Convertible Debt |
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| Convertible Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Debt |
11. Convertible Debt
0 Percent Convertible Senior Notes due 2030 In November 2025, we completed a $770.0 million offering of our 0% Notes due 2030. At June 30, 2026, we had the following 0% Notes due 2030 outstanding (in millions except interest rate and price per share data):
1.75 Percent Convertible Senior Notes due 2028
In 2023, we completed a $575.0 million offering of our 1.75% Notes due 2028.
At June 30, 2026, we had the following 1.75% Notes due 2028 outstanding (in millions except interest rate and price per share data):
0 Percent Convertible Senior Notes due 2026 and Call Spread
In April 2026, we paid the remaining principal balance of our 0% Notes due 2026 with $432.5 million of cash at maturity. In addition, we settled the conversion obligation in excess of principal by issuing 1.8 million shares of common stock to the holders of the 0% Notes due 2026 who exercised their conversion option. In conjunction with the 2021 offering, we entered into a call spread transaction, which was comprised of purchasing note hedges and selling warrants, to minimize the impact of potential economic dilution upon conversion of our 0% Notes due 2026 by increasing the effective conversion price on these notes. We increased our effective conversion price to $76.39 with the same number of underlying shares as our 0% Notes due 2026. Our note hedges were exercisable upon conversion of the 0% Notes due 2026. In April 2026, we exercised the note hedges upon maturity of these notes. As a result, we received 2.6 million shares of common stock, which we retired upon receipt. The warrants began to expire in July 2026 and will fully expire in September 2026. Upon the execution of the call spread transaction in 2021, we recorded the amount we paid for the note hedges and the amount we received for the warrants in additional paid-in capital in our condensed consolidated balance sheets. Refer to Part IV, Item 15, Note 1, Organization and Significant Accounting Policies, of our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for our Call Spread accounting policy. We reassess our ability to continue to classify the warrants in shareholders’ equity at each reporting period.
Other Terms of Convertible Senior Notes
The 0% Notes due 2030 and 1.75% Notes due 2028 are convertible under certain conditions, at the option of the note holders. We can settle conversions of the notes, at our election, in cash, shares of our common stock or a combination of both. We may not redeem the notes prior to maturity, and we do not have to provide a sinking fund for them. Holders of the notes may require us to purchase some or all of their notes upon the occurrence of certain fundamental changes, as set forth in the indentures governing the notes, at a purchase price equal to 100 percent of the principal amount of the notes to be purchased, plus any accrued and unpaid interest. The 0% Notes due 2026 were subject to similar terms.
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