ý | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 77-0201147 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | ý |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 44,741 | $ | 126,190 | |||
Short-term investments | 7,931 | 26,604 | |||||
Accounts receivable, net | 99,078 | 69,515 | |||||
Inventories | 35,828 | 38,819 | |||||
Prepaid expenses and other current assets | 38,519 | 25,003 | |||||
Total current assets | 226,097 | 286,131 | |||||
Property and equipment, net | 35,145 | 27,012 | |||||
Goodwill | 239,880 | 197,781 | |||||
Intangibles, net | 33,121 | 4,097 | |||||
Other long-term assets | 31,218 | 9,936 | |||||
Total assets | $ | 565,461 | $ | 524,957 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 6,825 | $ | — | |||
Accounts payable | 31,407 | 19,364 | |||||
Income taxes payable | 545 | 307 | |||||
Deferred revenue | 54,319 | 33,856 | |||||
Accrued liabilities | 50,369 | 31,354 | |||||
Total current liabilities | 143,465 | 84,881 | |||||
Convertible notes, long-term | 101,964 | 98,295 | |||||
Other debts and capital lease obligations, long-term | 15,949 | — | |||||
Income taxes payable, long-term | 2,863 | 3,886 | |||||
Deferred tax liabilities, long-term | 2,163 | — | |||||
Other non-current liabilities | 17,604 | 9,727 | |||||
Total liabilities | 284,008 | 196,789 | |||||
Commitments and contingencies (Note 18) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 150,000 shares authorized; 78,311 and 76,015 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 78 | 76 | |||||
Additional paid-in capital | 2,249,857 | 2,236,418 | |||||
Accumulated deficit | (1,965,779 | ) | (1,903,908 | ) | |||
Accumulated other comprehensive loss | (2,703 | ) | (4,418 | ) | |||
Total stockholders’ equity | 281,453 | 328,168 | |||||
Total liabilities and stockholders’ equity | $ | 565,461 | $ | 524,957 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 70,285 | $ | 57,245 | $ | 205,342 | $ | 215,165 | |||||||
Services | 31,121 | 26,060 | 87,467 | 75,259 | |||||||||||
Total net revenue | 101,406 | 83,305 | 292,809 | 290,424 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 34,460 | 23,584 | 105,698 | 95,021 | |||||||||||
Services | 15,583 | 13,490 | 44,054 | 39,759 | |||||||||||
Total cost of revenue | 50,043 | 37,074 | 149,752 | 134,780 | |||||||||||
Total gross profit | 51,363 | 46,231 | 143,057 | 155,644 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 24,202 | 21,679 | 74,272 | 65,824 | |||||||||||
Selling, general and administrative | 36,112 | 28,966 | 105,498 | 91,443 | |||||||||||
Amortization of intangibles | 3,009 | 1,446 | 9,606 | 4,338 | |||||||||||
Restructuring and related charges | (27 | ) | 397 | 4,488 | 626 | ||||||||||
Total operating expenses | 63,296 | 52,488 | 193,864 | 162,231 | |||||||||||
Loss from operations | (11,933 | ) | (6,257 | ) | (50,807 | ) | (6,587 | ) | |||||||
Interest (expense) income, net | (2,734 | ) | 30 | (7,806 | ) | 102 | |||||||||
Other income (expense), net | (328 | ) | 148 | (5 | ) | (299 | ) | ||||||||
Loss on impairment of long-term investment | (1,259 | ) | — | (2,735 | ) | (2,505 | ) | ||||||||
Loss before income taxes | (16,254 | ) | (6,079 | ) | (61,353 | ) | (9,289 | ) | |||||||
Provision for (benefit from) income taxes | (242 | ) | (1,268 | ) | 518 | (827 | ) | ||||||||
Net loss | $ | (16,012 | ) | $ | (4,811 | ) | $ | (61,871 | ) | $ | (8,462 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.21 | ) | $ | (0.05 | ) | $ | (0.80 | ) | $ | (0.10 | ) | |||
Shares used in per share calculation: | |||||||||||||||
Basic and diluted | 78,092 | 87,991 | 77,475 | 88,359 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Net loss | $ | (16,012 | ) | $ | (4,811 | ) | $ | (61,871 | ) | $ | (8,462 | ) | |||
Other comprehensive income (loss) before tax: | |||||||||||||||
Change in unrealized gains (losses) on cash flow hedges: | |||||||||||||||
Unrealized gains (losses) arising during the period | 121 | (550 | ) | 279 | (218 | ) | |||||||||
Losses (gains) reclassified into earnings | (47 | ) | (127 | ) | 53 | (314 | ) | ||||||||
74 | (677 | ) | 332 | (532 | ) | ||||||||||
Change in unrealized gains (losses) on available-for-sale securities: | |||||||||||||||
Unrealized gains (losses) arising during the period | (1,208 | ) | (928 | ) | (1,178 | ) | 17 | ||||||||
Loss reclassified into earnings | 1,259 | — | 2,735 | — | |||||||||||
51 | (928 | ) | 1,557 | 17 | |||||||||||
Change in foreign currency translation adjustments | 523 | (364 | ) | (154 | ) | (766 | ) | ||||||||
Other comprehensive income (loss) before tax | 648 | (1,969 | ) | 1,735 | (1,281 | ) | |||||||||
Less: Provision for (benefit from) income taxes | (3 | ) | 12 | 20 | 6 | ||||||||||
Other comprehensive income (loss), net of tax | 651 | (1,981 | ) | 1,715 | (1,287 | ) | |||||||||
Total comprehensive losses | $ | (15,361 | ) | $ | (6,792 | ) | $ | (60,156 | ) | $ | (9,749 | ) |
Nine months ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (61,871 | ) | $ | (8,462 | ) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Amortization of intangibles | 12,711 | 4,971 | |||||
Depreciation | 13,198 | 10,143 | |||||
Stock-based compensation | 8,542 | 11,845 | |||||
Amortization of discount on convertible debt | 3,669 | — | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 1,476 | 354 | |||||
Loss on impairment of long-term investment | 2,735 | 2,505 | |||||
Provision for excess and obsolete inventories | 6,246 | 1,234 | |||||
Allowance for doubtful accounts, returns and discounts | 1,222 | 576 | |||||
Other non-cash adjustments, net | 251 | — | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||
Accounts receivable | (12,869 | ) | 9,440 | ||||
Inventories | 2,225 | (7,936 | ) | ||||
Prepaid expenses and other assets | (5,938 | ) | (13,817 | ) | |||
Accounts payable | 2,505 | 1,772 | |||||
Deferred revenue | 20,038 | 5,237 | |||||
Income taxes payable | (827 | ) | (1,372 | ) | |||
Accrued and other liabilities | (6,230 | ) | (7,926 | ) | |||
Net cash (used in) provided by operating activities | (12,917 | ) | 8,564 | ||||
Cash flows from investing activities: | |||||||
Acquisition of business, net of cash acquired | (75,669 | ) | — | ||||
Purchases of investments | — | (20,714 | ) | ||||
Proceeds from maturities of investments | 18,692 | 26,534 | |||||
Purchases of property and equipment | (11,423 | ) | (10,393 | ) | |||
Purchases of long-term investments | — | (85 | ) | ||||
Restricted cash | — | (1,091 | ) | ||||
Net cash used in investing activities | (68,400 | ) | (5,749 | ) | |||
Cash flows from financing activities: | |||||||
Payment of convertible debt issuance costs | (582 | ) | — | ||||
Proceeds from other debts and capital leases | 5,968 | — | |||||
Repayment of other debts and capital leases | (8,038 | ) | — | ||||
Payments for repurchase of common stock | — | (20,007 | ) | ||||
Proceeds from common stock issued to employees | 3,736 | 9,255 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,313 | ) | (3,288 | ) | |||
Net cash used in financing activities | (229 | ) | (14,040 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 97 | (236 | ) | ||||
Net decrease in cash and cash equivalents | (81,449 | ) | (11,461 | ) | |||
Cash and cash equivalents at beginning of period | 126,190 | 73,032 | |||||
Cash and cash equivalents at end of period | $ | 44,741 | $ | 61,571 |
Assets: | |||
Cash and cash equivalents | $ | 6,843 | |
Accounts receivable, net | 14,933 | ||
Inventories | 3,462 | ||
Prepaid expenses and other current assets | 2,412 | ||
Property and equipment, net | 9,942 | ||
French R&D tax credit receivables (1) | 26,421 | ||
Other long-term assets | 2,134 | ||
Total assets | $ | 66,147 | |
Liabilities: | |||
Other debts and capital leases, current | 8,362 | ||
Accounts payable | 12,494 | ||
Deferred revenue | 2,504 | ||
Accrued liabilities | 18,365 | ||
Other debts and capital leases, long-term | 16,087 | ||
Other long-term liabilities | 6,467 | ||
Deferred tax liabilities | 2,126 | ||
Total liabilities | $ | 66,405 | |
Goodwill | 41,670 | ||
Intangibles | 41,100 | ||
Total purchase consideration | $ | 82,512 |
Estimated Useful Life (in years) | Fair Value | ||||
Backlog | 6 months | $ | 3,600 | ||
Developed technology | 4 years | 21,700 | |||
Customer relationships | 5 years | 15,200 | |||
In-process research and development (1) | N/A | — | |||
Trade name | 4 years | 600 | |||
$ | 41,100 |
Acquisition-related | Integration-related | ||||||||||||||
Three months ended | Nine months ended | Three months ended | Nine months ended | ||||||||||||
September 30, 2016 | September 30, 2016 | ||||||||||||||
Product cost of revenue | $ | — | $ | — | $ | 119 | $ | 610 | |||||||
Research and development | — | — | 152 | 702 | |||||||||||
Selling, general and administrative | 534 | 3,855 | 4,365 | 6,502 | |||||||||||
Total acquisition- and integration-related expenses in operating expenses | 534 | 3,855 | 4,636 | 7,814 | |||||||||||
Interest income (expense), net | — | — | 98 | 98 | |||||||||||
Total acquisition- and integration-related expenses | $ | 534 | $ | 3,855 | $ | 4,734 | $ | 7,912 |
Three months ended | Nine months ended | ||||||||||
October 2, 2015 | September 30, 2016 | October 2, 2015 | |||||||||
(in millions, except per share amounts) | |||||||||||
Net revenue | $ | 100.3 | $ | 301.5 | $ | 344.2 | |||||
Net loss | (17.5 | ) | (49.9 | ) | (45.1 | ) | |||||
Net loss per share-basic and diluted | $ | (0.20 | ) | $ | (0.64 | ) | $ | (0.51 | ) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Corporate bonds | $ | 7,932 | $ | 1 | $ | (2 | ) | $ | 7,931 | ||||||
Total short-term investments | $ | 7,932 | $ | 1 | $ | (2 | ) | $ | 7,931 | ||||||
As of December 31, 2015 | |||||||||||||||
Corporate bonds | $ | 25,557 | $ | — | $ | (52 | ) | $ | 25,505 | ||||||
Commercial paper | 1,099 | — | — | 1,099 | |||||||||||
Total short-term investments | $ | 26,656 | $ | — | $ | (52 | ) | $ | 26,604 |
September 30, 2016 | December 31, 2015 | ||||||
Less than one year | $ | 7,931 | $ | 19,642 | |||
Due in 1 - 2 years | — | 6,962 | |||||
Total short-term investments | $ | 7,931 | $ | 26,604 |
Carrying Value | Maximum exposure to loss(1) | ||||||
VJU | $ | — | $ | — | |||
EDC(2) | 3,593 | 3,593 | |||||
Total | $ | 3,593 | $ | 3,593 |
Three months ended | Nine months ended | |||||||||||||||||
Financial Statement Location | September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Gains (losses) in AOCI on derivatives (effective portion) | AOCI | $ | 121 | $ | (550 | ) | $ | 279 | $ | (218 | ) | |||||||
Gains (losses) reclassified from AOCI into income (effective portion) | Cost of Revenue | $ | 6 | $ | 18 | $ | (7 | ) | $ | 44 | ||||||||
Operating Expense | 41 | 109 | (46 | ) | 270 | |||||||||||||
Total | $ | 47 | $ | 127 | $ | (53 | ) | $ | 314 | |||||||||
Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | Other income (expense), net | $ | (8 | ) | $ | (5 | ) | $ | (57 | ) | $ | (57 | ) | |||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Gains (losses) recognized in income | Other income (expense), net | $ | (162 | ) | $ | (165 | ) | $ | (496 | ) | $ | 220 |
September 30, 2016 | December 31, 2015 | |||||||
Derivatives designated as cash flow hedges: | ||||||||
Purchase | $ | 2,945 | $ | 12,984 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Purchase | $ | 4,824 | $ | 6,942 | ||||
Sell | $ | 17,594 | $ | 11,332 |
Asset Derivatives | Derivative Liabilities | |||||||||||||||||||
Balance Sheet Location | September 30, 2016 | December 31, 2015 | Balance Sheet Location | September 30, 2016 | December 31, 2015 | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | 60 | $ | 13 | Accrued Liabilities | $ | — | $ | 281 | ||||||||||
$ | 60 | $ | 13 | $ | — | $ | 281 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | 172 | $ | 100 | Accrued Liabilities | $ | 17 | $ | 90 | ||||||||||
$ | 172 | $ | 100 | $ | 17 | $ | 90 | |||||||||||||
Total derivatives | $ | 232 | $ | 113 | $ | 17 | $ | 371 |
Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||
Gross Amounts of Derivatives | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets | Financial Instrument | Cash Collateral Pledged | Net Amount | |||||||||||||||||
Derivative Assets | $ | 232 | — | $ | 232 | $ | (17 | ) | — | $ | 215 | |||||||||||
Derivative Liabilities | $ | 17 | — | $ | 17 | $ | (17 | ) | — | $ | — |
• | Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. |
• | Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market. |
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 6,276 | $ | — | $ | — | $ | 6,276 | |||||||
Short-term investments | |||||||||||||||
Corporate bonds | — | 7,931 | — | 7,931 | |||||||||||
Prepaids and other current assets | |||||||||||||||
Time deposit pledged for credit card facility | — | 580 | — | 580 | |||||||||||
Derivative assets | — | 232 | — | 232 | |||||||||||
Other assets | |||||||||||||||
Long-term investment | 530 | — | — | 530 | |||||||||||
Total assets measured and recorded at fair value | $ | 6,806 | $ | 8,743 | $ | — | $ | 15,549 | |||||||
Accrued liabilities | |||||||||||||||
Derivative liabilities | — | 17 | — | 17 | |||||||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 17 | $ | — | $ | 17 | |||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
As of December 31, 2015 | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 53,434 | $ | — | $ | — | $ | 53,434 | |||||||
U.S. Treasury bills | 24,998 | — | — | 24,998 | |||||||||||
Short-term investments | |||||||||||||||
Corporate bonds | — | 25,505 | — | 25,505 | |||||||||||
Commercial paper | — | 1,099 | — | 1,099 | |||||||||||
Prepaids and other current assets | |||||||||||||||
Time deposit pledged for credit card facility | — | 580 | — | 580 | |||||||||||
Derivative assets | — | 113 | — | 113 | |||||||||||
Other assets | |||||||||||||||
Long-term investment | 1,840 | — | — | 1,840 | |||||||||||
Total assets measured and recorded at fair value | $ | 80,272 | $ | 27,297 | $ | — | $ | 107,569 | |||||||
Accrued liabilities | |||||||||||||||
Derivative liabilities | $ | — | $ | 371 | $ | — | $ | 371 | |||||||
Total liabilities measured and recorded at fair value | $ | — | $ | 371 | $ | — | $ | 371 |
September 30, 2016 | December 31, 2015 | ||||||
Accounts receivable, net: | |||||||
Accounts receivable | $ | 103,511 | $ | 73,855 | |||
Less: allowances for doubtful accounts, returns and discounts | (4,433 | ) | (4,340 | ) | |||
Total | $ | 99,078 | $ | 69,515 |
September 30, 2016 | December 31, 2015 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid inventories to contract manufacturer(1) | $ | 4,736 | $ | 8,500 | |||
Prepaid maintenance, royalty, rent and property taxes | 7,003 | 5,974 | |||||
Other Prepayments | 4,730 | 2,762 | |||||
Deferred cost of revenue | 10,470 | 4,601 | |||||
French R&D tax credits receivable(2) | 6,279 | — | |||||
Restricted cash(3) | 1,341 | 1,093 | |||||
Other | 3,960 | 2,073 | |||||
Total | $ | 38,519 | $ | 25,003 |
September 30, 2016 | December 31, 2015 | ||||||
Inventories: | |||||||
Raw materials | $ | 9,417 | $ | 5,421 | |||
Work-in-process | 1,328 | 1,950 | |||||
Finished goods | 13,397 | 19,827 | |||||
Service-related spares | 11,686 | 11,621 | |||||
Total | $ | 35,828 | $ | 38,819 |
September 30, 2016 | December 31, 2015 | ||||||
Property and equipment, net: | |||||||
Furniture and fixtures | $ | 9,110 | $ | 7,808 | |||
Machinery and equipment | 99,172 | 93,010 | |||||
Capitalized software | 34,703 | 29,391 | |||||
Leasehold improvements | 14,005 | 10,000 | |||||
Property and equipment, gross | 156,990 | 140,209 | |||||
Less: accumulated depreciation and amortization | (121,845 | ) | (113,197 | ) | |||
Total | $ | 35,145 | $ | 27,012 |
September 30, 2016 | December 31, 2015 | ||||||
Accrued Liabilities: | |||||||
Accrued employee compensation and related expenses | $ | 18,420 | $ | 12,083 | |||
Accrued sales and use tax and property taxes | 1,861 | 1,743 | |||||
Accrued warranty | 5,079 | 3,913 | |||||
Accrued royalty payments | 2,597 | 873 | |||||
Contingent inventory reserves | 2,485 | 1,315 | |||||
Customer deposits | 5,020 | 953 | |||||
Others | 14,907 | 10,474 | |||||
Total | $ | 50,369 | $ | 31,354 |
Video | Cable Edge | Total | |||||||||
As of December 31, 2015 | $ | 136,904 | $ | 60,877 | $ | 197,781 | |||||
Preliminary estimate of goodwill from TVN acquisition | 41,670 | — | 41,670 | ||||||||
Foreign currency translation adjustment | 515 | (86 | ) | 429 | |||||||
As of September 30, 2016 | $ | 179,089 | $ | 60,791 | $ | 239,880 |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Weighted Average Remaining Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Developed core technology | 3.4 | $ | 33,057 | $ | (14,112 | ) | $ | 18,945 | $ | 10,987 | $ | (10,987 | ) | $ | — | ||||||||||
Customer relationships/contracts | 4.4 | 44,659 | (31,004 | ) | 13,655 | 29,200 | (25,752 | ) | 3,448 | ||||||||||||||||
Trademarks and trade names | 3.4 | 610 | (89 | ) | 521 | — | — | — | |||||||||||||||||
Maintenance agreements and related relationships | N/A | 5,500 | (5,500 | ) | — | 5,500 | (4,851 | ) | 649 | ||||||||||||||||
Order Backlog | N/A | 3,661 | (3,661 | ) | — | — | — | — | |||||||||||||||||
Total identifiable intangibles | $ | 87,487 | $ | (54,366 | ) | $ | 33,121 | $ | 45,687 | $ | (41,590 | ) | $ | 4,097 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Included in cost of revenue | $ | 1,380 | $ | 86 | $ | 3,105 | $ | 633 | |||||||
Included in operating expenses | 3,009 | 1,446 | 9,606 | 4,338 | |||||||||||
Total amortization expense | $ | 4,389 | $ | 1,532 | $ | 12,711 | $ | 4,971 |
Cost of Revenue | Operating Expenses | Total | |||||||||
Year ended December 31, | |||||||||||
2016 (remaining three months) | $ | 1,380 | $ | 811 | $ | 2,191 | |||||
2017 | 5,517 | 3,244 | 8,761 | ||||||||
2018 | 5,517 | 3,244 | 8,761 | ||||||||
2019 | 5,517 | 3,244 | 8,761 | ||||||||
2020 | 1,014 | 3,117 | 4,131 | ||||||||
Thereafter | — | 516 | 516 | ||||||||
Total future amortization expense | $ | 18,945 | $ | 14,176 | $ | 33,121 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Restructuring and asset impairment charges in: | |||||||||||||||
Product cost of revenue | $ | (1 | ) | $ | 113 | $ | (24 | ) | $ | 113 | |||||
Operating expenses-Restructuring and related charges | (27 | ) | 397 | 4,488 | 626 | ||||||||||
Total restructuring and related charges | $ | (28 | ) | $ | 510 | $ | 4,464 | $ | 739 |
Excess facilities | Severance and benefits (1) | Other charges | Total | ||||||||||||
Charges for 2016 Harmonic Restructuring Plan | $ | 1,445 | $ | 3,171 | $ | 246 | $ | 4,862 | |||||||
Adjustments to restructuring provisions | — | (87 | ) | — | (87 | ) | |||||||||
Reclassification of deferred rent | 1,087 | — | — | 1,087 | |||||||||||
Cash payments | (705 | ) | (3,061 | ) | — | (3,766 | ) | ||||||||
Non-cash write-offs | — | — | (246 | ) | (246 | ) | |||||||||
Foreign exchange gain (loss) | — | (12 | ) | — | (12 | ) | |||||||||
Balance at September 30, 2016 | $ | 1,827 | $ | 11 | $ | — | $ | 1,838 |
Severance and benefits (2) | ||||
Balance at December 31, 2015 | $ | 264 | ||
Adjustments to restructuring provisions | (65 | ) | ||
Cash payments | (194 | ) | ||
Balance at September 30, 2016 | $ | 5 |
September 30, 2016 | December 31, 2015 | ||||||
Liability: | |||||||
Principal amount | $ | 128,250 | $ | 128,250 | |||
Less: Debt discount, net of amortization | (23,458 | ) | (26,732 | ) | |||
Less: Debt issuance costs, net of amortization | (2,828 | ) | (3,223 | ) | |||
Carrying amount | $ | 101,964 | $ | 98,295 | |||
Remaining amortization period (years) | 4.2 | 4.9 | |||||
Effective interest rate on liability component | 9.94 | % | 9.94 | % | |||
Equity: | |||||||
Value of conversion option | $ | 26,925 | $ | 26,925 | |||
Less: Equity issuance costs | (863 | ) | (863 | ) | |||
Carrying amount | $ | 26,062 | $ | 26,062 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Contractual interest expense | $ | 1,283 | $ | — | $ | 3,848 | $ | — | |||||||
Amortization of debt discount | 1,117 | — | 3,274 | — | |||||||||||
Amortization of debt issuance costs | 135 | — | 395 | — | |||||||||||
Total interest expense recognized | $ | 2,535 | $ | — | $ | 7,517 | $ | — |
September 30, 2016 | |||
Financing from French government agencies related to various government incentive programs (1) | $ | 19,153 | |
Term loans (2) | 1,564 | ||
Secured borrowings (3) | — | ||
Obligations under capital leases | 2,057 | ||
Total debt obligations | 22,774 | ||
Less: current portion | (6,825 | ) | |
Long-term portion | $ | 15,949 |
Years ending December 31, | Capital lease obligations | Other Debt obligations | |||||
2016 (remaining three months) | $ | 299 | $ | 129 | |||
2017 | 1,130 | 5,691 | |||||
2018 | 534 | 5,849 | |||||
2019 | 68 | 6,743 | |||||
2020 | 26 | 673 | |||||
Thereafter | — | 1,632 | |||||
Total | $ | 2,057 | $ | 20,717 |
Stock Options Outstanding | Restricted Stock Units Outstanding* | |||||||||||||||
Shares Available for Grant | Number of Shares | Weighted Average Exercise Price | Number of Units | Weighted Average Grant Date Fair Value | ||||||||||||
Balance at December 31, 2015 | 6,150 | 5,674 | $ | 6.56 | 2,182 | $ | 6.99 | |||||||||
Authorized | 2,000 | — | — | — | — | |||||||||||
Granted | (5,046 | ) | 916 | 3.14 | 3,053 | 3.55 | ||||||||||
Options exercised | — | (148 | ) | 4.80 | — | — | ||||||||||
Shares released | — | — | — | (1,269 | ) | 6.82 | ||||||||||
Forfeited or cancelled | 1,833 | (1,388 | ) | 6.44 | (304 | ) | 5.73 | |||||||||
Balance at September 30, 2016 | 4,937 | 5,054 | $ | 6.03 | 3,662 | $ | 4.18 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Vested and expected to vest | 4,826 | $ | 6.08 | 4.0 | $ | 3,015 | ||||||
Exercisable | 3,063 | 6.63 | 3.0 | 750 |
Number of Shares Underlying Restricted Stock Units | Weighted Average Remaining Vesting Period (Years) | Aggregate Fair Value | ||||||
Vested and expected to vest | 2,740 | 0.9 | $ | 16,250 |
September 30, 2016 | |||
Projected benefit obligation: | |||
Acquired from TVN acquisition | $ | 5,907 | |
Service cost | 164 | ||
Interest cost | 68 | ||
Foreign currency translation adjustment | 102 | ||
As of September 30, 2016 | $ | 6,241 | |
Presented on the Condensed Consolidated Balance Sheets under: | |||
Current portion (presented under “Accrued liabilities”) | $ | 248 | |
Long-term portion (presented under “Other non-current liabilities”) | $ | 5,993 |
September 30, 2016 | ||
Discount rate | 2.0 | % |
Mobility rate | 2.2 | % |
Salary progression rate | 2.0 | % |
Years ending December 31, | |||
2016 (remaining three months) | $ | 24 | |
2017 | 117 | ||
2018 | 227 | ||
2019 | 366 | ||
2020 | 433 | ||
2021 - 2025 | 2,310 | ||
$ | 3,477 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Stock-based compensation in: | |||||||||||||||
Cost of revenue | $ | 360 | $ | 433 | $ | 1,011 | $ | 1,383 | |||||||
Research and development expense | 771 | 1,074 | 2,581 | 3,249 | |||||||||||
Selling, general and administrative expense | 1,549 | 2,320 | 4,950 | 7,213 | |||||||||||
Total stock-based compensation in operating expense | 2,320 | 3,394 | 7,531 | 10,462 | |||||||||||
