Schedule of Carrying Values and Estimated Fair Values of Debt Instruments |
Debt obligations included in the consolidated balance sheets consisted of the following (in millions): | | | | | | | | | | | | | | | | | | Coupon Interest Rate | | Effective Interest Rate | | Fair Value of Liability Component at Issuance (1) | | | | | | | | June 30, 2017 | | March 31, 2017 | Senior Indebtedness | | | | | | | | | | | Credit Facility | | | | | | | | $ | — |
| | $ | — |
| Senior Subordinated Convertible Debt - Principal Outstanding | | | | | | | 2017 Senior Debt, maturing February 15, 2027 (2017 Senior Debt) | | 1.625% | | 6.0% | | $1,396.3 | | $ | 2,070.0 |
| | $ | 2,070.0 |
| 2015 Senior Debt, maturing February 15, 2025 (2015 Senior Debt) | | 1.625% | | 5.9% | | 1,160.1 | | 1,725.0 |
| | 1,725.0 |
| Junior Subordinated Convertible Debt - Principal Outstanding | | | | | | | 2017 Junior Debt, maturing February 15, 2037 (2017 Junior Debt) | | 2.250% | | 7.4% | | 321.1 | | 686.3 |
| | 575 |
| 2007 Junior Debt, maturing December 15, 2037 (2007 Junior Debt) | | 2.125% | | 9.1% | | 11.5 | | 32.5 |
| | 143.8 |
| Total Convertible Debt | | | | | | | | 4,513.8 |
| | 4,513.8 |
| | | | | | | | | | | | Gross long-term debt including current maturities | | | | | | | | 4,513.8 |
| | 4,513.8 |
| Less: Debt discount (2) | | | | | | | | (1,473.9 | ) | | (1,516.5 | ) | Less: Debt issuance costs (3) | | | | | | | | (44.7 | ) | | (46.8 | ) | Net long-term debt including current maturities | | | | | | | | 2,995.2 |
| | 2,950.5 |
| Less: Current maturities (4) | | | | | | | | (11.3 | ) | | (50.0 | ) | Net long-term debt | | | | | | | | $ | 2,983.9 |
| | $ | 2,900.5 |
| | | | | | | | | | | |
(1) As each of the convertible instruments may be settled in cash upon conversion, for accounting purposes, they were bifurcated into a liability component and an equity component, which are both initially recorded at fair value. The amount allocated to the equity component is the difference between the principal value of the instrument and the fair value of the liability component at issuance. The resulting debt discount is being amortized to interest expense at the respective effective interest rate over the contractual term of the debt.
(2) The unamortized discount includes the following (in millions): | | | | | | | | | | June 30, | | March 31, | | 2017 | | 2017 | 2017 Senior Debt | $ | (654.9 | ) | | $ | (667.5 | ) | 2015 Senior Debt | (435.3 | ) | | (446.6 | ) | 2017 Junior Debt | (362.6 | ) | | (309.3 | ) | 2007 Junior Debt | (21.1 | ) | | (93.1 | ) | Total unamortized discount | $ | (1,473.9 | ) | | $ | (1,516.5 | ) |
(3) Debt issuance costs include the following (in millions): | | | | | | | | | | June 30, | | March 31, | | 2017 | | 2017 | Senior Credit Facility | $ | (7.7 | ) | | $ | (8.5 | ) | 2017 Senior Debt | (17.3 | ) | | (17.6 | ) | 2015 Senior Debt | (16.2 | ) | | (16.6 | ) | 2017 Junior Debt | (3.4 | ) | | (3.4 | ) | 2007 Junior Debt | (0.1 | ) | | (0.7 | ) | Total debt issuance costs | $ | (44.7 | ) | | $ | (46.8 | ) |
(4) Current maturities include the full balance of the 2007 Junior Debt.
|
Schedule of Unamortized Discount and Debt Issuance Costs |
(2) The unamortized discount includes the following (in millions): | | | | | | | | | | June 30, | | March 31, | | 2017 | | 2017 | 2017 Senior Debt | $ | (654.9 | ) | | $ | (667.5 | ) | 2015 Senior Debt | (435.3 | ) | | (446.6 | ) | 2017 Junior Debt | (362.6 | ) | | (309.3 | ) | 2007 Junior Debt | (21.1 | ) | | (93.1 | ) | Total unamortized discount | $ | (1,473.9 | ) | | $ | (1,516.5 | ) |
(3) Debt issuance costs include the following (in millions): | | | | | | | | | | June 30, | | March 31, | | 2017 | | 2017 | Senior Credit Facility | $ | (7.7 | ) | | $ | (8.5 | ) | 2017 Senior Debt | (17.3 | ) | | (17.6 | ) | 2015 Senior Debt | (16.2 | ) | | (16.6 | ) | 2017 Junior Debt | (3.4 | ) | | (3.4 | ) | 2007 Junior Debt | (0.1 | ) | | (0.7 | ) | Total debt issuance costs | $ | (44.7 | ) | | $ | (46.8 | ) |
(4) Current maturities include the full balance of the 2007 Junior Debt.
|
Schedule of Convertible Debt |
The following table sets forth the applicable Conversion Rates adjusted for dividends declared since issuance of such series of Convertible Debt and the applicable Maximum Incremental Share Rate (with the exception of the 2007 Junior Debt) and applicable Conversion Rates as adjusted for dividends paid since the applicable issuance date: | | | | | | | | | | | | | | | Dividend adjusted rates as of June 30, 2017 | | Conversion Rate, adjusted | | Approximate Conversion Price, adjusted | | Maximum Incremental Rate, adjusted | | Maximum Conversion Rate, adjusted | 2017 Senior Debt | 9.9890 |
| | $ | 100.11 |
| | 4.9945 |
| | 14.2344 |
| 2015 Senior Debt | 15.5772 |
| | $ | 64.20 |
| | 7.7886 |
| | 21.8081 |
| 2017 Junior Debt | 10.1674 |
| | $ | 98.35 |
| | 5.0838 |
| | 14.2344 |
| 2007 Junior Debt | 42.3241 |
| | $ | 23.63 |
| | NA |
| | 48.6727 |
|
The following is the weighted average conversion price per share used in calculating the dilutive effect (See Note 13 for details on the convertible debt):
| | | | | | | | | | June 30, | | 2017 | | 2016 | 2007 Junior Debt | $ | 23.69 |
| | $ | 24.23 |
| 2015 Senior Debt | $ | 64.35 |
| | $ | 65.82 |
| 2017 Senior Debt | $ | 100.35 |
| | $ | — |
| 2017 Junior Debt | $ | 98.59 |
| | $ | — |
|
|