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Long-Term Debt
 6 Months Ended
Jun. 29, 2013
Long-Term Debt [Abstract]  
Long-Term Debt
Note 5 – Long-Term Debt

Long-term debt consists of the following:


 
 
June 29,
2013
  
December 31,
2012
 
 
 
  
 
Credit facility
 
$
100,000
  
$
89,000
 
Exchangeable unsecured notes, due 2102
  
95,042
   
95,042
 
Convertible senior debentures, due 2040
  
100,891
   
100,166
 
Convertible senior debentures, due 2041
  
51,760
   
51,399
 
Convertible senior debentures, due 2042
  
57,699
   
57,324
 
 
  
405,392
   
392,931
 
Less current portion
  
-
   
-
 
 
 
$
405,392
  
$
392,931
 

Convertible Senior Debentures

Vishay currently has three issuances of convertible senior debentures outstanding with generally congruent terms.  The following table summarizes some key facts and terms regarding the three series of outstanding convertible senior debentures:


 
 
Due 2040
  
Due 2041
  
Due 2042
 
Issuance date
 
November 9, 2010
  
May 13, 2011
  
May 31, 2012
 
Maturity date
 
November 15, 2040
  
May 15, 2041
  
June 1, 2042
 
Principal amount
 
$
275,000
  
$
150,000
  
$
150,000
 
Cash coupon rate (per annum)
  
2.25
%
  
2.25
%
  
2.25
%
Nonconvertible debt borrowing rate at issuance (per annum)
  
8.00
%
  
8.375
%
  
7.50
%
Initial conversion rate (per $1 principal amount)
  
72.0331
   
52.5659
   
84.6937
 
Effective conversion price (per share)
 
$
13.88
  
$
19.02
  
$
11.81
 
130% of the conversion price (per share)
 
$
18.04
  
$
24.73
  
$
15.35
 
Call date
 
November 20, 2020
  
May 20, 2021
  
June 7, 2022
 
 
GAAP requires an issuer to separately account for the liability and equity components of the instrument in a manner that reflects the issuer's nonconvertible debt borrowing rate when interest costs are recognized in subsequent periods.  The resulting discount on the debt is amortized as non-cash interest expense in future periods.

 
The carrying values of the liability and equity components of the convertible debentures are reflected in the Company's consolidated condensed balance sheets as follows:
 
 
 
Principal amount of the debentures
  
Unamortized discount
  
Embedded derivative
  
Carrying value of liability component
  
Equity component - net carrying value
 
June 29, 2013
 
  
  
  
  
 
Due 2040
 
$
275,000
   
(174,568
)
  
459
  
$
100,891
  
$
110,094
 
Due 2041
 
$
150,000
   
(98,552
)
  
312
  
$
51,760
  
$
62,246
 
Due 2042
 
$
150,000
   
(92,507
)
  
206
  
$
57,699
  
$
57,874
 
Total
 
$
575,000
  
$
(365,627
)
 
$
977
  
$
210,350
  
$
230,214
 
 
                    
December 31, 2012
                    
Due 2040
 
$
275,000
   
(175,456
)
  
622
  
$
100,166
  
$
110,094
 
Due 2041
 
$
150,000
   
(99,000
)
  
399
  
$
51,399
  
$
62,246
 
Due 2042
 
$
150,000
   
(92,958
)
  
282
  
$
57,324
  
$
57,874
 
Total
 
$
575,000
  
$
(367,414
)
 
$
1,303
  
$
208,889
  
$
230,214
 

Interest is payable on the debentures semi-annually at the cash coupon rate; however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance.  In addition to ordinary interest, contingent interest will accrue in certain circumstances relating to the trading price of the debentures and under certain other circumstances beginning ten years subsequent to issuance.

Interest expense related to the debentures is reflected on the consolidated condensed statements of operations for the fiscal quarters ended:

  
 
Contractual coupon interest
  
Non-cash amortization of debt discount
  
Non-cash amortization of deferred financing costs
  
Non-cash change in value of derivative liability
  
Total interest expense related to the debentures
 
June 29, 2013
 
  
  
  
  
 
 Due 2040
 
$
1,547
   
448
   
22
   
(16
)
 
$
2,001
 
 Due 2041
 
$
844
   
226
   
12
   
1
  
$
1,083
 
 Due 2042
 
$
844
   
227
   
14
   
(3
)
 
$
1,082
 
Total
 
$
3,235
  
$
901
  
$
48
  
$
(18
)
 
$
4,166
 
 
                    
June 30, 2012
                    
 Due 2040
 
$
1,547
   
414
   
22
   
71
  
$
2,054
 
 Due 2041
 
$
844
   
209
   
12
   
109
  
$
1,174
 
 Due 2042
 
$
291
   
74
   
5
   
42
  
$
412
 
Total
 
$
2,682
  
$
697
  
$
39
  
$
222
  
$
3,640
 

 
Interest expense related to the debentures is reflected on the consolidated condensed statements of operations for the six fiscal months ended:

  
 
Contractual coupon interest
  
Non-cash amortization of debt discount
  
Non-cash amortization of deferred financing costs
  
Non-cash change in value of derivative liability
  
Total interest expense related to the debentures
 
June 29, 2013
 
  
  
  
  
 
 Due 2040
 
$
3,094
   
888
   
44
   
(163
)
 
$
3,863
 
 Due 2041
 
$
1,688
   
448
   
24
   
(87
)
 
$
2,073
 
 Due 2042
 
$
1,688
   
451
   
27
   
(76
)
 
$
2,090
 
Total
 
$
6,470
  
$
1,787
  
$
95
  
$
(326
)
 
$
8,026
 
 
                    
June 30, 2012
                    
 Due 2040
 
$
3,094
   
821
   
44
   
(33
)
 
$
3,926
 
 Due 2041
 
$
1,688
   
413
   
24
   
34
  
$
2,159
 
 Due 2042
 
$
291
   
74
   
5
   
42
  
$
412
 
Total
 
$
5,073
  
$
1,308
  
$
73
  
$
43
  
$
6,497