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v3.25.2

Debt | 6 Months Ended
--- | ---
Jun. 30, 2025
Debt Disclosure [Abstract] |
Debt | Debt The components of debt consisted of the following:
|  |  | June 30, 2025 |  | December 31, 2024
(in millions) | Maturity Date |  | Amount |  | Amount
Equipment financing | 2025 |  | 4.7 |  |  | 8.7 |
Mortgage | 2025 |  | 59.7 |  |  | 60.9 |
Convertible Senior Notes | 2026 |  | 378.4 |  |  | 800.0 |
Equipment financings | 2028 |  | 41.2 |  |  | 40.8 |
Revolving Credit Facility | 2030 |  | — |  |  | — |
Term Loan B | 2031 |  | 480.0 |  |  | 482.5 |
Senior Unsecured Notes | 2033 |  | 450.0 |  |  | — |
Unamortized debt discount | 2025 - 2033 |  | (3.7) |  |  | (5.4) |
Debt issuance costs | 2025 - 2033 |  | (10.6) |  |  | (7.7) |
Total debt, net |  |  | 1,399.7 |  |  | 1,379.8 |
Less: current portion |  |  | 460.7 |  |  | 83.8 |
Total long-term debt, net |  |  | $ | 939.0 |  |  | $ | 1,296.1 |
Convertible Senior Notes The Company’s 0.375% Convertible Senior Notes due September 2026 (the “Convertible Notes”) have an effective interest rate of 1.25%. The components of interest expense related to the Convertible Notes were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Contractual interest expense | $ | 0.4 |  |  | $ | 0.8 |  |  | $ | 1.1 |  |  | $ | 1.5 |
Amortization of debt issuance costs | 0.4 |  |  | 0.8 |  |  | 1.2 |  |  | 1.5 |
Total interest recognized on the Convertible Notes | $ | 0.8 |  |  | $ | 1.5 |  |  | $ | 2.3 |  |  | $ | 3.0 |
As of June 30, 2025 and December 31, 2024, unamortized issuance costs associated with the Convertible Notes were $1.7 million and $5.1 million, respectively. The Convertible Notes are convertible into cash, shares of the Company’s common stock, or the combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 4.4105 shares of common stock per $1,000 principal amount of the notes, which is equivalent to a conversion price of $226.73 per share, subject to adjustment under certain circumstances. The notes will be convertible at the holder’s election, from June 1, 2026 through August 28, 2026 and prior to then under certain circumstances as set forth in the agreement. Additionally, on or after September 6, 2023, the Company may redeem for cash all or a portion of the Convertible Notes, if its stock price has been equal to or greater than $294.75 for at least 20 of the prior 30 consecutive trading days including the date which the Company provides notice of redemption. Additional interest of 0.5% per annum is payable if the Company fails to timely file required documents or reports with the Securities and Exchange Commission (“SEC”). If the Company merges or consolidates with a foreign entity, the Company may be required to pay additional taxes. The Company determined that the higher interest payments and tax payments required in certain circumstances were embedded derivatives that should be bifurcated and accounted for at fair value. The Company assessed the value of the embedded derivatives at each balance sheet date and determined they had nominal value. In conjunction with the issuance of the Convertible Notes, the Company purchased capped call options on the Company’s common stock with certain counterparties to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to provide a source of cash to settle a portion of its cash payment obligation) if, at the time of conversion, its stock price exceeds the conversion price under the Convertible Notes. The capped call options have an initial strike price of $335.90 per share, which represents a premium of 100% over the last reported sale price of the Company’s common stock of $167.95 per share on the date of the transaction. The capped call options were recorded within stockholders’ equity on the consolidated balance sheets. During the three months ended June 30, 2025, the Company repurchased $294.7 million in principal ($293.1 million net of issuance costs) of the Convertible Notes for $377.6 million in cash, which resulted in an $84.4 million loss on extinguishment. The Company repurchased a total of $419.9 million in principal ($417.6 million net of issuance costs) of the Convertible Notes for $541.5 million in cash during the six months ended June 30, 2025, which resulted in a $123.9 million loss on extinguishment. Additionally, during the three and six months ended June 30, 2025, the Company received proceeds from the settlement of capped calls options totaling $52.6 million and $75.7 million, respectively. In June 2025, the Company issued a notice of redemption for the remaining $380.1 million in principal of the Convertible Notes outstanding and terminated the related capped calls options. These transactions will settle in August 2025. Senior Secured Credit Agreement In March 2025, the Company upsized the borrowing capacity under its Revolving Credit Facility to $500 million and extended the maturity date to March 2030. In June 2025, the Company amended its Term Loan B to bear interest at a rate of Secured Overnight Financing Rate (“SOFR”) plus 2.00%. At the same time, the Company amended its Revolving Credit Facility such that borrowings bear interest at a rate of SOFR plus an applicable margin of 1.50% to 2.00% based on the Company’s total leverage ratio. Senior Unsecured Notes In March 2025, the Company issued $450 million aggregate principal amount of 6.5% senior unsecured notes due April 2033, which have an effective interest rate of 6.84%. The net proceeds of $440.7 million were used to repurchase a portion of the Convertible Notes. The senior unsecured notes contain leverage and fixed charge coverage ratio covenants, both of which are measured upon the incurrence of future debt, as well as other customary covenants. Carrying Value At the end of each period, the carrying value of the Company’s debt was comprised of the following:
(in millions) | June 30, 2025 |  | December 31, 2024
Convertible Notes | $ | 378.4 |  |  | $ | 794.9 |
Term Loan B | 475.0 |  |  | 475.1 |
Senior Unsecured Notes | 440.9 |  |  | — |
Equipment financings | 45.8 |  |  | 49.3 |
Mortgage | 59.6 |  |  | 60.6 |
Total debt, net | $ | 1,399.7 |  |  | $ | 1,379.8 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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