Restructuring and Related Charges

3 Months Ended

Mar. 28, 2014

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED CHARGES

Harmonic 2013 Restructuring

In the first quarter of fiscal 2013, the Company committed to a restructuring plan to reduce costs and improve efficiencies. This restructuring plan extended to actions taken through the first quarter of fiscal 2014. In fiscal 2013, the Company recorded $2.2 million of restructuring charges under this plan consisting of worldwide workforce reductions, writing down leasehold improvements and furniture related to its Milpitas warehouse to estimated net realizable value, and obsolete inventory at its Israel facilities. The restructuring charges were included in “Product cost of revenue” and "Operating expenses-restructuring and related charges” in the Condensed Consolidated Statements of Operations. Of the $2.2 million restructuring charges in fiscal 2013, $565,000 was recorded in the three months ended March 29, 2013. For a complete discussion of the restructuring actions related to the 2013 restructuring plan, please refer to Note 9 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

The restructuring charges in the three months ended March 28, 2014 were $228,000 under this plan, of which $79,000 is included in "Product cost of revenue" and $149,000 is included in "Operating expenses-restructuring and related charges" in the Consolidated Statements of Operations. The restructuring charges consisted of severance and benefits related to the termination of eight employees worldwide and costs associated with vacating from excess facility in France. The following table summarizes the activity in the restructuring accrual during the three months ended March 28, 2014 (in thousands):



	Severance			Excess facilities		Total
Balance at December 31, 2013	$	179		$	—	$	179
Restructuring charges in continuing operations	196			32		228
Cash payments	(274		)	—		(274		)
Balance at March 28, 2014	$	101		$	32	$	133

The Company anticipates that the remaining restructuring accrual balance of $133,000 will be substantially paid out by the second quarter of fiscal 2014.

HFC Restructuring

As a result of the sale of the cable access HFC business in March 2013, the Company recorded $600,000 of restructuring charges under "Income from discontinued operations" in fiscal 2013 consisting of severance and benefits and contact termination costs. For a complete discussion of the restructuring actions related to the HFC restructuring plan, please refer to Note 9 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

The remaining restructuring accrual balance of $13,000 as of December 31, 2013 was fully paid in the first quarter of fiscal 2014.

- 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.

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