CONVERTIBLE NOTES (Tables)

9 Months Ended

Sep. 30, 2019

CONVERTIBLE NOTES.

Schedule of Convertible note obligations included in the condensed consolidated balance sheets

(In thousands)	Coupon Interest Rate	Effective Interest Rate	Fair Value of Liability Component at Issuance (1)		September 30, 2019		December 31, 2018
2027 Convertible notes	0.375%	6.3%	$	472,501	$	747,500	$	—
2025 Convertible notes	1.000%	6.0%		299,187		415,102		908,500
Total Convertible notes						1,162,602		908,500
Less: Debt discount (2)						(353,283)		(227,403)
Less: Debt issuance costs (3)						(17,149)		(16,348)
Net convertible debt including current maturities						792,170		664,749
Less: Current maturities (4)						(315,643)		—
Net long-term convertible debt					$	476,527	$	664,749

(1) As each of the convertible instruments may be settled in cash upon conversion, for accounting purposes, they were separated into a liability component and an equity component. The amount allocated to the equity component is the difference between the principal value of the instrument and the fair value of the liability component at issuance. The resulting debt discount is being amortized to interest expense at the respective effective interest rate over the contractual term of the debt. In March 2019, a portion of the 2025 Convertible Notes were extinguished. The fair value of the liability component at issuance reflected above represents the liability value at issuance for the applicable portion of the 2025 Notes which remain outstanding at September 30, 2019. The fair value of the liability component of the 2025 Notes at December 31, 2018 was $654.8 million with the equity component being $269.7 million including a $14.2 million premium.

(2) The unamortized discount consists of the following:

(In thousands)	September 30, 2019		December 31, 2018
2027 Convertible notes	$	260,370	$	—
2025 Convertible notes		92,913		227,403
Total unamortized discount	$	353,283	$	227,403

(3) Debt issuance costs consists of the following:

(In thousands)	September 30, 2019		December 31, 2018
2027 Convertible notes	$	10,602	$	—
2025 Convertible notes		6,547		16,348
Total debt issuance costs	$	17,149	$	16,348

(4) As of September 30, 2019, the 2025 Convertible Notes were convertible and included within convertible notes, net, current portion on the condensed consolidated balance sheet. As of December 31, 2018, the 2025 Convertible Notes were not convertible and included within long-term convertible notes, net on the condensed consolidated balance sheet.

Schedule of interest expense

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2019		2018		2019		2018
Debt issuance costs amortization	$	658	$	677	$	1,989	$	1,597
Debt discount amortization		10,322		7,737		28,789		18,559
Loss on settlement of convertible notes		—		—		10,558		—
Coupon interest expense		1,739		2,242		5,585		5,513
Total interest expense on convertible notes		12,719		10,656		46,921		25,669
Other interest expense		490		48		990		148
Total interest expense	$	13,209	$	10,704	$	47,911	$	25,817