Convertible Senior Notes (Tables)

9 Months Ended

Sep. 26, 2021

The following table includes the outstanding principal amount and carrying value of the 2025 Notes as of the periods indicated:


(dollars in thousands)	SEPTEMBER 26, 2021		DECEMBER 27, 2020
Long-term debt, net
Principal	$	230,000	$	230,000
Less: debt discount (1)	—		(59,862)
Less: debt issuance costs (1)(2)	(6,296)		(5,427)
Net carrying amount	$	223,704	$	164,711
Equity component (1)	$	—	$	64,367

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(1)In connection with the adoption of ASU No. 2020-06, debt discount and the equity component of the 2025 Notes were de-recognized and $2.1 million of issuance costs that were previously allocated to the equity component were reclassified as debt issuance costs during the thirty-nine weeks ended September 26, 2021.

(2)Debt issuance costs are amortized to Interest expense, net using the effective interest method over the 2025 Notes’ expected life.

Convertible senior notes interest expense

Following is a summary of interest expense for the 2025 Notes, by component, for the periods indicated:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(dollars in thousands)	SEPTEMBER 26, 2021		SEPTEMBER 27, 2020		SEPTEMBER 26, 2021		SEPTEMBER 27, 2020
Coupon interest	$	2,875	$	2,875	$	8,625	$	4,568
Deferred discount amortization	—		2,407		—		3,786
Deferred issuance cost amortization	392		215		1,159		343
Total interest expense (1)	$	3,267	$	5,497	$	9,784	$	8,697

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(1)The effective rate of the 2025 Notes over their expected life was 5.85% for the thirteen and thirty-nine weeks ended September 26, 2021 and 13.73% for the thirteen and thirty-nine weeks ended September 27, 2020.