Convertible Notes

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Convertible Notes

Convertible Notes

Except as described below the Company’s convertible notes are described in Note 10 of the “Notes to Consolidated Financial Statements” in the Annual Report.

The convertible notes consisted of the following (in thousands):

	March 31, 2024		December 31, 2023
Principal amount	$	316,250	$	316,250
Unamortized debt discount and issuance costs	(9,415)		(9,829)
Net carrying amount	$	306,835	$	306,421

The Company incurred $10.9 million of transaction costs related to the issuance of the 4.00% Convertible Senior Notes due 2029 (the “Notes”), which are being amortized to interest expense over the term of the Notes using the effective interest method. As of March 31, 2024, the remaining amortization period of the debt discount was approximately 5.1 years and the effective interest on the Notes was 4.6%. The following table sets forth interest expense recognized related to the Notes (in thousands):

	Three Months Ended March 31, 2024
Coupon interest expense	$	3,163
Amortization of debt discount and issuance costs	414
Total interest expense on convertible notes	$	3,577

As of March 31, 2024 and December 31, 2023, the estimated fair value of the Notes was $357.8 million and $387.3 million, respectively. The fair values were determined based on the quoted price of the convertible notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy.