Debt Instruments and Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Debt Instruments and Related Party Transactions

Schedule of liability components of the Convertible Notes

The Convertible Notes consist of the following as of December 31, 2017 and 2016 (In thousands):

Liability component	2017			2016
Principal	$	250,000		$	250,000
Less: debt discount (1)		(81,566	)		(90,807	)
Less: deferred financing (1)		(4,267	)		(4,729	)

Net carrying value of the debt	$	164,167		$	154,464


(1)	Included in the Consolidated Balance Sheets within Convertible Senior Notes (due 2023) and amortized to interest expense over the remaining life of the Convertible Senior Notes using the effective interest rate method.

Components of total interest expense recognized related to the Convertible Notes

The following table sets forth total interest expense recognized related to the Convertible Notes for the year ended December 31, 2017 and 2016 (In thousands):

Components	2017			2016
Contractual interest expense	$	7,528		$	208
Amortization of deferred financing		470			26
Amortization of debt discount		9,241			248

Total	$	17,239		$	482


Effective interest rate of the liability component		10.85	%		10.85	%