Earnings Per Share

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018

Numerator:
Net earnings attributable to Vishay stockholders	$	122,923	$	163,936	$	345,758

Denominator:
Denominator for basic earnings per share:
Weighted average shares		144,641		144,427		144,202
Outstanding phantom stock units		195		181		168
Adjusted weighted average shares - basic		144,836		144,608		144,370

Effect of dilutive securities:
Convertible debt instruments		30		100		9,707
Restricted stock units		362		428		545
Dilutive potential common shares		392		528		10,252

Denominator for diluted earnings per share:
Adjusted weighted average shares - diluted		145,228		145,136		154,622


Basic earnings per share attributable to Vishay stockholders	$	0.85	$	1.13	$	2.39

Diluted earnings per share attributable to Vishay stockholders	$	0.85	$	1.13	$	2.24

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,
	2020		2019		2018

Convertible debt instruments:
Convertible Senior Debentures, due 2041		100		301		-
Convertible Senior Notes, due 2025		17,062		19,063		10,468
Weighted average other		341		315		266

The Company's convertible debt instruments are only convertible for specified periods upon the occurrence of certain events. The Company's convertible debentures due 2040 became convertible subsequent to the December 31, 2020 evaluation of the conversion criteria. In periods that the convertible debt instruments are not convertible, the certain conditions which could trigger conversion of the debt instruments 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.

The Company, upon conversion, will repay the principal amounts of the convertible debt instruments in cash and settle any additional amounts in shares of Vishay common stock. Prior to the adoption of ASU No. 2020-06 on January 1, 2020, 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 $12.22, no shares are included in the diluted earnings per share computation for the convertible senior debentures due 2040 and if the average market price is less than $31.36 no shares are included in the diluted earnings per share computation for the convertible senior notes due 2025.