1.    BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Take-Two Interactive Software, Inc. (the "Company," "we," "us," or similar pronouns) was incorporated in the state of Delaware in 1993. We are a global publisher and developer of interactive entertainment software. Our business consists of our wholly-owned labels Rockstar Games and 2K, which publishes its titles under 2K Games, 2K Sports and 2K Play. We develop, publish, market and sell software titles for the following gaming and entertainment hardware platforms:

We also develop and publish software titles for the PC and for digital distribution.

Basis of Presentation

On October 25, 2010, the Company's Board of Directors approved a change in the Company's fiscal year end from October 31 to March 31, as reported in the Company's Current Report on Form 8-K filed on October 25, 2010. As required by the Securities Exchange Act of 1934, the Company filed a Transition Report on Form 10-KT on December 20, 2010 covering the period from, and including the financial information for, the five-month period from November 1, 2009 to March 31, 2010 (the "Transition Period"). As a result of the change in the Company's fiscal year-end, the last quarterly report on Form 10-Q was for the three and nine months ended July 31, 2010 and 2009. This quarterly report on Form 10-Q for the three and nine months ended December 31, 2010 also includes financial information for the two months ended September 30, 2010 and 20 09.

The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and reflect all normal and recurring adjustments necessary for fair presentation of our financial position, results of operations and cash flows. All material inter-company accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. We adhere to the same accounting policies in preparation of interim financial statements. As permitted under generally accepted accounting principles, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Transition Report on Form 10-KT for the five months ended March 31, 2010.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation for comparative purposes. As discussed in Note 2, the Company has reclassified certain prior year amounts for adjustments related to our discontinued operations.

Discontinued Operations

In February 2010, we completed the sale to SYNNEX Corporation ("Synnex") of our Jack of all Games third party distribution business, which primarily distributed third party interactive entertainment software, hardware and accessories in North America. The financial results of our distribution business have been classified as discontinued operations in the Condensed Consolidated Statements of Operations for all of the periods presented. The assets and liabilities of this business are reflected as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets for all periods presented. See Note 2 for additional information regarding discontinued operations. Unless otherwise noted, amounts and disclosures throughout the Notes to Unaudited Condensed Consolidated Financial Statements relate to the Company's continuing operations.

Financial Instruments

The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value because of their short maturities. We consider all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. At December 31, 2010, March 31, 2010 and October 31, 2009 we had $19,803, $14,667 and $9,235, respectively, of cash on deposit reported as a component of prepaid expenses and other in the accompanying Condensed Consolidated Balance Sheets because its use was restricted.

The estimated fair value of the Company's Convertible Notes (defined in Note 9) is $121,704 as of December 31, 2010. The fair value was determined using observable market data for the Convertible Notes and its embedded option feature.

We transact business in various foreign currencies and have significant sales and purchase transactions denominated in foreign currencies. From time to time, we use forward exchange contracts to mitigate foreign currency risk associated with foreign currency assets and liabilities consisting primarily of cash balances and certain non-functional currency denominated inter-company funding loans, non-functional currency denominated accounts receivable and non-functional currency denominated accounts payable. We do not enter into derivative financial instruments for trading purposes. We do not designate foreign currency forward contracts as hedging instruments and accordingly, we mark to market our foreign currency forward contracts each period and any gains and losses are recognized in net income (loss). At December 31, 2010, we had forward contracts outstanding to purchase $44,281 of U.S. dollars in exchange for foreign currencies with maturitie s of less than one year. The fair value of our foreign currency forward contracts was immaterial as of December 31, 2010. At March 31, 2010, we had forward contracts outstanding to purchase $19,200 of foreign currency in exchange for U.S. dollars and to purchase $17,600 of U.S. dollars in exchange for foreign currencies with maturities of less than one year. At October 31, 2009, we had forward contracts outstanding to purchase $30,400 of foreign currency in exchange for U.S. dollars with a maturity of less than one year. For the three months ended December 31, 2010 and 2009, respectively, we recorded $501 and $151, respectively, of losses related to foreign currency forward contracts in interest and other, net on the Condensed Consolidated Statements of Operations. For the nine months ended December 31, 2010, we recorded $5,722 of losses and for the nine months ended December 31, 2009, we recorded $160 of gains related to foreign currency forward contract s in interest and other, net on the Condensed Consolidated Statements of Operations. For the two months ended September 30, 2010 and 2009, respectively, we recorded $3,117 and $491, respectively, of losses related to foreign currency forward contracts in interest and other, net on the Condensed Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements

