceeded the average market price for the Company's common stock. Under the if-converted method, the 2022 Notes and 2024 Notes have potential dilutive effect of 6.6 million shares and 13.3 million shares, respectively.

REVENUE - Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 5,580	$ 8,101
Deferred revenue	$ 80,471	$ 78,167

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Bank Guarantees and Standby Letters of Credit As of December 31, 2022 and 2021, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.1 million and $2.4 million, respectively, consisting of building leases and performance bonds issued to customers. During 2017, one of the Company’s subsidiaries entered into a $2.0 million credit facility with a foreign bank for the purpose of issuing performance guarantees. The credit facility is secured by a $2.2 million indemnity issued by the parent company. There were no amounts outstanding under this credit facility as of December 31, 2022 and 2021. 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, 2022. Purchase Commitments As of December 31, 2022, the Company had approximately $143.4 million of commitments to purchase goods and services.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

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 transactions and balances 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 U.S. generally accepted accounting principles (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 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.

Cash and Cash Equivalents

All highly liquid investments with an original maturity of three months or less at the date of purchase are considered cash equivalents. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments.

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 instruments, 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, 2022 and 2021. During the year ended December 31, 2022, 2021 and 2020, Comcast is the only customer accounted for more than 10% of the Company’s revenue.

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

Revenue Recognition

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

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

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

b) Identify the performance obligations in the contract;

c) Determine the transaction price;

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

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

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

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

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

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

Inventories

Inventories are stated at the lower of cost (determined on first-in, first-out basis) or net realizable value. The cost of inventories is comprised of material and manufacturing labor and overheads. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations.

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 estimated useful lives or the terms of the related leases.

Long-Lived Assets including Purchased Intangible Assets

The Company reviews property and equipment, intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability is measured by comparing the carrying amount to the future undiscounted cash flows that the asset is expected to generate. If the asset is not recoverable, its carrying amount would be adjusted down to its fair value. For the years ended December 31, 2022, 2021 and 2020, there were no impairment charges for long-lived assets.

Goodwill

Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our fourth quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segment’s net assets and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed.

If the qualitative assessment indicates that the quantitative analysis should be performed, we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors.

We completed our annual goodwill impairment test in the fourth quarter of fiscal 2022. We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment and the quantitative goodwill impairment test was not performed. For the years ended December 31, 2022, 2021 and 2020, there were no impairment charges for goodwill.

Leases

The Company determines if an arrangement is a lease at inception. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. 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. ROU assets related to our operating lease liabilities are measured at lease inception based on the initial measurement of the lease liability, plus any prepaid lease payments and less any lease incentives. As of December 31, 2022, the Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 10 years, some of which included the option to extend the term. Optional periods to extend the lease, including by not exercising a termination option, are included in the lease term when it is reasonably certain that the option will be exercised. The Company amortizes ROU assets as operating lease expense generally on a straight-line basis over the lease term. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current”, and “operating lease liabilities, non-current” in the Consolidated Balance Sheets.

Foreign Currency

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

The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its foreign subsidiaries in their nonfunctional currencies. These monetary assets and liabilities are being remeasured into the subsidiaries’ respective functional currencies using exchange rates as of the balance sheet date. Such remeasurement gains and losses are included in “Other income (expense), net” in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2022, and 2020, the Company recorded remeasurement loss of approximately $0.3 million and $1.0 million, respectively. During the year ended December 31, 2021, the Company recorded remeasurement gain of $0.6 million.

Derivative Instruments

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

The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheets. The Company enters into derivative instruments to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged.

Research and Development

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

The Company’s French subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D 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, 2022, 2021 and 2020, the Company had R&D credits of $5.4 million, $5.7 million and $4.5 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.

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 $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Stock-based Compensation

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

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

The Company recognizes the stock-based compensation for options, RSUs, MRSUs and stock purchase rights under ESPP on straight-line basis over the requisite service period, which is generally the vesting period. The Company recognizes the stock-based compensation for PRSUs based on the probability of achieving performance criteria defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next.

Pension Plan

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

The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. 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.

Income Taxes

The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statements of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

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.

Recently Adopted Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. The Company adopted ASU 2020-06 effective on January 1, 2022, using the modified retrospective method. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. As a result, the Company no longer separately presents in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature is no longer amortized into consolidated statement of operations as interest expense over the life of the instrument. The cumulative effect of the ASU adoption was as follows:


			Adjustments from
	Balance at		Adoption of		Balance at
(in thousands)	December 31, 2021		ASU 2020-06		January 1, 2022
Liabilities
Convertible debt, current	$	36,824	$	626	$	37,450
Convertible debt, non-current	98,941		14,167		113,108
Mezzanine equity
Convertible debt	883		(883)		—
Equity
Additional paid-capital	2,387,039		(32,249)		2,354,790
Accumulated deficit	(2,087,957)		18,339		(2,069,618)

The impact of ASU adoption on the consolidated statement of operations for the fiscal year ended December 31, 2022 was to decrease net interest expense by $5.6 million. This had the effect of increasing the basic and diluted net income per share for the fiscal year ended December 31, 2022 by approximately $0.05. The required use of if-converted method to calculate the impact of convertible notes on diluted earnings per share does not have a material impact. The Company was contractually required to settle the principal amount of the 2022 Notes, and is contractually required to settle the principal amount of the 2024 Notes, in cash, and the 2022 Notes were settled in December 2022 upon maturity. Accordingly, the dilutive effect of the Company's 2022 Notes was, and the diluted effect of the 2024 Notes will be, limited to the conversion premium. The adoption of this ASU does not have any impact on the consolidated statement of cash flows.

From time to time, new accounting pronouncements are issued by the FASB, or other standards setting bodies, that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption.

INVESTMENTS IN EQUITY SECURITIES (Details) - EDC $ in Millions	1 Months Ended
	May 31, 2022 USD ($)
Equity Securities without Readily Determinable Fair Value [Line Items]
Total consideration	$ 10.7
Proceeds from sale of investment	7.8
Gain on sale of investment	4.2
Potential additional consideration on sale of equity securities	$ 2.9
Expiration period	18 months

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2019				91,875
Beginning balance at Dec. 31, 2019	$ 252,446,000			$ 92,000		$ 2,327,359,000			$ (2,071,940,000)			$ (3,065,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(29,271,000)								(29,271,000)
Other comprehensive income (loss), net of tax	8,921,000											8,921,000
Issuance of common stock under stock option, award and purchase plans, net (in shares)				3,822
Issuance of common stock under stock option, award and purchase plans, net	3,810,000			$ 3,000		3,807,000
Repurchase of common stock	0
Stock-based compensation	18,034,000					18,034,000
Exercise of warrant (in shares)				2,413
Exercise of warrant	0			$ 2,000		(2,000)
Reclassification from mezzanine equity to equity for 2020 Notes	2,410,000					2,410,000
Conversion feature of 2022 Notes	8,254,000					8,254,000
Conversion feature of exchanged portion of 2020 Notes	(6,909,000)					(6,909,000)
Issuance of common stock upon conversion of notes (in shares)				94
Issuance of common stock upon conversion of notes	607,000			$ 1,000		606,000
Ending balance (in shares) at Dec. 31, 2020				98,204
Ending balance at Dec. 31, 2020	$ 258,302,000			$ 98,000		2,353,559,000			(2,101,211,000)			5,856,000
Accounting Standards Update [Extensible List]	Accounting Standards Update 2020-06
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 13,254,000								13,254,000
Other comprehensive income (loss), net of tax	(9,128,000)											(9,128,000)
Issuance of common stock under stock option, award and purchase plans, net (in shares)				4,755
Issuance of common stock under stock option, award and purchase plans, net	10,249,000			$ 5,000		10,244,000
Repurchase of common stock	0
Stock-based compensation	24,119,000					24,119,000
Reclassification from equity to mezzanine equity for 2022 Notes	$ (883,000)					(883,000)
Ending balance (in shares) at Dec. 31, 2021	102,959			102,959	102,959
Ending balance at Dec. 31, 2021	$ 295,913,000	$ (13,910,000)	$ 282,003,000	$ 103,000	$ 103,000	2,387,039,000	$ (32,249,000)	$ 2,354,790,000	(2,087,957,000)	$ 18,339,000	$ (2,069,618,000)	(3,272,000)	$ (3,272,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	28,182,000								28,182,000
Other comprehensive income (loss), net of tax	(6,414,000)											(6,414,000)
Issuance of common stock under stock option, award and purchase plans, net (in shares)				3,601
Issuance of common stock under stock option, award and purchase plans, net	$ 791,000			$ 4,000		787,000
Repurchase of common stock (in shares)	(600)			(571)
Repurchase of common stock	$ (5,134,000)			$ (1,000)					(5,133,000)
Stock-based compensation	25,078,000					25,078,000
Issuance of common stock upon conversion of notes (in shares)				3,882
Issuance of common stock upon conversion of notes	$ 0			$ 4,000		(4,000)
Ending balance (in shares) at Dec. 31, 2022	109,871			109,871
Ending balance at Dec. 31, 2022	$ 324,506,000			$ 110,000		$ 2,380,651,000			$ (2,046,569,000)			$ (9,686,000)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Tax Provision


