Borrowings (Tables)

12 Months Ended

Dec. 31, 2013

Components of Long-Term Debt

The components of long-term debt at December 31, 2013 and 2012 are as follows:

	2013			2012
	(Dollars in thousands)
Senior Credit Facility:
Revolving credit facility, at a rate of 1.92% at December 31, 2013, due 7/16/2018	$	680,000		$	—
Term loan facility, at a rate of 2.75% at December 31, 2012		—			375,000
3.875% Convertible Senior Subordinated Notes		400,000			400,000
6.875% Senior Subordinated Notes due 2019		250,000			250,000
		1,330,000			1,025,000
Less: Unamortized debt discount on 3.875% Convertible Senior Subordinated Notes		(48,413	)		(59,720	)
		1,281,587			965,280
Current portion of borrowings		(351,587	)		—
	$	930,000		$	965,280

Interest Expense Amounts Related to Convertible Notes

The Company allocated the proceeds of the Convertible Notes between the liability and equity components of the debt. The initial $316.3 million liability component was determined based on the fair value of a similar debt instrument excluding the conversion feature. The initial $83.7 million ($53.3 million net of tax) equity component represented the difference between the fair value or carrying value of $316.3 million of the debt and the $400.0 million of proceeds. The related debt discount of $83.7 million will be amortized under the interest method over the remaining life of the Convertible Notes, which, at December 31, 2013, is approximately 3.6 years. An effective interest rate of 7.814% was used to calculate the debt discount on the Convertible Notes. The following table provides interest expense amounts related to the Convertible Notes for the periods presented:

(in millions)	Year Ended December 31, 2013		Year Ended December 31, 2012		Year Ended December 31, 2011
Interest cost related to contractual interest coupon	$	15.5	$	15.5	$	15.5
Interest cost related to amortization of the discount	$	11.3	$	10.5	$	9.7

Carrying Value of Convertible Notes

The following table provides the carrying value of the Convertible Notes as of December 31, 2013 and 2012:

(in millions)	December 31, 2013			December 31, 2012
Principal amount of the Convertible Notes	$	400.0		$	400.0
Unamortized discount		(48.4	)		(59.7	)
Net carrying amount	$	351.6		$	340.3

Fair Value of Debt

The carrying amount of long-term debt reported in the consolidated balance sheet as of December 31, 2013 is $1,281.6 million. The Company uses a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality, and risk profile to determine the fair value of its debt. The Company’s implied credit rating is a factor in determining the market interest yield curve. The following table provides the fair value of the Company’s debt by fair value hierarchy level (see Note 10 to the consolidated financial statements further information) as of December 31, 2013 and 2012:

	Fair value of debt
	December 31, 2013		December 31, 2012
		(Dollars in thousands)
Level 1	$	899,390	$	782,377
Level 2		644,012		382,634
Total	$	1,543,402	$	1,165,011

Aggregate Amounts of Long-Term Debt

As of December 31, 2013, the aggregate amounts of long-term debt, demand loans and debt under the Company’s securitization program that will mature during each of the next four fiscal years and thereafter were as follows:

	(Dollars in thousands)
2014(1)	$	404,700
2015		—
2016		—
2017		—
2018 and thereafter		930,000