Earnings Per Share

9 Months Ended

Sep. 29, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 11 – Earnings Per Share

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

	Fiscal quarters ended				Nine fiscal months ended
	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Numerator:
Numerator for basic earnings per share:
Net earnings	$	22,280	$	50,487	$	101,763	$	207,869
Adjustment to the numerator for continuing
operations and net earnings:
Interest savings assuming conversion of dilutive convertible
and exchangeable notes, net of tax		71		38		233		132
Numerator for diluted earnings per share:
Net earnings	$	22,351	$	50,525	$	101,996	$	208,001
Denominator:
Denominator for basic earnings per share:
Weighted average shares		143,273		157,149		150,978		161,061
Effect of dilutive securities:
Convertible and exchangeable debt instruments		6,176		6,176		6,176		8,368
Restricted stock units		572		383		517		384
Other		97		100		99		226
Dilutive potential common shares		6,845		6,659		6,792		8,978
Denominator for diluted earnings per share:
Adjusted weighted average shares		150,118		163,808		157,770		170,039
Basic earnings per share attributable to Vishay stockholders	$	0.16	$	0.32	$	0.67	$	1.29
Diluted earnings per share attributable to Vishay stockholders	$	0.15	$	0.31	$	0.65	$	1.22

Diluted earnings per share for the periods presented do not reflect the following weighted average potential common shares that would have an antidilutive effect or have unsatisfied performance conditions (in thousands):

	Fiscal quarters ended				Nine fiscal months ended
	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Convertible and exchangeable notes:
Convertible Senior Debentures, due 2040		19,809		19,809		19,809		6,603
Convertible Senior Debentures, due 2041		7,885		7,885		7,885		4,072
Convertible Senior Debentures, due 2042		12,704		-		5,677		-
Weighted average employee stock options		124		359		199		121
Weighted average warrants		8,824		8,824		8,824		8,824
Weighted average other		231		138		211		92

In periods in which they are dilutive, if the potential common shares related to the exchangeable notes are included in the computation, the related interest savings, net of tax, assuming conversion/exchange is added to the net earnings used to compute earnings per share.

The Company’s convertible debt instruments are only convertible upon the occurrence of certain events.  While none of these events has occurred as of September 29, 2012, certain conditions which could trigger conversion have been deemed to be non-substantive, and accordingly, the Company has always assumed 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 senior debentures, due 2040, due 2041, and due 2042, in cash and settle any additional amounts in shares of Vishay common stock. Accordingly, the debentures 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 notes 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 $13.88, 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 $19.02, 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 $11.81, no shares are included in the diluted earnings per share computation for the convertible senior debentures due 2042.