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Restructuring and Related Charges | 6 Months Ended
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Jun. 29, 2018
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to 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 related charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges” in the Condensed Consolidated Statements of Operations. The following table summarizes the restructuring and related charges (in thousands):
| Three months ended | Six months ended
| June 29, 2018 |  | June 30, 2017 | June 29, 2018 |  | June 30, 2017
Restructuring and related charges in: |  |  |  |  |  |
Cost of revenue | $ | 115 |  |  | $ | 278 |  | $ | 877 |  |  | $ | 786 |
Operating expenses - Restructuring and related charges | 631 |  |  | 777 |  | 1,717 |  |  | 2,056 |
Total restructuring and related charges | $ | 746 |  |  | $ | 1,055 |  | $ | 2,594 |  |  | $ | 2,842 |
As of June 29, 2018 and December 31, 2017, the Company’s total restructuring liability was $6.1 million and $8.0 million, respectively, of which $3.5 million and $4.4 million, respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $2.6 million and $3.6 million, respectively, were reported as a component of “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets. Harmonic 2018 Restructuring In the first quarter of 2018, the Company approved and implemented a restructuring plan (the “Harmonic 2018 Restructuring Plan”). The restructuring activities under this plan primarily include worldwide workforce reductions of the Company. As of June 29, 2018, the Company recorded an aggregate amount of $1.8 million of restructuring and related charges for severance and employee benefits for 55 employees worldwide, primarily in the United States and across all functions. The Company made $1.7 million in payments for this plan in the six months ended June 29, 2018, with the remaining $0.1 million liability outstanding at June 29, 2018. The activities under this plan are expected to be completed in 2018. Harmonic 2017 Restructuring In the third quarter of 2017, the Company implemented a restructuring plan (the “Harmonic 2017 Restructuring Plan”) to better align its operating costs with the continued decline in its net revenues. In 2017, the Company recorded $2.5 million of restructuring and related charges under this plan, consisting of $2.1 million of employee severance and $0.4 million related to the closure of one of the Company’s offices in New York. The activities under this plan were completed in 2017. As of June 29, 2018, the remaining $0.2 million liability outstanding relates to the accrual for the New York excess facility, which will be paid out over the remainder of the New York leased property’s term through August 2020. Harmonic 2016 Restructuring In the first quarter of 2016, the Company implemented a restructuring plan (the “Harmonic 2016 Restructuring Plan”) to reduce operating costs by consolidating duplicative resources in connection with the acquisition of Thomson Video Networks (“TVN”). The planned activities included global workforce reductions, exiting certain operating facilities and disposing of excess areas, and an employee voluntary departure plan in France (the “TVN VDP”). In 2016, the Company recorded an aggregate of $20.0 million of restructuring and related charges under the Harmonic 2016 Restructuring Plan, of which $2.2 million was primarily related to the Company exiting from an excess facility at its U.S. headquarters and the remaining $17.8 million was related to severance and benefits for the termination of 118 employees worldwide, including 83 employees in France who participated in the TVN VDP. The restructuring and related charges under the Harmonic 2016 Restructuring Plan in 2016 were partially offset by approximately $2.0 million of gain from TVN pension curtailment. TVN VDP The Company recorded $0.5 million and $1.8 million of TVN VDP costs in the six months ended June 29, 2018 and June 30, 2017, respectively. The TVN VDP liability balance as of June 29, 2018 was $3.8 million, payable from 2018 through 2020. Excess Facility in San Jose, California In January 2016, the Company exited an excess facility at its U.S. headquarters in San Jose, California and recorded $1.4 million of facility exit costs. The fair value of this liability is based on a net present value model using a credit-adjusted risk-free rate. The liability will be paid out over the remainder of the leased properties’ term, which continues through August 2020. As of the cease-use date, the fair value of this restructuring liability totaled $2.5 million. Offsetting this charge was an adjustment for deferred rent liability relating to this space of $1.1 million. As a result of a change in the estimate of the sublease income, the restructuring liability was increased by $1.2 million as of December 31, 2017. The following table summarizes the activity in the Company’s restructuring accrual related to the Harmonic 2016 Restructuring Plan during the six months ended June 29, 2018 (in thousands):
| Excess facilities |  | TVN VDP (1) |  | Total
Balance at December 31, 2017 | $ | 2,426 |  |  | $ | 5,128 |  |  | $ | 7,554 |
Adjustments to restructuring provisions | 66 |  |  | 477 |  |  | 543 |
Cash payments | (502 | ) |  | (1,653 | ) |  | (2,155 | )
Foreign exchange gain | — |  |  | (107 | ) |  | (107 | )
Balance at June 29, 2018 | 1,990 |  |  | 3,845 |  |  | 5,835 |
Less: current portion (1) | (900 | ) |  | (2,446 | ) |  | (3,346 | )
Long-term portion (1) | $ | 1,090 |  |  | $ | 1,399 |  |  | $ | 2,489 |
(1) The current portion and long-term portion of the restructuring liability are reported as components of “Accrued and other current liabilities” and “Other non-current liabilities”, respectively, on the Company’s Condensed Consolidated Balance Sheets.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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