Note 3 – Long-Term Debt

Long-term debt consists of the following:

	March 30, 2013		December 31, 2012

Credit facility	$	90,000	$	89,000
Exchangeable unsecured notes, due 2102		95,042		95,042
Convertible senior debentures, due 2040		100,459		100,166
Convertible senior debentures, due 2041		51,533		51,399
Convertible senior debentures, due 2042		57,475		57,324
		394,509		392,931
Less current portion		-		-
	$	394,509	$	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
March 30, 2013
Due 2040	$	275,000		(175,016	)		475	$	100,459	$	110,094
Due 2041	$	150,000		(98,778	)		311	$	51,533	$	62,246
Due 2042	$	150,000		(92,734	)		209	$	57,475	$	57,874
Total	$	575,000	$	(366,528	)	$	995	$	209,467	$	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 three 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
March 30, 2013
Due 2040	$	1,547		440		22		(147	)	$	1,862
Due 2041	$	844		222		12		(88	)	$	990
Due 2042	$	844		224		13		(73	)	$	1,008
Total	$	3,235	$	886	$	47	$	(308	)	$	3,860

March 31, 2012
Due 2040	$	1,547		407		22		(104	)	$	1,872
Due 2041	$	844		204		12		(75	)	$	985
Total	$	2,391	$	611	$	34	$	(179	)	$	2,857