Restructuring and Excess Facilities

9 Months Ended

Sep. 30, 2011

Restructuring and Excess Facilities [Abstract]

RESTRUCTURING AND EXCESS FACILITIES

NOTE 7: RESTRUCTURING AND EXCESS FACILITIES

In the fourth quarter of 2010, the Company recorded an excess facilities expense of $3.0 million in selling, general and administrative expenses related to the closure of the Omneon headquarters in Sunnyvale, California. The charge was based on future rent payments, net of expected sublease income, to be made through the end of the lease term in June 2013. In the first quarter of 2011, the Company recorded an additional expense of $0.5 million in selling, general and administrative expenses related to changes in expected sublease income for this property. Harmonic reassesses this liability quarterly and adjusts it, as necessary, based on changes in the timing and amounts of expected sublease rental income.

As of September 30, 2011, accrued excess facilities costs totaled $3.0 million, of which $1.7 million was included in current accrued liabilities. During the nine months ended September 30, 2011, the Company incurred cash outlays of $1.4 million related to vacated facilities, principally for lease payments, property taxes, insurance and other maintenance fees, and received sublease income of $1.1 million.

The following table summarizes the activity in the restructuring accrual during the nine months ended September 30, 2011:

	Excess Facilities
	(In thousands)
Balance at December 31, 2010	$	2,920
Provisions		517
Sublease income		1,050
Cash payments		(1,447	)
Balance at September 30, 2011	$	3,040