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Convertible Senior Notes (Tables)
3 Months Ended
Mar. 31, 2021
Convertible Senior Notes  
Summary of the Notes

2027 Notes

    

2025 Notes

    

Livongo Notes

    

Interest Rate Per Year

1.25

%  

1.375

%  

0.875

%

Fair Value as of March 31, 2021 (in millions)

$

1,115.5

$

750.0

$

906.6

Maturity Date

June 1, 2027

May 15, 2025

June 1, 2025

Optional Redemption Date

June 5, 2024

May 22, 2022

June 5, 2023

Conversion Date

December 1, 2026

November 15, 2024

March 1, 2025

Conversion Rate Per $1,000 Principal Amount as of March 31, 2021

4.1258

18.6621

13.94

Remaining Contractual Life as of March 31, 2021

6.2 years

4.1 years

4.2 years

The Notes consist of the following (in thousands):

As of March 31,

As of December 31,

2027 Notes - Liability component

    

2021

    

2020

Principal

$

1,000,000

$

1,000,000

Less: Debt discount, net (1)

(278,857)

(287,916)

Net carrying amount

$

721,143

$

712,084

2025 Notes - Liability component

Principal

$

220,128

$

276,788

Less: Debt discount, net (1)

(49,672)

(65,923)

Net carrying amount

$

170,456

$

210,865

Livongo Notes - Liability component

Principal

$

550,000

$

550,000

Less: Debt discount, net (1)

(88,623)

(93,357)

Net carrying amount

$

461,377

$

456,643

2022 Notes - Liability component

Principal

$

$

46,762

Less: Debt discount, net (1)

(4,202)

Net carrying amount

$

$

42,560

Schedule of total interest expense recognized related to the Notes

The following table sets forth total interest expense recognized related to the Notes (and in the case of the Livongo Notes, subsequent to the acquisition of Livongo) (in thousands):

Quarter Ended 

March 31,

2027 Notes:

    

2021

Contractual interest expense

$

3,125

Amortization of debt discount

 

9,059

Total

$

12,184

Effective interest rate of the liability component

 

3.4%

Quarters Ended

March 31,

2025 Notes:

2021

2020

Contractual interest expense

$

814

$

988

Amortization of debt discount

 

2,719

 

3,076

Total

$

3,533

$

4,064

Effective interest rate of the liability component

7.9

%  

7.9

%  

Quarter Ended 

March 31,

Livongo Notes:

2021

Contractual interest expense

$

1,203

Amortization of debt discount

 

4,734

Total

$

5,937

Effective interest rate of the liability component

5.2%

Quarters Ended

March 31,

2022 Notes:

2021

2020

Contractual interest expense

$

104

$

2,062

Amortization of debt discount

 

316

 

3,761

Total

$

420

$

5,823

Effective interest rate of the liability component

9.6

%  

10.0

%