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SENIOR CONVERTIBLE NOTES
6 Months Ended
Jul. 31, 2016
Senior Convertible Notes  
SENIOR CONVERTIBLE NOTES  
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES
The Company’s 3.75% Senior Convertible Notes issued on April 24, 2012 (“Senior Convertible Notes”) consisted of the following:
 
July 31, 2016
 
January 31, 2016
 
(in thousands except conversion
rate and conversion price)
Principal value
$
119,900

 
$
150,000

Unamortized debt discount
(9,589
)
 
(13,946
)
Unamortized debt issuance costs
(1,300
)
 
(1,909
)
Carrying value of Senior Convertible Notes
$
109,011

 
$
134,145

 
 
 
 
Carrying value of equity component, net of deferred taxes
$
14,520

 
$
15,546

 
 
 
 
Conversion rate (shares of common stock per $1,000 principal amount of notes)
23.1626

 
 
Conversion price (per share of common stock)
$
43.17

 
 

In April 2016, the Company repurchased $30.1 million face value ($27.1 million carrying value) of its Senior Convertible Notes with $25.0 million in cash, and recognized a pre-tax gain of approximately $2.1 million in the first quarter of fiscal 2017. This gain is included in other interest expense in the consolidated statements of operations.
The Company recognized interest expense associated with its Senior Convertible Notes as follows:
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
(in thousands)
Cash Interest Expense
 
 
 
 
 
 
 
Coupon interest expense
$
1,124

 
$
1,407

 
$
2,461

 
$
2,813

Noncash Interest Expense
 
 
 
 
 
 
 
Amortization of debt discount
793

 
926

 
1,703

 
1,820

Amortization of transaction costs
114

 
138

 
247

 
274

 
$
2,031

 
$
2,471

 
$
4,411

 
$
4,907


The Senior Convertible Notes mature on May 1, 2019, unless earlier purchased by the Company, redeemed or converted. As of July 31, 2016, the unamortized debt discount will be amortized over a remaining period of approximately 2.8 years. As of July 31, 2016 and January 31, 2016, the if-converted value of the Senior Convertible Notes did not exceed the principal balance. The effective interest rate of the liability component was equal to 7.3% for each of the statements of operations periods presented.