Total stock-based compensation | $ | 2,680 | $ | 3,827 | $ | 8,542 | $ | 11,845 |
Employee Stock Options | |||||||||||
Three months ended | Nine months ended | ||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||
Expected term (years) | 4.30 | 4.60 | 4.30 | 4.70 | |||||||
Volatility | 39 | % | 37 | % | 36 | % | 38 | % | |||
Risk-free interest rate | 1.0 | % | 1.5 | % | 1.4 | % | 1.6 | % | |||
Expected dividends | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
ESPP Purchase Period Ending | |||||||||||
December 31, 2016 | July 1, 2016 | December 31, 2015 | June 30, 2015 | ||||||||
Expected term (years) | 0.50 | 0.50 | 0.50 | 0.50 | |||||||
Volatility | 62 | % | 54 | % | 32 | % | 35 | % | |||
Risk-free interest rate | 0.4 | % | 0.4 | % | 0.1 | % | 0.1 | % | |||
Expected dividends | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||
Estimated weighted average fair value per share at purchase date | $0.98 | $1.19 | $1.64 | $1.75 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Loss before income taxes | $ | (16,254 | ) | $ | (6,079 | ) | $ | (61,353 | ) | $ | (9,289 | ) | |||
Provision for (benefit from) income taxes | (242 | ) | (1,268 | ) | 518 | (827 | ) | ||||||||
Effective income tax rate | 1.5 | % | 20.9 | % | (0.8 | )% | 8.9 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Numerator: | |||||||||||||||
Net loss | $ | (16,012 | ) | $ | (4,811 | ) | $ | (61,871 | ) | $ | (8,462 | ) | |||
Denominator: | |||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||
Basic and diluted | 78,092 | 87,991 | 77,475 | 88,359 | |||||||||||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.21 | ) | $ | (0.05 | ) | $ | (0.80 | ) | $ | (0.10 | ) |
Three months ended | Nine months ended | ||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||
Stock options | 5,193 | 6,095 | 5,389 | 6,674 | |||||||
RSUs | 2,800 | 2,198 | 2,273 | 2,237 | |||||||
Stock purchase rights under the ESPP | 1,212 | 524 | 641 | 492 | |||||||
Warrants (1) | 43 | — | 14 | — | |||||||
Total | 9,248 | 8,817 | 8,317 | 9,403 |
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Available-for-Sale Investments | Total | ||||||||||||
Balance as of December 31, 2015 | $ | (2,634 | ) | $ | (246 | ) | $ | (1,538 | ) | $ | (4,418 | ) | |||
Other comprehensive income (loss) before reclassifications | (154 | ) | 279 | (1,178 | ) | (1,053 | ) | ||||||||
Amounts reclassified from AOCI | — | 53 | 2,735 | 2,788 | |||||||||||
Provision for income taxes | — | — | (20 | ) | (20 | ) | |||||||||
Balance as of September 30, 2016 | $ | (2,788 | ) | $ | 86 | $ | (1 | ) | $ | (2,703 | ) |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Gains (losses) on cash flow hedges from foreign currency contracts: | |||||||||||||||
Cost of revenue | $ | 6 | $ | 18 | $ | (7 | ) | $ | 44 | ||||||
Operating expenses | 41 | 109 | (46 | ) | 270 | ||||||||||
Total reclassifications from AOCI | $ | 47 | $ | 127 | $ | (53 | ) | $ | 314 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Net revenue: | |||||||||||||||
Video | $ | 91,353 | $ | 71,889 | $ | 246,949 | $ | 219,378 | |||||||
Cable Edge | 10,053 | 11,416 | 45,860 | 71,046 | |||||||||||
Total consolidated net revenue | $ | 101,406 | $ | 83,305 | $ | 292,809 | $ | 290,424 | |||||||
Operating income (loss): | |||||||||||||||
Video | $ | 4,886 | $ | 3,575 | $ | (1,943 | ) | $ | 8,386 | ||||||
Cable Edge | (4,767 | ) | (3,963 | ) | (7,118 | ) | 2,582 | ||||||||
Total segment operating income (loss) | 119 | (388 | ) | (9,061 | ) | 10,968 | |||||||||
Unallocated corporate expenses (1) | (4,983 | ) | (510 | ) | (20,493 | ) | (739 | ) | |||||||
Stock-based compensation | (2,680 | ) | (3,827 | ) | (8,542 | ) | (11,845 | ) | |||||||
Amortization of intangibles | (4,389 | ) | (1,532 | ) | (12,711 | ) | (4,971 | ) | |||||||
Loss from operations | (11,933 | ) | (6,257 | ) | (50,807 | ) | (6,587 | ) | |||||||
Non-operating income (expense) | (4,321 | ) | 178 | (10,546 | ) | (2,702 | ) | ||||||||
Loss before income taxes | $ | (16,254 | ) | $ | (6,079 | ) | $ | (61,353 | ) | $ | (9,289 | ) |
Years ending December 31, | |||
2016 (remaining three months) | $ | 3,320 | |
2017 | 12,641 | ||
2018 | 11,952 | ||
2019 | 10,318 | ||
2020 | 7,598 | ||
Thereafter | 10,551 | ||
Total | $ | 56,380 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Balance at beginning of period | $ | 5,095 | $ | 4,167 | $ | 3,913 | $ | 4,242 | |||||||
Balance assumed from TVN acquisition | — | — | 1,012 | — | |||||||||||
Accrual for current period warranties | 1,552 | 1,182 | 4,527 | 4,308 | |||||||||||
Changes in liability related to pre-existing warranties | (99 | ) | — | (173 | ) | (93 | ) | ||||||||
Warranty costs incurred | (1,469 | ) | (1,448 | ) | (4,200 | ) | (4,556 | ) | |||||||
Balance at end of period | $ | 5,079 | $ | 3,901 | $ | 5,079 | $ | 3,901 |
• | developing trends and demands in the markets we address, particularly emerging markets; |
• | economic conditions, particularly in certain geographies, and in financial markets; |
• | new and future products and services; |
• | capital spending of our customers; |
• | our strategic direction, future business plans and growth strategy; |
• | industry and customer consolidation; |
• | expected demand for and benefits of our products and services; |
• | seasonality of revenue and concentration of revenue sources; |
• | expectations regarding the impact of our TVN acquisition; |
• | the potential impact of our continuing stock repurchase plan; |
• | potential future acquisitions and dispositions; |
• | anticipated results of potential or actual litigation; |
• | our competitive environment; |
• | the impact of governmental regulation; |
• | anticipated revenue and expenses, including the sources of such revenue and expenses; |
• | expected impacts of changes in accounting rules; |
• | use of cash, cash needs and ability to raise capital; and |
• | the condition of our cash investments. |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Segment: | |||||||||||||||||||||||||||
Video | $ | 91,353 | $ | 71,889 | $ | 19,464 | 27 | % | $ | 246,949 | $ | 219,378 | $ | 27,571 | 13 | % | |||||||||||
Cable Edge | 10,053 | 11,416 | (1,363 | ) | (12 | )% | 45,860 | 71,046 | (25,186 | ) | (35 | )% | |||||||||||||||
Total | $ | 101,406 | $ | 83,305 | $ | 18,101 | 22 | % | $ | 292,809 | $ | 290,424 | $ | 2,385 | 1 | % | |||||||||||
Segment revenue as a % of total net revenue: | |||||||||||||||||||||||||||
Video | 90 | % | 86 | % | 84 | % | 76 | % | |||||||||||||||||||
Cable Edge | 10 | % | 14 | % | 16 | % | 24 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Geography: | |||||||||||||||||||||||||||
Americas | $ | 47,856 | $ | 44,926 | $ | 2,930 | 7 | % | $ | 154,513 | $ | 165,786 | $ | (11,273 | ) | (7 | )% | ||||||||||
EMEA | 32,405 | 19,269 | 13,136 | 68 | % | 85,716 | 71,302 | 14,414 | 20 | % | |||||||||||||||||
APAC | 21,145 | 19,110 | 2,035 | 11 | % | 52,580 | 53,336 | (756 | ) | (1 | )% | ||||||||||||||||
Total | $ | 101,406 | $ | 83,305 | $ | 18,101 | 22 | % | $ | 292,809 | $ | 290,424 | $ | 2,385 | 1 | % | |||||||||||
Regional revenue as a % of total net revenue: | |||||||||||||||||||||||||||
Americas | 47 | % | 54 | % | 53 | % | 57 | % | |||||||||||||||||||
EMEA | 32 | % | 23 | % | 29 | % | 25 | % | |||||||||||||||||||
APAC | 21 | % | 23 | % | 18 | % | 18 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Gross profit | $ | 51,363 | $ | 46,231 | $ | 5,132 | 11 | % | $ | 143,057 | $ | 155,644 | $ | (12,587 | ) | (8 | )% | ||||||||||
As a percentage of net revenue (“gross margin”) | 50.7 | % | 55.5 | % | 48.9 | % | 53.6 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Research and development | $ | 24,202 | $ | 21,679 | $ | 2,523 | 12 | % | $ | 74,272 | $ | 65,824 | $ | 8,448 | 13 | % | |||||||||||
As a percentage of net revenue | 23.9 | % | 26.0 | % | 25.4 | % | 22.7 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Selling, general and administrative | $ | 36,112 | $ | 28,966 | $ | 7,146 | 25 | % | $ | 105,498 | $ | 91,443 | $ | 14,055 | 15 | % | |||||||||||
As a percentage of net revenue | 35.6 | % | 34.8 | % | 36.0 | % | 31.5 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Video | $ | 4,886 | $ | 3,575 | $ | 1,311 | 37 | % | $ | (1,943 | ) | $ | 8,386 | $ | (10,329 | ) | (123 | )% | |||||||||
Cable Edge | (4,767 | ) | (3,963 | ) | (804 | ) | 20 | % | (7,118 | ) | 2,582 | (9,700 | ) | (376 | )% | ||||||||||||
Total segment operating income (loss) | $ | 119 | $ | (388 | ) | $ | 507 | (131 | )% | $ | (9,061 | ) | $ | 10,968 | $ | (20,029 | ) | (183 | )% | ||||||||
Segment operating income (loss) as a % of segment revenue: | |||||||||||||||||||||||||||
Video | 5.3 | % | 5.0 | % | (0.8 | )% | 3.8 | % | |||||||||||||||||||
Cable Edge | (47.4 | )% | (34.7 | )% | (15.5 | )% | 3.6 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Total segment operating income (loss) | $ | 119 | $ | (388 | ) | $ | (9,061 | ) | $ | 10,968 | |||||
Unallocated corporate expenses | (4,983 | ) | (510 | ) | (20,493 | ) | (739 | ) | |||||||
Stock-based compensation | (2,680 | ) | (3,827 | ) | (8,542 | ) | (11,845 | ) | |||||||
Amortization of intangibles | (4,389 | ) | (1,532 | ) | (12,711 | ) | (4,971 | ) | |||||||
Loss from operations | (11,933 | ) | (6,257 | ) | (50,807 | ) | (6,587 | ) | |||||||
Non-operating income (expense) | (4,321 | ) | 178 | (10,546 | ) | (2,702 | ) | ||||||||
Loss before income taxes | $ | (16,254 | ) | $ | (6,079 | ) | $ | (61,353 | ) | $ | (9,289 | ) |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Amortization of intangibles | $ | 3,009 | $ | 1,446 | $ | 1,563 | 108 | % | $ | 9,606 | $ | 4,338 | $ | 5,268 | 121 | % | |||||||||||
As a percentage of net revenue | 3.0 | % | 1.7 | % | 3.3 | % | 1.5 | % |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Restructuring and related charges in: | |||||||||||||||
Product cost of revenue | $ | (1 | ) | $ | 113 | $ | (24 | ) | $ | 113 | |||||
Operating expenses-Restructuring and related charges | (27 | ) | 397 | 4,488 | 626 | ||||||||||
Total restructuring and related charges | $ | (28 | ) | $ | 510 | $ | 4,464 | $ | 739 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | Q3 FY16 vs Q3 FY15 | September 30, 2016 | October 2, 2015 | Q3 FY16 YTD vs Q3 FY15 YTD | ||||||||||||||||||||||
Provision for (benefit from) income taxes | $ | (242 | ) | $ | (1,268 | ) | $ | 1,026 | (81 | )% | $ | 518 | $ | (827 | ) | $ | 1,345 | (163 | )% | ||||||||
Effective income tax rate | 1.5 | % | 20.9 | % | (0.8 | )% | 8.9 | % |
Nine months ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | (12,917 | ) | $ | 8,564 | ||
Investing activities | (68,400 | ) | (5,749 | ) | |||
Financing activities | (229 | ) | (14,040 | ) | |||
Effect of foreign exchange rate changes on cash | 97 | (236 | ) | ||||
Net decrease in cash and cash equivalents | $ | (81,449 | ) | $ | (11,461 | ) |
Payments due in each fiscal year | |||||||||||||||||||
Total Amounts Committed | 2016 (remaining three months) | 2017 and 2018 | 2019 and 2020 | Thereafter | |||||||||||||||
Convertible debt | $ | 128,250 | $ | — | $ | — | $ | 128,250 | $ | — | |||||||||
Interest on convertible debt | 23,085 | 2,565 | 10,260 | 10,260 | — | ||||||||||||||
Other debts | 20,717 | 129 | 11,540 | 7,416 | 1,632 | ||||||||||||||
Capital Lease | 2,057 | 299 | 1,664 | 94 | — | ||||||||||||||
Operating leases | 56,380 | 3,320 | 24,593 | 17,916 | 10,551 | ||||||||||||||
Purchase commitments | 21,706 | 20,279 | 1,427 | — | — | ||||||||||||||
Total contractual obligations | $ | 252,195 | $ | 26,592 | $ | 49,484 | $ | 163,936 | $ | 12,183 | |||||||||
Other commercial commitments: | |||||||||||||||||||
Standby letters of credit | $ | 699 | $ | 531 | $ | 168 | $ | — | $ | — | |||||||||
Total commercial commitments | $ | 699 | $ | 531 | $ | 168 | $ | — | $ | — |
September 30, 2016 | December 31, 2015 | ||||||
Derivatives designated as cash flow hedges: | |||||||
Purchase | $ | 2,945 | $ | 12,984 | |||
Derivatives not designated as hedging instruments: | |||||||
Purchase | $ | 4,824 | $ | 6,942 | |||
Sell | $ | 17,594 | $ | 11,332 |
Exhibit Number | Exhibit Index |
4.1(i)† | Warrant to Purchase Shares of Common Stock of Harmonic, Inc. |
10.1(ii) | Registration Rights Agreement, dated September 26, 2016, by and between the Company and Comcast. |
31.1 | Section 302 Certification of Principal Executive Officer |
31.2 | Section 302 Certification of Principal Financial Officer |
32.1* | Section 906 Certification of Principal Executive Officer |
32.2* | Section 906 Certification of Principal Financial Officer |
101 | The following materials from Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in Extensible Business Reporting Language (XBRL) includes: |
(i) Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and October 2, 2015 (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2016 and October 2, 2015, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and October 2, 2015, and (v) Notes to Condensed Consolidated Financial Statements. |
(i) | Previously filed as an Exhibit to the Company’s Current Report on Form 8-K dated September 26, 2016. |
(ii) | Previously filed as an Exhibit to the Company’s Current Report on Form 8-K dated September 26, 2016. |
HARMONIC INC. | |
By: | /s/ Harold Covert |
Harold Covert | |
Chief Financial Officer | |
Date: November 9, 2016 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Harmonic Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Patrick J. Harshman |
Patrick J. Harshman | |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Harmonic Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Harold Covert |
Harold Covert | |
Chief Financial Officer |
/s/ Patrick J. Harshman |
Patrick J. Harshman |
President and Chief Executive Officer |
/s/ Harold Covert |
Harold Covert |
Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 02, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HLIT | |
Entity Registrant Name | HARMONIC INC | |
Entity Central Index Key | 0000851310 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,347,865 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 78,311,000 | 76,015,000 |
Common stock, shares outstanding | 78,311,000 | 76,015,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
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Income Statement [Abstract] | ||||
Product | $ 70,285 | $ 57,245 | $ 205,342 | $ 215,165 |
Services | 31,121 | 26,060 | 87,467 | 75,259 |
Total net revenue | 101,406 | 83,305 | 292,809 | 290,424 |
Product | 34,460 | 23,584 | 105,698 | 95,021 |
Services | 15,583 | 13,490 | 44,054 | 39,759 |
Total cost of revenue | 50,043 | 37,074 | 149,752 | 134,780 |
Total gross profit | 51,363 | 46,231 | 143,057 | 155,644 |
Operating expenses: | ||||
Research and development | 24,202 | 21,679 | 74,272 | 65,824 |
Selling, general and administrative | 36,112 | 28,966 | 105,498 | 91,443 |
Amortization of intangibles | 3,009 | 1,446 | 9,606 | 4,338 |
Restructuring and related charges | (27) | 397 | 4,488 | 626 |
Total operating expenses | 63,296 | 52,488 | 193,864 | 162,231 |
Loss from operations | (11,933) | (6,257) | (50,807) | (6,587) |
Interest (expense) income, net | (2,734) | 30 | (7,806) | 102 |
Other income (expense), net | (328) | 148 | (5) | (299) |
Loss on impairment of long-term investment | (1,259) | 0 | (2,735) | (2,505) |
Loss before income taxes | (16,254) | (6,079) | (61,353) | (9,289) |
Provision for (benefit from) income taxes | (242) | (1,268) | 518 | (827) |
Net loss | $ (16,012) | $ (4,811) | $ (61,871) | $ (8,462) |
Net loss per share: | ||||
Basic and diluted | $ (0.21) | $ (0.05) | $ (0.80) | $ (0.10) |
Shares used in per share calculation: | ||||
Basic and diluted | 78,092 | 87,991 | 77,475 | 88,359 |
Basis of Presentation and Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) which Harmonic Inc. (“Harmonic,” or the “Company”) considers necessary for a fair statement of the results of operations for the interim periods covered and the consolidated financial condition of the Company at the date of the balance sheets. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 24, 2016 (the “2015 Form 10-K”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2016, or any other future period. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter, which ends on December 31. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The year-end condensed balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Business Combination The Company applies the acquisition method of accounting for business combinations to its acquisition of Thomson Video Networks (“TVN”), which closed on February 29, 2016. (See Note 3, “Business Acquisition” for additional information on TVN acquisition). Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the completion of the transaction. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received in a sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measurements that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. The accounting for the TVN acquisition is based on currently available information and is subject to continued evaluation of certain liabilities and tax estimates. Although the Company believes that the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and information that may be obtained from the management of the acquired company and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates, or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the Company's Condensed Consolidated Statements of Operations. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2015 Form 10-K. There have been no significant changes to these policies during the nine months ended September 30, 2016. |
Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New standards to be implemented In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance for revenue recognition, requiring an entity to recognize the amount of revenue that reflects the consideration to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The original effective date for this new standard would have required the Company to adopt it beginning in its first quarter of fiscal 2017. In August 2015, the FASB issued an accounting standard update for the deferral of the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permits early adoption, but not before the original effective date of December 15, 2016. Accordingly, the Company may adopt the standard in either its first quarter of fiscal 2017 or fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of this new revenue standard on its consolidated financial statements. In addition, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12 in March 2016, April 2016, and May 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606, Revenue from Contracts with Customers. The Company is in the process of assessing the impact these interpretive clarifications will have upon adoption, including determining the adoption method. In July 2015, the FASB issued an accounting standard update that requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In January 2016, the FASB issued an accounting standard update which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The accounting standard update also updates certain presentation and disclosure requirements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In February 2016, the FASB amended the existing accounting standard for lease accounting. Under this guidance, lessees and lessors should apply a “right-of-use” model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. This new accounting standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The new standard will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting this new accounting standard on its consolidated financial statements. In March 2016, the FASB issued an accounting standard update to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The standard will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The adoption of this accounting standard update is not expected to have any impact on the financial statements of the Company. In March 2016, the FASB issued an accounting standard update for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In June 2016, the FASB issued new guidance that changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new guidance will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. In August 2016, the FASB issued an accounting standard update that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In October 2016, the FASB issued an accounting standard update which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This accounting standard update is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new accounting standard on its consolidated financial statements. Standards Implemented In April 2015, the FASB issued an accounting standard update that requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to this accounting update, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. This accounting standard update does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted this accounting standard update as of the end of its fiscal 2015 in connection with the issuance of convertible senior notes in December 2015 (see Note 11, “Convertible Notes, Other Debts and Capital Leases”), resulting in the classification of $3.2 million of unamortized debt issuance costs as a deduction from long-term liability on its Consolidated Balance Sheet at December 31, 2015. Other than this transaction, the adoption of this accounting standard update did not have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued an accounting standard update on whether a cloud computing arrangement includes a software license. The guidance requires the accounting for a cloud computing arrangement that includes a software license element to be consistent with the accounting for acquisition of other software licenses. Cloud computing arrangement without software licenses are to be accounted for as a service contract. The Company adopted this accounting standard update beginning in the first quarter of fiscal 2016. The adoption of this standard update did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued an accounting standard update that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. The Company prospectively early-adopted this accounting standard update as of the end of its fiscal 2015, resulting in $15.9 million of net deferred tax assets, along with its related valuation allowance, being classified as non-current on its Consolidated Balance Sheet at December 31, 2015. Other than this reclassification, the adoption of this accounting standard update did not have an impact on the Company’s consolidated financial statements. In September 2015, the FASB issued new guidance related to business combinations. The new guidance requires that any adjustments to provisional amounts in a business combination be recorded in the period such adjustments are determined, rather than retrospectively adjusting previously reported amounts. The Company adopted the amendments beginning in the first quarter of fiscal 2016. The adoption did not have a material impact on the Company's consolidated financial statements. |
