Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies and Legal Proceedings [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 18: COMMITMENTS AND CONTINGENCIES

Commitments — Leases. Harmonic leases its facilities under noncancelable operating leases which expire at various dates through December 2020. In addition, Harmonic leases vehicles in several foreign countries under noncancelable operating leases which expire in 2013. Total rent expense related to these operating leases was $7.5 million, $7.3 million and $6.7 million for the years ended December 31, 2011, 2010 and 2009, respectively. Future minimum lease payments under noncancelable operating leases at December 31, 2011, are as follows:

	Total
	(In thousands)
Year ending December 31,
2012	$	6,273
2013		7,875
2014		6,586
2015		6,613
2016		6,807
Thereafter		26,747
	$	60,901

As of December 31, 2011, $2.6 million of these future lease payments were accrued for as part of accrued excess facility costs. See Note 9 “Restructuring and Excess Facilities.”

Commitments — Royalties. Harmonic has licensed certain technologies from various companies and incorporates these technologies into its own products and is required to pay royalties for such use, usually based on shipment of the related products. In addition, Harmonic has obtained research and development grants under various Israeli government programs that require the payment of royalties on sales of certain products resulting from such research. During the years ended December 31, 2011, 2010 and 2009 royalty expenses were $2.4 million, $3.3 million and $2.6 million, respectively.

Purchase Commitments with Contract Manufacturers and Suppliers. The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. In addition, some components, sub-assemblies and modules are obtained from a sole supplier or limited group of suppliers. During the normal course of business, in order to reduce manufacturing lead times and ensure adequate component supply, the Company enters into agreements with certain contract manufacturers and suppliers that allow them to procure inventory based upon criteria as defined by the Company. The Company had $32.5 million of non-cancelable purchase commitments as of December 31, 2011.