Amendments to Variable Interest Entity Guidance

On April 1, 2010, the Company adopted new guidance which requires an enterprise to determine whether its variable interest or interests give it a controlling financial interest in a variable interest entity. The primary beneficiary of a variable interest entity is the enterprise that has both (1) the power to direct the activities of a variable interest entity that most significantly impacts the entity's economic performance and (2) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. The guidance also requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity. The adoption of this new guidance did not have any impact on our consolidated financial position, cash flows or results of operations.

Multiple-Deliverable Revenue Arrangements

In October 2009, new guidance was issued related to the accounting for multiple-deliverable revenue arrangements. These new rules amend the existing guidance for separating consideration in multiple-deliverable arrangements and establish a selling price hierarchy for determining the selling price of a deliverable. These new rules will become effective, on a prospective basis, at the start of a company's first fiscal year beginning after June 15, 2010 (April 1, 2011 for the Company). We do not expect the adoption of this new guidance to have a material impact on our consolidated financial position, cash flows or results of operations.

Certain Revenue Arrangements That Include Software Elements

In October 2009, new guidance was issued that changes the accounting model for revenue arrangements by excluding tangible products containing both software and non-software components that function together to deliver the product's essential functionality. This new rule will become effective, on a prospective basis, at the start of a company's first fiscal year beginning after June 15, 2010 (April 1, 2011 for the Company). We do not expect the adoption of this new guidance to have a material impact on our consolidated financial position, cash flows or results of operations.

2.    DISCONTINUED OPERATIONS

In February 2010, we completed the sale of our Jack of all Games third party distribution business, which primarily distributed third party interactive entertainment software, hardware and accessories in North America, for approximately $44,000, including $37,250 in cash, subject to purchase price adjustments, and up to an additional $6,750 subject to the achievement of certain items. The sale has allowed us to focus our resources on our publishing operations. The financial results of our distribution business have been classified as discontinued operations in our Condensed Consolidated Statements of Operations for all of the periods presented. The assets and liabilities of this business are reflected as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets for all periods presented.

The following is a summary of the results of the discontinued operations:

The results for the nine months ended December 31, 2010 include an expense of $4,791 related to a liability for a lease assumption without economic benefit less estimates of sublease income. The lease matures on September 30, 2014.

The following is a summary of the assets and liabilities of discontinued operations as of December 31, 2010, March 31, 2010 and October 31, 2009:

3.    MANAGEMENT AGREEMENT

In March 2007, we entered into a management services agreement (the "Management Agreement") with ZelnickMedia Corporation ("ZelnickMedia"), whereby ZelnickMedia provides us with certain management, consulting and executive level services. Strauss Zelnick, the President of ZelnickMedia, serves as our Executive Chairman. In addition, we entered into employment agreements with Ben Feder and Karl Slatoff to serve as our Chief Executive Officer and Executive Vice President, respectively. Both Mr. Feder and Mr. Slatoff are partners of ZelnickMedia. Effective October 25, 2010, Mr. Slatoff was named to the newly created role of Chief Operating Officer. Effective January 1, 2011, Mr. Feder resigned from his position as Chief Executive Officer of the Company and Mr. Zelnick took on the additional role of Chief Executive Officer. The Management Agreement expires in October 2012 and provides for an ann ual management fee of $2,500 and a maximum bonus of $2,500 per fiscal year based on the Company achieving certain performance thresholds. In consideration for ZelnickMedia's services under the Management Agreement, we recorded consulting expense (a component of general and administrative expenses) of $1,042 and $833 for the three months ended December 31, 2010 and 2009, respectively, $4,062 and $2,083 for the nine months ended December 31, 2010 and 2009, respectively, and $834 and $417 for the two months ended September 30, 2010 and 2009, respectively.

