1% Convertible Senior Notes

12 Months Ended

Dec. 31, 2011

1% Convertible Senior Notes [Abstract]

Debt Disclosure [Text Block]

1% Convertible Senior Notes:

In January 2004 and December 2003, Akamai issued $200.0 million in aggregate principal amount of 1% convertible senior notes due December 15, 2033 for aggregate proceeds of $194.1 million, net of an initial purchaser’s discount and offering expenses of $5.9 million. The initial conversion price of the 1% convertible senior notes was $15.45 per share (equivalent to 64.7249 shares of common stock per $1,000 principal amount of 1% convertible senior notes). During 2010, the Company issued 12,929,095 shares of common stock in connection with the conversion of $199.8 million in aggregate principal amount of the 1% convertible senior notes. As of December 31, 2010, the Company no longer had any 1% convertible senior notes outstanding. Deferred financing costs of $5.9 million, including the initial purchaser’s discount and other offering expenses, for the 1% convertible senior notes were amortized over the first 7 years of the term of the notes to reflect the put and call rights. Amortization of deferred financing costs of the 1% convertible senior notes was approximately $0.5 million for the year ended December 31, 2010 and $0.8 million for the year ended December 31, 2009. The Company records the amortization of deferred financing costs using the effective interest method as interest expense in the consolidated statement of operations.