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Convertible Senior Notes, Net | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
Convertible Senior Notes, Net | Convertible Senior Notes, Net In two separate offerings during 2014, we issued an aggregate principal amount of $254.8 million of 2019 Notes, for which we received $248.6 million, after deducting the underwriting discount offering expenses. The 2019 Notes were exchanged or converted for shares of our common stock and cash as follows: (i) On August 2, 2018, we entered into privately negotiated exchange agreements with a limited number of holders of the 2019 Notes pursuant to which we exchanged $206.2 million of the 2019 Notes for an aggregate of (a) 10,020,328 newly issued shares of our common stock, and (b) $39.3 million in cash. We recorded $166.0 million of additional paid-in-capital in the consolidated statement of changes in stockholders' equity in connection with these transactions, (ii) Certain holders elected to convert $47.9 million of the 2019 Notes, which were settled for an aggregate of (a) 2,775,509 newly issued shares of our common stock, and (b) $0.2 million in cash. We recorded $13.9 million of additional paid-in-capital in the consolidated statement of changes in stockholders' equity in connection with these transactions. These conversions occurred from August 2018 through maturity. The remaining $0.7 million in principal amount of the 2019 Notes were repaid at maturity on March 15, 2019. During the year ended December 31, 2018, we recorded a loss on early extinguishment of debt of $2.6 million in connection with the exchange and conversions of the 2019 Notes. This includes fees and accelerated amortization of capitalized costs. There was no such loss related to the 2019 Notes during the year ended December 31, 2019 and 2017. In two separate offerings during 2017, we issued an aggregate principal amount of $345.0 million of the 2022 Notes, for which we received $337.5 million, after deducting the underwriting discount and offering expenses. At December 31, 2019, the 2022 Notes had a carrying value of $337.8 million and an unamortized discount of $7.2 million. During the fourth quarter of 2018, we issued an aggregate principal amount of $230.0 million of 2023 Notes, for which we received $223.7 million, after deducting the underwriting discount and offering expenses. At December 31, 2019, the 2023 Notes had a carrying value of $223.8 million and an unamortized discount of $6.2 million. The following table summarizes the terms of the Notes ($ in thousands):
| Principal Amount | Coupon Rate | Effective Rate (1) | Conversion Rate (2) | Maturity Date | Remaining Period of Amortization
2022 Notes | $ | 345,000 |  | 4.75 | % | 5.60 | % | 50.2260 |  | 8/23/2022 | 2.65 years
2023 Notes | 230,000 |  | 5.38 | % | 6.16 | % | 48.7187 |  | 10/15/2023 | 3.79 years
Total | $ | 575,000 |  |  |  |  |  |
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(1) | Effective rate includes the effect of the adjustment for the conversion option (See endnote (2) below), the value of which reduced the initial liability and was recorded in additional paid-in-capital.
(2) | We have the option to settle any conversions in cash, shares of common stock or a combination thereof. The conversion rate represents the number of shares of common stock issuable per one thousand principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by us to stockholders that have been deferred and carried-forward in accordance with, and are not yet required to be made pursuant to, the terms of the applicable supplemental indenture.
We may not redeem the Notes prior to maturity except in limited circumstances. The closing price of our common stock on December 31, 2019 of $18.29 was less than the per share conversion price of the Notes. In accordance with ASC 470 - Debt, the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) is to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. GAAP requires that the initial proceeds from the sale of the Notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by us at such time. We measured the fair value of the debt components of the Notes as of their issuance date based on effective interest rates. As a result, we attributed approximately $15.4 million of the proceeds to the equity component of the Notes ($11.0 million to the 2022 Notes and $4.4 million to the 2023 Notes), which represents the excess proceeds received over the fair value of the liability component of the Notes at the date of issuance. The equity component of the Notes has been reflected within additional paid-in capital in the consolidated balance sheet as of December 31, 2019. The resulting debt discount is being amortized over the period during which the Notes are expected to be outstanding (the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to each of the Notes will increase in subsequent reporting periods through the maturity date as the Notes accrete to their par value over the same period. The aggregate contractual interest expense was approximately $29.1 million, $28.2 million and $18.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. With respect to the amortization of the discount on the liability component of the Notes as well as the amortization of deferred financing costs, we reported additional non-cash interest expense of approximately $6.0 million, $7.1 million, and $4.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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