Convertible Notes, Other Debts And Finance Lease (Tables)

3 Months Ended

Mar. 29, 2019

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of March 29, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	March 29, 2019			December 31, 2018
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(10,563		)	(11,996		)
Less: Debt issuance costs, net of amortization	(1,274		)	(1,446		)
Carrying amount	$	116,413		$	114,808
Remaining amortization period (years)	1.7			1.9
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 29, 2019		March 30, 2018
Contractual interest expense	$	1,283	$	1,283
Amortization of debt discount	1,433		1,297
Amortization of debt issuance costs	172		156
Total interest expense recognized	$	2,888	$	2,736

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):



	March 29, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	18,566		$	18,783
Term loans	819			914
Obligations under finance leases	141			162
Total debt obligations	19,526			19,859
Less: current portion	(7,124		)	(7,175		)
Long-term portion	$	12,402		$	12,684

(1) As of March 29, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $16.4 million and $16.7 million, respectively. As of March 29, 2019, the TVN French Subsidiary had an aggregate of $27.4 million of R&D tax credit receivables from the French government from 2019 through 2022. See Note 8, “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 $2.2 million at March 29, 2019, 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 finance lease obligations for TVN as of March 29, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining nine months)	$	106	$	6,866
2020	35		6,475
2021	—		5,226
2022	—		443
2023	—		151
Thereafter	—		224
Total	$	141	$	19,385