Income (loss) before income tax:	Year ended December 31,
(in thousands)	2022		2021		2020
Domestic	$	24,680	$	(5,688)	$	(42,905)
Foreign	19,805		14,559		16,688
Income (loss) before income taxes	$	44,485	$	8,871	$	(26,217)

Schedule of Provision for (Benefit from) Income Taxes


Provision for (benefit from) income taxes:	Year ended December 31,
(in thousands)	2022		2021		2020
Current:
Federal	$	4,443	$	4	$	124
State	3,236		85		93
Foreign	3,730		2,469		2,103
Deferred:
Foreign	4,894		(6,941)		734
Total provision for (benefit from) income taxes	$	16,303	$	(4,383)	$	3,054

Schedule of Reconciliation of Provision for (Benefit from) Income Taxes

The difference between the tax provision at the statutory federal income tax rate and the provision for (benefit from) income tax as a percentage of income (loss) before income taxes (effective tax rate) for each period was as follows:


	Year ended December 31,
	2022		2021		2020
Statutory U.S. federal income tax rate	21	%	21	%	21	%
Increase (reduction) in rate resulting from:
State Taxes	7	%	—	%	—	%
Differential in rates on foreign earnings	1	%	42	%	(11)	%
Change in valuation allowance	15	%	(113)	%	(16)	%
Change in liabilities for uncertain tax positions	—	%	(2)	%	—	%
Non-deductible stock-based compensation	4	%	11	%	(2)	%
Permanent differences	(1)	%	—	%	(2)	%
Adjustments related to tax positions taken during prior years	(8)	%	(3)	%	—	%
Research and development credits	(2)	%	(10)	%	—	%
Other	—	%	3	%	(2)	%
Effective tax rate	37	%	(49)	%	(12)	%

Schedule of Components of Deferred Tax Assets and Liabilities

The components of deferred taxes are as follows:


	As of December 31,
(in thousands)	2022		2021
Deferred tax assets:
Reserves and accruals	$	27,376	$	24,833
Net operating loss carryforwards	16,032		33,070
Research and development credit carryforwards	28,952		39,730
Deferred stock-based compensation	1,376		1,354
Intangibles	6,384		7,321
Operating lease liabilities	7,423		8,697
Capitalized research and development expenses	36,210		9,681
Other	1,139		31
Gross deferred tax assets	124,892		124,717
Valuation allowance	(101,020)		(90,247)
Gross deferred tax assets after valuation allowance	23,872		34,470
Deferred tax liabilities:
Depreciation	(5,971)		(6,597)
Convertible notes	—		(3,652)
Operating lease right-of-use assets	(6,125)		(7,402)

Gross deferred tax liabilities	(12,096)		(17,651)
Net deferred tax assets	$	11,776	$	16,819

Schedule of Activities Related to Valuation Allowance

The following table summarizes the activities related to the Company’s valuation allowance:


	Year ended December 31,
(in thousands)	2022		2021		2020
Balance at beginning of period	$	90,247	$	99,585	$	95,518
Additions	10,773		310		6,690
Deductions	—		(9,648)		(2,623)
Balance at end of period	$	101,020	$	90,247	$	99,585

Schedule of Activities Related to Gross Unrecognized Tax Benefits

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


	Year ended December 31,
(in millions)	2022		2021		2020
Balance at beginning of period	$	13.8	$	17.6	$	17.0
Increase in balance related to tax positions taken during current year	0.3		0.3		0.3
Decrease in balance as a result of a lapse of the applicable statutes of limitations	—		(0.2)		—
Increase in balance related to tax positions taken during prior years	—		—		0.3
Decrease in balance related to tax positions taken during prior years	(3.0)		(3.9)		—
Balance at end of period	$	11.1	$	13.8	$	17.6

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 28,182	$ 13,254	$ (29,271)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	12,260	12,546	11,737
Amortization of intangibles	0	507	3,970
Stock-based compensation	25,212	24,056	18,040
Amortization of convertible debt discount	1,171	6,308	7,058
Amortization of warrant	1,734	1,741	1,746
Foreign currency remeasurement	(2,685)	(5,126)	6,391
Loss on convertible debt extinguishment	0	0	1,362
Deferred income taxes, net	4,894	(6,197)	(105)
Provision for expected credit losses and returns	1,954	4,142	1,666
Provision for excess and obsolete inventories	5,988	3,460	1,847
Gain on sale of investment in equity securities	(4,370)	0	0
Other adjustments	513	181	409
Changes in operating assets and liabilities:
Accounts receivable	(23,136)	(26,722)	21,186
Inventories	(54,431)	(39,338)	(8,195)
Other assets	(8,402)	(3,096)	11,556
Accounts payable	5,837	42,303	(18,173)
Deferred revenues	2,610	15,014	19,751
Other liabilities	8,145	(2,016)	(11,812)
Net cash provided by operating activities	5,476	41,017	39,163
Cash flows from investing activities:
Proceeds from sale of investment	7,962	0	0
Purchases of property and equipment	(9,250)	(12,975)	(32,205)
Net cash used in investing activities	(1,288)	(12,975)	(32,205)
Cash flows from financing activities:
Payment of convertible debt	(37,707)	0	(7,999)
Payment of convertible debt issuance costs	0	0	(672)
Proceeds from other debts	3,499	3,861	9,398
Repayment of other debts	(4,583)	(6,169)	(6,646)
Repurchase of common stock	(5,133)	0	0
Proceeds from common stock issued to employees	7,092	12,311	5,472
Taxes paid related to net share settlement of equity awards	(6,301)	(2,064)	(1,662)
Net cash provided by (used in) financing activities	(43,133)	7,939	(2,109)
Effect of exchange rate changes on cash and cash equivalents	(4,900)	(1,195)	738
Net increase (decrease) in cash and cash equivalents	(43,845)	34,786	5,587
Cash and cash equivalents, beginning of the year	133,431	98,645	93,058
Cash and cash equivalents, end of the year	89,586	133,431	98,645
Supplemental disclosure of cash flow information:
Income tax payments (refunds), net	9,036	2,525	(17)
Interest payments, net	3,796	4,095	4,221
Supplemental schedule of non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	1,075	751	1,155
Fair value of 2022 Notes used to settle 2020 Notes	$ 0	$ 0	$ 44,357

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 28,182	$ 13,254	$ (29,271)
Other comprehensive income (loss):
Defined benefit plan	626	(233)	(159)
Translation gain (loss)	(6,956)	(8,022)	8,279
Other comprehensive income (loss) before tax	(6,330)	(8,255)	8,120
Provision for (benefit from) income taxes	84	873	(801)
Other comprehensive income (loss), net of tax	(6,414)	(9,128)	8,921
Total comprehensive income (loss)	$ 21,768	$ 4,126	$ (20,350)

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

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

The following table sets forth the computation of the basic and diluted net income (loss) per share:


	Year ended December 31,
(in thousands, except per share amounts)	2022		2021		2020
Numerator:
Net income (loss)	$	28,182	$	13,254	$	(29,271)
Denominator:
Weighted average number of shares outstanding:
Basic	105,080		101,484		96,971
2022 Notes	2,681		2,175		—
2024 Notes	2,441		653		—
Stock options	213		292		—
Restricted stock units	1,884		1,525		—
Stock purchase rights under ESPP	79		42		—
Diluted	112,378		106,171		96,971
Net income (loss) per share:
Basic	$	0.27	$	0.13	$	(0.30)
Diluted	$	0.25	$	0.12	$	(0.30)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effect was anti-dilutive:


	Year ended December 31,
(in thousands)	2022	2021	2020
2020 Notes	—	—	312
2022 Notes	—	—	192
Stock options	—	8	1,603
Restricted stock units	38	27	3,041
Stock purchase rights under the ESPP	—	390	531

Total	38	425	5,679

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Options Outstanding


(in thousands, except per share amounts)	Number of Shares	Weighted-Average Exercise Price (per share)
Balance at December 31, 2021	388	$	3.15
Exercised	(388)	3.15
Canceled	—	—
Balance at December 31, 2022	—	$	—

Schedule of Restricted Stock Units Outstanding


(in thousands, except per share amounts)	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
Balance at December 31, 2021	3,878	$	7.31
Granted	2,767	9.47
Vested	(2,990)	7.50
Forfeited	(156)	8.27
Balance at December 31, 2022	3,499	$	8.93

