Benefit Plans (Tables)

6 Months Ended

Jul. 01, 2011

Benefit Plans [Abstract]

Summary of share-based award activity

	Shares
	Available for
	Grant
	(In thousands)
Balance at December 31, 2010		10,449
Options granted		(833	)
Restricted stock units granted		(2,469	)
Options cancelled		384
Restricted stock units cancelled		591
Options expired		40
Balance at July 1, 2011		8,162

Restricted stock unit activity under the Plans

				Weighted
	RSU’s			Average Fair		Aggregate Fair
	Outstanding			Value Per Share		Value(1)
	(In thousands, except per share data)
Balance at December 31, 2010		4,507		$	6.43
Restricted stock units granted		1,646			9.50
Restricted stock units vested		(922	)		6.31	$	8,250
Restricted stock units cancelled		(718	)		6.80
Balance at July 1, 2011		4,513			7.51

(1) Represents the fair value of Harmonic common stock on the date that each of the restricted stock units vested. On the grant date, the fair value for these awards was $5.8 million.

Stock option activity under the Plans

				Average
	Stock Options			Exercise Price
	Outstanding			Per Option
	(In thousands, except per option data)
Balance at December 31, 2010		11,020		$	6.90
Options granted		833			9.63
Options exercised		(1,714	)		6.33
Options cancelled		(507	)		7.55
Options expired		(384	)		9.11
Balance at July 1, 2011		9,248			7.12
Options vested and exercisable at July 1, 2011		6,492
Options vested and expected-to-vest at July 1, 2011		9,122

Stock options outstanding

	Stock Options Outstanding						Stock Options Exercisable
			Weighted
			Average		Weighted				Weighted
	Number		Remaining		Average		Number		Average
	Outstanding at		Contractual Life		Exercise Price		Exercisable at		Exercise Price
	July 1, 2011		(In Years)		Per Option		July 1, 2011		Per Option
			(In thousands, except per option data)
Range of Exercise Prices
$0.19 - 5.14		1,467		5.9	$	2.77		866	$	3.12
5.18 - 5.87		1,483		3.6		5.76		1,097		5.79
5.88 - 8.12		1,036		4.8		6.65		509		6.72
8.17 - 8.17		1,895		3.7		8.17		1,523		8.17
8.20 - 8.65		1,332		2.7		8.25		1,313		8.25
8.69 - 9.69		1,398		5.0		9.39		555		9.04
9.74 - 16.73		637		1.2		10.63		629		10.63
		9,248		4.0	$	7.12		6,492	$	7.31

Stock-based compensation costs

	Three months ended						Six months ended
	July 1, 2011			July 2, 2010			July 1, 2011		July 2, 2010
				(In thousands)
Employee stock-based compensation in:
Cost of revenue	$	762		$	527		$	1,509	$	1,006
Research and development expense		1,771			1,158			3,607		2,266
Selling, general and administrative expense		2,559			1,734			5,978		3,391
Total employee stock-based compensation in operating expense		4,330			2,892			9,585		5,657
Total employee stock-based compensation		5,092			3,419			11,094		6,663
Amount capitalized in inventory		(14	)		(5	)		—		25
Total stock-based compensation	$	5,078		$	3,414		$	11,094	$	6,688

Weighted average assumptions of fair value option grants

	Employee Stock Options
	Three months ended						Six months ended
	July 1, 2011			July 2, 2010			July 1, 2011			July 2, 2010
Expected life (in years)		4.75			4.75			4.75			4.75
Volatility		52	%		55	%		54	%		56	%
Risk-free interest rate		2.5	%		2.2	%		2.1	%		2.4	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%

	Employee Stock Purchase Plan Awards
	Three months ended						Six months ended
	July 1, 2011			July 2, 2010			July 1, 2011			July 2, 2010
Expected life (in years)		0.50			0.50			0.50			0.50
Volatility		43	%		50	%		43	%		50	%
Risk-free interest rate		0.3	%		0.4	%		0.3	%		0.4	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%