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Long-Term Debt
 9 Months Ended
Oct. 01, 2016
Long-Term Debt [Abstract]  
Long-Term Debt
Note 6 – Long-Term Debt

Long-term debt consists of the following:

  
October 1, 2016
  
December 31, 2015
 
       
Credit facility
 
$
149,000
  
$
190,000
 
Exchangeable unsecured notes, due 2102
  
-
   
38,642
 
Convertible senior debentures, due 2040
  
107,563
   
106,011
 
Convertible senior debentures, due 2041
  
55,157
   
54,424
 
Convertible senior debentures, due 2042
  
61,072
   
60,320
 
Deferred financing costs
  
(11,325
)
  
(12,659
)
   
361,467
   
436,738
 
Less current portion
  
-
   
-
 
  
$
361,467
  
$
436,738
 

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 September 29, 2016 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 September 13, 2016 (per $1 principal amount)
  
75.8043
   
55.3180
   
89.1277
 
Effective conversion price effective September 13, 2016 (per share)
 
$
13.19
  
$
18.08
  
$
11.22
 
130% of the conversion price (per share)
 
$
17.15
  
$
23.50
  
$
14.59
 
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.

Based on an evaluation of the conversion criteria at October 1, 2016 and December 31, 2015, none of the convertible senior debentures due 2040, due 2041, or due 2042 were convertible.  The conversion criteria of the debentures will continue to be evaluated and the debentures may become convertible in the future.  At the direction of the Company's Board of Directors, the Company intends, upon conversion, to repay the principal amount of the convertible debentures in cash and settle any additional amounts in shares of the Company's common stock.  The Company intends to finance the principal amount of any converted debentures using borrowings under its credit facility.

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
 
October 1, 2016
               
Due 2040
 
$
275,000
   
(167,863
)
  
426
  
$
107,563
  
$
110,094
 
Due 2041
 
$
150,000
   
(95,145
)
  
302
  
$
55,157
  
$
62,246
 
Due 2042
 
$
150,000
   
(89,128
)
  
200
  
$
61,072
  
$
57,874
 
Total
 
$
575,000
  
$
(352,136
)
 
$
928
  
$
223,792
  
$
230,214
 
                     
December 31, 2015
                    
Due 2040
 
$
275,000
   
(169,565
)
  
576
  
$
106,011
  
$
110,094
 
Due 2041
 
$
150,000
   
(96,014
)
  
438
  
$
54,424
  
$
62,246
 
Due 2042
 
$
150,000
   
(89,982
)
  
302
  
$
60,320
  
$
57,874
 
Total
 
$
575,000
  
$
(355,561
)
 
$
1,316
  
$
220,755
  
$
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
 
October 1, 2016
               
Due 2040
 
$
1,547
   
579
   
22
   
(115
)
 
$
2,033
 
Due 2041
 
$
844
   
296
   
11
   
(102
)
 
$
1,049
 
Due 2042
 
$
844
   
291
   
13
   
(71
)
 
$
1,077
 
Total
 
$
3,235
  
$
1,166
  
$
46
  
$
(288
)
 
$
4,159
 
                     
October 3, 2015
                    
Due 2040
 
$
1,547
   
535
   
22
   
198
  
$
2,302
 
Due 2041
 
$
844
   
272
   
12
   
92
  
$
1,220
 
Due 2042
 
$
844
   
270
   
13
   
105
  
$
1,232
 
Total
 
$
3,235
  
$
1,077
  
$
47
  
$
395
  
$
4,754
 

Interest expense related to the debentures is reflected on the consolidated condensed statements of operations for the nine 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
 
October 1, 2016
               
Due 2040
 
$
4,641
   
1,702
   
66
   
(150
)
 
$
6,259
 
Due 2041
 
$
2,532
   
869
   
35
   
(136
)
 
$
3,300
 
Due 2042
 
$
2,532
   
854
   
40
   
(102
)
 
$
3,324
 
Total
 
$
9,705
  
$
3,425
  
$
141
  
$
(388
)
 
$
12,883
 
                     
October 3, 2015
                    
Due 2040
 
$
4,641
   
1,574
   
66
   
304
  
$
6,585
 
Due 2041
 
$
2,532
   
800
   
36
   
229
  
$
3,597
 
Due 2042
 
$
2,532
   
793
   
40
   
144
  
$
3,509
 
Total
 
$
9,705
  
$
3,167
  
$
142
  
$
677
  
$
13,691
 

Exchangeable Unsecured Notes, due 2102

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 condensed statement of operations for the nine fiscal months ended October 1, 2016.

The notes that Vishay repurchased had been exchangeable for 2,510,808 shares of Vishay common stock.

Following the June 28, 2016 transaction, no exchangeable unsecured notes are outstanding.