Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Preferred Stock

Harmonic has 5,000,000 authorized shares of preferred stock. No shares of preferred stock were issued or outstanding in any of the periods presented.

Common Stock Repurchases

In April 2012, the Board approved a stock repurchase program that provided for the repurchase of up to $25 million of the Company’s outstanding common stock. Under the program, the Company is authorized to repurchase shares of common stock in open market transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Exchange Act. From time to time, the Board may approve further increases to the program and the amount approved for this program was increased to $300 million periodically through May 2014 and the repurchase period has been extended through the end of 2016. The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including the price and availability of our shares, trading volume and general market conditions. The purchases are funded from available working capital. The program may be suspended or discontinued at any time without prior notice.

During the years ended December 31, 2015, 2014 and 2013, the Company repurchased from open market transactions 3.4 million, 13.9 million and 6.3 million shares of its common stock, respectively, at a total cost of $23.0 million, $93.1 million and $40.6 million, respectively, and at an average share price of $6.70, $6.70 and $6.48, respectively. In addition, $76.0 million, including $1.0 million of expenses, was spent in the “modified Dutch auction” tender offer, which closed on May 24, 2013. Under the tender offer, the Company repurchased 12.0 million shares of its common stock at $6.25 per share. The remaining authorized amount for repurchases under this program was $45.7 million as of December 31, 2015. The excess of cost over par value for the repurchase of the Company’s common stock is recorded to additional paid-in-capital. Common stock repurchased under the program was recorded based upon the trade date for accounting purposes. All common shares repurchased under this program have been retired.

Additionally, on December 8, 2015, the Board approved the use of part of the proceeds from the sale and issuance of the Notes, issued on December 14, 2105, (see Note 12, “Convertible Notes and Credit Facilities” for additional information on the Notes) to repurchase shares of the Company’s common stock from purchasers of the Note offering in privately negotiated transactions effected through the initial purchaser or its affiliate as the Company’s agent. Repurchases of 11.1 million shares of the Company’s common stock effected concurrently with the Note offering was completed on December 14, 2015 at a price of $4.49 per share for an aggregate purchase price of $49.9 million.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows (in thousands):

	December 31,
	2015			2014
Foreign currency translation adjustments	$	(2,634	)	$	(1,523	)
Unrealized loss on investments, net of taxes	(1,538		)	(768		)
Unrealized gain (loss) on cash flow hedges(1)	(246		)	311
Total accumulated other comprehensive loss	$	(4,418	)	$	(1,980	)

(1) See Consolidated Statements of Comprehensive Income or Loss for the amounts related to cash flow hedges that were reclassified into the Consolidated Statements of Operations for the periods presented.