Convertible Senior Notes (Tables)

6 Months Ended

Jun. 30, 2022

Convertible Senior Notes

Summary of the Notes

The following table presents certain terms of the Notes that were outstanding as of June 30, 2022:

	2027 Notes			2025 Notes			Livongo Notes
Interest Rate Per Year		1.25	%		1.375	%		0.875	%
Fair Value as of June 30, 2022 (in millions) (1)	$	732.5		$	0.4		$	462.6
Fair Value as of December 31, 2021 (in millions) (1)	$	940.0		$	1.3		$	605.0
Maturity Date		June 1, 2027			May 15, 2025			June 1, 2025
Optional Redemption Date		June 5, 2024			May 22, 2022			June 5, 2023
Conversion Date		December 1, 2026			November 15, 2024			March 1, 2025
Conversion Rate Per $1,000 Principal Amount as of June 30, 2022		4.1258			18.6621			13.94
Remaining Contractual Life as of June 30, 2022		4.9 years			2.9 years			2.9 years

(1) The Notes are classified as Level 2 within the fair value hierarchy, as defined in Note 9.

The net carrying values of the Notes consisted of the following (in thousands):

	As of June 30,		As of December 31,
2027 Notes	2022		2021
Principal	$	1,000,000	$	1,000,000
Less: Debt discount, net (1)		(17,107)		(250,846)
Net carrying amount		982,893		749,154
2025 Notes
Principal		725		730
Less: Debt discount, net (1)		(9)		(166)
Net carrying amount		716		564
Livongo Notes
Principal		550,000		550,000
Less: Debt discount, net (1)		0		(74,047)
Net carrying amount		550,000		475,953
Total net carrying amount	$	1,533,609	$	1,225,671

(1) Included in the accompanying condensed consolidated balance sheet within convertible senior notes and amortized to interest expense over the expected life of the Notes using the effective interest rate method.

Schedule of total interest expense recognized related to the Notes

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