Convertible Notes, Other Debts And Capital Leases (Tables)

3 Months Ended

Mar. 30, 2018

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of March 30, 2018 and December 31, 2017 (in thousands, except for years and percentages):



	March 30, 2018			December 31, 2017
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(16,107		)	(17,404		)
Less: Debt issuance costs, net of amortization	(1,942		)	(2,098		)
Carrying amount	$	110,201		$	108,748
Remaining amortization period (years)	2.7			2.9
Effective interest rate on liability component	9.94		%	9.94		%
Carrying amount of equity component	$	26,062		$	26,062

Convertible Debt Interest

The following table presents interest expense recognized for the Notes (in thousands):



	Three months ended
	March 30, 2018		March 31, 2017
Contractual interest expense	$	1,283	$	1,283
Amortization of debt discount	1,297		1,174
Amortization of debt issuance costs	156		142
Total interest expense recognized	$	2,736	$	2,599

Schedule of Other Debt and Capital Leases

In connection with the TVN acquisition, the Company assumed a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):



	March 30, 2018			December 31, 2017
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	20,889		$	20,565
Term loans	1,228			1,282
Obligations under capital leases	858			1,099
Total debt obligations	22,975			22,946
Less: current portion	(7,551		)	(7,610		)
Long-term portion	$	15,424		$	15,336

(1) As of March 30, 2018 and December 31, 2017, loans backed by French R&D tax credit receivables were $18.0 million and $17.7 million, respectively. As of March 30, 2018, the TVN French Subsidiary had an aggregate of $30.6 million of R&D tax credit receivables from the French government from 2018 through 2021. See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets,” for more information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2018 through 2020. The remaining loans of $2.8 million at March 30, 2018, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2020 through 2025.

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of debts and capital lease obligations for TVN as of March 30, 2018 (in thousands):



Years ending December 31,	Capital lease obligations		Other Debt obligations
2018 (remaining nine months)	$	687	$	6,626
2019	97		7,289
2020	51		7,086
2021	23		526
2022	—		485
Thereafter	—		105
Total	$	858	$	22,117