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

The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Consolidated Statements of Operations:


	Year ended December 31,
(in thousands)	2022		2021		2020
Share-based compensation expense included in:
Cost of revenue	$	2,233	$	2,345	$	1,712
Research and development expense	7,519		7,164		4,850
Selling, general and administrative expense	15,460		14,547		11,478
Total	$	25,212	$	24,056	$	18,040

Share-based compensation expense by type of award:

RSUs	17,786		14,573		11,522
PRSUs	3,865		6,231		4,022
MRSUs	1,558		1,304		711
Employee stock purchase rights under ESPP	2,003		1,948		1,785
Total	$	25,212	$	24,056	$	18,040

Schedule of Pension Obligations

The Company’s pension obligations as of December 31, 2022 and 2021, and the changes to the Company’s pension obligations for each of those years, were as follows:


(in thousands)	2022		2021
Projected benefit obligation:
Balance at January 1	$	6,003	$	6,057
Service cost	259		272
Interest cost	50		20
Actuarial (gains) losses	(626)		233
Benefits paid	(107)		(94)
Foreign currency translation adjustment	(296)		(485)
Balance at December 31	$	5,283	$	6,003

Presented on the Consolidated Balance Sheets as:
Current portion (included in “Accrued and other current liabilities”)	$	242	$	32
Long-term portion (included in “Other non-current liabilities”)	$	5,041	$	5,971

Schedule of Components of Net Periodic Benefit Costs

The table below presents the components of net periodic benefit costs:


	Year ended December 31,
(in thousands)	2022		2021		2020
Service cost	$	259	$	272	$	227
Interest cost	50		20		78
Net periodic benefit cost included in result of operations	$	309	$	292	$	305

Schedule of Pension Obligations Assumptions Used

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


	As of December 31,
	2022		2021
Discount rate	3.3	%	0.9	%
Mobility rate	6.6	%	4.7	%
Salary progression rate	3.0	%	2.5	%

Schedule of Expected Benefit Payments

As of December 31, 2022, 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):


Year ending December 31,
2023	$	242
2024	255
2025	395
2026	683
2027	534
2028 – 2032	3,436
Total	$	5,545

Schedule of Valuation Assumptions for Stock Options

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


	Year ended December 31,
		2022		2021		2020
Expected term (in years)		0.50		0.50		0.50
Volatility		47	%	45	%	56	%
Risk-free interest rate		1.4	%	0.1	%	0.9	%
Expected dividends		0.0	%	0.0	%	0.0	%

FAIR VALUE MEASUREMENTS - Fair Value Measurements of Financial Instruments Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
French loans carrying amount	$ 11,161	$ 17,981
Fair Value, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
French loans, fair value disclosure	0	0
Fair Value, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
French loans, fair value disclosure	11,161	17,981
Fair Value, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
French loans, fair value disclosure	0	0
2022 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	0	36,824
2022 Notes \| Fair Value, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	0	0
2022 Notes \| Fair Value, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	0	78,619
2022 Notes \| Fair Value, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	0	0
2024 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	113,981	98,941
2024 Notes \| Fair Value, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	0	0
2024 Notes \| Fair Value, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	181,139	173,419
2024 Notes \| Fair Value, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, fair value disclosures	$ 0	$ 0

CERTAIN BALANCE SHEET COMPONENTS - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 150,806	$ 162,137
Less: accumulated depreciation and amortization	(110,992)	(119,416)
Total	39,814	42,721
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	75,589	78,461
Capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	30,588	38,306
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	39,199	40,658
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,739	2,820
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,691	$ 1,892

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Reserves and accruals	$ 27,376	$ 24,833
Net operating loss carryforwards	16,032	33,070
Research and development credit carryforwards	28,952	39,730
Deferred stock-based compensation	1,376	1,354
Intangibles	6,384	7,321
Operating lease liabilities	7,423	8,697
Capitalized research and development expenses	36,210	9,681
Other	1,139	31
Gross deferred tax assets	124,892	124,717
Valuation allowance	(101,020)	(90,247)	$ (99,585)	$ (95,518)
Gross deferred tax assets after valuation allowance	23,872	34,470
Deferred tax liabilities:
Depreciation	(5,971)	(6,597)
Convertible notes	0	(3,652)
Operating lease right-of-use assets	(6,125)	(7,402)
Gross deferred tax liabilities	(12,096)	(17,651)
Net deferred tax assets	$ 11,776	$ 16,819

CONVERTIBLE NOTES AND OTHER DEBTS (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Convertible Interest Expense Recognized

The following table presents interest expense recognized for the 2022 Notes:


(in thousands)	Year ended December 31,
	2022		2021		2020
Contractual interest expense	$	1,511	$	1,648	$	953
Amortization of debt discount	—		685		373
Amortization of debt issuance costs	257		214		117
Total interest expense recognized	$	1,768	$	2,547	$	1,443

The following table presents interest expense recognized for the 2024 Notes:


	Year ended December 31,
(in thousands)	2022		2021		2020
Contractual interest expense	$	2,312	$	2,312	$	2,310
Amortization of debt discount	—		4,718		4,358
Amortization of debt issuance costs	874		641		595
Total interest expense recognized	$	3,186	$	7,671	$	7,263

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2024 Notes:


	As of December 31,
(in thousands, except for years and percentages)	2022		2021
Liability:
Principal amount	$	115,500	$	115,500
Less: Debt discount, net of amortization	—		(14,576)
Less: Debt issuance costs, net of amortization	(1,519)		(1,983)
Carrying amount	$	113,981	$	98,941

Remaining amortization period (years)	n/a		2.7
Effective interest rate on liability component	n/a		7.95		%

Schedule of Debt

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


	December 31,
(in thousands)	2022		2021
Financing from French government agencies related to various government incentive programs (1)	$	10,580	$	12,259
Relief loans (2)	5,337		5,651
Term loans	—		71

Total debt obligations	15,917		17,981
Less: current portion	(4,756)		(4,992)
Long-term portion	$	11,161	$	12,989

(1) These loans bear variable interest rate at EURIBOR 1 month plus 1.9% and mature between 2023 through 2025.

(2) Refer to the below section “Relief Loans” for the description of these loans.

Schedule of Future Minimum Repayments of Other Debts

The table below presents the future minimum repayments of other debts as of December 31, 2022 (in thousands):


