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Restructuring and Related Charges | 9 Months Ended
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Sep. 28, 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 | Nine months ended
| September 28, 2018 |  | September 29, 2017 | September 28, 2018 |  | September 29, 2017
Restructuring and related charges in: |  |  |  |  |  |
Cost of revenue | $ | 7 |  |  | $ | 549 |  | $ | 884 |  |  | $ | 1,335 |
Operating expenses - Restructuring and related charges | 987 |  |  | 2,028 |  | 2,704 |  |  | 4,084 |
Total restructuring and related charges | $ | 994 |  |  | $ | 2,577 |  | $ | 3,588 |  |  | $ | 5,419 |
As of September 28, 2018 and December 31, 2017, the Company’s total restructuring liability was $6.4 million and $8.0 million, respectively, of which $3.8 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. The following table summarizes the activities related to the Company’s restructuring plans during the nine months ended September 28, 2018 (in thousands):
| Harmonic 2016 Restructuring Plan |  | Harmonic 2017 Restructuring Plan |  | Harmonic 2018 Restructuring Plan |
| Excess facilities |  | TVN VDP |  | Excess facilities |  | Severance and benefits |  | Excess facilities |  | Severance and benefits |  | Total
Balance at December 31, 2017 | $ | 2,426 |  |  | $ | 5,128 |  |  | $ | 296 |  |  | $ | 193 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,043 |
Charges for current period | — |  |  | — |  |  | — |  |  | — |  |  | 932 |  |  | 2,124 |  |  | 3,056 |
Adjustments to restructuring provisions | 99 |  |  | 504 |  |  | — |  |  | — |  |  | 1 |  |  | (72 | ) |  | 532 |
Reclassification of deferred rent | — |  |  | — |  |  | — |  |  | — |  |  | 332 |  |  | — |  |  | 332 |
Cash payments | (755 | ) |  | (2,363 | ) |  | (109 | ) |  | (193 | ) |  | (51 | ) |  | (2,046 | ) |  | (5,517 | )
Foreign exchange effect | — |  |  | (81 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (81 | )
Balance at September 28, 2018 | $ | 1,770 |  |  | $ | 3,188 |  |  | $ | 187 |  |  | $ | — |  |  | $ | 1,214 |  |  | $ | 6 |  |  | $ | 6,365 |
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 September 28, 2018, the Company recorded an aggregate amount of $2.1 million of restructuring and related charges for severance and employee benefits for 59 employees worldwide, primarily in the United States and across all functions. The Company made $2.0 million in payments for this plan in the nine months ended September 28, 2018. The activities under this plan are expected to be completed in 2018. Excess Facility in San Jose, California In August 2018, the Company exited an additional excess facility at its U.S. headquarters in San Jose, California and recorded $0.9 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 $1.2 million. Offsetting these charges was an adjustment for deferred rent liability relating to this space of $0.3 million. 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 September 28, 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 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 nine months ended September 28, 2018 and September 29, 2017, respectively. The TVN VDP liability balance as of September 28, 2018 was $3.2 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.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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