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	%