Year ending December 31,
2023	$	4,756
2024	4,756
2025	5,065
2026	1,340

Total	$	15,917

DESCRIPTION OF BUSINESS (Details)	12 Months Ended
DESCRIPTION OF BUSINESS (Details)	Dec. 31, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of Harmonic include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter which ends on December 31.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 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.
Cash and Cash Equivalents	Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the date of purchase are considered cash equivalents. The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments.
Credit Risk and Major Customers/Supplier Concentration	Credit Risk and Major Customers/Supplier Concentration Financial instruments which subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are invested in short-term, highly liquid, investment-grade instruments, 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.Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those sole source and limited source suppliers, the partial or complete loss of certain of these sources could have at least a temporary adverse effect on the Company’s results of operations and damage customer relationships.
Revenue Recognition	Revenue Recognition The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions. Revenue from contracts with customers is recognized using the following five steps: a) Identify the contract(s) with a customer; b) Identify the performance obligations in the contract; c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract; and e) Recognize revenue when (or as) the Company satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a Company expects to be entitled to from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation. A contract may contain one or more performance obligations, including hardware, software, professional services and support and maintenance. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise performance obligations will be combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled to in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price also reflects the impact of the time value of money if there is a significant financing component present in an arrangement. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time or over time depending on the nature of the arrangement. 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. 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. Arrangements with Multiple Performance Obligations. The Company has revenue arrangements that include multiple performance obligations. The Company allocates transaction price to all separate performance obligations based on their relative standalone selling prices (“SSP”). The Company may exercise judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. To determine the standalone selling price, the Company first looks to establish the standalone selling price through an observable price when the good or service is sold separately in similar circumstances. If the standalone selling price cannot be established through an observable standalone price, we make an estimate which 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. If the Company has not yet established a selling 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. Solution Sales. Solution sales for the design, manufacture, test, integration and installation of products, including equipment acquired from third parties to be integrated with Harmonic’s products, that are customized to meet the customer’s specifications are accounted for based on the percentage-of-completion basis, using the input method. Some of our arrangements may include acceptance provisions that require testing of the solution against specific performance criteria. The Company performs a detailed evaluation to determine whether the arrangement involves performance criteria based on our standard performance criteria. The Company has a long-standing history of entering into contractual arrangements to deliver the solution sales based on standard performance criteria. For this type of arrangement, we consider the customer acceptance clause not substantive and recognize product revenue when the customer takes possession of the product and recognize service on a percentage-of-completion basis using the input method. However, if the solution results in significant production, modification or customization, we consider the arrangement as a single performance obligation and recognize the revenue at a point in time, or as a percentage of completion, depending on the complexity of the solution and nature of acceptance. 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. Professional services. Revenue from professional services is recognized over time as the services are performed or 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. Contract Balances. Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. The Company’s payment terms vary by the type and location of its customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer. Contract costs. The incremental costs of obtaining a contract are capitalized if the costs are expected to be recovered. Costs that are recognized as assets are amortized on a straight-line basis over the period during which the related goods or services transfer to the customer. Costs incurred to fulfill a contract are capitalized if they are not covered by other relevant guidance, relate directly to a contract, will be used to satisfy future performance obligations, and are expected to be recovered.
Inventories	Inventories Inventories are stated at the lower of cost (determined on first-in, first-out basis) or net realizable value. The cost of inventories is comprised of material and manufacturing labor and overheads. The Company establishes provisions for excess and obsolete inventories to reduce such inventories to their estimated net realizable value after evaluation of historical sales, future demand and market conditions, expected product life cycles and current inventory levels. Such provisions are charged to cost of revenue in the Company’s Consolidated Statements of Operations.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally five years for furniture and fixtures, three years for software and four years for machinery and equipment. Depreciation for leasehold improvements are computed using the shorter of estimated useful lives or the terms of the related leases.
Long-Lived Assets including Purchased Intangible Assets	Long-Lived Assets including Purchased Intangible AssetsThe Company reviews property and equipment, intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability is measured by comparing the carrying amount to the future undiscounted cash flows that the asset is expected to generate. If the asset is not recoverable, its carrying amount would be adjusted down to its fair value.
Goodwill	Goodwill Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our fourth quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segment’s net assets and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed. If the qualitative assessment indicates that the quantitative analysis should be performed, we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We completed our annual goodwill impairment test in the fourth quarter of fiscal 2022. We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment and the quantitative goodwill impairment test was not performed.
Leases	Leases The Company determines if an arrangement is a lease at inception. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. 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. ROU assets related to our operating lease liabilities are measured at lease inception based on the initial measurement of the lease liability, plus any prepaid lease payments and less any lease incentives. As of December 31, 2022, the Company has operating leases primarily consisting of facilities with remaining lease terms of 1 year to 10 years, some of which included the option to extend the term. Optional periods to extend the lease, including by not exercising a termination option, are included in the lease term when it is reasonably certain that the option will be exercised. The Company amortizes ROU assets as operating lease expense generally on a straight-line basis over the lease term. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current”, and “operating lease liabilities, non-current” in the Consolidated Balance Sheets.
Foreign Currency	Foreign Currency The functional currency of the Company’s Israeli and Swiss subsidiaries is the U.S. dollar. All other foreign subsidiaries use the respective local currency as the functional currency. When the local currency is the functional currency, gains and losses from translation of these foreign currency financial statements into U.S. dollars are recorded as a separate component of other comprehensive income (loss) in stockholders’ equity. The Company’s foreign currency exposure is also related to its net position of monetary assets and monetary liabilities held by its foreign subsidiaries in their nonfunctional currencies. These monetary assets and liabilities are being remeasured into the subsidiaries’ respective functional currencies using exchange rates as of the balance sheet date. Such remeasurement gains and losses are included in “Other income (expense), net” in the Company’s Consolidated Statements of Operations.
Derivative Instruments	Derivative Instruments The Company enters into derivative instruments, primarily foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities as well as certain foreign currencies denominated expenses. The Company does not enter into derivative instruments for trading purposes and these derivatives generally have maturities within three months. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or accrued and other current liabilities in the Company’s Consolidated Balance Sheets. The Company enters into derivative instruments to hedge existing foreign currency denominated assets or liabilities, the gains or losses on these hedges are recorded immediately in earnings to offset the changes in the fair value of the assets or liabilities being hedged.
Research and Development	Research and Development Research and development (“R&D”) costs are expensed as incurred and consists primarily of employee salaries and related expenses, contractors and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and development of new products and enhancements of existing products. The Company’s French subsidiary participates in the French Crédit d’Impôt Recherche (“CIR”) program which allows companies to monetize eligible research expenses. The R&D 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.
Restructuring and Related Charges	Restructuring and Related Charges The Company’s restructuring charges consist primarily of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are recognized when the liability is incurred and are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Termination benefits are calculated based on regional benefit practices and local statutory requirements.
Warranty	Warranty The Company accrues for estimated warranty costs at the time of revenue recognition and records such accrued liabilities as part of cost of revenue. Management periodically reviews its warranty liability and adjusts the accrued liability based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims.
Advertising Expenses	Advertising ExpensesAll advertising costs are expensed as incurred and included in “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations
Stock-based Compensation	Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based compensation awards made to employees, including stock options, restricted stock units (“RSUs”) and stock purchase rights under the Company’s Employee Stock Purchase Plan (“ESPP”), based upon the grant-date fair value of those awards. The Company recognizes the impact of forfeitures as they occur. The fair value of the Company’s stock options and stock purchase rights under ESPP is estimated at grant date using the Black-Scholes option pricing model. The fair value of the Company’s RSUs and performance-based RSUs (“PRSUs”) is calculated based on the market value of the Company’s stock at the grant date. The fair value of the Company’s market-based RSUs (“MRSUs”) is estimated using the Monte-Carlo valuation model with market vesting conditions. The Company recognizes the stock-based compensation for options, RSUs, MRSUs and stock purchase rights under ESPP on straight-line basis over the requisite service period, which is generally the vesting period. The Company recognizes the stock-based compensation for PRSUs based on the probability of achieving performance criteria defined in the PRSU agreements. The Company estimates the number of PRSUs ultimately expected to vest and recognizes expense using the graded vesting attribution method over the requisite service period. Changes in the estimates related to probability of achieving certain performance criteria and number of PRSUs expected to vest could significantly affect the related stock-based compensation expense from one period to the next.
Pension Plan	Pension Plan Under French law, the Company’s subsidiary in France is obligated to provide for a defined benefit plan to its employees upon their retirement from the Company. The Company’s defined benefit pension plan in France is unfunded. The Company records its obligations relating to the pension plans based on calculations which include various actuarial assumptions including employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. 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.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statements of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company is subject to examination of its income tax returns by various tax authorities on a periodic basis. The Company regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of its provision for income taxes. The Company has applied the provisions of the applicable accounting guidance on accounting for uncertainty in income taxes, which requires application of a more-likely-than-not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the Company to recognize a tax benefit measured at the largest amount of tax benefit that, in the Company’s judgment, is more than 50% likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. The Company files annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves and penalties, as well as the related interest, in light of changing facts and circumstances. Changes in the Company’s assessment of its uncertain tax positions or settlement of any particular position could materially and adversely impact the Company’s income tax rate, operating results, financial position and cash flows. Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction by jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.The Company has not provided U.S. state income taxes and foreign withholding taxes, on approximately $50.4 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 permanently in duration is not practicable. The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in the Company’s judgment, is more than fifty percent likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions to be recognized in earnings in the period in which such determination is made. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise.The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense on the Consolidated Statements of Operations.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting PronouncementsIn August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. The Company adopted ASU 2020-06 effective on January 1, 2022, using the modified retrospective method. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. As a result, the Company no longer separately presents in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature is no longer amortized into consolidated statement of operations as interest expense over the life of the instrument.
Segment Reporting	Segment Information Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Video and Broadband. During the third quarter of fiscal 2022, the Company’s Cable Access segment was renamed the Broadband segment to reflect a broader strategic view of the category. There has been no change to the composition of the segment; therefore, no prior periods were restated. 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, broadband operators, and satellite and telco Pay-TV service providers. The Broadband segment provides CableOS broadband access solutions and related services to broadband operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

INCOME TAXES - Reconciliation of Provision for (Benefit from) Income Taxes (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory U.S. federal income tax rate	21.00%	21.00%	21.00%
Increase (reduction) in rate resulting from:
State Taxes	7.00%	0.00%	0.00%
Differential in rates on foreign earnings	1.00%	42.00%	(11.00%)
Change in valuation allowance	15.00%	(113.00%)	(16.00%)
Change in liabilities for uncertain tax positions	0.00%	(2.00%)	0.00%
Non-deductible stock-based compensation	4.00%	11.00%	(2.00%)
Permanent differences	(1.00%)	0.00%	(2.00%)
Adjustments related to tax positions taken during prior years	(8.00%)	(3.00%)	0.00%
Research and development credits	(2.00%)	(10.00%)	0.00%
Other	0.00%	3.00%	(2.00%)
Effective tax rate	37.00%	(49.00%)	(12.00%)

ACCOUNTS RECEIVABLE - Accounts Receivable, Net of Allowances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 110,576	$ 91,382
Less: allowance for expected credit losses and sales returns	(2,149)	(2,853)
Total	$ 108,427	$ 88,529

STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Feb. 03, 2022
Equity [Abstract]
Stock repurchase program, authorized amount				$ 100,000,000
Stock repurchased and retired during period (in shares)	0.6
Stock repurchased and retired during period, value	$ 5,134,000	$ 0	$ 0
Stock repurchase program, remaining authorized repurchase amount	$ 94,900,000

DERIVATIVES AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

The Company’s balance sheet hedges consist of foreign currency forward contracts, which mature generally within three months. These forward contracts are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and intercompany receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Consolidated Statements of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. Foreign currency forward contracts’ gains recognized during the years ended December 31, 2022, 2021 and 2020, were $0.3 million, $0.7 million and $2.2 million, respectively.

