v3.25.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Convertible Senior Notes The following table summarizes further details of the Notes:
Notes
Issuance Date
Maturity Date
Principal Amount (in thousands)
Coupon Interest Rate
Effective Interest Rate
2029 NotesAugust 18, 2023February 15, 2029$1,265,000 1.125 %1.388 %
2027 NotesAugust 16, 2019September 1, 2027$1,150,000 0.375 %0.539 %
2025 NotesMay 21, 2018May 1, 2025$1,150,000 0.125 %0.350 %
The conversion rights for the outstanding Notes as of March 31, 2025 are as follows:

NotesConversion Date
Conversion Rate (1)
Conversion Price per Share (1)
2029 NotesOctober 15, 20287.9170$126.31 
2027 NotesMay 1, 20278.6073$116.18 
2025 Notes (2)
January 1, 202510.5150$95.10 

(1) The conversion rate for the Notes is established as a number of shares of the Company's commons stock per $1,000 principal amount of the Notes, that is equivalent to the conversion price per share, subject to adjustments in certain events. Upon the occurrence of certain corporate events the Company will increase the conversion rate for a holder that elects to convert its Notes.
(2) Upon settlement of the 2025 Notes on May 1, 2025, an insignificant amount was converted.
The Notes consisted of the following components as of March 31, 2025 and December 31, 2024 (in thousands):

2029 Notes
2027 Notes
2025 Notes
Total
As of March 31, 2025
Principal$1,265,000 $1,150,000 $1,150,000 $3,565,000 
Less: issuance costs, net of amortization(12,566)(4,481)(239)(17,286)
Net carrying amount$1,252,434 $1,145,519 $1,149,761 $3,547,714 
Estimated fair value (1)
$1,203,445 $1,123,228 $1,145,285 $3,471,958 
As of December 31, 2024
Principal$1,265,000 $1,150,000 $1,150,000 $3,565,000 
Less: issuance costs, net of amortization(13,354)(4,951)(884)(19,189)
Net carrying amount$1,251,646 $1,145,049 $1,149,116 $3,545,811 
Estimated fair value (1)
$1,239,068 $1,155,865 $1,219,345 $3,614,278 

(1) The fair values were determined based on the quoted prices of the Notes in an inactive market on the last trading day of the reporting period and have been classified as Level 2 within the fair value hierarchy.
The following table summarizes the main terms impacting the note hedges and warrants (in thousands, except per share data):
2029 Notes2027 Notes2025 Notes
Note hedge transaction costs$236,555 $312,225 $261,740 
Shares covered by note hedge transactions10,015 9,898 12,093 
Shares related to warrant transactions10,015 9,898 12,093 
Strike price per share related to warrant transactions$180.44 $178.74 $149.18 
Aggregate proceeds from sale of warrants$90,195 $185,150 $119,945 
Schedule of Interest Expense Interest expense, together with ongoing commitment fees under the terms of the Company's credit agreements, included in the interim condensed consolidated statements of income for the three months ended March 31, 2025 and 2024 was as follows (in thousands):
For the Three Months
Ended March 31,
20252024
Amortization of debt issuance costs$1,959 $1,946 
Coupon interest payable on 2029 Notes3,558 3,558 
Coupon interest payable on 2027 Notes1,078 1,078 
Coupon interest payable on 2025 Notes359 359 
Interest payable and commitment fees under the credit agreements150 141 
Capitalization of interest expense(354)(264)
Total interest expense$6,750 $6,818