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| Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt |
Note 11 – Long-Term Debt Letter of Credit Facility The Company has a Letter of Credit Facility with JP Morgan Chase Bank, N.A. Under the Letter of Credit Facility, we may issue up to $25.0 million in letters of credit, which will be secured by cash equal to 102% of the letters of credit exposure. The Letter of Credit Facility matures on February 4, 2013. As of September 30, 2011, outstanding letters of credit totaled $6.8 million. Convertible Senior Notes In June 2008, the Company completed an offering of $316.3 million of Convertible Senior Notes (“Notes”). The Notes bear interest at a rate of 3.0% per year, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2008. If the Notes are not converted, they will mature on June 15, 2013. The Notes are only convertible prior to March 15, 2013 under specific circumstances involving the price of the Company’s common stock, the price of the Notes and certain corporate transactions including, but not limited to, an offering of common stock at a price less than market, a distribution of cash or other assets to stockholders, a merger, consolidation or other share exchange, or a change in control. The holders of the Notes may convert the principal amount of their Notes into cash and, if applicable, shares of the Company’s common stock initially at a conversion rate of 10.8932 shares (equivalent to an initial conversion price of approximately $91.80 per share) per $1,000 principal amount of the Notes. The holders of the Notes are only entitled to amounts in excess of the principal amount if shares of the Company’s common stock exceed a market price of $91.80 for a period of 20 consecutive trading days during the applicable cash settlement averaging period. During fiscal 2011, the Company entered into exchange agreements with certain holders of the Company’s Notes whereby the Company issued an aggregate of 4,710,618 shares of its common stock in exchange for an aggregate principal amount of $30.1 million held by the holders of the Notes. In connection with this exchange the Company recorded a gain on debt extinguishment of $3.3 million. The effective interest rate for the periods ended September 30, 2011 and 2010 was 10.2% and 11.0%, respectively. At September 30, 2011 and 2010, the carrying amount of the conversion option recorded in stockholders’ equity for both periods was $81.9 million. The net carrying amount of the Notes is as follows:
The gross interest expense recognized is as follows:
The Company adopted the provisions of ASC 470-20 on July 1, 2010, with retrospective application to prior periods. (See Note 1 – Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies for additional information.) As part of the agreement for the Notes issued in June 2008, the Company also issued 3,444,975 shares as part of a “share-lending” arrangement with the underwriter. The shares issued as part of the share-lending arrangement coincide with the Notes term and will terminate on June 15, 2013. The fair value of the outstanding loaned shares as of September 30, 2011 and June 30, 2011 was $1.8 million and $4.0 million, respectively. The Company recognized debt issuance costs of $5.5 million which are amortized using the effective interest method over the life of the financing arrangement as interest cost and are included in “Other assets” in the Company’s Consolidated Balance Sheets. The Company has $2.3 million and $2.6 million of unamortized issuance costs associated with the share-lending arrangement as of September 30, 2011 and June 30, 2011, respectively. In addition, the Company recognized an additional $0.3 million and $0.2 million of interest costs relating to the amortization of the issuance costs associated with the share-lending arrangement for the three month periods ended September 30, 2011 and 2010, respectively. The counterparty to the share-lending agreement is required to provide collateral at least equal to 100% of the market value of the loaned shares when the rating from Standard and Poor’s Ratings Group for its indebtedness falls below A-. No collateral was required as of September 30, 2011. See Note 2, “Liquidity and Continued Listing Requirements,” for additional information about our plans to restructure our Notes and our common stock listing requirements in relationship to our Notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||