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Segment Information
3 Months Ended
Mar. 31, 2017
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 ( the “CODM”), which for Harmonic is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Edge. The 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.
On February 29, 2016, the Company completed its acquisition of 100% of the outstanding equity of TVN and assigned TVN to its Video operating segment.

The Company does not allocate amortization of intangibles, stock-based compensation, restructuring and related charges, TVN acquisition- and integration-related costs, 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
 
March 31, 2017
 
April 1, 2016
Net revenue:


 


  Video
$
74,342

 
$
65,008

  Cable Edge
8,601

 
16,824

Total consolidated net revenue
$
82,943

 
$
81,832

 


 


Operating loss:


 


  Video
$
(5,836
)
 
$
(7,347
)
  Cable Edge
(6,080
)
 
(1,853
)
Total segment operating loss
(11,916
)
 
(9,200
)
Unallocated corporate expenses
(3,922
)
 
(5,679
)
Stock-based compensation
(3,251
)
 
(3,094
)
Amortization of intangibles
(2,069
)
 
(2,783
)
Loss from operations
(21,158
)
 
(20,756
)
Non-operating expense, net
(3,101
)
 
(3,906
)
Loss before income taxes
$
(24,259
)
 
$
(24,662
)