Convertible Notes

9 Months Ended

Sep. 30, 2016

The Company adopted ASU 2015-03 during the first quarter of 2016. Pursuant to the guidance in ASU 2015-03, the Company has reclassified unamortized debt issuance costs associated with the Company's 2018 Notes in the previously reported Consolidated Balance Sheet as of December 31, 2015, as follows:



(In thousands)	As presented December 31, 2015		Reclassifications			As adjusted December 31, 2015
Other assets	$	3,648	$	(1,483	)	$	2,165
Convertible notes, long-term	120,901		(1,483		)	119,418

The Company’s convertible notes are shown in the following table:



(In thousands)	As of September 30, 2016			As of December 31, 2015
1.125% Convertible Senior Notes due 2018	$	138,000		$	138,000
Unamortized discount	(12,496		)	(17,099		)
Unamortized debt issuance costs	(1,061		)	(1,483		)
Total convertible notes	$	124,443		$	119,418
Less current portion	—			—
Total long-term convertible notes	$	124,443		$	119,418

Interest expense related to the notes for the three and nine months ended September 30, 2016 and 2015 was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(In thousands)
2018 Notes coupon interest at a rate of 1.125%	$	388	$	388	1,164		1,179
2018 Notes amortization of discount and debt issuance costs at an additional effective interest rate of 5.5%	1,699		1,605		5,025		4,744
Total interest expense on convertible notes	$	2,087	$	1,993	$	6,189	$	5,923