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Convertible Senior Notes (Tables)

6 Months Ended

Jun. 30, 2020

0.125% Convertible Senior Notes Due 2024

Schedule of Components of Convertible Senior Notes

The 2024 Notes consist of the following (in thousands):

	As of			As of
	June 30, 2020			December 31, 2019
Liability component:
Principal	$	450,000		$	450,000
Less: debt discount, net of amortization		(90,070	)		(98,942	)
Net carrying amount	$	359,930		$	351,058
Equity component ⁽¹⁾		86,133			86,133

⁽¹⁾	Recorded in the consolidated balance sheet within additional paid-in capital, net of $2.6 million transaction costs in equity and net of $0.9 million for taxes.

Summary of Total Interest Expense Recognized Related To Convertible Senior Notes

The following table sets forth total interest expense recognized related to the 2024 Notes (in thousands):

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
0.125% coupon	$	140	$	281
Amortization of debt discount and transaction costs		4,466		8,872
	$	4,606	$	9,153

Summary of Fair Value and Carrying Value of Convertible Senior Notes

As of June 30, 2020 and December 31, 2019, the fair value of the 2024 Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the 2024 Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s 2024 Notes classified in equity) were as follows (in thousands):

	As of June 30, 2020				As of December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
2024 Notes	$	615,155	$	359,930	$	450,414	$	351,058

1.50% Convertible Senior Notes Due 2022

Schedule of Components of Convertible Senior Notes

The 2022 Notes consist of the following (in thousands):

	As of			As of
	June 30, 2020			December 31, 2019
Liability component:
Principal	$	92,000		$	92,000
Less: debt discount, net of amortization		(10,699	)		(12,776	)
Net carrying amount	$	81,301		$	79,224
Equity component ⁽¹⁾		(14,555	)		(14,555	)

⁽¹⁾

Recorded in the consolidated balance sheet within additional paid-in capital, net of $0.8 million transaction costs in equity. Additional paid-in capital also includes $36.7 million market premium representing the excess of the total consideration delivered over the fair value of the liability recognized related to the $23.0 million principal balance repurchase of the 2022 Notes.

Summary of Total Interest Expense Recognized Related To Convertible Senior Notes

The following table sets forth total interest expense recognized related to the 2022 Notes (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
1.50% coupon	$	345	$	433	$	690	$	865
Amortization of debt discount and transaction costs		1,047		1,223		2,077		2,424
	$	1,392	$	1,656	$	2,767	$	3,289

Summary of Fair Value and Carrying Value of Convertible Senior Notes

As of June 30, 2020 and December 31, 2019, the fair value of the 2022 Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the 2022 Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands):

	As of June 30, 2020				As of December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
2022 Notes	$	384,100	$	81,301	$	215,801	$	79,224