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Segment Information
 9 Months Ended
Oct. 02, 2015
Segment Reporting [Abstract]  
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 ( “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):


 
Three months ended
 
Nine months ended
 
October 2, 2015
 
September 26, 2014
 
October 2, 2015
 
September 26, 2014
Net revenue:


 


 


 


  Video
$
71,889

 
$
81,360

 
$
219,378

 
$
239,823

  Cable Edge
11,416

 
26,701

 
71,046

 
85,859

Total consolidated net revenue
$
83,305

 
$
108,061

 
$
290,424

 
$
325,682

 


 


 


 


Operating income (loss):


 


 


 


  Video
$
3,575

 
$
6,609

 
$
8,386

 
$
9,426

  Cable Edge
(3,963
)
 
120

 
2,582

 
3,178

Total segment operating income (loss)
(388
)
 
6,729

 
10,968

 
12,604

Unallocated corporate expenses*
(510
)
 
(403
)
 
(739
)
 
(915
)
Stock-based compensation
(3,827
)
 
(4,352
)
 
(11,845
)
 
(12,720
)
Amortization of intangibles
(1,532
)
 
(5,512
)
 
(4,971
)
 
(18,378
)
Loss from operations
(6,257
)
 
(3,538
)
 
(6,587
)
 
(19,409
)
Non-operating income (expense)
178

 
(214
)
 
(2,702
)
 
(185
)
Loss before income taxes
$
(6,079
)
 
$
(3,752
)
 
$
(9,289
)
 
$
(19,594
)

*Unallocated corporate expenses include certain corporate-level operating expenses and charges such as restructuring and related charges.