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Long-Term Debt | 12 Months Ended
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Dec. 31, 2017
Long-Term Debt [Abstract] |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt consists of the following:
|  | December 31, 2017 |  |  | December 31, 2016 |
Credit facility |  | $ | 150,000 |  |  | $ | 143,000 |
Convertible senior debentures, due 2040 |  |  | 110,412 |  |  |  | 108,120 |
Convertible senior debentures, due 2041 |  |  | 56,641 |  |  |  | 55,442 |
Convertible senior debentures, due 2042 |  |  | 62,518 |  |  |  | 61,341 |
Deferred financing costs |  |  | (9,101 | ) |  |  | (10,880 | )
|  |  | 370,470 |  |  |  | 357,023 |
Less current portion |  |  | - |  |  |  | - |
|  | $ | 370,470 |  |  | $ | 357,023 |
Credit Facility The Company maintains a credit facility with a consortium of banks led by JPMorgan Chase Bank, N.A., as administrative agent (the "Credit Facility"). On December 10, 2015, the Company entered into an Amended and Restated Credit Agreement, which provides an aggregate commitment of $640,000 of revolving loans available until December 10, 2020. The credit agreement initially became effective December 1, 2010 and was first amended and restated on August 8, 2013. The Credit Facility, as amended and restated, also provides for the ability of Vishay to request up to $50,000 of incremental revolving commitments, subject to the satisfaction of certain conditions. Borrowings under the Amended and Restated Credit Facility bear interest at LIBOR plus an interest margin. The applicable interest margin is based on Vishay's leverage ratio. Based on Vishay's current leverage ratio, borrowings bear interest at LIBOR plus 1.75%. Vishay also pays a fee, also based on its leverage ratio, on undrawn amounts. The undrawn commitment fee, based on Vishay's current leverage ratio, is 0.35% per annum. The previous credit agreement required Vishay to pay facility fees on the entire commitment amount. The Amended and Restated Credit Facility allows an unlimited amount of defined "Restricted Payments," which include cash dividends and share repurchases, provided the Company's pro forma leverage ratio is less than 2.25 to 1. If the Company's leverage ratio is greater than 2.25 to 1, the Amended and Restated Credit Facility allows such payments up to $75,000 per annum (subject to a cap of $225,000 for the term of the facility). The borrowings under the Credit Facility are secured by a lien on substantially all assets, including accounts receivable, inventory, machinery and equipment, and general intangibles (but excluding real estate, intellectual property registered or licensed for use in, or arising under the laws of, any country other than the United States, assets located outside of the United States and deposit and securities accounts), of Vishay and certain significant subsidiaries located in the United States, and pledges of stock in certain significant domestic and foreign subsidiaries; and are guaranteed by certain significant subsidiaries. Certain of the Company's subsidiaries are permitted to borrow under the Credit Facility, subject to the satisfaction of specified conditions. Any borrowings by these subsidiaries under the Credit Facility are guaranteed by Vishay and certain subsidiaries. The Credit Facility also limits or restricts the Company and its subsidiaries, from, among other things, incurring indebtedness, incurring liens on its respective assets, making investments and acquisitions, making asset sales, and making other restricted payments (assuming the Company's leverage ratio is greater than 2.25 to 1), and requires the Company to comply with other covenants, including the maintenance of specific financial ratios. The Amended and Restated Credit Facility also removes certain restrictions related to intercompany transactions. These changes are expected to enable the Company to streamline its complex subsidiary structure and provide greater operating flexibility. Note 6 – Long-Term Debt (continued) The Credit Facility also contains customary events of default, including, but not limited to, failure to pay principal or interest, failure to pay or default under other material debt, material misrepresentation or breach of warranty, violation of certain covenants, a change of control, the commencement of bankruptcy proceedings, the insolvency of Vishay or certain of its significant subsidiaries, and the rendering of a judgment in excess of $25,000 against Vishay or certain of its significant subsidiaries. Upon the occurrence of an event of default under the Credit Facility, the Company's obligations under the credit facility may be accelerated and the lending commitments under the credit facility terminated. At December 31, 2017 and 2016, there was $486,211 and $490,136, respectively, available under the Credit Facility. Letters of credit