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Long-Term Debt | 6 Months Ended
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Jun. 29, 2013
Long-Term Debt [Abstract] |
Long-Term Debt | Note 5 – Long-Term Debt Long-term debt consists of the following:
|  | June 29, 2013 |  |  | December 31, 2012 |
Credit facility |  | $ | 100,000 |  |  | $ | 89,000 |
Exchangeable unsecured notes, due 2102 |  |  | 95,042 |  |  |  | 95,042 |
Convertible senior debentures, due 2040 |  |  | 100,891 |  |  |  | 100,166 |
Convertible senior debentures, due 2041 |  |  | 51,760 |  |  |  | 51,399 |
Convertible senior debentures, due 2042 |  |  | 57,699 |  |  |  | 57,324 |
|  |  | 405,392 |  |  |  | 392,931 |
Less current portion |  |  | - |  |  |  | - |
|  | $ | 405,392 |  |  | $ | 392,931 |
Convertible Senior Debentures Vishay currently has three issuances of convertible senior debentures outstanding with generally congruent terms. The following table summarizes some key facts and terms regarding the three series of outstanding convertible senior debentures:
|  | Due 2040 |  |  | Due 2041 |  |  | Due 2042 |
Issuance date |  | November 9, 2010 |  |  | May 13, 2011 |  |  | May 31, 2012 |
Maturity date |  | November 15, 2040 |  |  | May 15, 2041 |  |  | June 1, 2042 |
Principal amount |  | $ | 275,000 |  |  | $ | 150,000 |  |  | $ | 150,000 |
Cash coupon rate (per annum) |  |  | 2.25 | % |  |  | 2.25 | % |  |  | 2.25 | %
Nonconvertible debt borrowing rate at issuance (per annum) |  |  | 8.00 | % |  |  | 8.375 | % |  |  | 7.50 | %
Initial conversion rate (per $1 principal amount) |  |  | 72.0331 |  |  |  | 52.5659 |  |  |  | 84.6937 |
Effective conversion price (per share) |  | $ | 13.88 |  |  | $ | 19.02 |  |  | $ | 11.81 |
130% of the conversion price (per share) |  | $ | 18.04 |  |  | $ | 24.73 |  |  | $ | 15.35 |
Call date |  | November 20, 2020 |  |  | May 20, 2021 |  |  | June 7, 2022 |
GAAP requires an issuer to separately account for the liability and equity components of the instrument in a manner that reflects the issuer's nonconvertible debt borrowing rate when interest costs are recognized in subsequent periods. The resulting discount on the debt is amortized as non-cash interest expense in future periods. The carrying values of the liability and equity components of the convertible debentures are reflected in the Company's consolidated condensed balance sheets as follows:
|  | Principal amount of the debentures |  |  | Unamortized discount |  |  | Embedded derivative |  |  | Carrying value of liability component |  |  | Equity component - net carrying value |
June 29, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 275,000 |  |  |  | (174,568 | ) |  |  | 459 |  |  | $ | 100,891 |  |  | $ | 110,094 |
Due 2041 |  | $ | 150,000 |  |  |  | (98,552 | ) |  |  | 312 |  |  | $ | 51,760 |  |  | $ | 62,246 |
Due 2042 |  | $ | 150,000 |  |  |  | (92,507 | ) |  |  | 206 |  |  | $ | 57,699 |  |  | $ | 57,874 |
Total |  | $ | 575,000 |  |  | $ | (365,627 | ) |  | $ | 977 |  |  | $ | 210,350 |  |  | $ | 230,214 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 275,000 |  |  |  | (175,456 | ) |  |  | 622 |  |  | $ | 100,166 |  |  | $ | 110,094 |
Due 2041 |  | $ | 150,000 |  |  |  | (99,000 | ) |  |  | 399 |  |  | $ | 51,399 |  |  | $ | 62,246 |
Due 2042 |  | $ | 150,000 |  |  |  | (92,958 | ) |  |  | 282 |  |  | $ | 57,324 |  |  | $ | 57,874 |
Total |  | $ | 575,000 |  |  | $ | (367,414 | ) |  | $ | 1,303 |  |  | $ | 208,889 |  |  | $ | 230,214 |
Interest is payable on the debentures semi-annually at the cash coupon rate; however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance. In addition to ordinary interest, contingent interest will accrue in certain circumstances relating to the trading price of the debentures and under certain other circumstances beginning ten years subsequent to issuance. Interest expense related to the debentures is reflected on the consolidated condensed statements of operations for the fiscal quarters ended:
|  | Contractual coupon interest |  |  | Non-cash amortization of debt discount |  |  | Non-cash amortization of deferred financing costs |  |  | Non-cash change in value of derivative liability |  |  | Total interest expense related to the debentures |
June 29, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 1,547 |  |  |  | 448 |  |  |  | 22 |  |  |  | (16 | ) |  | $ | 2,001 |
Due 2041 |  | $ | 844 |  |  |  | 226 |  |  |  | 12 |  |  |  | 1 |  |  | $ | 1,083 |
Due 2042 |  | $ | 844 |  |  |  | 227 |  |  |  | 14 |  |  |  | (3 | ) |  | $ | 1,082 |
Total |  | $ | 3,235 |  |  | $ | 901 |  |  | $ | 48 |  |  | $ | (18 | ) |  | $ | 4,166 |
June 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 1,547 |  |  |  | 414 |  |  |  | 22 |  |  |  | 71 |  |  | $ | 2,054 |
Due 2041 |  | $ | 844 |  |  |  | 209 |  |  |  | 12 |  |  |  | 109 |  |  | $ | 1,174 |
Due 2042 |  | $ | 291 |  |  |  | 74 |  |  |  | 5 |  |  |  | 42 |  |  | $ | 412 |
Total |  | $ | 2,682 |  |  | $ | 697 |  |  | $ | 39 |  |  | $ | 222 |  |  | $ | 3,640 |
Interest expense related to the debentures is reflected on the consolidated condensed statements of operations for the six fiscal months ended:
|  | Contractual coupon interest |  |  | Non-cash amortization of debt discount |  |  | Non-cash amortization of deferred financing costs |  |  | Non-cash change in value of derivative liability |  |  | Total interest expense related to the debentures |
June 29, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 3,094 |  |  |  | 888 |  |  |  | 44 |  |  |  | (163 | ) |  | $ | 3,863 |
Due 2041 |  | $ | 1,688 |  |  |  | 448 |  |  |  | 24 |  |  |  | (87 | ) |  | $ | 2,073 |
Due 2042 |  | $ | 1,688 |  |  |  | 451 |  |  |  | 27 |  |  |  | (76 | ) |  | $ | 2,090 |
Total |  | $ | 6,470 |  |  | $ | 1,787 |  |  | $ | 95 |  |  | $ | (326 | ) |  | $ | 8,026 |
June 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 3,094 |  |  |  | 821 |  |  |  | 44 |  |  |  | (33 | ) |  | $ | 3,926 |
Due 2041 |  | $ | 1,688 |  |  |  | 413 |  |  |  | 24 |  |  |  | 34 |  |  | $ | 2,159 |
Due 2042 |  | $ | 291 |  |  |  | 74 |  |  |  | 5 |  |  |  | 42 |  |  | $ | 412 |
Total |  | $ | 5,073 |  |  | $ | 1,308 |  |  | $ | 73 |  |  | $ | 43 |  |  | $ | 6,497 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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