Business Acquisition |
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Business Combination Disclosure [Text Block] | BUSINESS ACQUISITION On February 29, 2016, the Company, through its wholly-owned subsidiary Harmonic International AG, completed its acquisition of 100% of the share capital and voting rights of TVN, a global leader in advanced video compression solutions headquartered in Rennes, France. In the first quarter of 2016, the Company recorded a provisional purchase price of $84.6 million, including an estimated contingent consideration of approximately $8.0 million. In the second quarter of 2016, the Company recorded a $2.1 million reduction to the contingent consideration upon finalizing the pending post-closing adjustments and as a result, the purchase price was reduced to $82.5 million. Pursuant to the Securities Purchase Agreement entered into between the Company and the other parties thereto, dated February 11, 2016 (“TVN Purchase Agreement”), $13.5 million of the purchase consideration may remain in escrow for a period of up to 18 months and relates to certain indemnification obligations of TVN’s former equity holders. The TVN acquisition was primarily funded with cash proceeds from the issuance of convertible senior notes by the Company in December 2015. (See Note 11, “Convertible Notes, Other Debts and Capital Leases” for additional information on the notes). The Company believes that its acquisition of TVN has strengthened, and will continue to strengthen, the Company’s competitive position in the video infrastructure market as well as to enhance the depth and scale of the Company’s research and development (“R&D”) and service and support capabilities in the video arena. The Company believes that the combined product portfolios, R&D teams and global sales and service personnel will allow the Company to accelerate innovation for its customers while leveraging greater scale to drive operational efficiencies. The TVN acquisition has been accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their acquisition date fair values, with any excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for this business combination is based on currently available information and is subject to continued evaluation of certain liabilities and tax estimates. The provisional purchase price has been allocated on a preliminary basis to tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. The Company will continue to evaluate certain liabilities and tax estimates that are subject to change within the measurement period (up to one year from the acquisition date). The Company’s preliminary allocation of the estimated purchase consideration as of September 30, 2016 was as follows (in thousands):
(1) See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets” for more information on French R&D tax credit receivables. The following table presents details of the intangible assets acquired through this business combination (in thousands, except years):
(1) By the end of the second quarter of 2016, the Company completed the TVN in-process research and development activities and as a result, the in-process research and development of $1.1 million was reclassified to developed technology. Acquired identifiable intangible assets were valued using the income method and are amortized on a straight line basis over their respective estimated useful lives. Goodwill of $41.7 million arising from the acquisition was derived from expected benefits from the business synergies to be derived from the combined entities and the experienced workforce who joined the Company in connection with the acquisition. The goodwill will be assigned to the Company’s video reporting unit and it is not expected to be deductible for income tax purposes. The amortization for the developed technology is recorded in “Cost of revenues” for product and the amortization for the remaining intangibles is recorded in “Amortization of intangibles”, which are part of operating expenses, on the Condensed Consolidated Statement of Operations. The intangibles assets acquired will be assigned to the Company’s video reporting unit and are not expected to be deductible for income tax purposes. The Company also acquired an indefinite lived asset of $1.1 million which represents the fair value of in-process research and development activities that were estimated to be completed within six months of the acquisition date. The related research and development efforts were completed by the end of the second quarter of 2016 and the Company determined that it has become a finite lived intangible asset (developed technology) with an estimated useful life of four years. The results of operations of TVN are included in the Company’s Condensed Consolidated Statements of Operations beginning February 29, 2016. For the three months ended September 30, 2016, $19.0 million of revenue and $7.6 million of gross profit from TVN were included in the Company’s Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2016, $40.2 million of revenue and $14.7 million of gross profit from TVN were included in the Company’s Condensed Consolidated Statement of Operations. Since the Company is in the process of integrating TVN’s operations, the Company believes it is impracticable to determine TVN’s stand-alone income (loss) from operations and net income (loss) and these measures are not meaningful representations of TVN’s stand-alone performance. Acquisition-and integration-related expenses As a result of the TVN acquisition, the Company incurred acquisition-and integration-related expenses in aggregate of $5.3 million and $11.8 million for the three and nine months ended September 30, 2016, respectively. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred. Acquisition-and integration-related expenses for the TVN acquisition is summarized in the table below (in thousands):
Pro Forma Financial Information The following unaudited pro forma summary presents consolidated information of the Company as if the acquisition of TVN had occurred on January 1, 2015, the beginning of the comparable prior annual period. The unaudited pro forma combined results are provided for illustrative purpose only and are not indicative of the Company’s actual consolidation results. The pro forma adjustments primarily relate to the amortization of acquired intangibles and interest expense related to financing arrangements. In addition, the unaudited pro forma net loss for the three and nine months ended October 2, 2015 was adjusted to include $5.3 million and $11.8 million of acquisition- and integration- related expenses, respectively; and $0.8 million and $2.5 million reduction in revenue related to the fair value adjustment of deferred revenue. The unaudited pro forma net loss for the nine months ended September 30, 2016 was adjusted to exclude $11.8 million of acquisition- and integration- related expenses. These adjustments exclude the income tax impact.
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Short-Term Investments |
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Short-Term Investments | SHORT-TERM INVESTMENTS The following table summarizes the Company’s short-term investments (in thousands):
The following table summarizes the maturities of the Company’s short-term investments (in thousands):
These available-for-sale investments are presented as “Current Assets” in the Condensed Consolidated Balance Sheets as they are available for current operations. Realized gains and losses from the sale of investments for each of the three and nine months ended September 30, 2016 and October 2, 2015 were not material. The Company’s investments in equity securities of other privately and publicly held companies were $4.1 million and $5.4 million as of September 30, 2016 and December 31, 2015, respectively, and such investments were considered as long-term investments and were included in “Other long-term assets” in the Condensed Consolidated Balance Sheet. (See Note 5, “Investments in Other Equity Securities” for additional information). Impairment of Short-term Investments The Company monitors its investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. A decline of fair value below amortized costs of debt securities is considered other-than-temporary if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. At the present time, the Company does not intend to sell its investments that have unrealized losses in accumulated other comprehensive loss. In addition, the Company does not believe that it is more likely than not that it will be required to sell its investments that have unrealized losses in accumulated other comprehensive loss before the Company recovers the principal amounts invested. The Company believes that the unrealized losses are temporary and do not require an other-than-temporary impairment, based on its evaluation of available evidence as of September 30, 2016. As of September 30, 2016, there were no individual available-for-sale securities in a material unrealized loss position and the amount of unrealized losses on the total investment balance was insignificant. |
Investments in Other Equity Securities |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Equity Securities | INVESTMENTS IN OTHER EQUITY SECURITIES From time to time, the Company may acquire certain equity investments for the promotion of business objectives and these investments are classified as long-term investments and included in “Other long-term assets” in the Condensed Consolidated Balance Sheet. On September 2, 2014, the Company acquired a 3.3% interest in Vislink plc (“Vislink”), a U.K. public company listed on the AIM exchange in London, for $3.3 million. The investment in Vislink is being accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of Vislink. Since the Vislink investment is also an available-for-sale security, its value is marked to market for the difference in fair value at period end. The carrying value of Vislink was $0.5 million and $1.8 million at September 30, 2016 and December 31, 2015, respectively, and Vislink’s accumulated unrealized loss, net of taxes was $1.5 million at December 31, 2015. The Company assessed this available-for-sale investment that was in a gross unrealized loss position on an individual basis to determine if the decline in fair value was other than temporary. The assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than the Company’s cost basis; the financial condition and near-term prospects of the investment; and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. As a result of these assessments, it was determined that the decline in fair value of Vislink investment at December 31, 2015 was not other than temporary primarily due to the relatively short duration in which the fair value of the Vislink investment was less than the Company’s cost basis, and, as a result, the Company did not record any impairment charges as of December 31, 2015. Vislink’s $1.5 million accumulated unrealized loss, net of taxes, at December 31, 2015 was included in the Condensed Consolidated Balance Sheets as a component of “Accumulated other comprehensive income (loss)”. By May 2016, Vislink’s stock price had continued to be below the Company’s cost basis for approximately seven months. The prolonged decline in Vislink’s stock price led the Company to conclude the impairment was other than temporary. Furthermore, the Company’s assessment of Vislink's near-term prospects based on Vislink’s recent financial performance suggest that Vislink's stock price may not recover to the Company’s original cost basis in 2016. As a result, the Company recorded an impairment charge in the first quarter of 2016 of $1.5 million reflecting the new reduced cost basis of the Vislink investment at April 1, 2016. As of September 30, 2016, Vislink’s stock price had declined an additional 70% from the stock price as of April 1, 2016. The Company further observed several recent adverse changes in Vislink’s financial and liquidity conditions. Based on the Company’s assessment of the positive and negative factors of Vislink’s financial and business conditions, the Company believes that more likely-than-not, Vislink’s stock price will not recover to the Company’s cost basis established at April 1, 2016. As a result, the Company recorded an additional impairment charge in the third quarter of 2016 of $1.3 million reflecting the new reduced cost basis of the Vislink investment at September 30, 2016. The Company’s remaining maximum exposure to loss from the Vislink investment at September 30, 2016 was limited to its reduced investment cost of $0.5 million. Unconsolidated Variable Interest Entities VJU On September 26, 2014, the Company acquired a 19.8% interest in VJU iTV Development GmbH (“VJU”), a software company based in Austria, for $2.5 million. Since VJU’s equity is deemed not sufficient to permit it to finance its activities without additional support from its shareholders, VJU is considered a variable interest entity (“VIE”). The Company determined that it is not the primary beneficiary of VJU because its financial interest in VJU’s equity and its research and development agreement with VJU do not empower the Company to direct VJU’s activities that will most significantly impact VJU’s economic performance. VJU is accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of VJU. The Company attended a VJU board meeting on March 5, 2015 as an observer. At that meeting, the Company was made aware of significant decreases in VJU’s business prospects, VJU’s existing working capital and prospects for additional funding, compared to the prior information the Company had received from VJU. Based on the Company’s assessment, the Company determined that its investment in VJU was impaired on an other-than-temporary basis. Factors considered included the severity of the impairment and recent events specific to VJU. Based on the Company’s assessment of VJU’s expected cash flows, the entire investment is expected to be non-recoverable. As a result, the Company recorded an impairment charge of $2.5 million in the first quarter of 2015. The Company has no remaining loss exposure from the VJU investment at September 30, 2016. At VJU’s shareholders meeting held on October 15, 2015, additional contributions by existing shareholders were approved. The Company did not provide additional contributions to VJU, and as a result, the Company’s equity interest in VJU decreased from to 19.8% to 9.9%. EDC On October 22, 2014, the Company acquired an 18.4% interest in Encoding.com, Inc. (“EDC”), a video transcoding service company headquartered in San Francisco, California, for $3.5 million by purchasing EDC’s Series B preferred stock. Since EDC’s equity is deemed not sufficient to permit it to finance its activities without additional support from its shareholders, EDC is considered a VIE. The Company determined that it is not the primary beneficiary of EDC because its financial interest in EDC’s equity does not empower the Company to direct EDC’s activities that will most significantly impact EDC’s economic performance. In addition, the Company determined that its investment in EDC’s Series B preferred stock does not have the risk and reward characteristics that are substantially similar to EDC’s common stock. Therefore, Harmonic does not hold an investment in EDC’s common stock or in-substance common stock. According to the applicable accounting guidance, the EDC investment is accounted for as a cost-method investment. The Company determined that there were no indicators existing at September 30, 2016 that would indicate that the EDC investment was impaired. The following table presents the carrying values and maximum exposure of the unconsolidated VIEs as of September 30, 2016 (in thousands):
(1) The Company did not provide financial support to any of its unconsolidated VIEs and as of September 30, 2016, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. (2) The Company’s maximum exposure to loss with respect to EDC as of September 30, 2016 was limited to a total investment cost of $3.6 million, including $0.1 million of transaction costs. Each reporting period, the Company reviews all of its unconsolidated VIE investments to determine whether there are any reconsideration events that may result in the Company being a primary beneficiary of any unconsolidated VIE which would then require the Company to consolidate the VIE. The Company also reviews all of its cost-method investments in each reporting period to determine whether a significant event of change in circumstances has occurred that may have an adverse effect on the fair value of each investment. |
Derivative and Hedgiing Activities Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | DERIVATIVES AND HEDGING ACTIVITIES The Company uses forward contracts to manage exposures to foreign currency exchange rates. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with fluctuations in foreign currency exchange rates and the Company does not use derivative instruments for trading purposes. The use of derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet their contractual obligations, as such, the potential risk of loss with any one counterparty is closely monitored by the Company. Derivatives Designated as Hedging Instruments (Cash Flow Hedges) Beginning in December 2014, the Company entered into forward currency contracts to hedge forecasted operating expenses and service costs related to employee salaries and benefits denominated in Israeli shekels (“ILS”) for its subsidiaries in Israel. These ILS forward contracts mature generally within 12 months and are designated as cash flow hedges. For derivatives that are designated as hedges of forecasted foreign currency denominated operating expenses and service costs, the Company assesses effectiveness based on changes in spot currency exchange rates. Changes in spot rates on the derivative are recorded as a component of “Accumulated other comprehensive income (loss)” (“AOCI”) in the Condensed Consolidated Balance Sheets until such time as the hedged transaction impacts earnings. The change in fair value of the forward points, which reflects the interest rate differential between the two countries on the derivative, is excluded from the effectiveness assessment. Gains or losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges) Balance sheet hedges consist of foreign currency forward contracts, mature generally within three months, are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other income (expense), net” in the Condensed Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the Company’s Accumulated Other Comprehensive Income (Loss) and Condensed Consolidated Statements of Operations were as follows (in thousands):
The Company anticipates the AOCI balance of $86,000 at September 30, 2016, relating to net unrealized gains from cash flow hedges, will be reclassified to earnings within the next twelve months. The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):
The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets are as follows (in thousands):
Offsetting of Derivative Assets and Liabilities The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of September 30, 2016, information related to the offsetting arrangements was as follows (in thousands):
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 and as of September 30, 2016, the total compensating balance maintained was $2.5 million. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:
The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The estimated fair value of the Company’s convertible notes based on a market approach was approximately $161.2 million and $123.1 million as of September 30, 2016 and December 31, 2015, respectively, and represents a Level 2 valuation. The Company’s other debts and capital leases assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Additionally, the Company considers the carrying amount of its capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates. The other debts and capital leases outstanding as of September 30, 2016 were $22.8 million in the aggregate. (See Note 11, “Convertible Notes, Other debts and Capital Leases” for additional information). The Company’s liabilities for the TVN contingent consideration under the TVN Purchase Agreement were fully paid as of August 31, 2016, of which $3.5 million was paid in the second quarter of 2016 and the remaining $2.5 million was paid in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. The liabilities for the assumed TVN employee equity plans of approximately $2.9 million were fully paid in the second quarter of 2016 and there were no other outstanding amounts under these plans at September 30, 2016. During the nine months ended September 30, 2016, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
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Balance Sheet Components |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | BALANCE SHEET COMPONENTS The following tables provide details of selected balance sheet components (in thousands):
(1) From time to time, the Company makes advance payment to a supplier for future inventory in order to secure more favorable pricing. As of September 30, 2016, the Company had $8.5 million of prepaid inventory and accounts payable of approximately $3.8 million with one of its suppliers. Based on the agreement with this supplier, the Company has the right to set off the amount owed with the amount owed by the supplier, and in October 2016, according to the terms of the supplier agreement, the Company notified the supplier of its intent to net the balances in the fourth quarter of 2016. Based on the guidance in ASC 210-20, as of September 30, 2016, the Company took a net position on the balance sheet and elected to net $3.8 million of prepaid inventories with accounts payable. (2) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The French R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of French R&D tax credits recoverable are subject to audit by the French government and during the second quarter of 2016, the French government approved the 2012 claim and refunded $5.8 million to the TVN French Subsidiary. The remaining R&D tax credit receivables at September 30, 2016 were approximately $25.1 million and are expected to be recoverable from 2017 through 2020 with $6.3 million reported under “Prepaid and other Current Assets” and $18.8 million reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets. Pursuant to the TVN Purchase Agreement, the Company is indemnified by the selling shareholders with respect to the validity and recoverability of the outstanding TVN French Subsidiary R&D tax credit receivables. (3) The restricted cash balances are primarily held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of September 30, 2016, the Company recorded approximately $1.1 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets.