totaling $3,789 and $6,864 were outstanding at December 31, 2017 and 2016, respectively. Convertible Senior Debentures Vishay currently has three issuances of convertible senior debentures outstanding with generally congruent terms. The quarterly cash dividend program of the Company results in adjustments to the conversion rate and effective conversion price for each issuance of the Company's convertible senior debentures effective as of the ex-dividend date of each cash dividend. The following table summarizes some key facts and terms regarding the three series of outstanding convertible senior debentures following the adjustment made to the conversion rate of the debentures on the ex-dividend date of the December 21, 2017 dividend payment:
|  | 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 | %
Conversion rate effective December 6, 2017 (per $1 principal amount) |  |  | 77.2085 |  |  |  | 56.3427 |  |  |  | 90.7787 |
Effective conversion price effective December 6, 2017 (per share) |  | $ | 12.95 |  |  | $ | 17.75 |  |  | $ | 11.02 |
130% of the conversion price (per share) |  | $ | 16.84 |  |  | $ | 23.08 |  |  | $ | 14.33 |
Call date |  | November 20, 2020 |  |  | May 20, 2021 |  |  | June 7, 2022 |
Prior to three months before the maturity date, the holders may only convert their debentures under the following circumstances: (1) during any fiscal quarter after the first full quarter subsequent to issuance, if the sale price of Vishay common stock reaches 130% of the conversion price for a specified period; (2) the trading price of the debentures falls below 98% of the product of the sale price of Vishay's common stock and the conversion rate for a specified period; (3) Vishay calls any or all of the debentures for redemption, at any time prior to the close of business on the third scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. The convertible debentures due 2042 became convertible subsequent to the December 31, 2016 evaluation of the conversion criteria, remained convertible subsequent to the April 1, 2017, July 1, 2017, and September 30, 2017 evaluations, and remain convertible subsequent to the December 31, 2017 evaluation due to the sale price of Vishay's common stock exceeding 130% of the conversion price for the applicable periods in the fourth fiscal quarter of 2016 and first, second, third, and fourth fiscal quarters of 2017. The convertible debentures due 2040 became convertible subsequent to the September 30, 2017 evaluation of the conversion criteria, and remain convertible subsequent to the December 31, 2017 evaluation due to the sale price of Vishay's common stock exceeding 130% of the conversion price for the applicable periods in the third and fourth fiscal quarters of 2017. The debentures due 2040 and due 2042 will remain convertible until March 31, 2018, at which time the conversion criteria will be reevaluated. At the direction of its Board of Directors, the Company intends, upon future conversion of any of the convertible senior debentures, to repay the principal amounts of the convertible senior debentures in cash and settle any additional amounts in shares of Vishay common stock. The excess of the amount that the Company would pay to the holders of the debentures due 2040 and due 2042 upon conversion over the carrying value of the liability component of the debentures currently convertible has been reclassified as temporary equity on the consolidated financial statements. The Company intends to finance the principal amount of any converted debentures using borrowings under its credit facility. Accordingly, the debt component of the convertible debentures due 2040 and due 2042 continues to be classified as a non-current liability on the accompanying consolidated balance sheets. Vishay must provide additional shares upon conversion if there is a "fundamental change" in the business as defined in the indenture governing the debentures. Vishay may not redeem the debentures prior to the respective call dates. On or after the call date and prior to the maturity date, Vishay may redeem for cash all or part of the debentures at a redemption price equal to 100% of the principal amount of the debentures to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, if the last reported sale price of Vishay's common stock has been at least 150% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period prior to the date on which Vishay provides notice of redemption. Note 6 – Long-Term Debt (continued) 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 accompanying consolidated balance sheets as follows:
|  | Principal amount of the debentures |  |  | Unamortized discount |  |  | Embedded derivative |  |  | Carrying value of liability component |  |  | Equity component (including temporary equity) - net carrying value |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 275,000 |  |  |  | (164,794 | ) |  |  | 206 |  |  | $ | 110,412 |  |  | $ | 110,094 |
