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Segment Information
 12 Months Ended
Dec. 31, 2018
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 the Company 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 Access. The operating segments were determined based on the nature of the products offered. The Video segment provides 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 Access segment provides CableOS cable access 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 following table provides summary financial information by reportable segment (in thousands):

 
Year ended December 31,
 
2018
 
2017 (1)
 
2016
Video
 
 
 
 
 
Revenue
$
313,828

 
$
319,473

 
$
351,489

Gross profit
178,170

 
173,414

 
194,044

Operating income (loss)
26,170

 
(2,024
)
 
11,963

Cable Access
 
 
 
 
 
Revenue
$
89,730

 
$
38,773

 
$
54,422

Gross profit
39,029

 
8,892

 
21,174

Operating loss
(1,756
)
 
(23,154
)
 
(12,131
)
Total
 
 
 
 
 
Revenue
$
403,558

 
$
358,246

 
$
405,911

Gross profit
217,199

 
182,306

 
215,218

Operating income (loss)
24,414

 
(25,178
)
 
(168
)

(1) The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change for the fiscal year ended December 31, 2017 compared to the Company’s historical approach was an increase in operating loss of $5.9 million from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology provides greater clarity regarding the operating metrics of the Video and Cable Access business segments.
A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):

 
Year ended December 31,
 
2018
 
2017 (1)
 
2016 (1)
Total segment operating income (loss)
$
24,414

 
$
(25,178
)
 
$
(168
)
Unallocated corporate expenses (1)
(3,769
)
 
(20,767
)
 
(38,972
)
Stock-based compensation
(17,289
)
 
(16,610
)
 
(13,060
)
Amortization of intangibles
(8,367
)
 
(8,322
)
 
(14,836
)
Consolidated loss from operations
(5,011
)
 
(70,877
)
 
(67,036
)
Non-operating expense, net
(11,937
)
 
(13,830
)
 
(13,394
)
Loss before income taxes
$
(16,948
)
 
$
(84,707
)
 
$
(80,430
)

(1) For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Access product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.
Unallocated Corporate Expenses
Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges, TVN acquisition- and integration-related costs, and certain other non-recurring charges to the operating income (loss) 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.

Geographic Information
The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands):
 
Year ended December 31,
 
2018
 
2017
 
2016
Net revenue (1):
 
 
 
 
 
   United States
$
181,965

 
$
131,773

 
$
171,016

   Other countries
221,593

 
226,473

 
234,895

      Total
$
403,558

 
$
358,246

 
$
405,911

(1) Revenue is attributed to countries based on the location of the customer.

Other than the U.S., no single country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2018, 2017 and 2016.
 
As of December 31,
 
2018
 
2017
Property and equipment, net:
 
 
 
   United States
$
10,376

 
$
13,786

   Israel
6,975

 
8,904

   France
3,519

 
4,573

   Other countries
1,451

 
2,002

      Total
$
22,321

 
$
29,265


Customer Concentration
Net revenue from Comcast accounted for 15% of the Company’s total net revenue during the year ended December 31, 2018. During the years ended December 31, 2017 and 2016, no single customer accounted for more than 10% of our net revenue.