Investments we consider to be temporarily impaired at December 31, 2014 are as follows (in thousands):
Less than 12months of
temporary impairment
More than 12months of
temporary impairment
Total temporary
impairment
Number of
Investments
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Corporate debt securities. . . . . . . . . . .
239
$242,124 $ (681)
$3,503
$ (8)
$245,627 $ (689)
Debt securities issued by U.S.
government agencies. . . . . . . . . . . .
16
98,342
(178)
— — 98,342
(178)
Debt securities issued by states of the
United States and political
subdivisions of the states. . . . . . . . .
46
54,292
(237)
225
(50)
54,517
(287)
Total temporarily impaired securities . .
301
$394,758 $(1,096)
$3,728
$(58)
$398,486 $(1,154)
We believe that the decline in value of these securities is temporary and primarily related to the change in
market interest rates since purchase. We believe it is more likely than not that we will be able to hold these
securities to maturity. Therefore, we anticipate full recovery of their amortized cost basis at maturity.
4. Long-TermObligations and Commitments
The carrying value of our long-term obligations was as follows (in thousands):
December 31,
2014
2013
1 percent convertible senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $327,486 $ —
2¾ percent convertible senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48,014 150,334
Long-term financing liability for leased facility . . . . . . . . . . . . . . . . . . .
71,731 71,288
Equipment financing arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,226
7,461
Leases and other obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,325
3,489
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $457,782 $232,572
Less: current portion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,882)
(4,408)
Total Long-TermObligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $454,900 $228,164
Convertible Notes
In November 2014, we completed a $500 million offering of convertible senior notes, which mature in 2021
and bear interest at 1 percent. We raised $487 million, of proceeds, net of issuance costs. We used a substantial
portion of the net proceeds from the issuance of the 1 percent convertible senior notes to repurchase
$140 million in principal of our 2¾ percent convertible senior notes at a price of $441.9 million, including
accrued interest. As a result, the new principal balance of the 2¾ percent notes is $61.2 million. We recognized a
$8.3 million non-cash loss as a result of the early retirement of a portion of the 2¾ percent notes.
In September 2012, we used a substantial portion of the net proceeds of $194.7 from the issuance of
$201.3 million of 2¾ percent notes to redeem the entire $162.5 million in principal of our 2
⅝
percent notes at a
price of $164.0 million including accrued interest. We recognized a $4.8 million loss as a result of the
redemption of the 2
⅝
percent notes. A significant portion of the loss, or $3.6 million, was non-cash and related
to the unamortized debt discount and debt issuance costs and the remainder was related to a $1.2 million early
redemption premiumwe paid to the holders of the 2
⅝
percent notes.
At December 31, 2014 we had the following convertible debt outstanding (amounts in millions unless
otherwise noted):
1 Percent
Convertible
Senior Notes
2¾Percent
Convertible
Senior Notes
Outstanding balance. . . . . . . . . . . . . . . . . . . . . . . . . . .
$
500 $
61.2
Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
November 2014
August 2012
Maturity date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
November 2021
October 2019
Interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 percent
2¾ percent
Conversion price per share . . . . . . . . . . . . . . . . . . . . .
$
66.81 $
16.63
Total shares of common stock subject to conversion.
7.5
3.7
F-23
