DEBT

The Company's 1.00% convertible senior notes (the "Notes"), issued in August 2013, consisted of the following components as of June 30, 2015 and December 31, 2014 (in thousands):



	June 30, 2015			December 31, 2014
Equity component, net of equity issue costs	$	60,222		$	60,222
Liability component:
Principal	287,500			287,500
Less: unamortized debt discount	(40,752		)	(46,614		)
Net carrying amount	$	246,748		$	240,886

As of June 30, 2015 and December 31, 2014, the estimated fair value of the Notes was $334.6 million and $314.8 million, respectively. The Company considers this disclosure to be a Level 2 measurement because it is based upon a recent modeled bid price quote for the Notes, reflecting activity in a less than active market. As of June 30, 2015, the Notes are not convertible. Based on the closing price of the Company's common stock on June 30, 2015 of $54.32, which is less than the Notes' initial conversion price of $58.05, the if-converted value of the Notes was less than their principal amount.

As of June 30, 2015, the remaining life of the Notes was approximately 37 months and related unamortized debt issuance costs of $3.9 million were included in other assets on the Company's consolidated balance sheets.

The following table sets forth total interest expense recognized related to the Notes for the three and six months ended June 30, 2015 and 2014 (in thousands except percentages):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Contractual interest expense	$	719		$	719		$	1,438		$	1,430
Amortization of debt issuance costs	320			320			639			639
Amortization of debt discount	2,953			2,782			5,862			5,523
Total	$	3,992		$	3,821		$	7,939		$	7,592

Effective interest rate	6.5		%	6.5		%	6.5		%	6.5		%