Rendering

Component: (Network and Table)
Network
2313301 - Disclosure - Certain Balance Sheet Components (Tables)
(http://www.harmonicinc.com/role/CertainBalanceSheetComponentsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000851310 (http://www.sec.gov/CIK)
Balance Sheet Related Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Balance Sheet Related Disclosures [Abstract]
 
Prepaid Expenses and Other Current Assets
The following tables provide details of selected balance sheet components (in thousands):
 
December 31,
 
2016
 
2015
Prepaid expenses and other current assets:
 
 
 
   Deferred cost of revenue
$
6,856

 
$
4,601

   French R&D tax credits receivables (1)
5,895

 
—

   Prepaid maintenance, royalty, rent, property taxes and value added tax
5,526

 
7,167

   Prepaid customer incentive (2)
1,162

 
—

   Restricted cash (3)
731

 
1,093

   Prepaid inventories to contract manufacturer (4)
—

 
8,500

   Other
6,149

 
3,642

      Total
$
26,319

 
$
25,003


(1) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government and during the second quarter of 2016, the French government approved the 2012 claim and refunded $5.8 million to the TVN French Subsidiary. The remaining R&D tax credit receivables at December 31, 2016 were approximately $25.7 million and are expected to be recoverable from 2017 through 2020 with $5.9 million reported under “Prepaid and other Current Assets” and $19.8 million reported under “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.
(2) On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions. The Warrant issued to Comcast is considered an incentive for Comcast to purchase certain of the Company’s products. Therefore the value of the Warrant will be recorded as a reduction in the Company’s net revenues to the extent such value does not exceed net revenues from pertinent sales to Comcast. The portion of the Warrant which vested on September 26, 2016 had a value of $1.6 million and is deemed a customer incentive paid upfront and in the fourth quarter of 2016, $0.4 million of this prepaid incentive has been recorded as a reduction to the Company’s 2016 net revenues from Comcast and remaining $1.2 million of this prepaid incentive is recorded as an asset under “Prepaid expenses and other current assets” on the Company’s Consolidated Balance Sheet as of December 31, 2016.
(3) The restricted cash balances are held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of December 31, 2016, the Company had approximately $1.1 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.
(4) From time to time, the Company makes advance payment to a supplier for future inventory in order to secure more favorable pricing. The advance payment balance at December 31, 2015 was fully offset in 2016 against the accounts payable owed to this supplier. No advance payment to this supplier was outstanding at December 31, 2016.
  
Inventories
 
December 31,
 
2016
 
2015
Inventories:
 
 
 
   Raw materials
$
9,889

 
$
5,421

   Work-in-process
2,318

 
1,950

   Finished goods
17,776

 
19,827

   Service-related spares
11,210

 
11,621

      Total
$
41,193

 
$
38,819

  
Property and Equipment
 
December 31,
 
2016
 
2015
Property and equipment, net:
 
 
 
   Machinery and equipment
$
97,989

 
$
93,010

   Capitalized software
34,519

 
29,391

   Leasehold improvements
14,455

 
10,000

   Furniture and fixtures
8,993

 
7,808

      Property and equipment, gross
155,956

 
140,209

      Less: accumulated depreciation and amortization
(123,792
)
 
(113,197
)
         Total
$
32,164

 
$
27,012

  
Accrued Liabilities
 
December 31,
 
2016
 
2015
Accrued and other current liabilities:
 
 
 
   Accrued employee compensation and related expenses
$
19,377

 
$
12,083

Accrued TVN VDP, current  (1)
6,597

 
—

   Accrued warranty
4,862

 
3,913

Customer deposits
4,537

 
953

Contingent inventory reserves
2,210

 
1,315

Accrued royalty payments
1,912

 
873

   Other
15,655

 
12,217

      Total
$
55,150

 
$
31,354

  
Other Non-current Liabilities
 
December 31,
 
2016
 
2015
Other non-current Liabilities:
 
 
 
   Deferred revenue, long-term
$
4,652

 
$
3,093

   Pension, long-term
4,237

 
—

   Deferred rent, long-term
4,226

 
6,340

   Accrued TVN VDP, long-term (1)
3,053

 
—

   Other
2,263

 
294

      Total
$
18,431

 
$
9,727

(1) See Note 11, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.