Pursuant to the Management Agreement, in August 2007, we issued stock options to ZelnickMedia to acquire 2,009,075 shares of our common stock at an exercise price of $14.74 per share, which vested over 36 months and expire 10 years from the date of grant. Each month, we remeasured the fair value of the unvested portion of such options and record compensation expense for the difference between total earned compensation at the end of the period and total earned compensation at the beginning of the period. As a result, changes in the price of our common stock impacted compensation expense or benefit recognized from period to period. We recorded stock-based compensation related to this option grant of $1,177 for the three months ended December 31, 2009 and $1,565 and $3,092 for the nine months ended December 31, 2010 and 2009, respectively. For the two months ended September 30, 2010 and 2009, we recorded $301 a nd $692, respectively, of stock-based compensation related to this option grant.

In addition, on June 13, 2008, pursuant to an amendment to our Management Agreement, we granted 600,000 shares of restricted stock to ZelnickMedia that vest annually over a three year period and 900,000 shares of market-based restricted stock that vest over a four year period through 2012, provided that the price of our common stock outperforms 75% of the companies in the NASDAQ Industrial Index measured annually on a cumulative basis. For the three months ended December 31, 2010 and 2009, we recorded an expense of $351 and a benefit of $457, respectively, of stock-based compensation (a component of general and administrative expenses) related to these grants of restricted stock. For the nine months ended December 31, 2010 and 2009, we recorded expenses of $736 and $1,819, respectively, of stock-based compensation related to these grants of restricted stock. For the two months ended September 30, 2010 and 2009, we re corded expenses of $90 and $1,439, respectively, of stock-based compensation related to these grants of restricted stock.

4.    FAIR VALUE MEASUREMENTS

We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:

•

Level 1—Quoted prices in active markets for identical assets or liabilities.

•

Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The table below segregates all assets that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.

5.    COMPREHENSIVE INCOME (LOSS)

Components of comprehensive income (loss) are as follows:

6.    INVENTORY

Inventory balances by category are as follows:

Estimated product returns included in inventory at December 31, 2010, March 31, 2010 and October 31, 2009 were $1,366, $2,394 and $2,971, respectively.

7.    SOFTWARE DEVELOPMENT COSTS AND LICENSES

Details of our capitalized software development costs and licenses are as follows:

Software development costs and licenses as of December 31, 2010, March 31, 2010 and October 31, 2009 included $231,427, $238,553 and $212,939, respectively, related to titles that have not been released.

8.    ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:

9.    LONG-TERM DEBT

Credit Agreement

In July 2007, we entered into a credit agreement (the "Credit Agreement") which provides for borrowings of up to $140,000 and is secured by substantially all of our assets and the equity of our subsidiaries. The Credit Agreement expires on July 3, 2012. Revolving loans under the Credit Agreement bear interest at our election of (a) 2.00% to 2.50% above a certain base rate with a minimum 6.00% base rate (8.00% at December 31, 2010), or (b) 3.25% to 3.75% above the LIBOR Rate with a minimum 4.00% LIBOR Rate (7.25% at December 31, 2010), with the margin rate subject to the achievement of certain average liquidity levels. We had no outstanding borrowings at December 31, 2010, March 31, 2010 and October 31, 2009. We are also required to pay a monthly fee on the unused available balance, ranging from 0.25% to 0.75%.

Information related to availability on our Credit Agreement is as follows:

We recorded interest expense and fees related to the Credit Agreement of $443 and $569 for the three months ended December 31, 2010 and 2009, respectively, and $1,340 and $2,214 for the nine months ended December 31, 2010 and 2009, respectively. We recorded interest expense and fees related to the Credit Agreement of $292 and $336 for the two months ended September 30, 2010 and 2009, respectively. As of December 31, 2010, we were in compliance with all covenants and requirements in the Credit Agreement.

Convertible Notes

In June 2009, we issued $138,000 aggregate principal amount of 4.375% convertible senior notes due 2014 ("Convertible Notes"). The issuance of the Convertible Notes included $18,000 related to the exercise of an over-allotment option by the underwriters. Interest on the Convertible Notes is payable semi-annually in arrears on June 1^st and December 1^st of each year, and commenced on December 1, 2009. The Convertible Notes mature on June 1, 2014, unless earlier redeemed or repurchased by the Company or converted.

