Convertible Notes, Other Debts And Finance Lease (Tables)

6 Months Ended

Jun. 28, 2019

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of June 28, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	June 28, 2019			December 31, 2018
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(9,085		)	(11,996		)
Less: Debt issuance costs, net of amortization	(1,095		)	(1,446		)
Carrying amount	$	118,070		$	114,808
Remaining amortization period (years)	1.4			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				Six months ended
	June 28, 2019		June 29, 2018		June 28, 2019		June 29, 2018
Contractual interest expense	$	1,282	$	1,282	$	2,565	$	2,565
Amortization of debt discount	1,479		1,340		2,912		2,637
Amortization of debt issuance costs	178		161		350		317
Total interest expense recognized	$	2,939	$	2,783	$	5,827	$	5,519

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):



	June 28, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	17,218		$	18,783
Term loans	759			914
Obligations under finance leases	99			162
Total debt obligations	18,076			19,859
Less: current portion	(1,379		)	(7,175		)
Long-term portion	$	16,697		$	12,684

(1) As of June 28, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $15.1 million and $16.7 million, respectively. As of June 28, 2019, the TVN French Subsidiary had an aggregate of $21.8 million of R&D tax credit receivables from the French government from 2020 through 2023. 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 2020 through 2022. The remaining loans of $2.1 million at June 28, 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 June 28, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining six months)	$	77	$	946
2020	22		6,563
2021	—		5,297
2022	—		4,791
2023	—		153
Thereafter	—		227
Total	$	99	$	17,977