Convertible Senior Notes (Tables)

9 Months Ended

Sep. 30, 2013

Convertible Senior Notes

Schedule of the unsecured convertible senior notes outstanding

The following summarizes the unsecured convertible senior notes (collectively, the “Convertible Notes”) outstanding as of September 30, 2013 (amounts in thousands, except rates):

	Principal Amount		Coupon Rate		Effective Rate (1)		Conversion Rate (2)	Maturity Date	Remaining Period of Amortization
2018 Notes	$	600,000	4.55	%	6.08	%	35.5981	2/15/2018	4.4 years
2019 Notes	$	460,000	4.00	%	5.37	%	37.9896	1/15/2019	5.3 years

	As of September 30, 2013
Total principal	$	1,060,000
Net unamortized discount	(64,928		)
Carrying amount of debt components	$	995,072
Carrying amount of conversion option equity components recorded in additional paid-in capital	$	48,502

(1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option, the value of which reduced the initial liability and was recorded in additional paid-in-capital.

(2) The conversion rate represents the number of common shares issuable per $1,000 principal amount of Convertible Notes converted.  The initial conversion rate for the 2018 Notes was 35.5391, but was adjusted to 35.5981 in accordance with the applicable indenture because the dividend distributions of $0.46 per share declared in each of the second and third quarters of 2013 exceeded the initial dividend threshold amount of $0.44 per share specified in the indenture. No such adjustment was necessary with respect to the 2019 Notes because the initial dividend threshold amount is $0.46 per share in the applicable indenture.  The Company has the option to settle any conversions in cash, common shares or a combination thereof.  The if-converted value of the Convertible Notes does not exceed their principal amount at September 30, 2013 since the closing market price of the Company’s common stock of $23.97 per share does not exceed the implicit conversion prices of $28.09 per share for the 2018 Notes and $26.32 for the 2019 Notes .