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts were as follows:


	As of December 31,
(in thousands)	2022		2021
Purchase	$	7,971	$	2,926
Sell	$	—	$	5,175

While the Company’s arrangements with its counterparties allow for net settlement, which is designed to reduce credit risk by permitting net settlement with the same counterparty, the Company recognizes all derivative instruments in the Consolidated Balance Sheets on a gross basis. As of December 31, 2022 and 2021, gross fair values of derivative assets and liabilities, recorded as components of “Prepaid expenses and other current assets” and “Other current liabilities”, respectively, in the Consolidated Balance Sheets, were immaterial.

In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of December 31, 2022 and 2021, the total compensating balance maintained was $1.0 million.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Impairment charges for long-lived assets	$ 0	$ 0	$ 0
Impairment of goodwill	0	0	0
Foreign currency remeasurement gain (loss)	2,685,000	5,126,000	(6,391,000)
Advertising expense	700,000	1,000,000	1,100,000
Decrease in interest expense	$ (5,040,000)	$ (10,625,000)	$ (11,509,000)
Basic (in dollars per share)	$ 0.27	$ 0.13	$ (0.30)
Diluted (in dollars per share)	$ 0.25	$ 0.12	$ (0.30)
Minimum
Concentration Risk [Line Items]
Lessee, operating lease, term of contract (in years)	1 year
Maximum
Concentration Risk [Line Items]
Lessee, operating lease, term of contract (in years)	10 years
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2020-06
Concentration Risk [Line Items]
Decrease in interest expense	$ 5,600,000
Basic (in dollars per share)	$ 0.05
Diluted (in dollars per share)	$ 0.05
TVN
Concentration Risk [Line Items]
Research and development tax credits receivables from French government	$ 5,400,000	$ 5,700,000	$ 4,500,000
Foreign Exchange Forward
Concentration Risk [Line Items]
Derivative, term of contract (in months)	3 months
Other Expense
Concentration Risk [Line Items]
Foreign currency remeasurement gain (loss)	$ (300,000)	$ 600,000	$ (1,000,000)
Furniture and fixtures
Concentration Risk [Line Items]
Property, plant and equipment estimated useful life (in years)	5 years
Software
Concentration Risk [Line Items]
Property, plant and equipment estimated useful life (in years)	3 years
Machinery and equipment
Concentration Risk [Line Items]
Property, plant and equipment estimated useful life (in years)	4 years

INCOME TAXES - Income (Loss) Before Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ 24,680	$ (5,688)	$ (42,905)
Foreign	19,805	14,559	16,688
Income (loss) before income taxes	$ 44,485	$ 8,871	$ (26,217)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2017
Other Commitments [Line Items]
Non-cancelable purchase commitments	$ 143,400,000
Indemnification
Other Commitments [Line Items]
Accrual for indemnification provisions	0
Property Lease Guarantee \| Performance Guarantee
Other Commitments [Line Items]
Guarantees, fair value disclosure	2,100,000	$ 2,400,000
Foreign Line of Credit \| Performance Guarantee
Other Commitments [Line Items]
Guarantees, fair value disclosure			$ 2,200,000
Long-term line of credit			$ 2,000,000
Line of credit facility, fair value of amount outstanding	$ 0	$ 0

CERTAIN BALANCE SHEET COMPONENTS - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Finished goods	$ 65,308	$ 37,545
Raw materials	46,081	22,245
Work-in-process	3,251	3,993
Service-related spares	6,309	7,412
Total	$ 120,949	$ 71,195

INCOME TAXES - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 4,443	$ 4	$ 124
State	3,236	85	93
Foreign	3,730	2,469	2,103
Deferred:
Foreign	4,894	(6,941)	734
Total provision for (benefit from) income taxes	$ 16,303	$ (4,383)	$ 3,054

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

CONVERTIBLE NOTES AND OTHER DEBTS

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

CONVERTIBLE NOTES AND OTHER DEBTS

4.375% Convertible Senior Notes due 2022 (the “2022 Notes”)

In June 2020, the Company issued the 2022 Notes with an aggregate principal amount of $37.7 million in a non-cash exchange for its 2020 Notes with an equal principal amount pursuant to an indenture, dated June 2, 2020 (the “2022 Notes Indenture”), by and between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee. The 2022 Notes bore interest at a rate of 4.375% per year, payable in cash on June 1 and December 1 of each year. The 2022 Notes matured on December 1, 2022.

The 2022 Notes were initially 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 the Company’s common stock per $1,000 principal amount of the 2022 Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of fiscal 2021, the Company made an irrevocable election to settle the principal amounts of the 2022 Notes solely with cash and may pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The conversion rate, and thus the effective conversion price, was adjustable under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances as set forth in the 2022 Notes Indenture.

As discussed in the Note 2. “Recent Accounting Pronouncements”, effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method and, as a result, accounted for the Convertible debt as a single liability measured at amortized cost.

On or after September 1, 2022, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2022 Notes were able to convert all or a portion of their 2022 Notes regardless of any conditions. Prior to maturity date, the entire principal balance of $37.7 million was converted by holders of the 2022 Notes. In accordance with provisions of the 2022 Notes Indenture and the aforementioned supplemental indenture, conversions were settled in a combination of cash and the Company’s common Stock. The principal amount of $37.7 million that matured on December 1, 2022 was paid in cash. The conversion value greater than the principal amount was delivered in 3.9 million shares of the Company’s common stock.

The following table presents interest expense recognized for the 2022 Notes:


(in thousands)	Year ended December 31,
	2022		2021		2020
Contractual interest expense	$	1,511	$	1,648	$	953
Amortization of debt discount	—		685		373
Amortization of debt issuance costs	257		214		117
Total interest expense recognized	$	1,768	$	2,547	$	1,443

2.00% Convertible Senior Notes due 2024 (the “2024 Notes”)

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

The 2024 Notes were initially 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 115.5001 shares of the Company’s common stock per $1,000 principal amount of the 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of fiscal 2021, the Company made an irrevocable election to settle the principal amounts of the 2024 Notes solely with cash and may pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture.

The 2024 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2024 Notes Indenture. Further, on or after June 1, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or a portion of their 2024 Notes regardless of these conditions.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital.” The resulting debt discount on the 2024 Notes was being amortized, prior to adoption of ASU 2020-06, to interest expense at the effective interest rate over the contractual term of the 2024 Notes.

The 2024 Notes became convertible as of December 31, 2022, 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 2024 Notes on each applicable trading day. All $114.0 million of the net carrying amount of the 2024 Notes outstanding as of December 31, 2022 was classified as a current liability as of that date.

The following table presents the components of the 2024 Notes:


	As of December 31,
(in thousands, except for years and percentages)	2022		2021
Liability:
Principal amount	$	115,500	$	115,500
Less: Debt discount, net of amortization	—		(14,576)
Less: Debt issuance costs, net of amortization	(1,519)		(1,983)
Carrying amount	$	113,981	$	98,941

Remaining amortization period (years)	n/a		2.7
Effective interest rate on liability component	n/a		7.95		%

The following table presents interest expense recognized for the 2024 Notes:


	Year ended December 31,
(in thousands)	2022		2021		2020
Contractual interest expense	$	2,312	$	2,312	$	2,310
Amortization of debt discount	—		4,718		4,358
Amortization of debt issuance costs	874		641		595
Total interest expense recognized	$	3,186	$	7,671	$	7,263

Other Debts


	December 31,
(in thousands)	2022		2021
Financing from French government agencies related to various government incentive programs (1)	$	10,580	$	12,259
Relief loans (2)	5,337		5,651
Term loans	—		71

Total debt obligations	15,917		17,981
Less: current portion	(4,756)		(4,992)
Long-term portion	$	11,161	$	12,989

(1) These loans bear variable interest rate at EURIBOR 1 month plus 1.9% and mature between 2023 through 2025.

