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Convertible Notes
9 Months Ended
Sep. 30, 2011
Convertible Notes 
Convertible Notes

15. Convertible Notes

 

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

 

(in thousands)

 

As of September 30,
2011

 

As of December 31,
2010

 

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

 

$

172,500

 

$

172,500

 

Unamortized discount

 

(42,146

)

(51,000

)

Total convertible notes

 

$

130,354

 

$

121,500

 

Less current portion

 

—

 

—

 

Total long-term convertible notes

 

$

130,354

 

$

121,500

 

 

As of September 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 September 30, 2011.

 

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

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

(In thousands)

 

2014 Notes coupon interest at a rate of 5%

 

$

2,156

 

$

2,156

 

$

6,468

 

$

6,468

 

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

 

3,254

 

2,797

 

9,326

 

7,283

 

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

 

$

5,410

 

$

4,953

 

$

15,794

 

$

14,709