Long-Term Obligations and Commitments (Tables)

12 Months Ended

Dec. 31, 2016

Long-Term Obligations and Commitments [Abstract]

Long-Term Obligations

The carrying value of our long-term obligations was as follows (in thousands):

	December 31,
	2016			2015
1 percent convertible senior notes	$	500,511		$	339,847
2¾ percent convertible senior notes		124			49,523
Long-term financing liability for leased facility		72,359			72,217
Fixed rate note with Morgan Stanley		12,500			—
Leases and other obligations		3,611			2,856
Total	$	589,105		$	464,443
Less: current portion		(1,185	)		(515	)
Total Long-Term Obligations	$	587,920		$	463,928

Convertible Notes

At December 31, 2016, we had a nominal amount of our 2¾ percent convertible senior notes outstanding. At December 31, 2016 we had the following 1 percent convertible senior notes outstanding (amounts in millions except price per share data):

	1 Percent Convertible Senior Notes
Outstanding balance	$	685.5
Original issue date ($500 million of principal)	November 2014
Additional issue date ($185.5 million of principal)	December 2016
Maturity date	November 2021
Interest rate	1 percent
Conversion price per share	$	66.81
Total shares of common stock subject to conversion		10.3

We account for our convertible notes using an accounting standard that requires us to assign a value to our convertible debt equal to the estimated fair value of similar debt instruments without the conversion feature and to record the remaining portion in equity. As a result, we recorded our convertible notes at a discount, which we are amortizing as additional non-cash interest expense over the expected life of the respective debt. We determined our nonconvertible debt borrowing rate using a combination of the present value of the debt’s cash flows and a Black-Scholes valuation model. The following table summarizes the nonconvertible borrowing rate, effective interest rate and amortization period of our debt discount for our convertible notes:

	1 Percent Convertible Senior Notes Issued in November 2014	1 Percent Convertible Senior Notes Issued in December 2016
Nonconvertible debt borrowing rate	7.4 percent	6.8 percent
Effective interest rate	7.8 percent	7.2 percent
Amortization period of debt discount	7 years	5 years

The following table summarizes information about the equity and liability components of our outstanding 1 percent convertible notes (in thousands). We measured the fair values of the convertible notes outstanding based on quoted market prices, which is a Level 2 measurement:

	December 31,
	2016		2015
Fair value of outstanding notes	$	700,969	$	555,000
Principal amount of convertible notes outstanding	$	685,450	$	500,000
Unamortized portion of debt discount	$	175,699	$	152,786
Long-term debt	$	500,511	$	339,847
Carrying value of equity component	$	219,011	$	174,770

Maturity Schedules

Annual debt and other obligation maturities, including fixed and determinable interest, at December 31, 2016 are as follows (in thousands):

2017	$	7,271
2018		7,211
2019		19,801
2020		6,915
2021		692,365
Thereafter		840
Subtotal	$	734,403
Less: current portion		(52	)
Less: fixed and determinable interest		(35,959	)
Less: unamortized portion of debt discount		(175,721	)
Plus: Deferred rent		2,130
Total	$	524,801

Future Minimum Payments Under Operating Leases

Annual future minimum payments under operating leases as of December 31, 2016 are as follows (in thousands):

	Operating Leases
2017	$	1,954
2018		1,690
2019		1,474
2020		1,527
2021		1,411
Thereafter		14,714
Total minimum payments	$	22,770

Future Rent Payments for Research and Development Facility Lease Obligation

Annual future rent payments as of December 31, 2016 for our primary research and development facility are as follows (in thousands):

	Future Rent Payments
2017	$	6,550
2018		6,943
2019		6,943
2020		7,359
2021		7,359
Thereafter		83,846
Total minimum payments	$	119,000