Convertible Notes

12 Months Ended

Dec. 31, 2011

Convertible Subordinated Debt [Abstract]

CONVERTIBLE NOTES

2.875% Convertible Subordinated Notes

On May 19, 2006, we issued $115.0 million aggregate principal amount of convertible subordinated notes. The interest rate on the notes is 2.875%, payable semi-annually. The notes are due on June 1, 2013, are subordinated to all previously existing and future senior indebtedness, and are effectively subordinated to all indebtedness and other liabilities of our subsidiaries. The cost of this transaction, including underwriting discounts and commissions and offering expenses, totaled $3.1 million and is recorded on our balance sheet in other long-term assets and is being amortized over the life of the notes. The amortization of these costs totals $0.1 million per quarter and is reflected as additional interest expense in our Consolidated Statements of Operations.

We redeemed the following amounts of our 2.875% Convertible Subordinated Notes:



Date	Amount Redeemed		Redemption Price		Redemption Discount		Related Note Issuance Costs Written Off
February 2009	$	15,000,000	86.50	%	$	2,025,000	$	250,154
June 24, 2010	7,940,000		98.90		89,325		90,904
June 29, 2010	1,200,000		99.00		12,000		13,703
July 8, 2010	1,848,000		99.25		13,860		20,546
Total for 2010	10,988,000				115,185		125,153
Total	$	25,988,000			$	2,140,185	$	375,307

During 2011, one of our note holders converted a $1,000 note into 34 shares of FEI common stock. The remaining $89.0 million of convertible notes outstanding at December 31, 2011 are convertible into 3,032,743 shares of our common stock, at the note holder’s option, at a price of $29.35 per share.