The Convertible Notes are convertible at an initial conversion rate of 93.6768 shares of our common stock per $1 principal amount of Convertible Notes (representing an initial conversion price of approximately $10.675 per share of common stock for a total of approximately 12,927,000 underlying conversion shares) subject to adjustment in certain circumstances. Holders may convert the Convertible Notes at their option prior to the close of business on the business day immediately preceding December 1, 2013 only under the following circumstances: (1) during any fiscal quarter commencing after July 31, 2009, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) ;nbsp;during the five business day period after any 10 consecutive trading day period (the "measurement period") in which the trading price per $1 principal amount of Convertible Notes for each day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such day; (3)nbsp;if we call the Convertible Notes for redemption, at any time prior to the close of business on the third scheduled trading day prior to the redemption date; or (4)nbsp;upon the occurrence of specified corporate events. On and after Decembernbsp;1, 2013 until the close of business on the third scheduled trading day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Convertible Notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of the Company's common stock./ font/p p style="FONT-FAMILY: times"font size="2"At any time on or after Junenbsp;5, 2012, the Company may redeem all of the outstanding Convertible Notes for cash, but only if the last reported sale of our common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day prior to the date we provide notice of redemption to holders of the Convertible Notes exceeds 150% of the conversion price in effect on each such trading day. The redemption price will equal 100% of the principal amount of the Convertible Notes to be redeemed, plus all accrued and unpaid interest (including additional interest, if any) to, but excluding, the redemption date. /font/p p style="FONT-FAMILY: times"font size="2"Upon the occurrence of certain fundamental changes involving the Company, holders of the Convertible Notes may require us to purchase all or a portion of their Convertible Notes for cash at a price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest (including additional interest, if any) to, but excluding, the fundamental change purchase date. /font/p p style="FONT-FAMILY: times"font size="2"The indenture governing the Convertible Notes contains customary terms and covenants and events of default. If an event of default (as defined therein) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in aggregate principal amount of the Convertible Notes then outstanding by notice to the Company and the Trustee, may, and the Trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid interest (including additional interest, if any) on all the Convertible Notes to be due and payable. In the case of an event of default arising out of certain bankruptcy events, 100% of the principal of and accrued and unpaid interest (including additional interest, if any), on the Convertible Notes will automatically become due and payable immediately. As of Decembernbsp;31, 2010, we were in compliance with all covenants and requirements outlined in the indenture governing the Co nvertible Notes. /font/p p style="FONT-FAMILY: times"font size="2"The Convertible Notes are senior unsecured obligations and rank senior in right of payment to our existing and future indebtedness that may be expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to our existing and future indebtedness that is not so subordinated; junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness incurred by our subsidiaries. /font/p p style="FONT-FAMILY: times"font size="2"In connection with the offering of the Convertible Notes, we entered into convertible note hedge transactions which are expected to reduce the potential dilution to our common stock upon conversion of the Convertible Notes. The convertible note hedge transactions allow the Company to receive shares of its common stock related to the excess conversion value that it would convey to the holders of the Convertible Notes upon conversion. The transactions include options to purchase approximately 12,927,000 shares of common stock at $10.675 per share, expiring on Junenbsp;1, 2014, for a total cost of approximately $43,600, which was charged to additional paid-in capital. /font/p p style="FONT-FAMILY: times"font size="2"Separately, the Company entered into a warrant transaction with a strike price of $14.945 per share. The warrants will be net share settled and will cover approximately 12,927,000 shares of the Company's common stock and expire on Augustnbsp;30, 2014, for total proceeds of approximately $26,300, which was credited to additional paid-in capital./font/p p style="FONT-FAMILY: times"font size="2"A portion of the net proceeds from the Convertible Notes offering was used to pay the net cost of the convertible note hedge transactions (after such cost was partially offset by proceeds from the sale of the warrants). We recorded approximately $3,410 of banking, legal and accounting fees related to the issuance of the Convertible Notes which were capitalized as debt issuance costs and will be amortized to interest and other, net over the term of the Convertible Notes. /font/p p style="FONT-FAMILY: times"font size="2"The following table provides additional information related to our Convertible Notes: /font/p div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative" p style="FONT-FAMILY: times"font size="2"!-- COMMAND=ADD_TABLEWIDTH,"100%" --/font/p !-- User-specified TAGGED TABLE -- div align="center" table cellspacing="0" cellpadding="0" width="100%" border="0" tr style="HEIGHT: 0px"!-- TABLE COLUMN WIDTHS SET -- td style="FONT-FAMILY: times" align="left"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="88"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="73"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="79"/td td style="FONT-FAMILY: times" width="12"/td!