Convertible Notes, Other Debts And Finance Lease (Tables)

9 Months Ended

Sep. 27, 2019

The following table presents interest expense recognized for the 2020 Notes and 2024 Notes (in thousands):



	Three months ended				Nine months ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Contractual interest expense	$	1,235	$	1,283	$	3,800	$	3,848
Amortization of debt discount	1,513		1,364		4,425		4,001
Amortization of debt issuance costs	185		164		535		481
Total interest expense recognized	$	2,933	$	2,811	$	8,760	$	8,330

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 27, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	16,607		$	18,783
Term loans	655			914
Obligations under finance leases	84			162
Total debt obligations	17,346			19,859
Less: current portion	(6,962		)	(7,175		)
Long-term portion	$	10,384		$	12,684

(1) As of September 27, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $14.7 million and $16.7 million, respectively. As of September 27, 2019, the TVN French Subsidiary had an aggregate of $22.3 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 $1.9 million at September 27, 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 September 27, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining three months)	$	62	$	704
2020	22		6,313
2021	—		5,095
2022	—		4,783
2023	—		148
Thereafter	—		219
Total	$	84	$	17,262

Convertible Note due 2024

Debt Instrument [Line Items]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2024 Notes as of September 27, 2019 (in thousands, except for years and percentages):



	September 27, 2019
Liability:
Principal amount	$	115,500
Less: Debt discount, net of amortization	(24,686		)
Less: Debt issuance costs, net of amortization	(3,350		)
Carrying amount	$	87,464
Remaining amortization period (years)	4.9
Effective interest rate on liability component	7.95		%

Convertible Note due 2020

Debt Instrument [Line Items]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2020 Notes as of September 27, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	September 27, 2019			December 31, 2018
Liability:
Principal amount	$	45,785		$	128,250
Less: Debt discount, net of amortization	(2,706		)	(11,996		)
Less: Debt issuance costs, net of amortization	(326		)	(1,446		)
Carrying amount	$	42,753		$	114,808
Remaining amortization period (years)	1.2			1.9
Effective interest rate on liability component	9.94		%	9.94		%