3. Indebtedness

Debt outstanding as of July 31, 2016, and January 31, 2016, was as follows:

	July 31,			January 31,
(in thousands)	2016			2016
4.25% Convertible Notes	$	63,048		$	61,766
8.0% Convertible Notes		97,570			97,205
Capitalized lease obligations		22			106
Less amounts representing interest		(1	)		(3	)
Total debt		160,639			159,074
Less current maturities of long-term debt		(9	)		(88	)
Total long-term debt	$	160,630		$	158,986

On March 2, 2015, we exchanged approximately $55.5 million aggregate principal amount of our 4.25% Convertible Notes for approximately $49.9 million aggregate principal amount of our 8.0% Convertible Notes. In accordance with the derecognition guidance for convertible instruments in an exchange transaction under ASC Topic 470-20, the fair value of the 8.0% Convertible Notes (“the exchange consideration”) and the transaction costs incurred were allocated between the liability and equity components of the 4.25% Convertible Notes. Of the $49.9 million exchange consideration, $42.1 million, which represented the fair value of the 4.25% Convertible Notes immediately prior to its derecognition, was allocated to the extinguishment of the liability component. Transaction costs of $0.9 million were also allocated to the liability component. As a result, we recognized a gain on extinguishment of debt of $4.2 million during the first quarter of FY2016. The remaining $7.8 million of the exchange consideration and $0.2 million of transaction costs were allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity.

The following table presents the carrying value of the Convertible Notes as of July 31, 2016:

	July 31,			January 31,
(in thousands)	2016			2016
4.25% Convertible Notes:
Carrying amount of the equity conversion component	$	3,106		$	3,106
Principal amount of the 4.25% Convertible Notes	$	69,500		$	69,500
Unamortized deferred financing fees		(1,286	)		(1,523	)
Unamortized debt discount ⁽¹⁾		(5,166	)		(6,211	)
Net carrying amount	$	63,048		$	61,766

8.0% Convertible Notes:
Principal amount of the 8.0% Convertible Notes	$	99,898		$	99,898
Unamortized deferred financing fees		(2,328	)		(2,693	)
Net carrying amount	$	97,570		$	97,205

(1)	As of July 31, 2016, the remaining period over which the unamortized debt discount will be amortized is 27 months using an effective interest rate of 9.0%.

We utilize surety bonds to secure performance of our projects. As of July 31, 2016 and January 31, 2016, the amount of surety bonds was $206.1 million and $259.7 million, respectively, as measured by the expected amount of contract revenue remaining to be recognized on the projects.