NOTE 10: EMPLOYEE BENEFIT PLANS

Harmonic grants stock options and restricted stock units (“RSUs”) pursuant to stockholder approved equity incentive plans. These equity incentive plans are described in detail in Note 13, Employee Benefit Plans, of Notes to Consolidated Financial Statements in the 2012 Form 10-K

Stock Options and Restricted Stock Units. The following table summarizes the Company’s stock option and RSU unit activity during the three months ended March 29, 2013 (in thousands, except per share amounts):


				Stock Options Outstanding					Restricted Stock Units Outstanding
	Shares Available for Grant			Number of Shares			Weighted Average Exercise Price		Number of Units			Weighted Average Grant Date Fair Value
Balance at December 31, 2012		10,155			8,900		$	6.83		3,938		$	6.44
Authorized		—			—			—		—			—
Granted		(2,914	)		1,251			5.77		1,109			5.75
Options exercised		—			(191	)		2.95		—			—
Shares released		—			—			—		(918	)		6.06
Forfeited or cancelled		944			(630	)		6.18		(213	)		6.82

Balance at March 29, 2013		8,185			9,330		$	6.81		3,916		$	6.32

The following table summarizes information about stock options outstanding as of March 29, 2013 (in thousands, except per share amounts):


	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Vested and expected to vest		9,071	$	6.83		3.4	$	3,053
Exercisable		6,518		7.17		2.4		2,187

The intrinsic value of options vested and expected to vest and exercisable as of March 29, 2013 is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of March 29, 2013. The intrinsic value of options exercised during the three months ended March 29, 2013 was $0.5 million and is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date.

The following table summarizes information about restricted stock units outstanding as of March 29, 2013 (in thousands, except per share amounts):


	Number of Shares Underlying Restricted Stock Units		Weighted Average Remaining Vesting Period (Years)		Aggregate Fair Value (1)
Vested and expected to vest		3,622		1.2	$	20,972

(1)	Represents the fair value of the Company’s common stock as of March 29, 2013, times the number of restricted stock units vested and expected to vest as of the same date.

401-K Plan. Harmonic has a retirement/savings plan which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. Prior to 2009, Harmonic made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. Harmonic’s contributions were suspended from 2009 through 2012, but have been renewed, on the same basis, for 2013.