Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company's CODM, which for Harmonic is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Prior to the fourth quarter of 2014, the Company operated its business in one reportable segment. In connection with the 2015 annual planning process, the Company changed its operating segments to align with how the CODM expected to evaluate the financial information used to allocate resources and assess performance of the Company. The new reporting structure consists of two operating segments: Video and Cable Edge. As a result, the segment information presented has been conformed to the new operating segments for all prior periods.

The new 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 asset impairment charges, and certain other non-recurring charges to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

The following tables provide summary financial information by reportable segment (in thousands):

	Year ended December 31,
	2014			2013			2012
Net revenue:
Video	$	326,756		$	381,994		$	378,383
Cable Edge	106,801			79,946			98,488
Total consolidated net revenue	$	433,557		$	461,940		$	476,871
Operating income (loss):
Video	$	18,073		$	24,583		$	27,565
Cable Edge	1,239			(1,282		)	2,150
Total segment operating income	19,312			23,301			29,715
Unallocated corporate expenses	(3,076		)	(2,994		)	—
Stock-based compensation	(17,287		)	(16,002		)	(18,428		)
Amortization of intangibles	(20,520		)	(27,329		)	(29,204		)
Loss from operations	(21,571		)	(23,024		)	(17,917		)
Non-operating income (expense)	(224		)	(128		)	222
Loss from continuing operations before income taxes	$	(21,795	)	$	(23,152	)	$	(17,695	)

Unallocated corporate expenses include certain corporate-level operating expenses and charges such as restructuring and asset impairment charges and proxy contest related expenses.

Geographic Information

Our revenue by geographic region, based on the location at which each sale originates, and our property and equipment, net by geographic region, is summarized as follows (in thousands):

	Year ended December 31,
	2014		2013		2012
Net revenue:
United States	$	206,610	$	199,790	$	208,874
Other countries	226,947		262,150		267,997
Total	$	433,557	$	461,940	$	476,871

	As of December 31,
	2014		2013
Property and equipment, net:
United States	$	19,148	$	26,550
Israel	4,888		5,057
Other countries	3,185		3,338
Total	$	27,221	$	34,945

Customer Concentration

Net revenue from Comcast accounted for 16%, 12% and 11%, respectively, during the year ended December 31, 2014, 2013 and 2012. Other than Comcast, no customer accounted for 10% or more of the Company’s total net revenue for any of the above periods.