Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt

7. DEBT

Long-term debt consists of the following (in thousands):

	June 30, 2011			December 31, 2010
Convertible notes	$	97,500		$	97,500
Real estate loan		—			2,541
		97,500			100,041
Less unamortized debt discount		(10,613	)		(15,258	)
		86,887			84,783
Less current portion		(86,887	)		(590	)
Total long-term debt	$	—		$	84,193

The Company's outstanding debt consists of convertible bond notes and a revolving credit facility. During the six months ended June 30, 2011, the Company used cash on hand to pay in full the $2.5 million real estate note. At June 30, 2011, the Company had no outstanding borrowings under its revolving credit facility and additional available borrowing capacity of approximately $82 million.

As of June 30, 2011 the Company was in compliance with all of the covenants contained in its debt agreements. Failure to comply with our loan covenants might cause our lenders to accelerate our repayment obligations under our credit facility, which may be declared payable immediately based on a default and which could result in a cross-default under our $97.5 million principal amount of outstanding convertible notes.

The following table provides additional information regarding the Company's convertible debt instruments:

	June 30, 2011			December 31, 2010
Principal amount of the liability component	$	97,500		$	97,500
Unamortized discount of liability component		(10,613	)		(15,258	)
Net carrying amount of liability component		86,887			82,242
Carrying amount of the equity component		23,860			23,860
Remaining amortization period of discount		12 months			18 months
Conversion price	$	21.78		$	21.78
Effective interest rate on liability component		18.41	%		18.41	%
If-converted value in excess of principal amount (a)	$	29,105			—
If-converted number of shares to be issued (a)		1,029			—

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Interest expense at coupon rate (6.0%)	$	1,462	$	1,462	$	2,925	$	2,925
Non-cash interest in accordance with ASC 470		2,322		1,947		4,645		3,895
Total interest expense recognized on convertible debt instruments	$	3,784	$	3,409	$	7,570	$	6,820

(a) If-converted value amounts are for disclosure purposes only. The if-converted value in excess of the principal amount and the if-converted number of shares to be issued illustrated above are based on the average stock price of $28.28 during the six months ended June 30, 2011, which exceeded the conversion price of $21.78.

The notes are convertible if a specified trading price of $28.31 of the Company's common stock (the "trigger price") is achieved and maintained for a specified period. If the holders exercise the conversion feature, the principal amount of the notes is settled in cash upon conversion and the conversion spread is settled in common shares. The trigger price condition was not satisfied during the second quarter of 2011.