XML 26 R14.htm IDEA: XBRL DOCUMENT v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
The following is a summary of debt balances as of September 30, 2023 and December 31, 2022:
(in thousands)September 30,
2023		December 31,
2022
Convertible senior notes$1,150,000 $1,150,000 
Debt issuance costs(13,442)(16,392)
Long-term debt$1,136,558 $1,133,608 
Convertible Senior Notes
On March 5, 2021, the Company issued $1.0 billion aggregate principal amount of its 0% Convertible Senior Notes due 2027 (the “Convertible Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. On March 12, 2021, the initial purchasers of the Convertible Notes exercised their option to purchase an additional $150.0 million aggregate principal amount of the Company’s 0% Convertible Senior Notes due 2027 (the “Additional Notes,” and together with the Convertible Notes, the “Notes”), and such Additional Notes were issued on March 16, 2021.
The total amount of debt issuance costs of $23.6 million was recorded as a reduction to “Convertible senior notes, net” in the condensed consolidated balance sheet and is being amortized as interest expense over the term of the Notes using the effective interest method. In each of the three months ended September 30, 2023 and October 1, 2022, the Company recognized $1.0 million in interest expense related to the amortization of the debt issuance costs related to the Notes. The effective interest rate in both of the three month periods ended September 30, 2023 and October 1, 2022 was 0.09%. In each of the nine months ended September 30, 2023 and October 1, 2022, the Company recognized $3.0 million in interest expense related to the amortization of the debt issuance costs related to the Notes.
The effective interest rate in both of the nine month periods ended September 30, 2023 and October 1, 2022 was 0.26%.
The following is a summary of the Company’s Notes as of September 30, 2023:
(in thousands)Principal AmountUnamortized Issuance CostsNet Carrying AmountFair Value
AmountLeveling
0% Convertible senior notes due on March 15, 2027
$1,150,000$13,442$1,136,558$299,000Level 2
The Notes are carried at face value less the unamortized debt issuance costs on the Company’s condensed consolidated balance sheets. As of September 30, 2023, the estimated fair value of the Notes was approximately $299.0 million. The Notes are quoted on the Intercontinental Exchange and are classified as Level 2 financial instruments. The estimated fair value of the Notes was determined based on the actual bid price of the Notes on September 29, 2023, the last day of the period when the notes were traded.
As of September 30, 2023, the remaining life of the Notes was approximately 3.5 years.