-- TABLE COLUMN WIDTHS END --/tr tr style="HEIGHT: 0px" valign="bottom" th style="FONT-FAMILY: times" align="center"font size="1"bnbsp;nbsp;/b/fontbr //th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"bDecembernbsp;31, 2010 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"bMarchnbsp;31, 2010 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"bOctobernbsp;31, 2009 /b/font/th th style="FONT-FAMILY: times"font size="2"nbsp;/font/th/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Principal amount of Convertible Notes/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b138,000/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"138,000/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"138,000/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="white" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Unamortized discount of the liability component/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b32,695/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"38,135/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"40,937/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top" td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" colspan="10"nbsp;/td td style="FONT-FAMILY: times" valign="bottom"nbsp;/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Net carrying amount of Convertible Notes/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b105,305/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"99,865/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"97,063/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top" td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" colspan="10"nbsp;/td td style="FONT-FAMILY: times" valign="bottom"nbsp;/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="white" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Carrying amount of debt issuance costs/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b2,331/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"2,843/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"3,127/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top" td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" colspan="10"nbsp;/td td style="FONT-FAMILY: times" valign="bottom"nbsp;/td/tr/table/div !-- end of user-specified TAGGED TABLE --/div p style="FONT-FAMILY: times"font size="2"The following table provides the components of interest expense related to our Convertible Notes: /font/p div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 67%; PADDING-TOP: 0pt; POSITION: relative" p style="FONT-FAMILY: times"font size="2"!-- COMMAND=ADD_TABLEWIDTH,"120%" --/font/p !-- User-specified TAGGED TABLE -- div align="center" table cellspacing="0" cellpadding="0" width="120%" border="0" tr style="HEIGHT: 0px"!-- TABLE COLUMN WIDTHS SET -- td style="FONT-FAMILY: times" align="left"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="51"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="51"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="45"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="39"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="46"/td td style="FONT-FAMILY: times" width="12"/td td style="FONT-FAMILY: times" align="right" width="7"/td td style="FONT-FAMILY: times" width="46"/td td style="FONT-FAMILY: times" width="12"/td!-- TABLE COLUMN WIDTHS END --/tr tr style="HEIGHT: 0px" valign="bottom" th style="FONT-FAMILY: times" align="left"font size="2"nbsp;/fontbr //th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"font size="1"bThree Months Endedbr / Decembernbsp;31,/b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"font size="1"bNine Months Endedbr / Decembernbsp;31,/b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"font size="1"bTwo Months Endedbr / Septembernbsp;30,/b/font/th th style="FONT-FAMILY: times"font size="2"nbsp;/font/th/tr tr style="HEIGHT: 0px" valign="bottom" th style="FONT-FAMILY: times" align="center"font size="1"bnbsp;nbsp;/b/fontbr //th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2010 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2009 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2010 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2009 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2010 /b/font/th th style="FONT-FAMILY: times"font size="1"nbsp;/font/th th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"font size="1"b2009 /b/font/th th style="FONT-FAMILY: times"font size="2"nbsp;/font/th/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Cash interest expense (coupon interest expense)/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b1,509/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"1,509/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b4,494/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"3,521/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b1,006/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"1,006/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="white" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Non-cash amortization of discount on Convertible Notes/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b1,872/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"1,645/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b5,440/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"3,758/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b1,215/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"1,068/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Amortization of debt issuance costs/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b171/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"171/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b512/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"397/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"b114/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times" align="right"font size="2"114/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top" td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" colspan="19"nbsp;/td td style="FONT-FAMILY: times" valign="bottom"nbsp;/td/tr tr style="HEIGHT: 0px" valign="bottom" bgcolor="white" td style="FONT-FAMILY: times" p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"font size="2"Total interest expense related to Convertible Notes/font/p/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b3,552/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"3,325/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b10,446/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"7,676/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"b$/b/font/td td style="FONT-FAMILY: times" align="right"font size="2"b2,335/b/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td td style="FONT-FAMILY: times"font size="2"$/font/td td style="FONT-FAMILY: times" align="right"font size="2"2,188/font/td td style="FONT-FAMILY: times"font size="2"nbsp;/font/td/tr tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top" td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" colspan="19"nbsp;/td td style="FONT-FAMILY: times" valign="bottom"nbsp;/td/tr/table/div !-- end of user-specified TAGGED TABLE --/div/td/tr/table