F-24
The following table summarizes information about the equity and liability components of our 2¾percent notes, (in
thousands):
December 31,
2013
2012
Principal amount of convertible notes outstanding ....................... $
201,250 $
201,250
Unamortizedportionof liability component ................................
(50,916)
(57,260)
Long-termdebt ............................................................................. $
150,334 $
143,990
Carryingvalue of equity component ............................................ $
59,528 $
59,528
Equipment FinancingArrangement
InOctober 2008, we entered into an equipment financing loan agreement, and inSeptember 2009 and June 2012we amended
the loan agreement to increase the aggregatemaximum amount of principalwe coulddrawunder the agreement. Each draw down
under the loan agreement has a termof three years, withprincipal and interest payablemonthly. Interest on amountswe borrowunder
the loan agreement is basedupon the three year interest rate swap at the timewemake eachdrawdown plus 3.5or four percent,
dependingon the date of the draw.We are using the equipment purchasedunder the loan agreement as collateral. In June 2012,we
drewdown$9.1million inprincipal under the loan agreement at an interest rate of 4.12percent and in June 2013we drewdown$2.5
million in principal at an interest rate of 4.39percent. As ofDecember 31, 2013, our outstandingborrowings under this loan
agreement were at aweighted average interest rate of 4.28percent andwe canborrowup to an additional $3.4million in principal
until April 2014 to finance the purchase of equipment. The carryingbalance under this loan agreement at December 31, 2013 and
2012was $7.5million and$10.0million, respectively.
MaturitySchedules
Annual debt andother obligationmaturities, including fixed and determinable interest, atDecember 31, 2013 are as follows
(in thousands):
2014 ............................................................................................................... $
10,246
2015 ...............................................................................................................
8,544
2016 ...............................................................................................................
6,117
2017 ...............................................................................................................
5,594
2018 ...............................................................................................................
5,594
Thereafter ......................................................................................................
207,805
Subtotal ......................................................................................................... $
243,900
Less: current portion ......................................................................................
(4,408)
Less: fixed and determinable interest ............................................................
(34,498)
Less: debt discount ........................................................................................
(50,916)
Plus: Deferred rent ........................................................................................
1,647
Total .............................................................................................................. $
155,725
OperatingLeases
We lease office and laboratory space under non-cancelable operating leaseswith terms throughDecember 2031. We are
located in three buildings inCarlsbad, California and occupy approximately 231,000 square feet of laboratory and office space. Our
facilities include a 176,000 square foot facility that we use for our primary research anddevelopment activities, a 28,704 square foot
manufacturing facility and a 25,792 square foot building adjacent toourmanufacturing facility. Our 28,704 square foot facility
housesmanufacturing suites for our drugdevelopment business built tomeet currentGoodManufacturingPractices andour 25,792
square foot facility has laboratory and office space that we use to support ourmanufacturing activities. The lease for our 28,704
square footmanufacturing facility expires in2031 andhas four five-year options to extend. Under the lease agreement, we have the
option topurchase the facility at the endof each year from2016 through2020, and at the endof 2026 and2031. The lease for the
25,792 square foot facilityhas an initial term ending in June 2021with anoption to extend the lease for up to two five-year periods.
We account for the lease of our 176,000 square foot facility as a financingobligation as discussed below. We also lease office
equipment under non-cancelable operating leaseswith terms through June 2017.
