10 — CONVERTIBLE SENIOR NOTES

The Company issued $125,000 of 5.0% Convertible Senior Notes on July 27, 2010. The Indenture includes customary agreements and covenants, including with respect to events of default.

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

	September 30, 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		10,429		14,082
Net carrying amount of the liability component		114,571		110,918

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
Effective interest rate on liability component		10.0	%		10.0	%		10.0	%		10.0	%
Cash interest expense recognized	$	1,575		$	1,580		$	4,687		$	4,696
Non-cash interest expense recognized		1,265			1,158			3,653			3,345
Non-cash deferred financing amortization costs included in interest expense		181			181			537			540

The remaining period over which the unamortized discount will be recognized is 1.87 years. As of September 30, 2013, the if-converted value of the 2010 Notes does not exceed their principal amount.

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 twelve months after March 31, 2013. 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 $50,000 at final maturity (or when otherwise due) or if such indebtedness is accelerated. As such, the 2010 Notes were classified as a current liability in the condensed consolidated balance sheet beginning March 31, 2013 and remained classified as a current liability as of September 30, 2013.