The following table summarizes information about the equity and liability components of our outstanding
convertible notes, (in thousands). The fair values of the convertible notes outstanding were measured based on
quoted market prices, which is a Level 2 measurement:
December 31,
2014
2013
2¾Percent Convertible Senior Notes
Fair value of outstanding notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $223,900 $505,100
Principal amount of convertible notes outstanding. . . . . . . . . . . . . . . . . $ 61,247 $201,250
Unamortized portion of debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,233 $ 50,916
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48,014 $150,334
Carrying value of equity component . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,714 $ 59,528
1 Percent Convertible Senior Notes
Fair value of outstanding notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $568,000
Principal amount of convertible notes outstanding. . . . . . . . . . . . . . . . . $500,000
Unamortized portion of debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . $172,514
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $327,486
Carrying value of equity component . . . . . . . . . . . . . . . . . . . . . . . . . . . . $174,770
Equipment FinancingArrangement
In October 2008, we entered into an equipment financing loan agreement, and in September 2009 and June
2012 we amended the loan agreement to increase the aggregate maximum amount of principal we could draw
under the agreement. Each draw down under the loan agreement has a term of three years, with principal and
interest payable monthly. Interest on amounts we borrow under the loan agreement is based upon the three year
interest rate swap at the time we make each draw down plus 3.5 or four percent, depending on the date of the
draw. We are using the equipment purchased under the loan agreement as collateral. In June 2012, we drew
down $9.1 million in principal under the loan agreement at an interest rate of 4.12 percent and in June 2013 we
drew down $2.5 million in principal at an interest rate of 4.39 percent. As of December 31, 2014, our
outstanding borrowings under this loan agreement were at a weighted average interest rate of 4.18 percent. The
carrying balance under this loan agreement at December 31, 2014 and 2013 was $3.2 million and $7.5 million,
respectively.
Maturity Schedules
Annual debt and other obligation maturities, including fixed and determinable interest, at December 31,
2014 are as follows (in thousands):
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,446
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,268
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,744
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,744
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67,991
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
511,020
Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 609,213
Less: current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,882)
Less: fixed and determinable interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(44,222)
Less: unamortized portion of debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (185,747)
Plus: Deferred rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,795
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 378,157
F-25
