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Convertible Notes
 6 Months Ended
Jun. 30, 2011
Convertible Notes  
Convertible Notes

15. Convertible Notes

 

The Company’s convertible notes are shown in the following table.

 

(in thousands)

 

As of June 30,
 2011

 

As of December 31,
 2010

 

5% Convertible Senior Notes due 2014 (the “2014 Notes”)

 

$

172,500

 

$

172,500

 

Unamortized discount

 

(45,242

)

(51,000

)

Total convertible notes

 

$

127,258

 

$

121,500

 

Less current portion

 

—

 

—

 

Total long-term convertible notes

 

$

127,258

 

$

121,500

 

 

As of June 30, 2011, none of the conversion conditions were met related to the 2014 Notes. Therefore, classification of the entire equity component for the 2014 Notes as permanent equity is appropriate as of June 30, 2011.

 

Interest expense related to the notes for the three and six months ended June 30, 2011 and 2010 is as follows:

 

 

 

 

Three Months Ended
 June 30,

 

Six Months Ended
 June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

(In thousands)

 

2014 Notes coupon interest at a rate of 5%

 

$

2,156

 

$

2,156

 

$

4,312

 

$

4,312

 

2014 Notes amortization of discount at an additional effective interest rate of 11.7%

 

3,056

 

1,584

 

6,072

 

4,486

 

Zero Coupon Convertible Senior Notes due 2010 amortization of discount at an effective interest rate of 8.4%

 

—

 

—

 

—

 

958

 

Total interest expense on convertible notes

 

$

5,212

 

$

3,740

 

$

10,384

 

$

9,756