Convertible Securities

In 2013, the Company settled $460.0 million principal amount outstanding of our 3.95% senior convertible securities due 2038 (“2008 senior convertible securities”). In connection with the settlement, the Company paid an aggregate of $641.3 million and all of our 2008 senior convertible notes have been retired.

On February 13, 2014, the Company delivered a notice to redeem all $300.0 million principal amount of its outstanding junior convertible trust preferred securities issued in 2006 ("2006 junior convertible securities"). In lieu of redemption, substantially all holders of the 2006 junior convertible securities elected to convert their securities into a defined number of shares. The Company issued 1.9 million shares of its common stock and recognized a loss of $18.8 million, which is included in Imputed interest expense and contingent payment arrangements. All of the Company's 2006 junior convertible securities have been canceled and retired.

At December 31, 2014, the Company had junior convertible trust preferred securities outstanding that were issued in 2007 ("2007 junior convertible securities").

The carrying values of the Company's convertible securities are as follows:



	December 31, 2013				December 31, 2014
	Carrying Value		Principal amount at maturity		Carrying Value		Principal amount at maturity
Junior convertible securities:
2007 junior convertible securities⁽¹⁾	$	301.2	$	430.8	$	303.1	$	430.8
2006 junior convertible securities	217.5		300.0		—		—
Total junior convertible securities	$	518.7	$	730.8	$	303.1	$	430.8

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(1)	The carrying value is accreted to the principal amount at maturity over a remaining life of 23 years.

The 2007 junior convertible securities bear interest at 5.15% per annum, payable quarterly in cash. Each $50 security is convertible, at any time, into 0.25 shares of the Company's common stock, which represents a conversion price of $200 per share. Holders of the securities have no rights to put these securities to the Company. Upon conversion, holders will receive cash or shares of the Company's common stock, or a combination therefore, at the Company's election. The Company may redeem the 2007 junior convertible securities if the closing price of its common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. These convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported interest expense. These deductions result in annual deferred tax liabilities of approximately $8.7 million. These deferred tax liabilities will be reclassified directly to stockholders' equity if the Company's common stock is trading above certain thresholds at the time of the conversion of the securities.