Short-Term And Long-Term Borrowings

12 Months Ended

Dec. 31, 2011

Short-Term And Long-Term Borrowings [Abstract]

Short-Term And Long-Term Borrowing

Note 7—Short-Term and Long-Term Borrowings

Short-term borrowings

Maxwell's Swiss subsidiary, Maxwell SA, has a 3.0 million Swiss Franc-denominated (approximately $3.2 million as of December 31, 2011) short-term loan agreement with a Swiss bank, which renews semi-annually and bears interest at 2.25%. Borrowings under the short-term loan agreement are unsecured and as of December 31, 2011 and 2010, the full amount of the loan was drawn.

Maxwell SA has a 2.0 million Swiss Franc-denominated (approximately $2.1 million as of December 31, 2011) credit agreement with a Swiss bank, which renews annually and bears interest at 2.5%. Borrowings under the credit agreement are unsecured and as of December 31, 2011 and 2010, the full amount available under the credit line was drawn.

Maxwell SA also has a 1.0 million Swiss Franc-denominated (approximately $1.1 million as of December 31, 2011) credit agreement with another Swiss bank, and the available balance of the line can be withdrawn or reduced by the bank at any time. As of December 31, 2011 and 2010, no amounts were drawn under the credit line. Interest rates applicable to any draws on the line will be determined at the time of draw.

Maxwell SA entered into a lending agreement for the acquisition of manufacturing equipment in an amount up to 1.5 million Swiss Francs. After the acquisition of the equipment was completed the agreement converted to 48 monthly payments of 34,302 Swiss Francs with an interest rate of 2.22%. As of December 31, 2011 and 2010, the balance of the obligation was $0 and $210,000, respectively, with the final payment made in the second quarter of 2011.

Long-term borrowings

The Company has various financing agreements for vehicles. These agreements are for up to a five year repayment period with interest rates ranging from 4.9% to 7.0%. At December 31, 2011 and 2010, $164,000 and $177,000, respectively, was outstanding under these agreements.

The following table summarizes debt outstanding (in thousands):

	December 31, 2011		December 31, 2010
Maxwell SA credit agreement	$	2,134	$	2,141
Maxwell SA short-term loan		3,201		3,211
Maxwell SA auto leases		164		177
Maxwell SA lending agreement		—		210
Convertible debentures (including unamortized discount and net fair value of conversion options)		—		10,380
Total debt		5,499		16,119
Less current portion		5,431		3,511
Long-term debt, excluding current portion	$	68	$	12,608

Contractually scheduled payments due on borrowings subsequent to December 31, 2011 are as follows (in thousands):

2012	$	5,431
2013		68
Total debt	$	5,499

In February 2011, the remaining principal balance of the convertible debentures of $8.3 million was converted into shares of the Company's common stock and, accordingly, the balance was classified as long-term as of December 31, 2010.