Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

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



	Year ended December 31,
	2019		2018⁽¹⁾			2017
Video
Revenue	$	278,028	$	313,828		$	319,473
Gross profit	162,156		178,170			173,414
Operating income (loss)	15,837		26,170			(2,024		)
Cable Access
Revenue	$	124,846	$	89,730		$	38,773
Gross profit	68,548		39,029			8,892
Operating income (loss)	22,171		(1,756		)	(23,154		)
Total
Revenue	$	402,874	$	403,558		$	358,246
Gross profit	230,704		217,199			182,306
Operating income (loss)	38,008		24,414			(25,178		)

(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.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

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,
	2019			2018			2017⁽¹⁾
Total segment operating income (loss)	$	38,008		$	24,414		$	(25,178	)
Unallocated corporate expenses ⁽¹⁾	(4,532		)	(3,769		)	(20,767		)
Stock-based compensation	(12,074		)	(17,289		)	(16,610		)
Amortization of intangibles	(8,319		)	(8,367		)	(8,322		)
Consolidated income (loss) from operations	13,083			(5,011		)	(70,877		)
Loss on debt extinguishment	(5,695		)	—			—
Non-operating expense, net	(13,984		)	(11,937		)	(13,830		)
Loss before income taxes	(6,596		)	$	(16,948	)	$	(84,707	)

(1) For the year ended December 31, 2017, the unallocated corporate expenses included acquisition- and integration-related costs, French VDP costs (see Note 11, “Restructuring and Related charges,” for more information on French VDP) and Cable Access product line inventory obsolescence costs, totaling $7.9 million. In addition, in fiscal 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 20, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.

Summary of Revenue, Property and Equipment, Net by Geographic Region

The geographic distribution of Harmonic’s revenue and property and equipment, net is summarized in the tables below (in thousands):



	Year ended December 31,
	2019		2018		2017
Net revenue ⁽¹⁾:
United States	$	202,272	$	181,965	$	131,773
Other countries	200,602		221,593		226,473
Total	$	402,874	$	403,558	$	358,246

(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, 2019, 2018 and 2017.

Reconciliation of Assets from Segment to Consolidated [Table Text Block]



	As of December 31,
	2019		2018
Property and equipment, net:
United States	$	13,301	$	10,376
Israel	5,919		6,975
France	2,615		3,519
Other countries	1,093		1,451
Total	$	22,928	$	22,321