The TVN acquisition was subject to post-closing adjustments capped at (i) the difference between €76 million (approximately $83.3 million as converted from euros into U.S. dollars using an agreed upon average exchange rate) and $75 million, with respect to an adjustment based on TVN’s 2015 revenue, and (ii) up to $5 million with respect to an adjustment based on TVN’s 2015 backlog that ships during the first half of 2016. The Company paid $3.5 million upon the finalization of the revenue and working capital adjustments in the second quarter of 2016 and $2.5 million upon the finalization of the backlog adjustment in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. |
Goodwill and Identified Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Identified Intangible Assets | GOODWILL AND IDENTIFIED INTANGIBLE ASSETS Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently, if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of October. In the first quarter of 2016, the Company preliminary recorded additional goodwill of $39.2 million related to the TVN acquisition based on the preliminary allocation of the estimated purchase consideration. Following the first quarter of 2016, the Company made further updates to the valuation of certain assets, liabilities and tax estimate and goodwill was adjusted to $41.7 million at end of September 30, 2016 primarily due to an approximate $4.6 million reduction to the fair value of tangible and intangible assets acquired and liabilities assumed, offset in part by a $2.1 million reduction in the estimate of the contingent purchase consideration. (See Note 3, “Business Acquisition” for additional information). The Company will continue to evaluate certain assets, liabilities and tax estimates that are subject to change within the measurement period (up to one year from the acquisition date). Goodwill from the TVN acquisition was assigned to the Video reporting unit. The following table presents goodwill by reportable segments (in thousands):
The Company performs its annual goodwill impairment review of its two reporting units, which are the same as its operating segments, during the fourth fiscal quarter of 2015. The 2015 annual testing concluded that goodwill was not impaired as the Video and Cable Edge reporting units had estimated fair values in excess of their carrying value by approximately 87% and 42%, respectively. A significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. During the second quarter of 2016, the sustained decline in the Company’s stock price led to a triggering event for goodwill impairment assessment. As of July 1, 2016, with a closing stock price of $3.01 on the NASDAQ stock exchange, the Company’s market capitalization was approximately $235 million. As this market capitalization was less than the Company’s net book value, further analysis was performed to determine if an impairment exists. When assessing goodwill for impairment, the Company used multiple valuation methodologies to determine its enterprise value. The valuation methods used included the Company’s market capitalization adjusted for a control premium and the Company’s discounted cash flow analysis, which involves making significant assumptions and estimates, including expectations of the Company’s future financial performance, the Company’s weighted average cost of capital and the Company’s interpretation of currently enacted tax laws. Based on the impairment test performed, management determined that the Company’s goodwill was not impaired as of July 1, 2016. As of September 30, 2016, the Company’s closing stock price was $5.93. The Company has not recorded any impairment charges related to goodwill for any prior periods. Intangible Assets In the nine months ended September 30, 2016, the gross amount for intangible assets increased $41.8 million of which $41.1 million was due to the TVN acquisition and the remainder $0.7 million was due to foreign exchange effect. The following is a summary of intangible assets (in thousands):
The TVN in-process research and development efforts were completed by the end of the second quarter of 2016 and the Company determined that it has become a finite lived intangible asset (developed technology) with an estimated useful life of four years. Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 30, 2016 and October 2, 2015 was allocated as follows (in thousands):
The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):
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Restructuring and Related Charges |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES The Company implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to its net revenues, while simultaneously implementing extensive company-wide expense control programs. The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The restructuring and asset impairment charges are included in “Product cost of revenue” and “Operating expenses-restructuring and related charges” in the Condensed Consolidated Statements of Operations. The following table summarizes the restructuring and asset impairment charges (in thousands):
Harmonic 2016 Restructuring In the first quarter of 2016, the Company implemented a new restructuring plan (the “Harmonic 2016 Restructuring Plan”) to streamline the corporate organization, thereby reducing operating costs by consolidating duplicative resources in connection with the acquisition of TVN. The planned activities have primarily resulted, and will primarily result, in cash expenditures related to severance and related benefits and exiting certain operating facilities and disposing of excess assets. In the second quarter of 2016, as part of the Company’s 2016 restructuring initiative, the Company also initiated a voluntary departure plan in France to streamline the organization of the TVN French Subsidiary (the “TVN VDP”). The Company anticipates incurring approximately $31 million to $33 million restructuring and TVN acquisition- and integration-related expenses, in aggregate, including the TVN VDP expenses, primarily in 2016. These activities are expected to take at least 12 months to complete. Approximately $3 million of the anticipated restructuring expenses is non-cash related and the majority of the remaining cash amounts are expected to be paid in 2016. The Company has estimated synergies from these restructuring activities and the TVN integration effort to be approximately $24 million to $25 million on an annualized basis. The Company recorded $(28,000) and $4.5 million of restructuring and related charges under the Harmonic 2016 Restructuring Plan, in the three and nine months ended September 30, 2016, respectively. The restructuring and related charges in the nine months ended September 30, 2016 consisted of $1.4 million of costs related to the Company exiting an excess facility at its U.S. headquarters and $3.1 million of severance and benefits for the termination of 22 employees worldwide. The Company incurred $5.3 million and $11.8 million of TVN acquisition- and integration-related expenses in the three and nine months ended September 30, 2016, respectively. (See Note 3, “Business Acquisition” for additional information on TVN acquisition-and integration-related expenses). No charges were recorded for the TVN VDP in the three and nine months ended September 30, 2016 as none of the employee voluntary termination applications had been approved, and final acceptance by the employees had not occurred as of September 30, 2016. TVN VDP In the second quarter of 2016, the Company initiated a consultative process with the works council for the French Subsidiary and applicable union representatives to establish a voluntary departure plan to enable French employees of TVN to voluntarily terminate with certain benefits. The Company finalized the consultation process and the terms of the voluntary departure plan in the third quarter of 2016. Following approval of the TVN VDP by the applicable French authorities in September 2016, employees were invited to apply for the voluntary termination benefits detailed in the TVN VDP. Employee applications are subject to approval by the Company, and the termination benefits are subject to final acceptance by the employees, and such steps are expected to be fully completed by December 31, 2016. Upon such approval and acceptance, the Company will also settle its retirement obligations under the TVN defined benefit pension plan for the terminating employees through payment of these obligations and/or voluntary termination benefits (See Note 12, “Employee Benefit Plans and Stock-based Compensation”). The Company accounts for these special termination benefits in accordance with ASC 712, “Compensation - Nonretirement Postemployment Benefits,” which requires that the special termination benefits be recognized as a liability and a loss beginning when an employee accepts the offer of voluntary termination and the amount can be reasonably estimated. Where an employee is required to work beyond a minimum statutory notice period, the cost of the special termination benefit is recognized as an expense over the employee’s remaining service period. Where the employee is not required to work beyond a minimum statutory notice period, the cost of the special termination benefit is recognized upon the date the employee accepts the offer of voluntary termination, provided that the amount of the benefit can be estimated. As of the September 30, 2016, none of the employee applications had been approved, and final acceptance by the employees had not occurred. Accordingly, the Company did not record any charges relating to the special termination benefits in the three and nine months ended September 30, 2016. The Company anticipates the total termination benefits, net of the amounts expected to be settled under the TVN defined benefit pension plan for the employees who applied for the TVN VDP as of September 30, 2016, will amount to approximately $11 million which it expects to expense in the fourth quarter of 2016 and the first three quarters of 2017. The Company anticipates more employees will apply for the TVN VDP in the fourth quarter of 2016. Excess Facility in San Jose, California In January 2016, the Company exited an excess facility at its U.S. headquarters in San Jose, California and recorded $1.4 million in facility exit costs. The Company accounts for facility exit costs in accordance with ASC 420, “Exit or Disposal Cost Obligations”, which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate. The liability will be paid out over the remainder of the leased properties’ terms, which continue through August 2020. Actual sublease terms may differ from the estimates originally made by the Company. Any future changes in the estimates or in the actual sublease income could require future adjustments to the liabilities, which would impact net income in the period the adjustment is recorded. As of the cease-use date, the fair value of this restructuring liability totaled $2.5 million. Offsetting these charges was an adjustment for deferred rent liability relating to this space of $1.1 million. The following table summarizes the activity in the Company’s restructuring accrual related to the Harmonic 2016 Restructuring Plan during the nine months ended September 30, 2016 (in thousands):
(1) The Company anticipates that the remaining severance and benefits accrual at September 30, 2016 will be fully paid by the first quarter of 2017. Harmonic 2015 Restructuring In the fourth quarter of 2014, the Company implemented a restructuring plan (the “Harmonic 2015 Restructuring Plan”) to reduce 2015 operating costs and the planned restructuring activities involve headcount reduction, exiting certain operating facilities and disposing of excess assets. The Company recorded $2.2 million and $1.5 million of restructuring and impairment charges under the Harmonic 2015 Restructuring Plan in fiscal 2014 and 2015, respectively, consisting primarily of severance and benefits for the termination of 56 employees worldwide as well as a fixed asset impairment charge related to software development costs incurred for a discontinued information technology (“IT”) project. No new activities are anticipated in 2016 for the Harmonic 2015 Restructuring Plan and the remaining restructuring accrual for this plan is expected to be fully settled in the fourth quarter of 2016. The following table summarizes the activity in the Company’s restructuring accrual related to the Harmonic 2015 Restructuring Plan during the nine months ended September 30, 2016 (in thousands):
(2) The Company anticipates that the remaining restructuring accrual as of September 30, 2016 will be fully paid by the end of 2016. |
Convertible Notes, Other Debts And Capital Leases |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes, Other Debts And Capital Leases | CONVERTIBLE NOTES, OTHER DEBTS AND CAPITAL LEASES 4.00% Convertible Senior Notes In December 2015, the Company issued $128.25 million aggregate principal amount of unsecured convertible senior notes due 2020 (the “offering” or “Notes”, as applicable) through a private placement with a financial institution. The Notes do not contain any financial covenants. The Notes bear interest at a fixed rate of 4.00% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2016. The Notes will mature on December 1, 2020, unless earlier repurchased or converted. The Company incurred approximately $4.1 million of debt issuance cost, of which $3.5 million was paid in 2015 and the remainder was paid in the first quarter of 2016. Concurrent with the closing of the offering, the Company used $49.9 million of the net proceeds to repurchase 11.1 million shares of the Company’s common stock from purchasers of the offering in privately negotiated transactions effected through the initial purchaser or its affiliate as the Company’s agent. Additionally, the Company used the remaining net proceeds from the offering to fund the TVN acquisition, which closed on February 29, 2016. Subject to satisfaction of certain conditions and during certain periods, the Notes will be convertible at the option of holders into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). The conversion rate and the corresponding conversion price will be subject to adjustment upon the occurrence of certain events. Prior to September 1, 2020, the Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on April 1, 2016 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “ measurement period ”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances. If a fundamental change occurs, holders of the Notes may require the Company to purchase all or any portion of their Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the maturity date, the conversion rate may be increased for a holder who elects to convert the Notes in connection with such a corporate event. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the initial proceeds of the Notes as a whole. The difference between the initial proceeds of the Notes and the liability component (the “debt discount”) of $26.9 million is amortized to interest expense using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the Consolidated Balance Sheets and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total amount of $4.1 million incurred to the liability and equity components using the same proportions as the proceeds from the Notes. Transaction costs attributable to the liability component were $3.2 million and were recorded as a direct deduction from the carrying amount of the debt liability in long-term liability in the Condensed Consolidated Balance Sheets and are being amortized to interest expense in the Condensed Consolidated Statements of Operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $0.9 million and were netted with the equity component of the Notes in additional paid-in capital in the Condensed Consolidated Balance Sheets. The following table presents the components of the Notes as of September 30, 2016 and December 31, 2015 (in thousands, except for years and percentages):
The following table presents interest expense recognized for the Notes (in thousands):
Other Debts and Capital Leases In connection with the TVN acquisition, the Company assumed a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):
Other than the 4.00% Notes, the Company did not have any other indebtedness as of December 31, 2015. (1) As of September 30, 2016, the Company’s TVN French Subsidiary had an aggregate of $19.2 million of loans due to various financing programs of French government agencies, $15.6 million of which is related to loans backed by French R&D tax credit receivables. As of September 30, 2016, the TVN French Subsidiary had an aggregate of $25.1 million of R&D tax credit receivables from the French government from 2017 through 2020. (See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets” for more information). The R&D tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and matures between 2017 through 2019. The remaining loans of $3.6 million at September 30, 2016 primarily relates to financial support from French government agencies for R&D innovation projects at minimal interest rates and these loans mature between 2020 through 2023. (2) One of the term loans with a certain financial institution contains annual covenants that require the TVN French Subsidiary to maintain a minimum working capital balance and various other financial covenants and restrictions that limit the French Subsidiary’s ability to incur additional indebtedness. The annual covenant is based on French statutory year-end results and the French subsidiary was in compliance for 2015. (3) The TVN French Subsidiary obtained advances under a credit line with BPI France against a pool of eligible receivables with recourse. The maximum advance under this credit line for receivables is €2 million (approximately $2.2 million as converted using the exchange rate at September 30, 2016), less applicable fees, and €200,000 (approximately $0.2 million as converted using the exchange rate at September 30, 2016) of cash is pledged for this program. This credit line was renewed in July 2016 for an additional year with no material change to the terms of the credit agreement. The TVN French Subsidiary also entered into an accounts receivable financing agreement with GE Capital Cofacredit, (“GE”) on September 27, 2013, which is subject to automatic renewal unless cancelled. GE advances up to 90% of qualified customer invoices and holds the remaining 10% as a guarantee fund with a minimum of €80,000 (approximately $0.1 million as converted using the exchange rate at September 30, 2016). In addition, another 10% of outstanding receivables is set aside in a holdback receivable and released upon payments received from the customers. These arrangements are treated as secured borrowings in accordance with FASB ASC 860, Transfers and Servicing. Future minimum repayments The table below shows the future minimum repayments of debts and capital lease obligations as of September 30, 2016 (in thousands):
Credit Facilities The Company’s credit agreement with JPMorgan expired on February 20, 2016 and the Company did not renew the agreement or enter into any new credit agreement. |
Employee Benefit Plans and Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans and Stock-based compensation | EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION The Company’s stock benefit plans include the employee stock purchase plan and current active stock plans adopted in 1995 and 2002 as well as one stock plan in connection with an acquisition in 2010. See Note 13, “Employee Benefit Plans and Stock-based Compensation” of Notes to Consolidated Financial Statements in the 2015 Form 10-K for details pertaining to each plan. The Company also assumed two existing TVN’s employee equity benefit plans in connection with the TVN acquisition. Stock Options, RSUs and PSUs In connection with the Company’s acquisition of TVN, the Company agreed to make grants of restricted stock units (“RSUs”) with respect to a total of up to 1,750,000 shares (taking into account the share count provision for RSUs in the Company’s 1995 Stock Plan). The Company’s stockholders approved an amendment to the 1995 Stock Plan at the Company’s 2016 annual meeting of stockholders (“2016 Annual Meeting”) which increased the number of shares of common stock reserved for issuance under the 1995 Stock Plan by 2,000,000 shares. In August 2016, the Company granted 898,533 shares of performance-based restricted stock units (“PSUs”) under the 1995 Stock Plan to fund a portion of its 2016 incentive bonus payment obligations to its key executives and other eligible employees. The vesting of the PSUs is based on the achievement of certain financial and non-financial operating goals of the Company. The Company’s Compensation Committee has the discretion to amend the performance goals and the vesting of the PSUs. The vesting of the PSUs is anticipated to occur within the next three to six months. The following table summarizes the Company’s stock option, RSU and PSU activities during the nine months ended September 30, 2016 (in thousands, except per share amounts):
* The preceding table includes PSUs activities during the nine months ended September 30, 2016. The following table summarizes information about stock options outstanding as of September 30, 2016 (in thousands, except per share amounts):
The intrinsic value of options vested and expected to vest and exercisable as of September 30, 2016 is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of September 30, 2016. The intrinsic value of options exercised is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date. The intrinsic value of options exercised during the three and nine month periods ended October 2, 2015 was $28,000 and $1.7 million, respectively. The intrinsic value of options exercised during both the three and nine month periods ended September 30, 2016 was $0.1 million. The following table summarizes information about RSUs and PSUs outstanding as of September 30, 2016 (in thousands, except per share amounts):
The fair value of RSUs and PSUs vested and expected to vest as of September 30, 2016 is calculated based on the fair value of the Company’s common stock as of September 30, 2016. Employee Stock Purchase Plan The Company’s stockholders approved an amendment to the 2002 Employee Stock Purchase Plan (the “ESPP”) at the 2016 Annual Meeting which increased the number of shares of common stock reserved for issuance under the ESPP by 1,500,000 shares. As of September 30, 2016, the number of shares of common stock available for issuance under the “ESPP” was 906,390. 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. TVN Employee Equity Benefit Plan TVN’s existing employee equity benefit plans consist of the French Employee Incentive plan and the Overseas Long Term Incentive plan. The Company’s acquisition of TVN gave rise to a change-in-control event which causes both plans to become fully vested and the settlement of both plans have to be made in cash according to the agreements. The payment was made in full in the second quarter of 2016 in the amount of approximately $2.9 million upon finalizing the closing adjustments to the TVN purchase price. TVN Retirement Benefit Plan As part of the TVN acquisition the Company assumed obligations under defined benefit pension plans which were unfunded as of the acquisition date. Under French law, the TVN French Subsidiary is required to make certain payments to 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 present value of the company’s obligation for these lump-sum payments is determined on an actuarial basis and the actuarial valuation takes into account the employees’ age and period of service with the company; projected mortality rates, mobility rates and increases in salaries; and a discount rate of 2% per annum. The present value of the Company’s defined benefit pension plan obligations as of September 30, 2016 and changes to the Company’s defined benefit pension plan obligations are shown below (in thousands):
The plan was unfunded as of September 30, 2016. There were no amounts recognized in accumulated other comprehensive loss as of September 30, 2016. There are no contributions to the plan required by any laws or funding regulations, discretionary contributions or non-cash contributions expected to be made. Net periodic costs for the three and nine months ended September 30, 2016 were $99,000 and $233,000, respectively. The accumulated benefit obligation as of September 30, 2016 was $5.0 million. The following assumptions were used in determining the Company’s pension obligation:
The Company evaluates the discount rate assumption annually. The discount rate used for the Company’s valuation study was based on the rate of long-term Euro zone AA rated 10 years corporate bonds as of December 31, 2015, which yielded 2.0%. 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 mortality tables published in January 2016 by the French National Institute of Statistics and Economic Studies. 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):
As indicated in Note 10, “Restructuring and Related Charges”, the Company finalized the terms of the TVN VDP for TVN employees in the third quarter of 2016. Employee applications are subject to approval by the Company, and the termination benefits are subject to final acceptance by the employees, which is expected to be fully completed by December 31, 2016. Upon such approval and acceptance, the Company will also settle its retirement obligations under the TVN defined benefit pension plan for the terminating employees through payment of these obligations and/or voluntary termination benefits. The Company accounts for these settlements in accordance with ASC 715, “Compensation - Retirement Benefits”, which requires that the settlement be accounted for when an employee accepts the offer of voluntary termination. The Company anticipates that approximately $1.6 million of its retirement obligations for the employees who applied under the TVN VDP and the TVN defined benefit pension plan as of September 30, 2016 will be settled by December 31, 2016. 401(k) Plan The Company has a retirement/savings plan for the U.S. employees which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. The Company has made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. The contributions for the nine months ended September 30, 2016 and October 2, 2015 were $316,000 and $342,000, respectively. Stock-based Compensation The following table summarizes stock-based compensation expense for all plans (in thousands):
As of September 30, 2016, the Company had approximately $11.7 million of unrecognized stock-based compensation expense related to the unvested portion of its stock options, RSUs and PSUs that is expected to be recognized over a weighted-average period of approximately 1.8 years. As part of its equity incentive program, the Company grants PSUs, the vesting of which depends on the achievement of certain financial and non-financial goals of the Company. The Company assesses the expected achievement levels of the performance goals at the end of each reporting period. The grant date fair value of the PSUs expected to vest based on the Company’s best estimate of its performance against the performance goals is recognized as compensation expense. As of September 30, 2016, the Company believes it is probable that certain performance conditions will be met and has recognized compensation expense accordingly. Valuation Assumptions The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model. At the date of grant, the Company estimated the fair value of each stock option grant and stock purchase right granted under the ESPP using the following weighted average assumptions:
The expected term of the employee stock options represents the weighted-average period that the stock options are expected to remain outstanding. The computation of expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The expected term of the stock purchase rights under the ESPP represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate 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 never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. The weighted-average fair value per share of options granted was $1.00 and $2.01 for the three months ended September 30, 2016 and October 2, 2015, respectively. The weighted-average fair value per share of options granted was $0.97 and $2.63 for the nine months ended September 30, 2016 and October 2, 2015, respectively. The fair value of all stock options vested during the three months ended September 30, 2016 and October 2, 2015 was $0.4 million and $0.6 million, respectively. The fair value of all stock options vested during the nine months ended September 30, 2016 and October 2, 2015 was $1.8 million and $2.5 million, respectively. There were no realized tax benefits attributable to stock options exercised in jurisdictions where this expense is deductible for tax purposes for the three and nine months ended September 30, 2016 and October 2, 2015, respectively. The aggregate fair value of all RSUs issued during the three months ended September 30, 2016 and October 2, 2015 was $1.6 million and $2.2 million, respectively. The aggregate fair value of all RSUs issued during the nine months ended September 30, 2016 and October 2, 2015 was $8.6 million and $9.9 million, respectively. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The Company reported the following operating results for the periods presented (in thousands):
The Company operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective income tax rate may be affected by changes in, or interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net operating loss and tax credit carry forwards, changes in geographical mix of income and expense, and changes in management’s assessment of matters such as the ability to realize deferred tax assets. The Company’s effective tax rate varies from year to year primarily due to the absence of several onetime, discrete items that benefited or decremented the tax rates in the previous years. The Company’s effective income tax rate of (0.8)% for the nine months ended September 30, 2016 was different from the U.S. federal statutory rate of 35%, primarily due to favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, favorable resolutions of uncertain tax positions, and the tax benefit from the realization of certain deferred tax assets as a result of the TVN acquisition, partially offset by the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, non-deductible amortization of foreign intangibles, and the net of various discrete tax adjustments. The Company's effective income tax rate of 8.9% for the nine months ended October 2, 2015 was different from the U.S. federal statutory rate of 35% primarily due to a difference in foreign tax rates. U.S. losses generated for the nine months ended October 2, 2015 received no tax benefit as a result of a full valuation allowance against all of the Company’s U.S. deferred tax assets as well as adjustments relating to its 2014 U.S. federal tax return filed in September 2015 and the reversal of uncertain tax positions resulting from expiration of the statute of limitations. The impairment of the VJU investment received no tax benefit. The Company files U.S. federal and state, and foreign income tax returns in jurisdictions with varying statutes of limitations during which such tax returns may be audited and adjusted by the relevant tax authorities. The 2012 through 2015 tax years generally remain subject to examination by most state tax authorities in the United States. In the quarter ended September 30, 2016, the U.S. Internal Revenue Service concluded its examination of the Company’s income tax return for the tax year 2012, which commenced in August 2015. The Company’s 2013 through 2015 tax years remain open and subject to examination by the U.S. federal tax authority. In significant foreign jurisdictions, the 2007 through 2015 tax years generally remain subject to examination by their respective tax authorities. A subsidiary of the Company is under audit for the 2012 and 2013 tax years, which commenced in the first quarter of 2015, by the Israel tax authority. If, upon the conclusion of these audits, the ultimate determination of taxes owed in the United States or Israel is for an amount in excess of the tax provision the Company has recorded in the applicable period, the Company’s overall tax expense, effective tax rate, operating results and cash flow could be materially and adversely impacted in the period of adjustment. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015) related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the U.S. Tax Court on December 1, 2015. On February 19, 2016, the U.S. Internal Revenue Service filed a notice of appeal in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015), to the Ninth Circuit Court of Appeal. The Ninth Circuit will decide whether a regulation that mandates that stock-based compensation costs related to the intangible development activity of a qualified cost sharing arrangement (a “QCSA”) must be included in the joint cost pool of the QCSA (the “all costs rule”) is consistent with the arm’s length standard as set forth in Section 482 of the Internal Revenue Code. The Company concluded that no adjustment to the consolidated financial statements as of December 31, 2015 is appropriate at this time due to the uncertainties with respect to the ultimate resolution of this case. The Company’s operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland. The Company has met these various thresholds and the Switzerland tax holiday is effective through the end of 2018. As of September 30, 2016, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $15.1 million, of which $2.9 million would affect the Company’s effective tax rate if the benefits are eventually recognized. The remaining gross unrecognized tax benefit does not affect the Company’s effective tax rate as it relates to positions that would be settled with tax attributes such as net operating loss carryforward or tax credits previously subject to a valuation allowance. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $0.4 million of gross interest and penalties accrued as of September 30, 2016. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of September 30, 2016, the Company anticipates that the balance of gross unrecognized tax benefits will remain substantially unchanged over the next 12 months. |
