v3.25.1
Debt
 3 Months Ended
Mar. 29, 2025
Debt Disclosure [Abstract]  
Debt Debt
The following is a summary of debt balances as of March 29, 2025 and December 31, 2024:
March 29, 2025December 31, 2024
(in thousands)
0% Convertible senior notes
$1,150,000 $1,150,000 
Debt issuance costs(7,540)(8,524)
Total debt outstanding$1,142,460 $1,141,476 
Less: current portion of long-term debt— — 
Long-term debt$1,142,460 $1,141,476 
Convertible Senior Notes
On March 5, 2021, the Company issued $1.0 billion aggregate principal amount of its 0% Convertible Senior Notes due 2027 (the “Convertible Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. On March 12, 2021, the initial purchasers of the Convertible Notes exercised their option to purchase an additional $150.0 million aggregate principal amount of the Company’s 0% Convertible Senior Notes due 2027 (the “Additional Notes”, and together with the Convertible Notes, the “Notes”), and such Additional Notes were issued on March 16, 2021.
The total amount of debt issuance costs of $23.6 million was recorded as a reduction to Convertible senior notes, net in the Company’s condensed consolidated balance sheet and is being amortized as interest expense over the term of the Notes using the effective interest method. In each of the three months ended March 29, 2025 and March 30, 2024, the Company recognized $1.0 million in interest expense related to the amortization of the debt issuance costs related to the Notes. The annualized effective interest rate was 0.34% and 0.35% as of the three months ended March 29, 2025 and March 30, 2024, respectively
The following is a summary of the Company’s Notes as of March 29, 2025:
(in thousands)Principal AmountUnamortized Issuance CostsNet Carrying AmountFair Value
AmountLeveling
0% Convertible senior notes due on March 15, 2027
$1,150,000 $7,540 $1,142,460 $139,438 Level 2
The Notes are carried at face value less the unamortized debt issuance costs on the Company’s condensed consolidated balance sheets. As of March 29, 2025, the estimated fair value of the Notes was approximately $139.4 million. The Notes are quoted on the Intercontinental Exchange and are classified as Level 2 financial
instruments. The estimated fair value of the Notes was determined based on the actual bid price of the Notes on March 28, 2025, the last business day of the period when the Notes were traded.
As of March 29, 2025, the remaining life of the Notes was approximately 2.0 years.
Loan and Security Agreement
Subsequent to the quarter ended March 29, 2025, the Company entered into the loan and security agreement described in Note 14, which provides for up to $100.0 million in new first-lien senior secured debt.