(2) Refer to the below section “Relief Loans” for the description of these loans.

The table below presents the future minimum repayments of other debts as of December 31, 2022 (in thousands):


Year ending December 31,
2023	$	4,756
2024	4,756
2025	5,065
2026	1,340

Total	$	15,917

Relief Loans

In June 2020, Harmonic France was granted a loan from Société Générale S.A. (the “SG Loan”) in the aggregate amount of 5 million Euros, pursuant to a state guarantee program introduced in March 2020 to provide relief to companies from the financial consequences of the COVID-19 pandemic. The SG Loan was initially maturing in June 2021. During 2021, SG Loan maturity was extended to June 2026. The SG loan bears an effective interest rate of 0.51% per annum payable annually and may be repaid at any time prior to maturity with no repayment penalties. There are no restrictions on the use of funds from the SG Loan. The purpose of the funds from the SG Loan is to allow the preservation of activity and employment in France. As of December 31, 2022, there was $5.3 million outstanding under the loan, of which $1.3 million was recorded in “Other debts, current” and $4.0 million was recorded in “Other debts, non-current” in the Consolidated Balance Sheets.

Line of Credit

On December 19, 2019, the Company entered into a Credit Agreement with JPMorgan Chase Bank, N.A. as lender, and Harmonic International GmbH, as co-borrower (the “Credit Agreement”). 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. 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.

On October 28, 2022, the Company amended the Credit Agreement to (i) extend the Credit Agreement maturity date to October 28, 2025 or subject to certain exceptions, the date that is 90 days prior to the maturity date of the 2024 Notes (to the extent the 2024 Notes remain outstanding as of such date) and (ii) amend the interest rate provisions to LIBOR with SOFR as the interest rate benchmark for the revolving loans. As amended, the revolving loans bear interest, at the Company’s election, at a floating rate per annum equal to either (1) 2.00% plus the greater of (i) 2.50% and (ii) the prime rate as reported in the Wall Street Journal from time to time or (2) 3.00% plus adjusted term SOFR for an interest period of one, three or six months. Except in cases of default, prepayment or conversion, 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 SOFR 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, 2022, the Company was in compliance with the covenants under the Credit Agreement.

There were no borrowings under the Credit Agreement outstanding as of December 31, 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements of Financial Instruments not Measured at Fair Value on a Recurring Basis

The Company's financial instruments not measured at fair value on a recurring basis were as follows:


	December 31, 2022								December 31, 2021
	Carrying		Fair Value						Carrying		Fair Value
(in thousands)	Value		Level 1		Level 2		Level 3		Value		Level 1		Level 2		Level 3
2022 Notes	$	—	$	—	$	—	$	—	$	36,824	$	—	$	78,619	$	—
2024 Notes	$	113,981	$	—	$	181,139	$	—	$	98,941	$	—	$	173,419	$	—
French and other loans	$	11,161	$	—	$	11,161	$	—	$	17,981	$	—	$	17,981	$	—

EMPLOYEE BENEFIT PLANS - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 25,212	$ 24,056	$ 18,040
RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	17,786	14,573	11,522
PRSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	3,865	6,231	4,022
MRSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	1,558	1,304	711
Employee stock purchase rights under ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	2,003	1,948	1,785
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	2,233	2,345	1,712
Research and development expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	7,519	7,164	4,850
Selling, general and administrative expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 15,460	$ 14,547	$ 11,478

INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Valuation Allowance [Abstract]
Balance at beginning of period	$ 90,247	$ 99,585	$ 95,518
Additions	10,773	310	6,690
Deductions	0	(9,648)	(2,623)
Balance at end of period	$ 101,020	$ 90,247	$ 99,585

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Total net revenue	$ 624,957	$ 507,149	$ 378,831
Total cost of revenue	309,073	247,407	183,834
Total gross profit	315,884	259,742	194,997
Operating expenses:
Research and development	120,307	102,231	82,494
Selling, general and administrative	146,717	138,085	119,611
Amortization of intangibles	0	507	3,019
Restructuring and related charges	3,341	110	2,322
Total operating expenses	270,365	240,933	207,446
Income (loss) from operations	45,519	18,809	(12,449)
Interest expense, net	(5,040)	(10,625)	(11,509)
Loss on convertible debt extinguishment	0	0	(1,362)
Other income (expense), net	4,006	687	(897)
Income (loss) before income taxes	44,485	8,871	(26,217)
Provision for (benefit from) income taxes	16,303	(4,383)	3,054
Net income (loss)	$ 28,182	$ 13,254	$ (29,271)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.27	$ 0.13	$ (0.30)
Diluted (in dollars per share)	$ 0.25	$ 0.12	$ (0.30)
Weighted average common shares:
Basic (in shares)	105,080	101,484	96,971
Diluted (in shares)	112,378	106,171	96,971
Appliance and integration
Total net revenue	$ 473,806	$ 369,767	$ 252,014
Total cost of revenue	259,027	195,445	126,948
SaaS and service
Total net revenue	151,151	137,382	126,817
Total cost of revenue	$ 50,046	$ 51,962	$ 56,886

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	$ 45,519	$ 18,809	$ (12,449)
Unallocated corporate expenses	(270,365)	(240,933)	(207,446)
Stock-based compensation	(25,212)	(24,056)	(18,040)
Loss on convertible debt extinguishment	0	0	(1,362)
Non-operating expense, net	(1,034)	(9,938)	(12,406)
Income (loss) before income taxes	44,485	8,871	(26,217)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	74,605	44,059	12,977
Corporate, Non-Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Unallocated corporate expenses	(3,874)	(681)	(3,416)
Stock-based compensation	(25,212)	(24,062)	(18,040)
Amortization of intangibles	$ 0	$ (507)	$ (3,970)

RESTRUCTURING AND RELATED CHARGES - Restructuring Plan (Details) - Severance and Benefits $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	$ 2,092
Charges for current period	3,739
Cash payments	(4,438)
Other	(349)
Restructuring reserve ending balance	$ 1,044

ACCOUNTS RECEIVABLE - Activity in Allowances for Expected Credit Losses and Sales Returns (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 2,853	$ 2,068	$ 3,013
Charges to Revenue	1,118	2,609	1,367
Charges (Credits) to Expense	836	1,533	299
Deductions from Reserves	(2,658)	(3,357)	(2,611)
Balance at End of Period	$ 2,149	$ 2,853	$ 2,068

EMPLOYEE BENEFIT PLANS - Stock-Based Compensation - Valuation Assumptions (Details) - Employee stock purchase rights under ESPP	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	6 months
Volatility	47.00%	45.00%	56.00%
Risk-free interest rate	1.40%	0.10%	0.90%
Expected dividends	0.00%	0.00%	0.00%

EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]
Service cost	$ 259	$ 272	$ 227
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag	Interest cost	Interest cost	Interest cost
Interest cost	$ 50	$ 20	$ 78
Net periodic benefit cost included in result of operations	$ 309	$ 292	$ 305

REVENUE - Net Capitalized Contract Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 3,103	$ 3,543
Prepaid expenses and other current assets
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	1,766	1,907
Other non-current assets
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 1,337	$ 1,636

EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($)	12 Months Ended
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0	0
Intrinsic value of options exercised	$ 3,900,000	$ 2,100,000	$ 200,000
Income tax benefit from stock option exercises	300,000	0	0
Payments of dividends	0	0	0
TVN
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employer contributions made	0
Expected employer contributions in 2023	$ 0
1995 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share exercise price (in percent)	100.00%
Expiration period (in years)	7 years
Common stock capital shares reserved for future issuance (in shares)	7,000,000
Common stock reserved for issuance (in shares)	10,984,093
Shares available for grant (in shares)	7,667,045
1995 Stock Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	2 years
1995 Stock Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
2002 Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share exercise price (in percent)	100.00%
Common stock reserved for issuance (in shares)	706,377
Shares available for grant (in shares)	524,199
Incentive Stock Option or Non-statutory Stock Option with Exercise Price less than 100% Fair Value of Common Stock on Grant Date \| 1995 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value	$ 22,400,000	$ 18,300,000	$ 15,500,000
Unrecognized share-based compensation cost	$ 19,700,000
Weighted-average period (in years)	1 year 4 months 24 days
Weighted average fair value (in dollars per share)	$ 9.47
RSUs \| 1995 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	0
RSUs \| 2002 Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	$ 0
Vesting period (in years)	1 year
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	$ 0	$ 3.15
Stock options \| 2002 Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Expiration period (in years)	7 years
Employee stock purchase rights under ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share exercise price (in percent)	85.00%
Common stock capital shares reserved for future issuance (in shares)	1,000,000
Common stock reserved for issuance (in shares)	1,366,962
Employees payroll deductions minimum (in percent)	1.00%
Employees payroll deductions maximum (in percent)	10.00%
Common stock issued under the 2002 ESPP (in shares)	817,243	1,024,244	1,036,543
Stock contributions value under 2002 ESPP	$ 5,900,000	$ 5,100,000	$ 4,500,000
Discount on the purchase of the stock (in percent)	15.00%
Fair value of the put option (in percent)	15.00%
Weighted average fair value (in dollars per share)	$ 2.91	$ 2.24	$ 1.80