Income (Loss) Per Share |
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Income (Loss) Per Share | INCOME (LOSS) PER SHARE The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):
The diluted net loss per share is the same as basic net loss per share for the three and nine months ended September 30, 2016 and October 2, 2015 because potential common shares are only considered when their effect would be dilutive. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):
(1) On September 26, 2016, in connection with the execution of a product supply agreement pursuant to which an affiliate of Comcast Corporation (together with Comcast Corporation, “Comcast”) may, in its sole discretion, purchase from the Company licenses to certain of the Company’s software products, the Company granted Comcast a warrant to purchase shares of its common stock. (See Note 15, “Warrants” for additional information on the Comcast warrants). Also excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. (See Note 11, “Convertible Notes, Other Debts and Capital Leases” for additional information on the Notes). Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share. |
Warrants (Notes) |
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Equity [Abstract] | |
Warrants Disclosure [Text Block] | WARRANTS On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares (the “Shares”) of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76. Comcast may exercise the Warrant for cash or on a net share basis. The Warrant expires on September 26, 2023 or the prior consummation of a change of control of the Company. Comcast’s right to purchase 781,617 shares was vested as of the issuance date as an incentive to enter into the software license product supply agreement. Comcast’s rights to purchase an additional 1,954,042 shares vest upon achievement of milestones that occur upon or prior to Comcast’s election for enterprise license pricing for certain of the Company’s software products. Such pricing would obligate Comcast to make certain total payments to the Company over the term of the product supply agreement. These rights are expected to vest in 2017. Comcast’s rights to purchase an additional 1,172,425 shares vest when Comcast exceeds specified cumulative purchase amounts from the Company under the product supply agreement. Comcast’s rights to purchase the remaining 3,908,081 shares vest in specified tranches at the earlier of Comcast’s enterprise license pricing election (if completed by a certain date) or achievement of specified cumulative purchase amounts from the Company. The Warrant is considered an incentive for Comcast to purchase certain of the Company’s products. Therefore the value of the Warrant will be recorded as a reduction in the Company’s net revenues to the extent such value does not exceed net revenues from pertinent sales to Comcast. The portion of the Warrant vested as of September 30, 2016 is deemed a customer incentive paid upfront, and has been recorded as an asset and included in “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheet as of September 30, 2016. The Company considers this asset to be recoverable based on the expectation of Comcast’s future purchase of the pertinent products. The asset will be assessed for impairment if no longer deemed recoverable. Comcast is not expected to make any pertinent purchases prior to 2017. The Company is currently in the process of determining how the cost of the Warrant will be attributed to various periods in which sales to Comcast occur. The $1.6 million value of the vested portion of the Warrant has been determined using the Black-Scholes option valuation model using the following assumptions: expected term of 7 years, volatility of 42%, risk-free interest rate of 1.4%, and expected dividends of 0.0%. The Warrant is considered indexed to the Company’s common stock and classified as stockholders’ equity based on its terms. Accordingly, the vested Warrant amount was included in “Additional paid-in capital” on the Company’s Condensed Consolidated Balance Sheet as of September 30, 2016 and will not be remeasured in the future periods. |
Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss) (“AOCI”) The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands):
The effects of amounts reclassified from AOCI into the Condensed Consolidated Statement of Operations were as follows (in thousands):
The loss on available-for-sale securities of $2.7 million reclassified from AOCI into the Condensed Consolidated Statement of Operations during the nine months ended September 30, 2016 was included under “Loss on impairment of long-term investment.” Common Stock Repurchases On April 24, 2012, the Company’s board of directors (the “Board”) approved a stock repurchase program that provided for the repurchase of up to $25 million of the Company’s outstanding common stock. Under the program, the Company is authorized to repurchase shares of common stock in open market transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). From time to time, the Board may approve further increases to the program and the amount approved for this program was increased to $300 million periodically through May 2014 and the repurchase period has been extended through the end of 2016. The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including the price and availability of our shares, trading volume and general market conditions. The purchases are funded from available working capital. The program may be suspended or discontinued at any time without prior notice. There were no stock repurchases in the nine months ended September 30, 2016 and the remaining authorized amount for stock repurchases under this program was $45.7 million as of September 30, 2016. For additional information, see “Item 2 - Unregistered sales of equity securities and use of proceeds” of this Quarterly Report on Form 10-Q. |
Segment Information |
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Segment Information | 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 Chief Operating Decision Maker ( the “CODM”), which for Harmonic is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Edge, and prior to the fourth quarter of 2014, the Company operated its business in only one reportable segment. The operating segments were determined based on the nature of the products offered. The Video segment sells video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Edge segment sells cable edge solutions and related services to cable operators globally. The Company does not allocate amortization of intangibles, stock-based compensation, restructuring and related charges, TVN acquisition- and integration-related costs, 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. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. On February 29, 2016, the Company completed its acquisition of 100% of the outstanding equity of TVN and assigned TVN to its Video operating segment. The following tables provide summary financial information by reportable segment (in thousands):
(1) Unallocated corporate expenses include certain corporate-level operating expenses and charges such as restructuring and related charges and excess facilities charges. Additionally, the unallocated corporate expenses in 2016 include TVN acquisition- and integration-related costs (see Note 3, “Business Acquisition” for additional information) and an inventory obsolescence charge of approximately $4.4 million recorded in the nine months ended September 30, 2016 for some older Cable Edge product lines in accordance with the Company’s policy for excess and obsolete inventory and also as part of our strategic plan to re-position and dedicate the Company’s primary Cable Edge resources to its new CableOS™ products. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases Future minimum lease payments under non-cancelable operating leases as of September 30, 2016 are as follows (in thousands):
Warranties The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Activity for the Company’s warranty accrual, which is included in accrued liabilities, is summarized below (in thousands):
Purchase Obligations The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. The Company had approximately $21.7 million of non-cancelable commitment to purchase inventories and other commitments as of September 30, 2016. Standby Letters of Credit and Guarantees The Company’s financial guarantees consisted of standby letters of credit and bank guarantees. As of September 30, 2016, the Company had $0.7 million of standby letters of credit outstanding primarily related to its credit card facility in Switzerland and, to a lesser extent, performance bond and state requirements imposed on employers. In addition, the Company had $1.9 million of bank guarantees outstanding as of September 30, 2016, of which $1.3 million was related to a building lease for the TVN French Subsidiary, $0.4 million was related to the building leases in Israel, and the remaining amount was mostly related to performance bonds issued to customers of the TVN French Subsidiary. Indemnification Harmonic is obligated to indemnify its officers and the members of its Board of Directors (the “Board”) pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of these indemnification provisions through September 30, 2016. Contingencies The TVN acquisition was subject to post-closing adjustments capped at (i) the difference between €76 million (approximately $83.3 million as converted from euros into U.S. dollars using an agreed upon average exchange rate) and $75 million, with respect to an adjustment based on TVN’s 2015 revenue, and (ii) up to $5 million with respect to an adjustment based on TVN’s 2015 backlog that ships during the first half of 2016. The Company paid $3.5 million upon the finalization of the revenue and working capital adjustments in the second quarter of 2016 and $2.5 million upon the finalization of the backlog adjustment in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. 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 possible 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. In October 2011, Avid Technology, Inc. (“Avid”) filed a complaint in the United States District Court for the District of Delaware alleging that the Company’s Media Grid product infringes two patents held by Avid. A jury trial on this complaint commenced on January 23, 2014 and, on February 4, 2014, the jury returned a unanimous verdict in favor of the Company, rejecting Avid’s infringement allegations in their entirety. On May 23, 2014, Avid filed a post-trial motion asking the court to set aside the jury’s verdict, and the judge issued an order on December 17, 2014, denying the motion. On January 5, 2015, Avid filed an appeal with respect to the jury’s verdict with the Federal Circuit, which was docketed on January 9, 2015, as Case No. 2015-1246. Avid filed its opening brief with respect to this appeal on March 24, 2015, the Company filed its response brief on May 7, 2015, and Avid filed its reply brief on June 16, 2015. Oral arguments were held on December 11, 2015. On January 29, 2016, the Federal Circuit issued an order vacating the verdict of noninfringement and remanding the case to the trial court for a new trial on infringement. On February 26, 2016, Harmonic filed a request for rehearing and rehearing en banc at the Federal Circuit. On March 31, 2016, the Federal Circuit denied the request for rehearing and rehearing en banc and a mandate issued on April 8, 2016. A status conference was held with the District Court on April 14, 2016. The court conducted a supplemental claim construction hearing on May 27, 2016 and issued a claim construction order on June 29, 2016. There are currently no deadlines. In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that the Company’s Spectrum product infringes one patent held by Avid. The complaint seeks injunctive relief and unspecified damages. In September 2013, the U.S. Patent Trial and Appeal Board (“PTAB”) authorized an inter partes review to be instituted as to claims 1-16 of the patent asserted in this second complaint. A hearing before the PTAB was conducted on May 20, 2014. On July 10, 2014, the PTAB issued a decision finding claims 1-10 invalid and claims 11-16 not invalid. The Company filed an appeal with respect to the PTAB’s decision on claims 11-16 on September 11, 2014. The appeal was docketed with the Federal Circuit on October 22, 2014, as Case No. 2015-1072, and the Company filed its opening brief with respect to this appeal on January 29, 2015. Avid and PTAB each filed a response brief on April 27, 2015, and the Company filed a reply brief on May 28, 2015. Oral arguments were held on October 8, 2015. The Federal Circuit issued an order on March 1, 2016, affirming the PTAB’s decision and a mandate issued on April 7, 2016. On July 25, 2016, the court issued a scheduling order for the case and set the trial date for November 6, 2017. The Company is unable to predict the outcome of these lawsuits and therefore is unable to estimate an amount or range of any reasonably possible losses resulting from them. An unfavorable outcome on any litigation matter could require that the Company pay substantial damages, or, in connection with any intellectual property infringement claims, could require that the Company pay ongoing royalty payments or could prevent the Company from selling certain of its products. As a result, a settlement of, or an unfavorable outcome on, any of the matters referenced above or other litigation matters could have a material adverse effect on the Company’s business, operating results, financial condition and cash flows. |
Basis of Presentation and Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
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Business Combinations Policy | Business Combination The Company applies the acquisition method of accounting for business combinations to its acquisition of Thomson Video Networks (“TVN”), which closed on February 29, 2016. (See Note 3, “Business Acquisition” for additional information on TVN acquisition). Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the completion of the transaction. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received in a sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measurements that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. The accounting for the TVN acquisition is based on currently available information and is subject to continued evaluation of certain liabilities and tax estimates. Although the Company believes that the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and information that may be obtained from the management of the acquired company and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates, or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the Company's Condensed Consolidated Statements of Operations. |
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Significant Accounting Policies | The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2015 Form 10-K. There have been no significant changes to these policies during the nine months ended September 30, 2016. |
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Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New standards to be implemented In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance for revenue recognition, requiring an entity to recognize the amount of revenue that reflects the consideration to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The original effective date for this new standard would have required the Company to adopt it beginning in its first quarter of fiscal 2017. In August 2015, the FASB issued an accounting standard update for the deferral of the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permits early adoption, but not before the original effective date of December 15, 2016. Accordingly, the Company may adopt the standard in either its first quarter of fiscal 2017 or fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of this new revenue standard on its consolidated financial statements. In addition, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12 in March 2016, April 2016, and May 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606, Revenue from Contracts with Customers. The Company is in the process of assessing the impact these interpretive clarifications will have upon adoption, including determining the adoption method. In July 2015, the FASB issued an accounting standard update that requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In January 2016, the FASB issued an accounting standard update which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The accounting standard update also updates certain presentation and disclosure requirements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In February 2016, the FASB amended the existing accounting standard for lease accounting. Under this guidance, lessees and lessors should apply a “right-of-use” model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. This new accounting standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The new standard will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting this new accounting standard on its consolidated financial statements. In March 2016, the FASB issued an accounting standard update to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The standard will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The adoption of this accounting standard update is not expected to have any impact on the financial statements of the Company. In March 2016, the FASB issued an accounting standard update for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In June 2016, the FASB issued new guidance that changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new guidance will be effective for the Company beginning in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. In August 2016, the FASB issued an accounting standard update that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In October 2016, the FASB issued an accounting standard update which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This accounting standard update is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new accounting standard on its consolidated financial statements. Standards Implemented In April 2015, the FASB issued an accounting standard update that requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to this accounting update, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. This accounting standard update does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted this accounting standard update as of the end of its fiscal 2015 in connection with the issuance of convertible senior notes in December 2015 (see Note 11, “Convertible Notes, Other Debts and Capital Leases”), resulting in the classification of $3.2 million of unamortized debt issuance costs as a deduction from long-term liability on its Consolidated Balance Sheet at December 31, 2015. Other than this transaction, the adoption of this accounting standard update did not have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued an accounting standard update on whether a cloud computing arrangement includes a software license. The guidance requires the accounting for a cloud computing arrangement that includes a software license element to be consistent with the accounting for acquisition of other software licenses. Cloud computing arrangement without software licenses are to be accounted for as a service contract. The Company adopted this accounting standard update beginning in the first quarter of fiscal 2016. The adoption of this standard update did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued an accounting standard update that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. The Company prospectively early-adopted this accounting standard update as of the end of its fiscal 2015, resulting in $15.9 million of net deferred tax assets, along with its related valuation allowance, being classified as non-current on its Consolidated Balance Sheet at December 31, 2015. Other than this reclassification, the adoption of this accounting standard update did not have an impact on the Company’s consolidated financial statements. In September 2015, the FASB issued new guidance related to business combinations. The new guidance requires that any adjustments to provisional amounts in a business combination be recorded in the period such adjustments are determined, rather than retrospectively adjusting previously reported amounts. The Company adopted the amendments beginning in the first quarter of fiscal 2016. The adoption did not have a material impact on the Company's consolidated financial statements. |
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Impairment of Investments | Impairment of Short-term Investments The Company monitors its investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. A decline of fair value below amortized costs of debt securities is considered other-than-temporary if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. At the present time, the Company does not intend to sell its investments that have unrealized losses in accumulated other comprehensive loss. In addition, the Company does not believe that it is more likely than not that it will be required to sell its investments that have unrealized losses in accumulated other comprehensive loss before the Company recovers the principal amounts invested. The Company believes that the unrealized losses are temporary and do not require an other-than-temporary impairment, based on its evaluation of available evidence as of September 30, 2016. As of September 30, 2016, there were no individual available-for-sale securities in a material unrealized loss position and the amount of unrealized losses on the total investment balance was insignificant. |
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Investments in Other Equity Securities | Each reporting period, the Company reviews all of its unconsolidated VIE investments to determine whether there are any reconsideration events that may result in the Company being a primary beneficiary of any unconsolidated VIE which would then require the Company to consolidate the VIE. The Company also reviews all of its cost-method investments in each reporting period to determine whether a significant event of change in circumstances has occurred that may have an adverse effect on the fair value of each investment. |
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Derivatives and Hedging Activities | Offsetting of Derivative Assets and Liabilities The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. The Company uses forward contracts to manage exposures to foreign currency exchange rates. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with fluctuations in foreign currency exchange rates and the Company does not use derivative instruments for trading purposes. The use of derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet their contractual obligations, as such, the potential risk of loss with any one counterparty is closely monitored by the Company. Derivatives Designated as Hedging Instruments (Cash Flow Hedges) Beginning in December 2014, the Company entered into forward currency contracts to hedge forecasted operating expenses and service costs related to employee salaries and benefits denominated in Israeli shekels (“ILS”) for its subsidiaries in Israel. These ILS forward contracts mature generally within 12 months and are designated as cash flow hedges. For derivatives that are designated as hedges of forecasted foreign currency denominated operating expenses and service costs, the Company assesses effectiveness based on changes in spot currency exchange rates. Changes in spot rates on the derivative are recorded as a component of “Accumulated other comprehensive income (loss)” (“AOCI”) in the Condensed Consolidated Balance Sheets until such time as the hedged transaction impacts earnings. The change in fair value of the forward points, which reflects the interest rate differential between the two countries on the derivative, is excluded from the effectiveness assessment. Gains or losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges) Balance sheet hedges consist of foreign currency forward contracts, mature generally within three months, are carried at fair value and they are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other income (expense), net” in the Condensed Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged. |
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Fair Value of Financial Instruments | The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:
The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The estimated fair value of the Company’s convertible notes based on a market approach was approximately $161.2 million and $123.1 million as of September 30, 2016 and December 31, 2015, respectively, and represents a Level 2 valuation. The Company’s other debts and capital leases assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Additionally, the Company considers the carrying amount of its capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates. The other debts and capital leases outstanding as of September 30, 2016 were $22.8 million in the aggregate. (See Note 11, “Convertible Notes, Other debts and Capital Leases” for additional information). The Company’s liabilities for the TVN contingent consideration under the TVN Purchase Agreement were fully paid as of August 31, 2016, of which $3.5 million was paid in the second quarter of 2016 and the remaining $2.5 million was paid in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. The liabilities for the assumed TVN employee equity plans of approximately $2.9 million were fully paid in the second quarter of 2016 and there were no other outstanding amounts under these plans at September 30, 2016. During the nine months ended September 30, 2016, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. |
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Goodwill and Intangible Assets, Goodwill | A significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. During the second quarter of 2016, the sustained decline in the Company’s stock price led to a triggering event for goodwill impairment assessment. As of July 1, 2016, with a closing stock price of $3.01 on the NASDAQ stock exchange, the Company’s market capitalization was approximately $235 million. As this market capitalization was less than the Company’s net book value, further analysis was performed to determine if an impairment exists. When assessing goodwill for impairment, the Company used multiple valuation methodologies to determine its enterprise value. The valuation methods used included the Company’s market capitalization adjusted for a control premium and the Company’s discounted cash flow analysis, which involves making significant assumptions and estimates, including expectations of the Company’s future financial performance, the Company’s weighted average cost of capital and the Company’s interpretation of currently enacted tax laws. Based on the impairment test performed, management determined that the Company’s goodwill was not impaired as of July 1, 2016. As of September 30, 2016, the Company’s closing stock price was $5.93. The Company has not recorded any impairment charges related to goodwill for any prior periods. |
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Restructuring and Related Charges | The Company accounts for facility exit costs in accordance with ASC 420, “Exit or Disposal Cost Obligations”, which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease. The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate. The liability will be paid out over the remainder of the leased properties’ terms, which continue through August 2020. Actual sublease terms may differ from the estimates originally made by the Company. Any future changes in the estimates or in the actual sublease income could require future adjustments to the liabilities, which would impact net income in the period the adjustment is recorded. |
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Share-based Compensation Expense | The expected term of the employee stock options represents the weighted-average period that the stock options are expected to remain outstanding. The computation of expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The expected term of the stock purchase rights under the ESPP represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate 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 never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model. |
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Income Tax | As of September 30, 2016, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $15.1 million, of which $2.9 million would affect the Company’s effective tax rate if the benefits are eventually recognized. The remaining gross unrecognized tax benefit does not affect the Company’s effective tax rate as it relates to positions that would be settled with tax attributes such as net operating loss carryforward or tax credits previously subject to a valuation allowance. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $0.4 million of gross interest and penalties accrued as of September 30, 2016. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. As of September 30, 2016, the Company anticipates that the balance of gross unrecognized tax benefits will remain substantially unchanged over the next 12 months. |
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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 Chief Operating Decision Maker ( the “CODM”), which for Harmonic is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Edge, and prior to the fourth quarter of 2014, the Company operated its business in only one reportable segment. The operating segments were determined based on the nature of the products offered. The Video segment sells video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Edge segment sells cable edge solutions and related services to cable operators globally. The Company does not allocate amortization of intangibles, stock-based compensation, restructuring and related charges, TVN acquisition- and integration-related costs, 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. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. |
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Warranties and Indemnification | The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Harmonic is obligated to indemnify its officers and the members of its Board of Directors (the “Board”) pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). |
Business Acquisitions (Tables) |
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Business Acquisition, Pro Forma Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company’s preliminary allocation of the estimated purchase consideration as of September 30, 2016 was as follows (in thousands):
(1) See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets” for more information on French R&D tax credit receivables. |
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents details of the intangible assets acquired through this business combination (in thousands, except years):
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Business Combination Acquisition And Integration Cost | Acquisition-and integration-related expenses for the TVN acquisition is summarized in the table below (in thousands):
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Business Acquisition, Pro Forma Information | The following unaudited pro forma summary presents consolidated information of the Company as if the acquisition of TVN had occurred on January 1, 2015, the beginning of the comparable prior annual period. The unaudited pro forma combined results are provided for illustrative purpose only and are not indicative of the Company’s actual consolidation results. The pro forma adjustments primarily relate to the amortization of acquired intangibles and interest expense related to financing arrangements. In addition, the unaudited pro forma net loss for the three and nine months ended October 2, 2015 was adjusted to include $5.3 million and $11.8 million of acquisition- and integration- related expenses, respectively; and $0.8 million and $2.5 million reduction in revenue related to the fair value adjustment of deferred revenue. The unaudited pro forma net loss for the nine months ended September 30, 2016 was adjusted to exclude $11.8 million of acquisition- and integration- related expenses. These adjustments exclude the income tax impact.
