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Convertible Senior Notes | 6 Months Ended
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Jun. 30, 2013
Convertible Senior Notes | Note 6 — Convertible Senior Notes In November 2009, the Company sold an aggregate of $100.0 million principal amount of 4.50% Convertible Senior Notes due 2014 (the “Notes”). The Notes, which are senior unsecured obligations of the Company, pay cash interest semi-annually at a rate of 4.50% per annum and will mature on November 1, 2014. The initial conversion rate was 63.2091 shares of JAKKS common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $15.82 per share of common stock), subject to adjustment under certain circumstances. As a result of the cash dividend of $0.10 per share declared by the Board of Directors paid October 3, 2011, January 3, 2012, April 2, 2012, July 2, 2012, October 1, 2012, and January 2, 2013 and of $0.07 per share declared by the Board paid April 1, 2013 and July 1, 2013 and the above-market self-tender offer in July 2012 (see Note 9 – Common Stock and Preferred Stock), the new conversion rate is 68.8564 shares of JAKKS common stock per $1,000 principal amount of notes (or approximately $14.52 per share). Prior to August 1, 2014, holders of the Notes may convert their Notes only upon the occurrence of specified events. Upon conversion, the Notes may be settled, at the Company’s election, in cash, shares of its common stock or a combination of cash and shares of its common stock. Holders of the Notes may require that the Company repurchase for cash all or some of their Notes upon the occurrence of a fundamental change (as defined). Accounting Standards Codification ("ASC") 470-20, “Debt with Conversion and Other Options,” requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) upon conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. In accordance with ASC 470-20, the Company allocated $13.7 million of the $100.0 million principal amount of the Notes to the equity component, which represents a discount to the debt that is being amortized to interest expense through November 1, 2014. Interest expense associated with the amortization of the discount was $0.7 million for each of the three months ended June 30, 2012 and 2013 $1.4 million for each of the six months ending June 30, 2012 and 2013. The balance of the discount was $5.1 million and $3.7 million at December 31, 2012 and June 30, 2013, respectively. (See Note 17 – Subsequent Events for additional information on the Company’s Convertible Senior Notes.) The fair value of the $100.0 million of convertible senior notes payable for the periods ending December 31, 2012, and June 30, 2013 was approximately $107.9 and $102.2 million, respectively, based upon the most recent quoted market price. The fair value of the $100.0 million convertible senior notes is considered to be a Level 1 measurement on the fair value hierarchy.

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- Definition Convertible Senior Debentures Disclosure. + References No definition available. + Details
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