SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engages 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 Access. 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 Access segment sells cable access solutions and related services to cable operators globally.

The following table provides summary financial information by reportable segment (in thousands):



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019		September 28, 2018
Video
Revenue	$	60,055		$	73,344		$	198,856	$	224,300
Gross profit	34,646			41,937			114,692		126,721
Operating income (loss)	(1,696		)	5,258			4,731		13,492
Cable Access
Revenue	$	55,670		$	27,272		$	81,840	$	65,603
Gross profit	42,925			10,081			52,056		28,513
Operating income (loss)	31,611			(395		)	18,523		(1,763		)
Total
Revenue	$	115,725		$	100,616		$	280,696	$	289,903
Gross profit	77,571			52,018			166,748		155,234
Operating income	$	29,915		$	4,863		$	23,254	$	11,729

A reconciliation of the Company’s consolidated segment operating income to consolidated income (loss) before income taxes is as follows (in thousands):



	Three months ended						Nine months ended
	September 27, 2019			September 28, 2018			September 27, 2019			September 28, 2018
Total segment operating income	$	29,915		$	4,863		$	23,254		$	11,729
Unallocated corporate expenses	(1,190		)	(994		)	(1,916		)	(3,582		)
Stock-based compensation	(4,096		)	(5,433		)	(8,719		)	(14,202		)
Amortization of intangibles	(2,080		)	(2,087		)	(6,242		)	(6,281		)
Income (loss) from operations	22,549			(3,651		)	6,377			(12,336		)
Non-operating expense, net	(10,289		)	(3,237		)	(16,890		)	(9,190		)
Income (loss) before income taxes	$	12,260		$	(6,888	)	$	(10,513	)	$	(21,526	)

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



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Net Revenue (in thousands) ⁽¹⁾
United States	$	73,566	$	44,694	$	139,391	$	126,938
Other Countries	42,159		55,922		141,305		162,965
Total	$	115,725	$	100,616	$	280,696	$	289,903

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

Market Information



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Market (in thousands)
Service Provider	$	77,886	$	66,737	$	165,536	$	173,096
Broadcast and Media	37,839		33,879		115,160		116,807
Total	$	115,725	$	100,616	$	280,696	$	289,903