Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

The following table summarizes further details of the Notes:

Notes	Issuance Date	Maturity Date	Principal Amount (in thousands)		Coupon Interest Rate		Effective Interest Rate
2025 Notes	May 21, 2018	May 1, 2025	$	1,150,000	0.125	%	0.350	%
2027 Notes	August 16, 2019	September 1, 2027	$	1,150,000	0.375	%	0.539	%
2029 Notes	August 18, 2023	February 15, 2029	$	1,265,000	1.125	%	1.388	%

The conversion rights of the Notes are as follows:

Notes	Conversion Date	Conversion Rate (1)	Conversion Price per Share (1)
2025 Notes	January 1, 2025	10.5150	$	95.10
2027 Notes	May 1, 2027	8.6073	$	116.18
2029 Notes	October 15, 2028	7.9170	$	126.31

(1) The conversion rate for the Notes is established as a number of shares of the Company's commons stock per $1,000 principal amount of the Notes, that is equivalent to the conversion price per share, subject to adjustments in certain events. Upon the occurrence of certain corporate events the Company will increase the conversion rate for a holder that elects to convert its Notes.

The Notes consisted of the following components as of September 30, 2023 and December 31, 2022 (in thousands):

	2025 Notes		2027 Notes		2029 Notes		Total
As of September 30, 2023
Principal	$	1,150,000	$	1,150,000	$	1,265,000	$	3,565,000
Less: issuance costs, net of amortization	(4,106)		(7,300)		(17,252)		(28,658)
Net carrying amount	$	1,145,894	$	1,142,700	$	1,247,748	$	3,536,342
Estimated fair value (1)	$	1,363,394	$	1,203,395	$	1,281,622	$	3,848,411
As of December 31, 2022
Principal	$	1,150,000	$	1,150,000	$	—	$	2,300,000
Less: issuance costs, net of amortization	(6,035)		(8,707)		—		(14,742)
Net carrying amount	$	1,143,965	$	1,141,293	$	—	$	2,285,258
Estimated fair value (1)	$	1,209,076	$	1,111,038	$	—	$	2,320,114

(1) The fair values were determined based on the quoted prices of the Notes in an inactive market on the last trading day of the reporting period and have been classified as Level 2 within the fair value hierarchy.

The below table summarizes the main terms impacting the note hedges and warrants (in thousands, except per share data):

	2025 Notes		2027 Notes		2029 Notes
Note hedge transaction cost	$	261,740	$	312,225	$	236,555
Shares covered by note hedge transaction	12,093		9,898		10,015
Shares related to warrant transaction	12,093		9,898		10,015
Strike price per share related to warrant transaction	$	149.18	$	178.74	$	180.44
Aggregate proceeds from sale of warrants	$	119,945	$	185,150	$	90,195

Schedule of Interest Expense

Interest expense, together with ongoing commitment fees under the terms of the Company's credit agreements, included in the interim condensed consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Amortization of debt issuance costs	$	1,528	$	1,170	$	3,861	$	3,507
Coupon interest payable on 2025 Notes	359		360		1,077		1,078
Coupon interest payable on 2027 Notes	1,078		1,078		3,234		3,234
Coupon interest payable on 2029 Notes	1,660		—		1,660		—
Interest payable and commitment fees under the credit agreements	486		261		1,254		804
Capitalization of interest expense	(124)		(84)		(261)		(211)
Total interest expense	$	4,987	$	2,785	$	10,825	$	8,412