Convertible 3.75% Senior Notes (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Convertible debt

At December 31, 2016 and December 31, 2015, the net carrying amount of the liability component and the remaining unamortized debt discount were as follows:  

	December 31, 2016		December 31, 2015
	(in thousands)		(in thousands)
Face amount of the Notes	$	143,750	$	143,750
Unamortized discount	29,160		36,759
Debt issuance costs	$	3,199	$	4,027
Carrying amount of the Notes	$	111,391	$	102,964

Long-term debt assumptions

The assumptions used in connection with the valuation of the convertible option of the Notes issued December 16, 2014 utilizing the “with” and “without” method, discussed in Note 2 was as follows:

	Initial Measurement December 16, 2014			Measurement December 31, 2014			Measurement May 20, 2015
Issue date	12/17/2014			12/17/2014			12/17/2014
Maturity date	12/15/2019			12/15/2019			12/15/2019
Term	4.99			4.92			4.57
Principal (millions)	143.75			143.75			143.75
Coupon	3.75		%	3.75		%	3.75		%
Seniority	Senior unsecured			Senior unsecured			Senior unsecured
Conversion shares	88.572			88.572			88.572
Conversion price	$	11.29		$	11.29		$	11.29
Stock price	$	9.45		$	8.80		$	5.73
Risk free rate	1.61		%	1.64		%	1.44		%
Volatility (rounded)	40.00		%	40.00		%	46.00		%

Fair value of convertible notes

The table below provides a reconciliation of beginning and ending balances for the liability measured at fair value using significant observable and unobservable inputs (Level 3). The table reflects the gains associated with the decrease in fair value and the reclassification of the balance of the derivative liability.

	Initial Measurement December 16, 2014		Decrease in Fair Value		December 31, 2014		Decrease in Fair Value January 1, 2015 to May 20, 2015		Reclassification of derivative liability to equity on May 20, 2015		December 31, 2015
Fair value of convertible feature of 3.75% senior  notes	$	43,700	$	2,300	$	41,400	$	23,144	$	18,256	$	—

Schedule of expenses for convertible notes

For the year ended December 31, 2016 and December 31, 2015, the Company recorded the following expenses in relation to the Notes:

	December 31, 2016		December 31, 2015		December 31, 2014
	(in thousands)		(in thousands)		(in thousands)
Interest Expense at 3.75% coupon rate	$	5,391	$	5,391	$	225
Debt discount amortization	7,599		6,680		261
Amortization of deferred financing costs	828		728		28
Total interest expense (1)	$	13,818	$	12,799	$	514

(1) Included within “Interest and other expense, net” on the Consolidated Statements of Operations