Convertible Senior Notes Due 2017

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Convertible Senior Notes Due 2017

NOTE 6. CONVERTIBLE SENIOR NOTES DUE 2017

On March 19, 2012, the Company issued $258.8 million aggregate principal amount of the Convertible Notes. The Company was required to pay interest semi-annually in arrears on April 1 and October 1 of each year. The Convertible Notes were convertible upon the occurrence of certain conditions into shares of the Company’s common stock at a conversion rate of 19.5172 shares of common stock per $1,000 principal amount of the Convertible Notes, equivalent to a conversion price of approximately $51.24 per share of common stock.

During the first quarter of 2015, the Company received notification that $0.7 million aggregate principal amount of Convertible Notes were surrendered for conversion. The Company settled the principal and conversion premium for approximately $1.9 million in cash during the second quarter of 2015. During the second quarter of 2015, the Company received notification that $90.3 million aggregate principal amount of Convertible Notes were surrendered for conversion. The Company settled these conversion obligations through a combination of $90.3 million in cash and 1,049,679 shares of its common stock during the second quarter of 2015. The Company recorded a non-cash loss on extinguishment of the Convertible Notes of $7.9 million for the three and six months ended June 30, 2015, which is included in other income (expense), net, on the unaudited consolidated statements of operations. Forfeited accrued interest payable of $0.3 million was reclassified to additional paid-in capital upon conversion.

On June 19, 2015, the Company issued a notice of redemption to redeem on July 24, 2015 all of its outstanding Convertible Notes. At June 30, 2015, $167.8 million aggregate principal amount of the Convertible Notes was outstanding and was classified as a current liability on the unaudited consolidated balance sheet. Pursuant to this notice of redemption, the Company completed the settlement of $167.8 million aggregate principal amount of the Convertible Notes for $167.8 million in cash and 1,769,609 shares of its common stock during the third quarter of 2015. Upon settlement, the Convertible Notes were no longer deemed outstanding, interest ceased to accrue thereon, and all rights of the holders of the Convertible Notes ceased to exist. The Company expects to record a non-cash loss on extinguishment of Convertible Notes of approximately $13.0 million during the third quarter of 2015.