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	109,871,000	102,959,000
Common stock, shares outstanding (in shares)	109,871,000	102,959,000

CONVERTIBLE NOTES AND OTHER DEBTS - Other (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Financing from French government agencies related to various government incentive programs	$ 10,580	$ 12,259
Relief loans	5,337	5,651
Term loans	0	71
Total debt obligations	15,917	17,981
Less: current portion	(4,756)	(4,992)
Long-term portion	$ 11,161	$ 12,989
TVN \| Loans Backed By French Research And Development Tax Credit Receivables
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.90%

EMPLOYEE BENEFIT PLANS - Pension Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation, beginning balance	$ 6,003	$ 6,057
Service cost	259	272	$ 227
Interest cost	50	20	78
Actuarial (gains) losses	(626)	233
Benefits paid	(107)	(94)
Foreign currency translation adjustment	(296)	(485)
Projected benefit obligation, ending balance	5,283	6,003	$ 6,057
Current portion (included in “Accrued and other current liabilities”)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Current portion (included in “Accrued and other current liabilities”)	242	32
Long-term portion (included in “Other non-current liabilities”)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Long-term portion (included in “Other non-current liabilities”)	$ 5,041	$ 5,971

RESTRUCTURING AND RELATED CHARGES

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED CHARGES

The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenue, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions. The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities.

The following table summarizes the activities related to the Company’s restructuring plans accrual, reported as components of “Other current liabilities” on the Consolidated Balance Sheets:


(in thousands)	Severance and Benefits
Balance at December 31, 2021	$	2,092
Charges for current period	3,739
Cash payments	(4,438)
Other	(349)
Balance at December 31, 2022	$	1,044

For the year ended December 31, 2022, $0.5 million and $3.3 million of restructuring and related charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges”, respectively, in the Consolidated Statements of Operations.

CONVERTIBLE NOTES AND OTHER DEBTS - Future Minimum Repayments of Other Debts (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2023	$ 4,756
2024	4,756
2025	5,065
2026	1,340
Total	$ 15,917

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

REVENUE (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Contract Assets and Deferred Revenue

Contract assets and deferred revenue consisted of the following:


	As of December 31,
(in thousands)	2022		2021
Contract assets	$	5,580	$	8,101
Deferred revenue	$	80,471	$	78,167

Schedule of Capitalized Contract Costs

The balances of net capitalized contract costs included in the Company’s Consolidated Balance Sheets were as follows:


(in thousands)	As of December 31,
Balance Sheet Location	2022		2021
Prepaid expenses and other current assets	$	1,766	$	1,907
Other non-current assets	1,337		1,636
Total net capitalized contract costs	$	3,103	$	3,543

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

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


(in thousands)	Video		Broadband		Total
Balance as of December 31, 2020	$	182,855	$	60,819	$	243,674
Foreign currency translation adjustment	(3,457)		(4)		(3,461)
Balance as of December 31, 2021	$	179,398	$	60,815	$	240,213
Foreign currency translation adjustment	(2,409)		(65)		(2,474)
Balance as of December 31, 2022	$	176,989	$	60,750	$	237,739

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease cost	$ 7,636	$ 7,550
Variable lease cost	1,780	1,986
Total lease cost	9,416	9,536
Supplemental cash flow information related to leases are as follows:
Cash paid for amounts included in the measurement of operating lease liabilities	7,528	7,644
ROU assets obtained in exchange for operating lease obligations	$ 862	$ 8,837
Operating leases
Weighted-average remaining lease term (years)	6 years 2 months 12 days	6 years 9 months 18 days
Weighted-average discount rate	6.30%	6.30%

CERTAIN BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses	$ 5,558	$ 8,074
Contract assets	5,583	8,101
Other current assets	15,196	13,797
Total	$ 26,337	$ 29,972

DERIVATIVES AND HEDGING ACTIVITIES - Notional Values (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Purchase
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 7,971	$ 2,926
Sell
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 0	$ 5,175

REVENUE - Performance Obligation (Details) $ in Millions	Dec. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 473.4
Revenue, remaining performance obligation, proportion to be recognized in next twelve months (as a percent)	80.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2022
Income Tax Examination [Line Items]
Benefit from a valuation allowance release	$ 8.6
Cumulative undistributed earnings of foreign subsidiaries intended to be indefinitely reinvested		$ 50.4
Unrecognized future tax benefit that would not impact effective tax rate		9.8
Foreign
Income Tax Examination [Line Items]
Operating loss carryforwards		83.1
U.S. Federal
Income Tax Examination [Line Items]
Operating loss carryforwards		0.0
Tax credit carryovers		3.4
State
Income Tax Examination [Line Items]
Operating loss carryforwards		34.7
Tax credit carryovers		$ 35.5

LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

During the fiscal year ended December 31, 2022, the Company entered into new or modified lease agreements which were assessed under Topic 842 to be operating leases. The new or modified lease agreements resulted in the balance sheet recognition of $0.9 million in “Operating lease right-of use assets,” $0.7 million in “Operating lease liabilities, long-term,” and $0.2 million in “Operating lease liabilities, current.”

The components of lease expense are as follows:


	Year ended December 31,
(in thousands)	2022		2021
Operating lease cost	$	7,636	$	7,550
Variable lease cost	1,780		1,986
Total lease cost	$	9,416	$	9,536

Supplemental cash flow information related to leases are as follows:


	Year ended December 31,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,528	$	7,644
ROU assets obtained in exchange for operating lease obligations	$	862	$	8,837

Other information related to leases are as follows:


	Year ended December 31,
	2022		2021
Operating leases
Weighted-average remaining lease term (years)	6.2		6.8
Weighted-average discount rate	6.3	%	6.3	%

Future minimum lease payments under non-cancelable operating leases as of December 31, 2022 are as follows (in thousands):


Years ending December 31,
2023	$	7,106
2024	7,066
2025	5,884
2026	4,847
2027	3,770
Thereafter	8,877
Total future minimum lease payments	$	37,550
Less: imputed interest	(6,667)



Total lease liability balance	$	30,883

ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Accounts receivable, net of allowances, consisted of the following:


	As of December 31,
(in thousands)	2022		2021
Accounts receivable	$	110,576	$	91,382
Less: allowance for expected credit losses and sales returns	(2,149)		(2,853)
Total	$	108,427	$	88,529

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 expected credit losses 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 expected credit losses and sales returns:


(in thousands)	Balance at Beginning of Period		Charges to Revenue		Charges (Credits) to Expense		Deductions from Reserves		Balance at End of Period
Year ended December 31,
2022	$	2,853	$	1,118	$	836	$	(2,658)	$	2,149
2021	$	2,068	$	2,609	$	1,533	$	(3,357)	$	2,853
2020	$	3,013	$	1,367	$	299	$	(2,611)	$	2,068

CONVERTIBLE NOTES AND OTHER DEBTS - Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2022 Notes
Debt Instrument [Line Items]
Contractual interest expense	$ 1,511	$ 1,648	$ 953
Amortization of debt discount	0	685	373
Amortization of debt issuance costs	257	214	117
Total interest expense recognized	1,768	2,547	1,443
2024 Notes
Debt Instrument [Line Items]
Contractual interest expense	2,312	2,312	2,310
Amortization of debt discount	0	4,718	4,358
Amortization of debt issuance costs	874	641	595
Total interest expense recognized	$ 3,186	$ 7,671	$ 7,263

GOODWILL

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILLThe changes in the Company’s carrying amount of goodwill are as follows:


(in thousands)	Video		Broadband		Total
Balance as of December 31, 2020	$	182,855	$	60,819	$	243,674
Foreign currency translation adjustment	(3,457)		(4)		(3,461)
Balance as of December 31, 2021	$	179,398	$	60,815	$	240,213
Foreign currency translation adjustment	(2,409)		(65)		(2,474)
Balance as of December 31, 2022	$	176,989	$	60,750	$	237,739

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of Accounting Standards Update and Change in Accounting Principle

The cumulative effect of the ASU adoption was as follows:


