Convertible Notes, Other Debts And Capital Leases (Tables)

9 Months Ended

Sep. 28, 2018

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of September 28, 2018 and December 31, 2017 (in thousands, except for years and percentages):



	September 28, 2018			December 31, 2017
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(13,404		)	(17,404		)
Less: Debt issuance costs, net of amortization	(1,616		)	(2,098		)
Carrying amount	$	113,230		$	108,748
Remaining amortization period (years)	2.2			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				Nine months ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
Contractual interest expense	$	1,283	$	1,283	$	3,848	$	3,848
Amortization of debt discount	1,364		1,235		4,001		3,623
Amortization of debt issuance costs	164		149		481		437
Total interest expense recognized	$	2,811	$	2,667	$	8,330	$	7,908

Schedule of Other Debt and Capital Leases

The Company has 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):



	September 28, 2018			December 31, 2017
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	19,443		$	20,565
Term loans	1,018			1,282
Obligations under capital leases	371			1,099
Total debt obligations	20,832			22,946
Less: current portion	(7,677		)	(7,610		)
Long-term portion	$	13,155		$	15,336

(1) As of September 28, 2018 and December 31, 2017, loans backed by French R&D tax credit receivables were $17.0 million and $17.7 million, respectively. As of September 28, 2018, the TVN French Subsidiary had an aggregate of $25.6 million of R&D tax credit receivables from the French government from 2018 through 2022. See Note 6, “Balance Sheet Components” for additional information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2019 through 2021. The remaining loans of $2.4 million at September 28, 2018, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2019 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 September 28, 2018 (in thousands):



Years ending December 31,	Capital lease obligations		Other Debt obligations
2018 (remaining three months)	$	205	$	659
2019	93		6,934
2020	50		6,741
2021	23		5,441
2022	—		461
Thereafter	—		225
Total	$	371	$	20,461