Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 12 – Commitments and Contingencies

Semiconductor Foundry Agreements

The Company’s Siliconix subsidiary maintains long-term foundry agreements with subcontractors to ensure access to external front-end capacity.

Since 2004, Siliconix has maintained a definitive long-term foundry agreement for semiconductor manufacturing with Tower Semiconductor, pursuant to which Siliconix transferred certain technology to Tower Semiconductor and committed to purchase a minimum amount of semiconductor wafers.  The agreement with Tower extends through the second quarter of 2015.

Subsequent to the end of the second fiscal quarter, on July 6, 2012, Siliconix amended its foundry agreement with an Asian foundry to ensure additional capacity in exchange for cash and a commitment to purchase a minimum amount of semiconductor wafers.  This agreement extends through the fourth quarter of 2016.

The Company estimates its total purchase commitments under the foundry agreements as follows:

2012	$	26,098
2013		21,428
2014		21,028
2015		21,017
2016		12,211

Siliconix has the option to purchase wafers from these subcontractors in addition to the minimum commitments and, accordingly, actual purchases may be different than the commitments disclosed above.

Executive Employment Agreements

The Company has employment agreements with certain of its senior executives. These employment agreements provide incremental compensation in the event of termination.  The Company does not provide any severance or other benefits specifically upon a change in control.  The Company recognized compensation expense of $3,889 reported on a separate line in the accompanying consolidated condensed statements of operations in the second fiscal quarter of 2011 for elements of compensation that accelerated upon the passing of Dr. Zandman. (See also Note 8.)