Convertible Notes

9 Months Ended

Sep. 30, 2012

15. Convertible Notes

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



(Dollars in thousands)	As of September 30, 2012			As of December 31, 2011
5% Convertible Senior Notes due 2014 (the “2014 Notes”)	$	172,500		$	172,500
Unamortized discount	(28,625		)	(39,007		)
Total convertible notes	$	143,875		$	133,493
Less current portion	—			—
Total long-term convertible notes	$	143,875		$	133,493

Interest expense related to the notes for the three and nine months ended September 30, 2012 and 2011 was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(In thousands)
2014 Notes coupon interest at a rate of 5%	$	2,156	$	2,156	$	6,469	$	6,468
2014 Notes amortization of discount and debt issuance costs at an additional effective interest rate of 11.7%	3,789		3,254		10,856		9,326
Total interest expense on convertible notes	$	5,945	$	5,410	$	17,325	$	15,794

- 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.

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