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Short-Term Investments (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Short-Term Investments | The following table summarizes the Company’s short-term investments (in thousands):
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Maturities of Short-Term Investments | The following table summarizes the maturities of the Company’s short-term investments (in thousands):
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Schedule of Cost Method Investments (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost Method Investments | The following table presents the carrying values and maximum exposure of the unconsolidated VIEs as of September 30, 2016 (in thousands):
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Derivative and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments gain and losses by Statement of Operations locations | The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the Company’s Accumulated Other Comprehensive Income (Loss) and Condensed Consolidated Statements of Operations were as follows (in thousands):
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Schedule of Notional Amounts of Outstanding Derivative Positions | The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):
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Schedule of Derivatives Instruments Balance Sheet Location | The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets are as follows (in thousands):
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Changes in fair values of non-designated foreign currency forward contracts | As of September 30, 2016, information related to the offsetting arrangements was as follows (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy | The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
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Balance Sheet Components (Tables) |
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Accounts Receivable, Net |
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Prepaid, and Other Current Assets |
(1) From time to time, the Company makes advance payment to a supplier for future inventory in order to secure more favorable pricing. As of September 30, 2016, the Company had $8.5 million of prepaid inventory and accounts payable of approximately $3.8 million with one of its suppliers. Based on the agreement with this supplier, the Company has the right to set off the amount owed with the amount owed by the supplier, and in October 2016, according to the terms of the supplier agreement, the Company notified the supplier of its intent to net the balances in the fourth quarter of 2016. Based on the guidance in ASC 210-20, as of September 30, 2016, the Company took a net position on the balance sheet and elected to net $3.8 million of prepaid inventories with accounts payable. (2) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The French R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of French R&D tax credits recoverable are subject to audit by the French government and during the second quarter of 2016, the French government approved the 2012 claim and refunded $5.8 million to the TVN French Subsidiary. The remaining R&D tax credit receivables at September 30, 2016 were approximately $25.1 million and are expected to be recoverable from 2017 through 2020 with $6.3 million reported under “Prepaid and other Current Assets” and $18.8 million reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets. Pursuant to the TVN Purchase Agreement, the Company is indemnified by the selling shareholders with respect to the validity and recoverability of the outstanding TVN French Subsidiary R&D tax credit receivables. (3) The restricted cash balances are primarily held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of September 30, 2016, the Company recorded approximately $1.1 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets. |
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Inventories |
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Property and Equipment, Net |
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Accrued Liabilities |
The TVN acquisition was subject to post-closing adjustments capped at (i) the difference between €76 million (approximately $83.3 million as converted from euros into U.S. dollars using an agreed upon average exchange rate) and $75 million, with respect to an adjustment based on TVN’s 2015 revenue, and (ii) up to $5 million with respect to an adjustment based on TVN’s 2015 backlog that ships during the first half of 2016. The Company paid $3.5 million upon the finalization of the revenue and working capital adjustments in the second quarter of 2016 and $2.5 million upon the finalization of the backlog adjustment in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. |
Goodwill and Identified Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The following table presents goodwill by reportable segments (in thousands):
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Summary of Goodwill and Identified Intangible Assets | The following is a summary of intangible assets (in thousands):
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Amortization Expense for Identifiable Purchased Intangible Assets | Amortization expense for the identifiable purchased intangible assets for the three and nine months ended September 30, 2016 and October 2, 2015 was allocated as follows (in thousands):
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Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):
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Restructuring and Related Charges (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restructuring activities | The following table summarizes the restructuring and asset impairment charges (in thousands):
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Harmonic 2016 Restructuring Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity in the Company’s restructuring accrual related to the Harmonic 2016 Restructuring Plan during the nine months ended September 30, 2016 (in thousands):
(1) The Company anticipates that the remaining severance and benefits accrual at September 30, 2016 will be fully paid by the first quarter of 2017. |
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Harmonic Two Thousand And Fifteen Restructuring [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity in the Company’s restructuring accrual related to the Harmonic 2015 Restructuring Plan during the nine months ended September 30, 2016 (in thousands):
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Convertible Notes, Other Debts And Capital Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the Notes as of September 30, 2016 and December 31, 2015 (in thousands, except for years and percentages):
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Convertible Debt Interest | The following table presents interest expense recognized for the Notes (in thousands):
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Schedule of Other Debt and Capital Leases | In connection with the TVN acquisition, the Company assumed a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):
Other than the 4.00% Notes, the Company did not have any other indebtedness as of December 31, 2015. (1) As of September 30, 2016, the Company’s TVN French Subsidiary had an aggregate of $19.2 million of loans due to various financing programs of French government agencies, $15.6 million of which is related to loans backed by French R&D tax credit receivables. As of September 30, 2016, the TVN French Subsidiary had an aggregate of $25.1 million of R&D tax credit receivables from the French government from 2017 through 2020. (See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets” for more information). The R&D tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and matures between 2017 through 2019. The remaining loans of $3.6 million at September 30, 2016 primarily relates to financial support from French government agencies for R&D innovation projects at minimal interest rates and these loans mature between 2020 through 2023. (2) One of the term loans with a certain financial institution contains annual covenants that require the TVN French Subsidiary to maintain a minimum working capital balance and various other financial covenants and restrictions that limit the French Subsidiary’s ability to incur additional indebtedness. The annual covenant is based on French statutory year-end results and the French subsidiary was in compliance for 2015. (3) The TVN French Subsidiary obtained advances under a credit line with BPI France against a pool of eligible receivables with recourse. The maximum advance under this credit line for receivables is €2 million (approximately $2.2 million as converted using the exchange rate at September 30, 2016), less applicable fees, and €200,000 (approximately $0.2 million as converted using the exchange rate at September 30, 2016) of cash is pledged for this program. This credit line was renewed in July 2016 for an additional year with no material change to the terms of the credit agreement. The TVN French Subsidiary also entered into an accounts receivable financing agreement with GE Capital Cofacredit, (“GE”) on September 27, 2013, which is subject to automatic renewal unless cancelled. GE advances up to 90% of qualified customer invoices and holds the remaining 10% as a guarantee fund with a minimum of €80,000 (approximately $0.1 million as converted using the exchange rate at September 30, 2016). In addition, another 10% of outstanding receivables is set aside in a holdback receivable and released upon payments received from the customers. These arrangements are treated as secured borrowings in accordance with FASB ASC 860, Transfers and Servicing. |
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Schedule of Maturities of Long-term Debt | The table below shows the future minimum repayments of debts and capital lease obligations as of September 30, 2016 (in thousands):
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Employee Benefit Plans and Stock-based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Stock Option and Restricted Stock Unit Activity | The following table summarizes the Company’s stock option, RSU and PSU activities during the nine months ended September 30, 2016 (in thousands, except per share amounts):
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Summary of Stock Options Outstanding | The following table summarizes information about stock options outstanding as of September 30, 2016 (in thousands, except per share amounts):
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Summary of Restricted Stock Units Outstanding | The following table summarizes information about RSUs and PSUs outstanding as of September 30, 2016 (in thousands, except per share amounts):
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Schedule of Defined Benefit Plans Obligations | hanges to the Company’s defined benefit pension plan obligations are shown below (in thousands):
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Schedule of Assumptions Used - Employee Benefit Plans Obligation | The following assumptions were used in determining the Company’s pension obligation:
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Schedule of Expected Benefit Payments | 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):
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Summary of Stock-Based Compensation Expense | Stock-based Compensation The following table summarizes stock-based compensation expense for all plans (in thousands):
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Valuation Assumptions for Stock Options |
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions |
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income before income tax | The Company reported the following operating results for the periods presented (in thousands):
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Income (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations | The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):
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Anti-dilutive Securities | The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):
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Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The components of AOCI, on an after-tax basis where applicable, were as follows (in thousands):
The effects of amounts reclassified from AOCI into the Condensed Consolidated Statement of Operations were as follows (in thousands):
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Segment | The following tables provide summary financial information by reportable segment (in thousands):
(1) Unallocated corporate expenses include certain corporate-level operating expenses and charges such as restructuring and related charges and excess facilities charges. Additionally, the unallocated corporate expenses in 2016 include TVN acquisition- and integration-related costs (see Note 3, “Business Acquisition” for additional information) and an inventory obsolescence charge of approximately $4.4 million recorded in the nine months ended September 30, 2016 for some older Cable Edge product lines in accordance with the Company’s policy for excess and obsolete inventory and also as part of our strategic plan to re-position and dedicate the Company’s primary Cable Edge resources to its new CableOS™ products. |
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of September 30, 2016 are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Warranty Accrual Included in Accrued Liabilities | Activity for the Company’s warranty accrual, which is included in accrued liabilities, is summarized below (in thousands):
|
Recent Accounting Pronouncements - Narratives (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized Debt Issuance Expense | $ 2,828 | $ 3,223 |
Adjustments for New Accounting Pronouncement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized Debt Issuance Expense | 3,200 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Tax Assets, Net, Noncurrent | $ 15,900 |
Business Acquisition - Allocation of Net Tangible and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 29, 2016 |
Jul. 01, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Goodwill | $ 239,880 | $ 197,781 | ||||
TVN [Member] | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Cash and cash equivalents | 6,843 | |||||
Accounts receivable, net | 14,933 | |||||
Inventories | 3,462 | |||||
Prepaid expenses and other current assets | 2,412 | |||||
Property and equipment, net | 9,942 | |||||
French R&D tax credit receivables (1) | [1] | 26,421 | ||||
Other long-term assets | 2,134 | |||||
Total assets | 66,147 | |||||
Other debts and capital leases, current | 8,362 | |||||
Accounts payable | 12,494 | |||||
Deferred revenue | 2,504 | |||||
Accrued liabilities | 18,365 | |||||
Other debts and capital leases, long-term | 16,087 | |||||
Other long-term liabilities | 6,467 | |||||
Deferred tax liabilities | 2,126 | |||||
Total liabilities | 66,405 | |||||
Goodwill | 41,670 | |||||
Intangibles | 41,100 | |||||
Total Purchase Consideration | $ 84,600 | $ 82,500 | $ 82,512 | |||
|
Business Acquisition - Intangible Assets Useful Life (Details) - TVN [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Jul. 01, 2016 |
|||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangibles | $ 41,100 | |||
Backlog | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 months | |||
Intangibles | $ 3,600 | |||
Developed Technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | 4 years | ||
Intangibles | $ 21,700 | |||
Customer Relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
Intangibles | $ 15,200 | |||
In Process Research and Development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | [1] | $ 0 | ||
Trade Name | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | |||
Intangibles | $ 600 | |||
|
Business Acquisition - Acquisition and Integration Expenses (Details) - TVN [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
|
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 534 | $ 3,855 |
Business Combination, Integration Related Costs | 4,734 | 7,912 |
Cost of Goods, Product Line [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | 0 | 0 |
Business Combination, Integration Related Costs | 119 | 610 |
Research and Development Expense [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | 0 | 0 |
Business Combination, Integration Related Costs | 152 | 702 |
Selling, General and Administrative Expenses [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | 534 | 3,855 |
Business Combination, Integration Related Costs | 4,365 | 6,502 |
Operating Expense [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | 534 | 3,855 |
Business Combination, Integration Related Costs | 4,636 | 7,814 |
Investment Income (Expense) [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Acquisition Related Costs | 0 | 0 |
Business Combination, Integration Related Costs | $ 98 | $ 98 |
Business Acquisition - Pro Forma Disclosure (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Business Acquisition, Pro Forma Information [Abstract] | |||
Business Acquisition, Pro Forma Revenue | $ 100.3 | $ 301.5 | $ 344.2 |
Business Acquisition, Pro Forma Net Income (Loss) | $ (17.5) | $ (49.9) | $ (45.1) |
Business Acquisition ProForma Earnings Per Share Basic And Diluted | $ (0.20) | $ (0.64) | $ (0.51) |
Short-Term Investments - Summary of Short-Term Investments (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 7,932 | $ 26,656 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (2) | (52) |
Total short-term investments, Estimated Fair Value | 7,931 | 26,604 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 7,932 | 25,557 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (2) | (52) |
Total short-term investments, Estimated Fair Value | $ 7,931 | 25,505 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,099 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total short-term investments, Estimated Fair Value | $ 1,099 |
Short-Term Investments - Maturities of Short-Term Investments (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 7,931 | $ 19,642 |
Due in 1 - 2 years | 0 | 6,962 |
Total short-term investments, Estimated Fair Value | $ 7,931 | $ 26,604 |
Short-Term Investments - Additional Information (Detail) $ in Thousands |
Sep. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Cost Method Investments | $ 4,100 | $ 5,400 |
Available-for-sale securities in a material unrealized loss position | 0 |
Investments in Other Equity Securities Investments in Other Equity Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Apr. 01, 2016 |
Oct. 02, 2015 |
Apr. 03, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
Dec. 31, 2015 |
Oct. 15, 2015 |
Oct. 22, 2014 |
Sep. 26, 2014 |
Sep. 02, 2014 |
||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Cost Method Investments Carrying Value | $ 4,100,000 | $ 4,100,000 | $ 5,400,000 | |||||||||||||
Research and development | 24,202,000 | $ 21,679,000 | 74,272,000 | $ 65,824,000 | ||||||||||||
Prepaid expenses and other current assets | 38,519,000 | 38,519,000 | 25,003,000 | |||||||||||||
Cost-method Investments, Other than Temporary Impairment | 1,259,000 | $ 0 | 2,735,000 | $ 2,505,000 | ||||||||||||
VJU GmbH [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 9.90% | 19.80% | ||||||||||||||
Cost Method Investments Original Cost | $ 2,500,000 | |||||||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 2,500,000 | |||||||||||||||
Vislink plc [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 3.30% | |||||||||||||||
Cost Method Investments Original Cost | $ 3,300,000 | |||||||||||||||
Cost Method Investments Carrying Value | 500,000 | $ 500,000 | 1,800,000 | |||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 1,500,000 | |||||||||||||||
Period Stock Price Below Cost | 7 months | |||||||||||||||
Cost-method Investments, Other than Temporary Impairment | 1,300,000 | $ 1,500,000 | $ 0 | |||||||||||||
Stock Price Decrease, Percentage | 70.00% | |||||||||||||||
EDC [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 18.40% | |||||||||||||||
Cost Method Investments Original Cost | $ 3,500,000 | |||||||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 0 | |||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Cost Method Investments Carrying Value | 3,593,000 | 3,593,000 | ||||||||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [1] | 3,593,000 | 3,593,000 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | VJU GmbH [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [1] | 0 | 0 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | EDC [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Cost Method Investments Carrying Value | 3,593,000 | 3,593,000 | ||||||||||||||
Business Acquisition, Transaction Costs | [2] | 100,000 | 100,000 | |||||||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [1],[2] | 3,593,000 | 3,593,000 | |||||||||||||
Cost-method Investments [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | VJU GmbH [Member] | ||||||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||||||
Cost Method Investments Carrying Value | 0 | 0 | ||||||||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [1] | $ 0 | $ 0 | |||||||||||||
|
Derivatives and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Derivative [Line Items] | ||
Derivative Assets, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | $ 0 | |
Derivative Liabilities, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | 0 | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 86 | $ (246) |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 3 months | |
Operating Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 86 | |
Israel [Member] | ||
Derivative [Line Items] | ||
Compensating Balance, Amount | $ 2,500 | |
Israel, New Shekels | Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 12 months |
Derivative and Hedging Activities gain losses in Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (53) | |||
Gains reclassified from AOCI into income (effective portion) | $ 47 | $ 127 | $ 314 | |
Other Comprehensive Income (Loss) [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 121 | 279 | ||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (550) | (218) | ||
Cost of Sales [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | (7) | |||
Gains reclassified from AOCI into income (effective portion) | 6 | 18 | 44 | |
Operating Expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | (46) | |||
Gains reclassified from AOCI into income (effective portion) | 41 | 109 | 270 | |
Other Nonoperating Income (Expense) [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | (8) | (5) | (57) | (57) |
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) recognized in income | $ (162) | $ (165) | $ (496) | $ 220 |
Derivatives and Hedging Activities Notional Amounts (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Long [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Notional Amount | $ 2,945 | $ 12,984 |
Long [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Notional Amount | 4,824 | 6,942 |
Short [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Liability, Notional Amount | $ 17,594 | $ 11,332 |
Derivatives and Hedging Activities Assets Liabilities Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 232 | $ 113 |