			Adjustments from
	Balance at		Adoption of		Balance at
(in thousands)	December 31, 2021		ASU 2020-06		January 1, 2022
Liabilities
Convertible debt, current	$	36,824	$	626	$	37,450
Convertible debt, non-current	98,941		14,167		113,108
Mezzanine equity
Convertible debt	883		(883)		—
Equity
Additional paid-capital	2,387,039		(32,249)		2,354,790
Accumulated deficit	(2,087,957)		18,339		(2,069,618)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Liabilities
Convertible debt, current	$ 113,981	$ 36,824
Convertible debt, non-current	0	98,941
Mezzanine equity
Convertible debt (Note 12)	0	883
Equity
Additional paid-in capital	2,380,651	2,387,039
Accumulated deficit	$ (2,046,569)	(2,087,957)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2020-06
Liabilities
Convertible debt, current		626
Convertible debt, non-current		14,167
Mezzanine equity
Convertible debt (Note 12)		(883)
Equity
Additional paid-in capital		(32,249)
Accumulated deficit		18,339
Cumulative Effect, Period of Adoption, Adjusted Balance
Liabilities
Convertible debt, current		37,450
Convertible debt, non-current		113,108
Mezzanine equity
Convertible debt (Note 12)		0
Equity
Additional paid-in capital		2,354,790
Accumulated deficit		$ (2,069,618)

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense are as follows:


	Year ended December 31,
(in thousands)	2022		2021
Operating lease cost	$	7,636	$	7,550
Variable lease cost	1,780		1,986
Total lease cost	$	9,416	$	9,536

Supplemental cash flow information related to leases are as follows:


	Year ended December 31,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,528	$	7,644
ROU assets obtained in exchange for operating lease obligations	$	862	$	8,837

Other information related to leases are as follows:


	Year ended December 31,
	2022		2021
Operating leases
Weighted-average remaining lease term (years)	6.2		6.8
Weighted-average discount rate	6.3	%	6.3	%

Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2022 are as follows (in thousands):


Years ending December 31,
2023	$	7,106
2024	7,066
2025	5,884
2026	4,847
2027	3,770
Thereafter	8,877
Total future minimum lease payments	$	37,550
Less: imputed interest	(6,667)



Total lease liability balance	$	30,883

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES


Income (loss) before income tax:	Year ended December 31,
(in thousands)	2022		2021		2020
Domestic	$	24,680	$	(5,688)	$	(42,905)
Foreign	19,805		14,559		16,688
Income (loss) before income taxes	$	44,485	$	8,871	$	(26,217)


Provision for (benefit from) income taxes:	Year ended December 31,
(in thousands)	2022		2021		2020
Current:
Federal	$	4,443	$	4	$	124
State	3,236		85		93
Foreign	3,730		2,469		2,103
Deferred:
Foreign	4,894		(6,941)		734
Total provision for (benefit from) income taxes	$	16,303	$	(4,383)	$	3,054


	Year ended December 31,
	2022		2021		2020
Statutory U.S. federal income tax rate	21	%	21	%	21	%
Increase (reduction) in rate resulting from:
State Taxes	7	%	—	%	—	%
Differential in rates on foreign earnings	1	%	42	%	(11)	%
Change in valuation allowance	15	%	(113)	%	(16)	%
Change in liabilities for uncertain tax positions	—	%	(2)	%	—	%
Non-deductible stock-based compensation	4	%	11	%	(2)	%
Permanent differences	(1)	%	—	%	(2)	%
Adjustments related to tax positions taken during prior years	(8)	%	(3)	%	—	%
Research and development credits	(2)	%	(10)	%	—	%
Other	—	%	3	%	(2)	%
Effective tax rate	37	%	(49)	%	(12)	%

The Company operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective income tax rate differs from the U.S. federal statutory rate primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal and state deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax jurisdictions. The Company’s effective income tax rate may be affected by changes in its interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net operating loss and tax credit carry forwards, changes in geographical mix of income and expense, and changes in management's assessment of matters such as the ability to realize deferred tax assets, as well as one-time discrete items. During fiscal 2022, the Company recorded current tax expense in the United States, primarily due to mandatory capitalization and amortization of research and development expenses in the United States starting January 1, 2022, as required by the Tax Cuts and Jobs Act. During fiscal 2021, the Company recorded a one-time benefit of approximately $8.6 million due to the release of valuation allowance on deferred tax assets in foreign jurisdictions due to its improved earnings in recent years and increasing future projected earnings.

The components of deferred taxes are as follows:


	As of December 31,
(in thousands)	2022		2021
Deferred tax assets:
Reserves and accruals	$	27,376	$	24,833
Net operating loss carryforwards	16,032		33,070
Research and development credit carryforwards	28,952		39,730
Deferred stock-based compensation	1,376		1,354
Intangibles	6,384		7,321
Operating lease liabilities	7,423		8,697
Capitalized research and development expenses	36,210		9,681
Other	1,139		31
Gross deferred tax assets	124,892		124,717
Valuation allowance	(101,020)		(90,247)
Gross deferred tax assets after valuation allowance	23,872		34,470
Deferred tax liabilities:
Depreciation	(5,971)		(6,597)
Convertible notes	—		(3,652)
Operating lease right-of-use assets	(6,125)		(7,402)

Gross deferred tax liabilities	(12,096)		(17,651)
Net deferred tax assets	$	11,776	$	16,819

The following table summarizes the activities related to the Company’s valuation allowance:


	Year ended December 31,
(in thousands)	2022		2021		2020
Balance at beginning of period	$	90,247	$	99,585	$	95,518
Additions	10,773		310		6,690
Deductions	—		(9,648)		(2,623)
Balance at end of period	$	101,020	$	90,247	$	99,585

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.

As of December 31, 2022, the Company had $83.1 million, $0.0 million, $34.7 million of foreign, U.S. federal and state net operating loss (“NOL”) carryforwards, respectively. Certain foreign NOLs expire beginning in 2026, if not utilized, while the majority of the foreign NOLs carryforward indefinitely. Certain U.S. states NOL carryforward expires at various dates beginning in 2029, if not utilized.

As of December 31, 2022, the Company had U.S. federal and California state tax credit carryforwards of $3.4 million and $35.5 million, respectively. If not utilized, the U.S. federal tax credit carryforwards will begin to expire in 2031, while the California tax credit carryforward will not expire.

In the event the Company experiences an ownership change within the meaning of Section 382 of the Internal Revenue Code (“IRC”), the Company’s ability to utilize net operating losses, tax credits and other tax attributes may be limited.

The Company has not provided U.S. state income taxes and foreign withholding taxes, on approximately $50.4 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 permanently in duration is not practicable.

The Company applies the provisions of the applicable accounting guidance regarding accounting for uncertainty in income taxes, which require application of a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits the recognition of a tax benefit measured at the largest amount of such tax benefit that, in the Company’s judgment, is more than fifty percent likely to be realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions to be recognized in earnings in the period in which such determination is made. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of December 31, 2022, the Company had $9.8 million of unrecognized future tax benefits that will have no or minimal impact on the effective tax rate in future periods if recognized due to a valuation allowance on such unrecognized tax benefits.

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


	Year ended December 31,
(in millions)	2022		2021		2020
Balance at beginning of period	$	13.8	$	17.6	$	17.0
Increase in balance related to tax positions taken during current year	0.3		0.3		0.3
Decrease in balance as a result of a lapse of the applicable statutes of limitations	—		(0.2)		—
Increase in balance related to tax positions taken during prior years	—		—		0.3
Decrease in balance related to tax positions taken during prior years	(3.0)		(3.9)		—
Balance at end of period	$	11.1	$	13.8	$	17.6

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense on the Consolidated Statements of Operations. The net interest and penalties charges recorded for the years ended December 31, 2020 through 2022, were not material.

The 2018 through 2021 tax years generally remain subject to examination by U.S. federal and most state tax authorities. Net operating losses generated on a tax return basis by the Company for the 2016 to 2021 tax years and research and development credits for 2011 to 2021 tax years remain open to examination. In addition, the Company remains subject to income tax examination for several other jurisdictions, including in Switzerland for years after 2017, Israel for years after 2019, and France for years after 2016.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

EARNINGS PER SHARE - Schedule of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 28,182	$ 13,254	$ (29,271)
Basic (in shares)	105,080	101,484	96,971
Diluted (in shares)	112,378	106,171	96,971
Basic (in dollars per share)	$ 0.27	$ 0.13	$ (0.30)
Diluted (in dollars per share)	$ 0.25	$ 0.12	$ (0.30)
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number diluted shares outstanding adjustment (in shares)	213	292	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number diluted shares outstanding adjustment (in shares)	1,884	1,525	0
Stock purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number diluted shares outstanding adjustment (in shares)	79	42	0
2022 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number diluted shares outstanding adjustment (in shares)	2,681	2,175	0
2024 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number diluted shares outstanding adjustment (in shares)	2,441	653	0