Earnings Per Share

12 Months Ended

Dec. 31, 2019

Note 16 – Earnings Per Share

Basic earnings per share is computed using the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of stock options and restricted stock units (see Note 12), convertible debt instruments (see Note 6), and other potentially dilutive securities.

The following table sets forth the computation of basic and diluted earnings per share attributable to Vishay stockholders (shares in thousands):

	Years ended December 31,
	2019		2018		2017

Numerator:
Net earnings (loss) attributable to Vishay stockholders	$	163,936	$	345,758	$	(20,344	)

Denominator:
Denominator for basic earnings (loss) per share:
Weighted average shares		144,427		144,202		145,478
Outstanding phantom stock units		181		168		155
Adjusted weighted average shares - basic		144,608		144,370		145,633

Effect of dilutive securities:
Convertible debt instruments		100		9,707		-
Restricted stock units		428		545		-
Dilutive potential common shares		528		10,252		-

Denominator for diluted earnings (loss) per share:
Adjusted weighted average shares - diluted		145,136		154,622		145,633


Basic earnings (loss) per share attributable to Vishay stockholders	$	1.13	$	2.39	$	(0.14	)

Diluted earnings (loss) per share attributable to Vishay stockholders	$	1.13	$	2.24	$	(0.14	)

Diluted earnings per share for the years presented do not reflect the following weighted average potential common shares, as the effect would be antidilutive (in thousands):

	Years ended December 31,
	2019		2018		2017

Convertible debt instruments:
Convertible Senior Debentures, due 2040		-		-		21,184
Convertible Senior Debentures, due 2041		301		-		8,432
Convertible Senior Debentures, due 2042		-		-		13,586
Convertible Senior Notes, due 2025		19,063		10,468		-
Weighted average employee stock options		-		-		26
Weighted average other		315		266		981

The Company's convertible debt instruments are only convertible for specified periods upon the occurrence of certain events. The convertible debentures due 2040 became convertible subsequent to the December 31, 2019 evaluation of the conversion criteria. In periods that the debentures are not convertible, the certain conditions which could trigger conversion of the remaining debentures have been deemed to be non-substantive, and accordingly, the Company assumes the conversion of these instruments in its diluted earnings per share computation during periods in which they are dilutive.

At the direction of its Board of Directors, the Company intends, upon conversion, to repay the principal amounts of the convertible debt instruments in cash and settle any additional amounts in shares of Vishay common stock. Accordingly, the convertible instruments are included in the diluted earnings per share computation using the “treasury stock method” (similar to options and warrants) rather than the “if converted method” otherwise required for convertible debt. Under the “treasury stock method,” Vishay calculates the number of shares issuable under the terms of the convertible instruments based on the average market price of Vishay common stock during the period, and that number is included in the total diluted shares figure for the period. If the average market price is less than $12.50, no shares are included in the diluted earnings per share computation for the convertible senior debentures due 2040, if the average market price is less than $17.13, no shares are included in the diluted earnings per share computation for the convertible senior debentures due 2041, and if the average market price is less than $31.44 no shares are included in the diluted earnings per share computation for the convertible senior notes due 2025.