Derivative Liability, Current | 17 | 371 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 60 | 13 |
Derivative Liability, Current | 0 | 281 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 60 | 13 |
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | 0 | 281 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 172 | 100 |
Derivative Liability, Current | 17 | 90 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 172 | 100 |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ 17 | $ 90 |
Derivatives and Hedging Activities Asset and Liability Offset (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Asset, Gross Amounts of Derivatives | $ 232 |
Derivative Assets, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Derivatives Assets Presented in the Condensed Consolidated Balance Sheets | 232 |
Derivative Assets, Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets, Financial Instrument | (17) |
Derivative Assets, Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets,Cash Collateral Pledged | 0 |
Derivative Assets, Net Amount | 215 |
Derivative Liabilities, Gross Amounts of Derivatives | 17 |
Derivative Liabilities, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | 0 |
Net Amounts of Derivatives Liability Presented in the Condensed Consolidated Balance Sheets | 17 |
Derivative Liabilities, Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets, Financial Instrument | (17) |
Derivative Liabilities, Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Derivative Liabilities, Net Amount | $ 0 |
Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016 |
Jul. 01, 2016 |
Apr. 01, 2016 |
Dec. 31, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt and Capital Lease Obligations | $ 22,774 | |||
Business Combination, Contingent Consideration, Liability, Current | 0 | |||
Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Convertible Debt, Fair Value Disclosures | 161,200 | $ 123,100 | ||
Debt and Capital Lease Obligations | 22,800 | |||
TVN [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 8,000 | |||
Contingent consideration for TVN acquisition not yet paid | 0 | |||
Cash Earnout [Member] | TVN [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Payments to Acquire Businesses | 2,500 | $ 3,500 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (2,100) | |||
Cash Earnout [Member] | TVN [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments for Previous Acquisition | 2,500 | 3,500 | ||
Assumed Employee Equity Plans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other Payments to Acquire Businesses | 2,900 | |||
Assumed Employee Equity Plans [Member] | TVN [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 0 | |||
Contingent consideration for TVN acquisition not yet paid | $ 2,900 |
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities, Fair Value Disclosure, Nonrecurring | $ 0 | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |||
Time deposit pledged for credit card facility | [1] | 1,341 | $ 1,093 | |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 15,549 | 107,569 | ||
Total liabilities measured and recorded at fair value | 17 | 371 | ||
Fair Value, Measurements, Recurring [Member] | Cost-method Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 530 | 1,840 | ||
Bank Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Time deposit pledged for credit card facility | 580 | 580 | ||
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 6,276 | 53,434 | ||
US Treasury Bill Securities [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 24,998 | |||
Corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 7,931 | 25,505 | ||
Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 232 | 113 | ||
Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured and recorded at fair value | 17 | 371 | ||
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 1,099 | |||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 6,806 | 80,272 | ||
Total liabilities measured and recorded at fair value | 0 | 0 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cost-method Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 530 | 1,840 | ||
Level 1 [Member] | Bank Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Time deposit pledged for credit card facility | 0 | |||
Level 1 [Member] | Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 6,276 | 53,434 | ||
Level 1 [Member] | US Treasury Bill Securities [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 24,998 | |||
Level 1 [Member] | Corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 1 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 1 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured and recorded at fair value | 0 | 0 | ||
Level 1 [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 8,743 | 27,297 | ||
Total liabilities measured and recorded at fair value | 17 | 371 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cost-method Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 2 [Member] | Bank Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Time deposit pledged for credit card facility | 580 | 580 | ||
Level 2 [Member] | Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 2 [Member] | US Treasury Bill Securities [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | |||
Level 2 [Member] | Corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 7,931 | 25,505 | ||
Level 2 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 232 | 113 | ||
Level 2 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured and recorded at fair value | 17 | 371 | ||
Level 2 [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 1,099 | |||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Total liabilities measured and recorded at fair value | 0 | 0 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cost-method Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 3 [Member] | Bank Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Time deposit pledged for credit card facility | 0 | |||
Level 3 [Member] | Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 3 [Member] | US Treasury Bill Securities [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | |||
Level 3 [Member] | Corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 3 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Prepaids and other current assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | 0 | 0 | ||
Level 3 [Member] | Foreign exchange forward contracts [Member] | Fair Value, Measurements, Recurring [Member] | Accrued Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured and recorded at fair value | $ 0 | 0 | ||
Level 3 [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured and recorded at fair value | $ 0 | |||
|
Balance Sheet Components - Accounts Receivable, Net, Prepaid Expenses and Other Current Assets, Inventories, Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Accounts receivable, net: | |||||||||
Accounts receivable | $ 103,511 | $ 73,855 | |||||||
Less: allowances for doubtful accounts, returns and discounts | (4,433) | (4,340) | |||||||
Total | 99,078 | 69,515 | |||||||
Prepaid expenses and other current assets: | |||||||||
Prepaid inventories to contract manufacturer(1) | [1] | 4,736 | 8,500 | ||||||
Prepaid maintenance, royalty, rent and property taxes | 7,003 | 5,974 | |||||||
Other Prepayments | 4,730 | 2,762 | |||||||
Deferred cost of revenue | 10,470 | 4,601 | |||||||
French R&D tax credits receivable(2) | [2] | 6,279 | |||||||
Restricted cash(3) | [3] | 1,341 | 1,093 | ||||||
Other | 3,960 | 2,073 | |||||||
Prepaid Expense and Other Assets, Current | 38,519 | 25,003 | |||||||
Inventories: | |||||||||
Raw materials | 9,417 | 5,421 | |||||||
Work-in-process | 1,328 | 1,950 | |||||||
Finished goods | 13,397 | 19,827 | |||||||
Inventory, Supplies, Net of Reserves | 11,686 | 11,621 | |||||||
Total inventories, net | 35,828 | 38,819 | |||||||
Property and equipment, net: | |||||||||
Furniture and fixtures | 9,110 | 7,808 | |||||||
Machinery and equipment | 99,172 | 93,010 | |||||||
Capitalized software | 34,703 | 29,391 | |||||||
Leasehold improvements | 14,005 | 10,000 | |||||||
Property and equipment, gross | 156,990 | 140,209 | |||||||
Less: accumulated depreciation and amortization | (121,845) | (113,197) | |||||||
Property and equipment, net | 35,145 | 27,012 | |||||||
Accrued Liabilities, Current [Abstract] | |||||||||
Accrued employee compensation and related expenses | 18,420 | 12,083 | |||||||
Accrued sales and use tax and property taxes | 1,861 | 1,743 | |||||||
Accrued TVN contingent consideration (1) | 0 | ||||||||
Accrued warranty | 5,079 | 3,913 | |||||||
Accrued royalty payments | 2,597 | 873 | |||||||
Contingent inventory reserves | 2,485 | 1,315 | |||||||
Customer deposits | 5,020 | 953 | |||||||
Others | 14,907 | 10,474 | |||||||
Accrued Liabilities, Current | $ 50,369 | $ 31,354 | |||||||
|
Balance Sheet Components Additional Information (Details) $ in Thousands, € in Millions |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Jul. 01, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Feb. 29, 2016
EUR (€)
|
Dec. 31, 2015
USD ($)
|
||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Prepaid inventories to contract manufacturer(1) | [1] | $ 4,736 | $ 4,736 | $ 8,500 | |||||||||
Income Taxes Receivable, Current | [2] | 6,279 | 6,279 | ||||||||||
Restricted cash(3) | [3] | 1,341 | 1,341 | $ 1,093 | |||||||||
TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Proceeds from Income Tax Refunds | 5,800 | ||||||||||||
Income Taxes Receivable | 25,100 | 25,100 | |||||||||||
Business Combination, Contingent Consideration, Liability | 0 | 0 | |||||||||||
TVN's 2015 backlog [Member] | TVN [Member] | Maximum [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | $ 5,000 | ||||||||||||
Cash Earnout [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Other Payments to Acquire Businesses | 2,500 | $ 3,500 | |||||||||||
TVN's 2015 revenue, difference as converted from euros to US dollars [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | 75,000 | ||||||||||||
TVN's 2015 revenue, difference as converted from euros to US dollars [Member] | TVN [Member] | Maximum [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | $ 83,300 | € 76 | |||||||||||
Accounts Payable [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Prepaid inventories to contract manufacturer(1) | 8,500 | 8,500 | |||||||||||
Property Lease Guarantee [Member] | Other Noncurrent Assets [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Restricted Cash and Cash Equivalents | 1,100 | 1,100 | |||||||||||
Research Tax Credit Carryforward [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Income Taxes Receivable, Noncurrent | [2] | 25,100 | 25,100 | ||||||||||
Research Tax Credit Carryforward [Member] | Prepaid Expenses and Other Current Assets [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Income Taxes Receivable, Current | [2] | 6,300 | 6,300 | ||||||||||
Research Tax Credit Carryforward [Member] | Other Noncurrent Assets [Member] | TVN [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Income Taxes Receivable, Current | [2] | 18,800 | 18,800 | ||||||||||
Supplier With Offsetting Rights [Member] | Accounts Payable [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Prepaid inventories to contract manufacturer(1) | 3,800 | 3,800 | |||||||||||
Supplier With Offsetting Rights [Member] | Accounts Payable [Member] | Minimum [Member] | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||||||
Prepaid inventories to contract manufacturer(1) | $ 3,800 | $ 3,800 | |||||||||||
|
Goodwill and Intangible Assets - Narratives (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
$ / shares
|
Apr. 01, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jul. 01, 2016
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Oct. 02, 2015
USD ($)
|
|
Goodwill [Line Items] | ||||||
Share Price | $ / shares | $ 5.93 | $ 3.01 | $ 5.93 | |||
Market Capitalization | $ 235,000 | |||||
Goodwill | $ 239,880 | $ 197,781 | $ 239,880 | |||
Number of Reporting Units | 2 | |||||
Preliminary Recorded Additional Goodwill | 41,670 | |||||
Goodwill, Impairment Loss | 0 | $ 0 | ||||
Finite-lived Intangible Assets Acquired | 41,800 | |||||
Video [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 179,089 | $ 136,904 | 179,089 | |||
Preliminary Recorded Additional Goodwill | 41,670 | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 87.00% | |||||
Cable Edge [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 60,791 | $ 60,877 | 60,791 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 42.00% | |||||
TVN [Member] | ||||||
Goodwill [Line Items] | ||||||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 700 | |||||
Goodwill | 41,670 | 41,670 | ||||
Goodwill, Purchase Accounting Adjustments | 4,600 | |||||
Preliminary Recorded Additional Goodwill | $ 39,200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 41,100 | $ 41,100 | ||||
Cash Earnout [Member] | TVN [Member] | ||||||
Goodwill [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,100 | |||||
Developed Technology | ||||||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years 4 months 12 days | |||||
Developed Technology | TVN [Member] | ||||||
Goodwill [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 21,700 | $ 21,700 | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years |
Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Goodwill [Line Items] | |
Balance at beginning of period | $ 197,781 |
Goodwill, Acquired During Period | 41,670 |
Foreign currency translation adjustment | 429 |
Balance at end of period | 239,880 |
Video [Member] | |
Goodwill [Line Items] | |
Balance at beginning of period | 136,904 |
Goodwill, Acquired During Period | 41,670 |
Foreign currency translation adjustment | 515 |
Balance at end of period | 179,089 |
Cable Edge [Member] | |
Goodwill [Line Items] | |
Balance at beginning of period | 60,877 |
Foreign currency translation adjustment | (86) |
Balance at end of period | $ 60,791 |
Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 87,487 | $ 45,687 |
Accumulated Amortization | (54,366) | (41,590) |
Total future amortization expense | $ 33,121 | 4,097 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 3 years 4 months 12 days | |
Gross Carrying Amount | $ 33,057 | 10,987 |
Accumulated Amortization | (14,112) | (10,987) |
Total future amortization expense | $ 18,945 | 0 |
Customer relationships/contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 4 years 4 months 24 days | |
Gross Carrying Amount | $ 44,659 | 29,200 |
Accumulated Amortization | (31,004) | (25,752) |
Total future amortization expense | $ 13,655 | 3,448 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 3 years 4 months 12 days | |
Gross Carrying Amount | $ 610 | |
Accumulated Amortization | (89) | |
Total future amortization expense | 521 | |
Maintenance agreements and related relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,500 | 5,500 |
Accumulated Amortization | (5,500) | (4,851) |
Total future amortization expense | 0 | $ 649 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,661 | |
Accumulated Amortization | (3,661) | |
Total future amortization expense | $ 0 |
Goodwill and Identified Intangible Assets - Amortization Expense for Identifiable Purchased Intangible Assets (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Included in cost of revenue | $ 1,380 | $ 86 | $ 3,105 | $ 633 |
Included in operating expenses | 3,009 | 1,446 | 9,606 | 4,338 |
Total amortization expense | $ 4,389 | $ 1,532 | $ 12,711 | $ 4,971 |
Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2016 (remaining three months) | $ 2,191 | |
2017 | 8,761 | |
2018 | 8,761 | |
2019 | 8,761 | |
2020 | 4,131 | |
Thereafter | 516 | |
Total future amortization expense | 33,121 | $ 4,097 |
Cost of Sales [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2016 (remaining three months) | 1,380 | |
2017 | 5,517 | |
2018 | 5,517 | |
2019 | 5,517 | |
2020 | 1,014 | |
Thereafter | 0 | |
Total future amortization expense | 18,945 | |
Operating Expense [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2016 (remaining three months) | 811 | |
2017 | 3,244 | |
2018 | 3,244 | |
2019 | 3,244 | |
2020 | 3,117 | |
Thereafter | 516 | |
Total future amortization expense | $ 14,176 |
Restructuring and Related Charges - Activities in Restructuring Accrual (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Product cost of revenue | $ 113 | $ 113 | ||||
Production Related Impairment Cost Recovery | $ (1) | $ (24) | ||||
Adjustments to restructuring provisions | (27) | 397 | 4,488 | 626 | ||
Restructuring and Related Cost, Incurred Cost | (28) | 510 | 4,464 | 739 | ||
Restructuring Reserve [Roll Forward] | ||||||
Adjustments to restructuring provisions | (27) | $ 397 | 4,488 | $ 626 | ||
Harmonic 2016 Restructuring Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Adjustments to restructuring provisions | (87) | |||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | 4,862 | |||||
Adjustments to restructuring provisions | (87) | |||||
Reclassification of deferred rent | 1,087 | |||||
Cash payments | (3,766) | |||||
Non-cash write-offs | (246) | |||||
Foreign exchange gain (loss) | (12) | |||||
Ending Balance | 1,838 | 1,838 | ||||
Harmonic 2016 Restructuring Plan [Member] | Other Restructuring [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | 246 | |||||
Reclassification of deferred rent | 0 | |||||
Cash payments | 0 | |||||
Non-cash write-offs | (246) | |||||
Ending Balance | 0 | 0 | ||||
Increase (Decrease) in Restructuring Reserve | 0 | |||||
Harmonic 2016 Restructuring Plan [Member] | Facility Closing [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | 1,400 | 1,445 | ||||
Reclassification of deferred rent | 1,087 | |||||
Cash payments | (705) | |||||
Non-cash write-offs | 0 | |||||
Ending Balance | 1,827 | 1,827 | ||||
Increase (Decrease) in Restructuring Reserve | 0 | |||||
Harmonic 2016 Restructuring Plan [Member] | Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Adjustments to restructuring provisions | (87) | |||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | 3,171 | |||||
Adjustments to restructuring provisions | (87) | |||||
Reclassification of deferred rent | 0 | |||||
Cash payments | (3,061) | |||||
Non-cash write-offs | 0 | |||||
Foreign exchange gain (loss) | (12) | |||||
Ending Balance | 11 | 11 | ||||
Harmonic Two Thousand And Fifteen Restructuring [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | $ 1,500 | $ 2,200 | ||||
Harmonic Two Thousand And Fifteen Restructuring [Member] | Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Adjustments to restructuring provisions | (65) | |||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 264 | |||||
Adjustments to restructuring provisions | (65) | |||||
Cash payments | (194) | |||||
Ending Balance | $ 5 | $ 5 | $ 264 |
Restructuring and Related Charges - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Oct. 02, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
Employee
|
Oct. 02, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
Employee
|
Dec. 31, 2014
USD ($)
|
Jan. 04, 2016
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and Related Cost, Incurred Cost | $ (28,000) | $ 510,000 | $ 4,464,000 | $ 739,000 | ||||
Defined Benefit Pension Plan Liabilities, Current | 248,000 | 248,000 | ||||||
Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve, Settled without Cash | 246,000 | |||||||
Charges for 2016 Harmonic Restructuring Plan | $ 4,862,000 | |||||||
Number of positions eliminated | Employee | 22 | |||||||
Harmonic Two Thousand And Fifteen Restructuring [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charges for 2016 Harmonic Restructuring Plan | $ 1,500,000 | $ 2,200,000 | ||||||
Number of positions eliminated | Employee | 56 | |||||||
Facility Closing [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Fair Value of Excess Facility Restructuring | $ 2,500,000 | |||||||
Deferred Rent Credit | $ 1,100,000 | |||||||
Restructuring Reserve, Settled without Cash | $ 0 | |||||||
Restructuring Charges | 1,400,000 | |||||||
Charges for 2016 Harmonic Restructuring Plan | 1,400,000 | 1,445,000 | ||||||
Employee Severance [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve, Settled without Cash | 0 | |||||||
Restructuring Charges | 3,100,000 | |||||||
Charges for 2016 Harmonic Restructuring Plan | 3,171,000 | |||||||
Other Restructuring [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve, Settled without Cash | 246,000 | |||||||
Charges for 2016 Harmonic Restructuring Plan | 246,000 | |||||||
TVN [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Business Combination, Acquisition and Integration Related Expenses | 5,300,000 | 11,800,000 | ||||||
Business Combination, Integration Related Costs | 4,734,000 | 7,912,000 | ||||||
Business Combination, Acquisition Related Costs | 534,000 | 3,855,000 | ||||||
TVN [Member] | Operating Expense [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Business Combination, Integration Related Costs | 4,636,000 | 7,814,000 | ||||||
Business Combination, Acquisition Related Costs | 534,000 | 3,855,000 | ||||||
TVN [Member] | Employee Severance [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Defined Benefit Pension Plan Liabilities, Current | 11,000,000 | 11,000,000 | ||||||
TVN [Member] | Employee Severance [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Postemployment Benefits, Period Expense | 0 | 0 | ||||||
Scenario, Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve, Settled without Cash | $ 3,000,000 | |||||||
Minimum [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Anticipated Synergies from Restructuring Exit Plan | 24,000,000 | 24,000,000 | ||||||
Minimum [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and Related Cost, Expected Cost | 31,000,000 | $ 31,000,000 | ||||||
Expected Project Completion Period | 12 months | |||||||
Maximum [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Anticipated Synergies from Restructuring Exit Plan | 25,000,000 | $ 25,000,000 | ||||||
Maximum [Member] | Harmonic 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and Related Cost, Expected Cost | $ 33,000,000 | $ 33,000,000 |
Convertible Notes, Other Debts And Capital Leases - Additional Information (Detail) $ / shares in Units, € in Thousands, shares in Millions |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 14, 2015
shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
$ / shares
|
Sep. 30, 2016
EUR (€)
|
||||
Debt Instrument [Line Items] | |||||||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 19,153,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||||
Debt Issuance Costs, Gross | $ 4,100,000 | ||||||
Payments of Debt Issuance Costs | 3,500,000 | ||||||
Debt Instrument, Face Amount | $ 128,250,000 | $ 128,250,000 | |||||
Debt Instrument, Convertible, Conversion Ratio | 173.9978 | ||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 5.75 | $ 5.75 | |||||
Debt Conversion, Converted Instrument, Amount | $ 1,000 | ||||||
Percentage Of Principal Amount Of Convertible Notes Is Equal To Repurchase Price | 100.00% | ||||||
Debt Instrument Convertible Allocated Amount of Equity Component | $ 26,925,000 | $ 26,925,000 | |||||
Debt Instrument, Unamortized Discount (Premium), Net | 4,100,000 | ||||||
Unamortized Debt Issuance Expense | 2,828,000 | 3,223,000 | |||||
Debt Instrument Convertible Equity Component Issuance Cost | 863,000 | $ 863,000 | |||||
Stock price greater or equal 130 percent of Note Conversion Price [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | ||||||
