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Indebtedness

6 Months Ended

Jun. 30, 2011

Note 6. Indebtedness

We separately account for the liability (debt) and equity (conversion option) components of our 3.8% convertible senior notes due 2027 to reflect the fair value of the liability component based on our non-convertible borrowing cost at the issuance date. We measured the fair value of the debt components of the notes at issuance based on an estimated effective interest rate of 6.06% and are amortizing the resulting discount as an increase to interest expense over the expected life of the debt (assuming holders exercise their put option on March 20, 2012).

· The net carrying amount of our 3.8% convertible senior notes due 2027 was $78,143 and $77,484 as of June 30, 2011 and December 31, 2010, respectively.

· The unamortized discount on the notes was $911 and $1,570 as of June 30, 2011 and December 31, 2010, respectively. We expect to amortize the discount through March 20, 2012, the first date on which the holders of our convertible notes may require that we redeem them.

· Interest expense for the three months ended June 30, 2011 and 2010 increased because of non-cash amortization of $398 and $604, respectively. For the six months ended June 30, 2011 and 2010, interest expense increased because of non-cash amortization of $790, or $0.01 per share, and $1,837, or $0.01 per share, respectively.

· The amount allocated as the equity component of the notes was $37,710 as of June 30, 2011.

We have a $750,000 interest only, unsecured revolving credit facility. The interest rate on drawings under the credit facility is LIBOR plus a spread and was 0.74% per annum at June 30, 2011. As of June 30, 2011, we had $153,000 outstanding under our revolving credit facility and $597,000 available to be drawn for general business purposes, including acquisitions. Our unsecured revolving credit facility matures on October 24, 2011; and we are currently in negotiations with lenders regarding a new unsecured revolving credit facility that we currently expect to be in effect prior to the maturity date of our existing facility.

On January 3, 2011, we repaid without penalty our 8.3% mortgage note payable, which had a principal balance of $3,383.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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