10 — CONVERTIBLE SENIOR NOTES

The Company issued $125,000 of the 2010 Notes on July 27, 2010. The Indenture for the 2010 Notes includes customary agreements and covenants by the Company, including with respect to events of default.

The following tables provide additional information about the Company’s 2010 Notes:

	March 31, 2013		December 31, 2012
Carrying amount of the equity component (additional paid-in capital)	$	24,375	$	24,375
Principal amount of the 2010 Notes	125,000		125,000
Unamortized discount of the liability component	12,903		14,082
Net carrying amount of the liability component	112,097		110,918

	Three Months Ended March 31,
	2013			2012
Effective interest rate on liability component	10.0		%	10.0		%
Cash interest expense recognized	$	1,541		$	1,562
Non-cash interest expense recognized	1,179			1,091
Non-cash deferred financing amortization costs included in interest expense	177			179

The remaining period over which the unamortized discount will be recognized is 2.38 years. As of March 31, 2013, the if-converted value of the 2010 Notes does not exceed their principal amount.

As of March 31, 2013, the Company believes it is probable that the Company will not be in compliance with certain covenants under its credit facilities at measurement dates within the next twelve months. If such a default occurs, the Company may also be in default under the Indenture for the 2010 Notes. A default would occur under the Indenture, following applicable notice and expiration of applicable cure periods, if the Company fails to pay indebtedness in excess of $50 million at final maturity (or when otherwise due) or if such indebtedness is accelerated. As such, the 2010 Notes have been classified as a current liability in the condensed consolidated balance sheet as of March 31, 2013.