Note price less than 98 percent of stock price times conversion rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convertible, Threshold Trading Days | 5 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 5 days | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 98.00% | ||||||
Privately Negotiated Transactions [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Convertible Debt | $ 49,900,000 | ||||||
Stock Repurchased and Retired During Period, Shares | shares | 11.1 | ||||||
TVN [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Income Taxes Receivable | 25,100,000 | ||||||
Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 15,600,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.60% | 0.60% | |||||
Adjusted EURIBOR Rate, Term | 1 month | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.30% | ||||||
Loans From French Government For R&D Innovation Projects [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 3,600,000 | |||||
Foreign Line of Credit [Member] | BPI France [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Advance Credit Line For Receivables | 2,200,000 | € 2,000 | |||||
Restricted Cash and Cash Equivalents | $ 200,000 | 200 | |||||
Foreign Line of Credit [Member] | GE Capital Cofacredit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Borrowing On Receivables, Percentage Available, Maximum | 90.00% | ||||||
Guarantee Fund Percentage of Qualified Customer Invoices | 10.00% | ||||||
Guarantee Fund on Qualified Customer Invoices | $ 100,000 | € 80 | |||||
Holdback Reserve on Receivables, Percentage | 10.00% | ||||||
|
Convertible Notes, Other Debts And Capital Leases - Convertible Note Roll Forward (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||
Principal amount | $ 128,250 | $ 128,250 |
Less: Debt discount, net of amortization | (23,458) | (26,732) |
Less: Debt issuance costs, net of amortization | (2,828) | (3,223) |
Carrying amount | $ 101,964 | $ 98,295 |
Remaining amortization period (years) | 4 years 2 months 20 days | 4 years 10 months 28 days |
Effective interest rate on liability component | 9.94% | 9.94% |
Value of conversion option | $ 26,925 | $ 26,925 |
Less: Equity issuance costs | (863) | (863) |
Carrying amount | $ 26,062 | $ 26,062 |
Convertible Notes, Other Debts And Capital Leases - Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 1,283 | $ 0 | $ 3,848 | $ 0 |
Amortization of debt discount | 1,117 | 0 | 3,274 | 0 |
Amortization of debt issuance costs | 135 | 0 | 395 | 0 |
Total interest expense recognized | $ 2,535 | $ 0 | $ 7,517 | $ 0 |
Convertible Notes , Other Debts And Capital Leases - Other Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||
Financing from French government agencies related to various government incentive programs (1) | [1] | $ 19,153 | |||||||
Term loans (2) | [2] | 1,564 | |||||||
Secured borrowings (3) | [3] | 0 | |||||||
Obligations under capital leases | 2,057 | ||||||||
Total debt obligations | 22,774 | ||||||||
Less: current portion | (6,825) | $ 0 | |||||||
Long-term portion | $ 15,949 | ||||||||
|
Convertible Notes, Other Debts And Capital Leases - Debt Maturities (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Capital Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 299 |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 129 |
Capital Leases, Future Minimum Payments Due in Two Years | 1,130 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 5,691 |
Capital Leases, Future Minimum Payments Due in Three Years | 534 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 5,849 |
Capital Leases, Future Minimum Payments Due in Four Years | 68 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 6,743 |
Capital Leases, Future Minimum Payments Due in Five Years | 26 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 673 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,632 |
Capital Leases, Future Minimum Payments Due | 2,057 |
Long-term Debt | $ 20,717 |
Employee Benefit Plans and Stock-based Compensation - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 09, 2016
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Jul. 01, 2016
USD ($)
|
Oct. 02, 2015
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Oct. 02, 2015
USD ($)
$ / shares
|
Dec. 31, 2015 |
Feb. 29, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in authorized shares reserved for issuance | shares | 2,000,000 | |||||||
Intrinsic value of options exercised | $ 100,000 | $ 0 | $ 100,000 | $ 1,700,000 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.00% | 2.00% | ||||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ 0 | $ 0 | ||||||
Pension and Other Postretirement Benefit Contributions | 0 | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost | 99,000 | $ 233,000 | ||||||
Discretionary contributions of plan | 25.00% | |||||||
Percent of employees' gross pay eligible for matching | 4.00% | |||||||
Maximum contribution amount per participant | $ 1,000 | |||||||
Contributions in period | 316,000 | $ 342,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 11,700,000 | 11,700,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 5,000,000 | $ 5,000,000 | ||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 1.00 | $ 2.01 | $ 0.97 | $ 2.63 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 400,000 | $ 600,000 | $ 1,800,000 | $ 2,500,000 | ||||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 0 | 0 | 0 | 0 | ||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,600,000 | $ 2,200,000 | $ 8,600,000 | $ 9,900,000 | ||||
Performance-based Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 898,533 | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in authorized shares reserved for issuance | shares | 1,500,000 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | shares | 906,390 | 906,390 | ||||||
Discount Percentage On Purchase Of Stock | 15.00% | |||||||
Percentage of fair market value of Common Stock to purchase shares | 85.00% | |||||||
Value Of Stock Purchase Right Percentage Of Put Option | 15.00% | |||||||
TVN [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business Combination Assumed Equity Benefit Plan | 2 | |||||||
Fair Value of Employee Equity Benefit Plan Liabilities | $ 18,365,000 | $ 18,365,000 | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.00% | 2.00% | ||||||
TVN [Member] | Maximum [Member] | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in authorized shares reserved for issuance | shares | 1,750,000 | |||||||
Scenario, Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 1,600,000 | |||||||
Assumed Employee Equity Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Other Payments to Acquire Businesses | $ 2,900,000 | |||||||
Stock Plan 1995 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in authorized shares reserved for issuance | shares | 2,000,000 | |||||||
Euro Zone AA Rated [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Long-term Euro zone AA rated, Term | 10 years | |||||||
Long-term Euro zone AA rated 10 years corporate bonds yield | 2.00% |
Employee Benefit Plans and Stock-based Compensation - Summary of Company's Stock Option and Restricted Stock Unit Activity (Detail) - $ / shares shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Available for Grant, Beginning balance | 6,150 |
Shares Available for Grant, Authorized | 2,000 |
Shares Available for Grant, Granted | (5,046) |
Shares Available for Grant, Forfeited or cancelled | 1,833 |
Shares Available for Grant, Ending balance | 4,937 |
Restricted Stock Units Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units, Beginning balance | 2,182 |
Number of Shares, Authorized | 0 |
Number of Units, Granted | 3,053 |
Number of Units, exercised | 0 |
Number of Units, Shares released | (1,269) |
Number of Units, Forfeited or cancelled | (304) |
Number of Units, Ending balance | 3,662 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 6.99 |
Weighted Average Grant Date Fair Value, Authorized | 0.00 |
Estimated weighted average fair value per share at purchase date | 3.55 |
Weighted Average Grant Date Fair Value, Exercised | 0.00 |
Weighted Average Grant Date Fair Value, Shares released | 6.82 |
Weighted Average Grant Date Fair Value, Forfeited or cancelled | 5.73 |
Weighted Average Grant Date Fair Value, Ending balance | $ 4.18 |
Stock Options Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Beginning balance | 5,674 |
Number of Shares, Authorized | 0 |
Number of Shares, Granted | 916 |
Number of Shares, Options exercised | (148) |
Number of Shares, Forfeited or cancelled | (1,388) |
Number of Shares, Ending balance | 5,054 |
Weighted Average Exercise Price, Beginning balance | $ 6.56 |
Weighted Average Exercise Price, Authorized | 0.00 |
Weighted Average Exercise Price, Granted | 3.14 |
Weighted Average Exercise Price, Options exercised | 4.80 |
Weighted Average Exercise Price, Forfeited or cancelled | 6.44 |
Weighted Average Exercise Price, Ending balance | $ 6.03 |
Employee Benefit Plans and Stock-based Compensation - Summary of Stock Options Outstanding (Detail) - Stock Options Outstanding [Member] $ / shares in Units, shares in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Vested and expected to vest | shares | 4,826 |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 6.08 |
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest | 4 years |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 3,015 |
Number of Shares, Exercisable | shares | 3,063 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 6.63 |
Weighted Average Remaining Contractual Term (Years), Exercisable | 3 years |
Aggregate Intrinsic Value, Exercisable | $ | $ 750 |
Employee Benefit Plans and Stock-based Compensation - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Underlying Restricted Stock Units | shares | 2,740 |
Weighted Average Remaining Vesting Period (Years) | 10 months 21 days |
Aggregate Fair Value | $ | $ 16,250 |
Employee Benefit Plans and Stock-based Compensation - Summary of Projected Benefit Obligation (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Employee Benefits and Share-based Compensation [Abstract] | |
Acquired from TVN acquisition | $ 5,907 |
Service cost | 164 |
Interest cost | 68 |
Foreign currency translation adjustment | 102 |
As of September 30, 2016 | 6,241 |
Current portion (presented under “Accrued liabilities”) | 248 |
Long-term portion (presented under “Other non-current liabilities”) | $ 5,993 |
Employee Benefit Plans and Stock-based Compensation (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Discount rate | 2.00% |
Mobility rate | 2.20% |
Salary progression rate | 2.00% |
Employee Benefit Plans and Stock-based Compensation - Benefit Obligation Payments By Years (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Postemployment Benefits [Abstract] | |
2016 (remaining three months) | $ 24 |
2017 | 117 |
2018 | 227 |
2019 | 366 |
2020 | 433 |
2021 - 2025 | 2,310 |
Future benefits expected to be paid in next 5 years and five-year period thereafter | $ 3,477 |
Employee Benefit Plans and Stock-based compensation - Stock-based Compensation in Opex (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 2,680 | $ 3,827 | $ 8,542 | $ 11,845 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 360 | 433 | 1,011 | 1,383 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 771 | 1,074 | 2,581 | 3,249 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 1,549 | 2,320 | 4,950 | 7,213 |
Operating Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 2,320 | $ 3,394 | $ 7,531 | $ 10,462 |
Employee Benefit Plans and Stock-based Compensation - Valuation Assumptions for Stock Options (Details) - Stock Options [Member] |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 4 years 3 months 18 days | 4 years 7 months 6 days | 4 years 3 months 18 days | 4 years 8 months 13 days |
Volatility | 39.00% | 37.00% | 36.00% | 38.00% |
Risk-free interest rate | 1.00% | 1.50% | 1.40% | 1.60% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Benefit Plans and Stock-based Compensation - Summary of Stock Awards Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares |
6 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Purchase Period July 1, 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 1 day | |||
Volatility | 54.00% | |||
Risk-free interest rate | 0.40% | |||
Expected dividends | 0.00% | |||
Estimated weighted average fair value per share at purchase date | $ 1.19 | |||
Purchase Period December 31, 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 1 day | |||
Volatility | 32.00% | |||
Risk-free interest rate | 0.10% | |||
Expected dividends | 0.00% | |||
Estimated weighted average fair value per share at purchase date | $ 1.64 | |||
Purchase Period June 30, 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 1 day | |||
Volatility | 35.00% | |||
Risk-free interest rate | 0.10% | |||
Expected dividends | 0.00% | |||
Estimated weighted average fair value per share at purchase date | $ 1.75 | |||
Scenario, Forecast [Member] | Purchase Period December 31, 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 1 day | |||
Volatility | 62.00% | |||
Risk-free interest rate | 0.40% | |||
Expected dividends | 0.00% | |||
Estimated weighted average fair value per share at purchase date | $ 0.98 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (16,254) | $ (6,079) | $ (61,353) | $ (9,289) |
Provision for (benefit from) income taxes | $ (242) | $ (1,268) | $ 518 | $ (827) |
Effective income tax rate | 1.50% | 20.90% | (0.80%) | 8.90% |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 15.1 | $ 15.1 | ||
Effective income tax rate | 1.50% | 20.90% | (0.80%) | 8.90% |
Federal statutory income tax rate | 35.00% | 35.00% | ||
Unrecognized tax benefits that would impact the provision for income taxes | $ 2.9 | $ 2.9 | ||
Interest and possible penalties related to uncertain tax positions | $ 0.4 | $ 0.4 | ||
SWITZERLAND | ||||
Income Tax Contingency [Line Items] | ||||
Income Tax Holiday, Description | The Company’s operations in Switzerland are subject to a reduced tax rate under the Switzerland tax holiday which requires various thresholds of investment and employment in Switzerland. The Company has met these various thresholds and the Switzerland tax holiday is effective through the end of 2018. |
Income (Loss) Per Share - Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Numerator: | ||||
Net loss | $ (16,012) | $ (4,811) | $ (61,871) | $ (8,462) |
Denominator: | ||||
Basic and diluted | 78,092 | 87,991 | 77,475 | 88,359 |
Net loss per share: | ||||
Basic and diluted | $ (0.21) | $ (0.05) | $ (0.80) | $ (0.10) |
Income (Loss) Per Share - Anti-dilutive Securities (Detail) - $ / shares |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
Dec. 31, 2015 |
|||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Potentially dilutive equity awards outstanding | 9,248,000 | 8,817,000 | 8,317,000 | 9,403,000 | |||
Potential Common Shares Upon Notes Conversion If Only Settled In Shares | 22,304,348 | 22,304,348 | |||||
Debt Instrument, Convertible, Conversion Price | $ 5.75 | $ 5.75 | $ 5.75 | ||||
Stock Options [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Potentially dilutive equity awards outstanding | 5,193,000 | 6,095,000 | 5,389,000 | 6,674,000 | |||
Restricted Stock Units (RSUs) | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Potentially dilutive equity awards outstanding | 2,800,000 | 2,198,000 | 2,273,000 | 2,237,000 | |||
Employee Stock Purchase Plan | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Potentially dilutive equity awards outstanding | 1,212,000 | 524,000 | 641,000 | 492,000 | |||
Warrant [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Potentially dilutive equity awards outstanding | [1] | 43,000 | 0 | 14,000 | 0 | ||
|
Warrants (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 26, 2016 |
|
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 7,816,162 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.76 | |
Comcast Product Supply Agreement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 781,617 | |
Warrants and Rights Outstanding | $ 1.6 | |
Fair Value Assumptions, Expected Term | 7 years | |
Fair Value Assumptions, Weighted Average Volatility Rate | 42.00% | |
Fair Value Assumptions, Risk Free Interest Rate | 1.40% | |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |
Comcast Milestones Achievement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Unissued | 1,954,042 | |
Comcast Exceeding Specified Cumulative Purchase Volume [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Unissued | 1,172,425 | |
Comcast Specified Tranches [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Unissued | 3,908,081 |
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
Dec. 31, 2015 |
|
Equity [Abstract] | |||||
Foreign currency translation adjustments | $ (2,788) | $ (2,788) | $ (2,634) | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 86 | 86 | (246) | ||
Unrealized gain on investments | (1) | (1) | (1,538) | ||
Accumulated Other Comprehensive Loss | (2,703) | (2,703) | $ (4,418) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 523 | $ (364) | (154) | $ (766) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 121 | (550) | 279 | (218) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | (1,208) | (928) | (1,178) | 17 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (1,053) | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (47) | (127) | 53 | (314) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | $ 1,259 | $ 0 | 2,735 | $ 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,788 | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (20) | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | $ (20) |
Stockholders' Equity - Reclassification from AOCI to Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (53) | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 47 | $ 127 | $ 314 | |
Cost of Sales [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | (7) | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 6 | 18 | 44 | |
Operating Expense [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (46) | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 41 | $ 109 | $ 270 |
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
May 14, 2014 |
Apr. 24, 2012 |
|
Stockholders' Equity Note [Abstract] | ||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | $ 1,259 | $ 0 | $ 2,735 | $ 0 | ||
Authorized stock repurchase value | $ 300,000 | $ 25,000 | ||||
Payments for Repurchase of Common Stock | 0 | $ 20,007 | ||||
Remaining authorized repurchase amount | $ 45,700 | $ 45,700 |
Segment Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Oct. 02, 2015
USD ($)
|
Dec. 31, 2014
segment
|
Sep. 30, 2016
USD ($)
|
Oct. 02, 2015
USD ($)
|
Sep. 26, 2014
segment
|
Feb. 29, 2016 |
|||
Segment Reporting Information [Line Items] | |||||||||
Provision for excess and obsolete inventories | $ 6,246 | $ 1,234 | |||||||
Revenue, Net | $ 101,406 | $ 83,305 | 292,809 | 290,424 | |||||
Income (loss) from operations | (11,933) | (6,257) | (50,807) | (6,587) | |||||
Operating Expenses | (63,296) | (52,488) | (193,864) | (162,231) | |||||
Stock-based compensation | (2,680) | (3,827) | (8,542) | (11,845) | |||||
Amortization of intangibles | (4,389) | (1,532) | (12,711) | (4,971) | |||||
Nonoperating Income (Expense) | (4,321) | 178 | (10,546) | (2,702) | |||||
Loss before income taxes | (16,254) | (6,079) | (61,353) | (9,289) | |||||
Number of Reportable Segments | segment | 2 | 1 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||
Video [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue, Net | 91,353 | 71,889 | 246,949 | 219,378 | |||||
Cable Edge [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue, Net | 10,053 | 11,416 | 45,860 | 71,046 | |||||
Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income (loss) from operations | 119 | (388) | (9,061) | 10,968 | |||||
Operating Segments [Member] | Video [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income (loss) from operations | 4,886 | 3,575 | (1,943) | 8,386 | |||||
Operating Segments [Member] | Cable Edge [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Provision for excess and obsolete inventories | 4,400 | ||||||||
Income (loss) from operations | (4,767) | (3,963) | (7,118) | 2,582 | |||||
Corporate, Non-Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating Expenses | [1] | $ (4,983) | $ (510) | $ (20,493) | $ (739) | ||||
|
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 (remaining three months) | $ 3,320 |
2016 | 12,641 |
2017 | 11,952 |
2018 | 10,318 |
2019 | 7,598 |
Thereafter | 10,551 |
Total | $ 56,380 |
Commitments and Contingencies - Summary of Warranty Accrual Included in Accrued Liabilities (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Oct. 02, 2015 |
Sep. 30, 2016 |
Oct. 02, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Balance at beginning of period | $ 5,095 | $ 4,167 | $ 3,913 | $ 4,242 |
Balance assumed from TVN acquisition | 0 | 1,012 | ||
Accrual for current period warranties | 1,552 | 1,182 | 4,527 | 4,308 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | (99) | 0 | (173) | (93) |
Warranty costs incurred | (1,469) | (1,448) | (4,200) | (4,556) |
Balance at end of period | $ 5,079 | $ 3,901 | $ 5,079 | $ 3,901 |
Commitments and Contingencies - Additional Information (Detail) € in Millions |
1 Months Ended | 3 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2012
Patents
|
Oct. 30, 2011
Patents
|
Sep. 30, 2016
USD ($)
|
Jul. 01, 2016
USD ($)
|
Apr. 01, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Feb. 29, 2016
EUR (€)
|
|
Other Commitments [Line Items] | |||||||
Non-cancelable purchase commitments | $ 21,700,000 | ||||||
Maximum amount of potential future payments under the company's financial guarantees | 700,000 | ||||||
Business Acquisition, Preacquisition Contingency, Amount of Settlement | 2,500,000 | $ 3,500,000 | |||||
Business Combination, Contingent Consideration, Liability, Current | 0 | ||||||
Loss Contingency, Patents Allegedly Infringed, Number | Patents | 1 | 2 | |||||
Guarantee Obligations [Member] | |||||||
Other Commitments [Line Items] | |||||||
Guarantees related to rent obligations | 1,900,000 | ||||||
Indemnification [Member] | |||||||
Other Commitments [Line Items] | |||||||
Accrual for indemnification provisions | 0 | ||||||
Israel [Member] | Guarantee Obligations [Member] | |||||||
Other Commitments [Line Items] | |||||||
Guarantees related to rent obligations | 400,000 | ||||||
TVN [Member] | Guarantee Obligations [Member] | |||||||
Other Commitments [Line Items] | |||||||
Guarantees related to rent obligations | 1,300,000 | ||||||
TVN [Member] | |||||||
Other Commitments [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | 0 | ||||||
Business Combination, Contingent Consideration, Liability, Current | $ 8,000,000 | ||||||
TVN's 2015 revenue, difference as converted from euros to US dollars [Member] | TVN [Member] | |||||||
Other Commitments [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 75,000,000 | ||||||
TVN's 2015 revenue, difference as converted from euros to US dollars [Member] | Maximum [Member] | TVN [Member] | |||||||
Other Commitments [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | 83,300,000 | € 76 | |||||
TVN's 2015 backlog [Member] | Maximum [Member] | TVN [Member] | |||||||
Other Commitments [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 5,000,000 | ||||||
Cash Earnout [Member] | TVN [Member] | |||||||
Other Commitments [Line Items] | |||||||
Other Payments to Acquire Businesses | $ 2,500,000 | $ 3,500,000 |
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