74
The following table summarizes our contractual obligations as ofDecember 31, 2013. The table provides a breakdownof
whenobligations become due.We provide amore detaileddescriptionof themajor components of our debt in the paragraphs
following the table:
PaymentsDue byPeriod (inmillions)
ContractualObligations
(selectedbalances describedbelow)
Total
Less than
1 year
1-3 years
3-5 years
After
5 years
2
3
/
4
percent Convertible Senior
Notes (principal and interest payable) ... $ 234.5 $
5.5 $ 11.1 $
11.1 $ 206.8
FacilityRent Payments .............................. $ 137.9 $
6.2 $ 12.7 $
13.5 $ 105.5
Equipment FinancingArrangements
(principal and interest payable) .............. $
7.8 $
4.4 $
3.4 $
— $
—
OtherObligations (principal and interest
payable) ................................................. $
1.3 $
0.1 $
0.1 $
0.1 $
1.0
Capital Lease ............................................. $
0.4 $
0.2 $
0.2 $
— $
—
OperatingLeases ....................................... $ 26.4 $
1.5 $
2.9 $
2.9 $ 19.1
Total ........................................................... $ 408.3 $ 17.9 $ 30.4 $
27.6 $ 332.4
Our contractual obligations consist primarilyof our publicly traded convertible debt. In addition, we alsohave facility leases,
equipment financing arrangements andother obligations.
InAugust 2012, we completed a $201.3million convertible debt offering,which raisedproceeds of approximately$194.7
million, net of $6.6million in issuance costs. The $201.3million of convertible senior notesmature in2019 andbear interest at 2
3
4
percent, which is payable semi-annually.We used a substantial portionof the net proceeds from the issuance of these notes to redeem
the entire $162.5million inprincipal of our 2
5
8
percent convertible subordinatednotes. The 2¾percent notes are convertible under
certain conditions, at the optionof the note holders, into approximately12.1million shares of our common stock at a conversionprice
of $16.63 per share.Wewill settle conversions of the notes, at our election, in cash, shares of our common stockor a combinationof
both.We can redeem the 2¾percent notes at our option, inwhole or inpart, onor afterOctober 5, 2016 if the last reported sale price
of our common stock for at least 20 tradingdays (whether or not consecutive) during the periodof 30 consecutive tradingdays ending
on the tradingday immediatelypreceding the datewe provide the redemptionnotice exceeds 130 percent of the applicable conversion
price for the 2¾percent notes on each suchday. The redemptionprice for the 2¾percent noteswill equal 100percent of the principal
amount being redeemed, plus accrued andunpaid interest, plus $90per each$1,000principal amount being redeemed. Holders of the
2¾percent notesmay require us topurchase some or all of their notes upon the occurrence of certain fundamental changes, as set
forth in the indenture governing the 2¾percent notes, at a purchase price equal to100percent of the principal amount of thenotes to
be purchased, plus accrued and unpaid interest.
InOctober 2008, we entered into an equipment financing loan agreement and inSeptember 2009 and June 2012, we 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 atDecember 31, 2013 and
2012was $7.5million and$10.0million, respectively.Wewill continue touse equipment lease financing as long as the terms remain
commercially attractive.
InMarch2010, we entered into a lease agreementwith an affiliate ofBioMedRealty, L.P. Under the lease, BioMed
constructed a new facility inCarlsbad, California. The lease has an initial termof 20 yearswith an option to extend the lease for up to
four five-year periods. Our rent under this lease is basedon a percentage of the total construction costs spent byBioMed to acquire
the land andbuild the new facility. Togain early access to the facility, we agreed tomodify our leasewithBioMed to accept
additional responsibility. As a result, accounting rules requiredus to record the cost of the facility as a fixed assetwith a
corresponding liability. We are depreciating the buildingover its economic life andwe applyour rent payments, whichbeganon
January1, 2012, against the liabilityover the termof the lease.
In addition to contractual obligations, we hadoutstandingpurchase orders as ofDecember 31, 2013 for the purchase of
services, capital equipment andmaterials as part of our normal course of business.