Due 2041 |  | $ | 150,000 |  |  |  | (93,573 | ) |  |  | 214 |  |  | $ | 56,641 |  |  | $ | 62,246 |
Due 2042 |  | $ | 150,000 |  |  |  | (87,600 | ) |  |  | 118 |  |  | $ | 62,518 |  |  | $ | 57,874 |
Total |  | $ | 575,000 |  |  | $ | (345,967 | ) |  | $ | 538 |  |  | $ | 229,571 |  |  | $ | 230,214 |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 275,000 |  |  |  | (167,273 | ) |  |  | 393 |  |  | $ | 108,120 |  |  | $ | 110,094 |
Due 2041 |  | $ | 150,000 |  |  |  | (94,843 | ) |  |  | 285 |  |  | $ | 55,442 |  |  | $ | 62,246 |
Due 2042 |  | $ | 150,000 |  |  |  | (88,835 | ) |  |  | 176 |  |  | $ | 61,341 |  |  | $ | 57,874 |
Total |  | $ | 575,000 |  |  | $ | (350,951 | ) |  | $ | 854 |  |  | $ | 224,903 |  |  | $ | 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 accompanying consolidated statements of operations for the years ended December 31:
|  | 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 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 6,188 |  |  |  | 2,479 |  |  |  | 88 |  |  |  | (187 | ) |  | $ | 8,568 |
Due 2041 |  | $ | 3,375 |  |  |  | 1,270 |  |  |  | 47 |  |  |  | (71 | ) |  | $ | 4,621 |
Due 2042 |  | $ | 3,375 |  |  |  | 1,235 |  |  |  | 54 |  |  |  | (58 | ) |  | $ | 4,606 |
Total |  | $ | 12,938 |  |  | $ | 4,984 |  |  | $ | 189 |  |  | $ | (316 | ) |  | $ | 17,795 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 6,188 |  |  |  | 2,292 |  |  |  | 88 |  |  |  | (183 | ) |  | $ | 8,385 |
Due 2041 |  | $ | 3,375 |  |  |  | 1,171 |  |  |  | 47 |  |  |  | (153 | ) |  | $ | 4,440 |
Due 2042 |  | $ | 3,375 |  |  |  | 1,147 |  |  |  | 54 |  |  |  | (126 | ) |  | $ | 4,450 |
Total |  | $ | 12,938 |  |  | $ | 4,610 |  |  | $ | 189 |  |  | $ | (462 | ) |  | $ | 17,275 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due 2040 |  | $ | 6,188 |  |  |  | 2,120 |  |  |  | 88 |  |  |  | 50 |  |  | $ | 8,446 |
Due 2041 |  | $ | 3,375 |  |  |  | 1,078 |  |  |  | 47 |  |  |  | 97 |  |  | $ | 4,597 |
Due 2042 |  | $ | 3,375 |  |  |  | 1,066 |  |  |  | 54 |  |  |  | 64 |  |  | $ | 4,559 |
Total |  | $ | 12,938 |  |  | $ | 4,264 |  |  | $ | 189 |  |  | $ | 211 |  |  | $ | 17,602 |
Note 6 – Long-Term Debt (continued) Exchangeable Unsecured Notes, due 2102 On December 13, 2002, Vishay issued $105,000 in nominal (or principal) amount of its floating rate unsecured exchangeable notes due 2102 in connection with an acquisition. The notes were governed by a note instrument and a put and call agreement dated December 13, 2002. The notes could be put to Vishay in exchange for shares of its common stock and, under certain circumstances, could be called by Vishay for similar consideration. Following the spin-off of VPG on July 6, 2010 and a 2013 exchange by a holder of the notes, Vishay had outstanding exchangeable unsecured notes with a principal amount of $38,642, which were exchangeable for an aggregate of 2,511,742 shares of Vishay common stock. On June 28, 2016 and March 31, 2016, pursuant to agreements dated June 13, 2016 and March 10, 2016, respectively, the Company acquired from holders $12,436 and $26,206, respectively, principal amount of the Company's floating rate exchangeable unsecured notes due 2102. The purchase price for these privately negotiated transactions was $11,449 and $22,595, respectively. Vishay recognized gains on early extinguishment of debt of $4,597 presented as a separate line item in the accompanying consolidated statement of operations for the year ended December 31, 2016. Following the June 28, 2016 transaction, no exchangeable unsecured notes are outstanding. Other Borrowings Information Aggregate annual maturities of long-term debt, based on the terms stated in the respective agreements, are as follows:
2018 |  | $ | - |
2019 |  |  | - |
2020 |  |  | 150,000 |
2021 |  |  | - |
2022 |  |  | - |
Thereafter |  |  | 575,000 |
The annual maturities of long-term debt are based on the amount required to settle the obligation. Accordingly, the discounts associated with the convertible debentures due 2040, due 2041, and due 2042 are excluded from the calculation of the annual maturities of long-term debt in the table above. At December 31, 2017, the Company had committed and uncommitted short-term credit lines with various U.S. and foreign banks aggregating approximately $15,000, with substantially no amounts borrowed. At December 31, 2016, the Company had committed and uncommitted short-term credit lines with various U.S. and foreign banks aggregating approximately $11,000, with substantially no amounts borrowed. Interest paid was $21,216, $19,316, and $19,134 for the years ended December 31, 2017, 2016, and 2015, respectively. See Note 18 for further discussion on the fair value of the Company's long-term debt.

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