Restructuring and Excess Facilities

12 Months Ended

Dec. 31, 2011

Restructuring and Excess Facilities [Abstract]

RESTRUCTURING AND EXCESS FACILITIES

NOTE 9: RESTRUCTURING AND EXCESS FACILITIES

The Company has recorded restructuring and excess facilities charges beginning in 2001 and throughout subsequent years as a result of changing conditions in the use of its facilities in the United States and the United Kingdom. The initial expenses that had been recorded to selling, general and administrative expense and the related liabilities have been adjusted periodically for changes in sublease income estimates.

In 2008, the Company recorded charges in selling, general and administrative expenses for excess facilities of $1.2 million from a revised estimate of expected sublease income of a Sunnyvale building and $0.2 million from a revised estimate of expected sublease income of two buildings in the United Kingdom. The Sunnyvale lease terminated in September 2010 and the United Kingdom lease terminated in October 2010.

In the first quarter of 2009, the Company recorded a total of $7.4 million of expenses related to activities resulting from the Scopus acquisition, including the termination of approximately 65 Scopus employees. A charge of $6.3 million was recorded in cost of revenue, consisting of excess and obsolete inventories expenses from product discontinuances and severance expenses for terminated Scopus employees. Research and development expenses were $0.6 million for terminated Scopus employees. Selling, general and administrative expenses totaled $0.5 million, consisting primarily of severance expenses for terminated Scopus employees. Substantially all of the severance was paid during the first quarter of 2009.

In the second quarter of 2009, the Company recorded an excess facilities expense of $0.3 million related to the closure of the Scopus New Jersey office. In addition, a charge of $0.5 million was recorded in selling, general and administrative expenses related to severance expenses for terminated Scopus employees and a charge totaling $0.5 million was recorded in cost of revenue and operating expenses related to severance expenses for other terminated employees. Substantially all of the severance was paid during the year ended December 31, 2009.

In the fourth quarter of 2010, the Company recorded an excess facilities charge 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 as necessary, based on changes in the timing and amounts of expected sublease rental income.

The following table summarizes the activities in the restructuring accrual during the years ended December 31, 2011, 2010 and 2009:

	Excess Facilities			Campus Consolidation			UK Closure			Scopus Facilities			Total
	(In thousands)
Balance at December 31, 2008	$	7,196		$	3,860		$	320		$	—		$	11,376
Provisions		—			101			42			352			495
Cash payments, net of sublease income		(4,079	)		(2,246	)		(86	)		(128	)		(6,539	)
Balance at December 31, 2009		3,117			1,715			276			224			5,332
Provisions (recoveries)		3,061			(2	)		(71	)		3			2,991
Cash payments, net of sublease income		(3,316	)		(1,713	)		(205	)		(169	)		(5,403	)
Balance at December 31, 2010		2,862			—			—			58			2,920
Provisions		517			—			—			—			517
Cash payments, net of sublease income		(786	)								(58	)		(844	)
Balance at December 31, 2011	$	2,593		$	—		$	—		$	—		$	2,593

At December 31, 2011, accrued excess facilities totaled $2.6 million, net of estimated expected sublease income, of which $1.7 million was included in current accrued liabilities and $0.9 million was included in other non-current liabilities. These amounts are expected to be substantially paid by June 2013. At December 31, 2010, accrued excess facilities totaled $2.9 million, net of estimated sublease income, of which $1.8 million was included in current accrued liabilities and $1.1 million was included in other non-current liabilities.