| Schedule of carrying values and estimated fair values of debt instruments |
The principal balance, unamortized discount and net carrying amount of the Term Loan were as follows as of October 31, 2015 (in thousands):
| | | | | | | | | | | | | | | | Principal Balance | | Unamortized Discount | | Net Carrying Amount | Term Loan Payable due July 15, 2019 | | $ | 246,875 |
| | $ | (1,076 | ) | | $ | 245,799 |
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The following table sets forth, in thousands, the carrying value and the estimated fair value of the Term Loan: | | | | | | | | | | | | October 31, 2015 | | | Carrying Value | | Fair Value(2) | Term Loan Payable due July 15, 2019(1) | | $ | 245,799 |
| | $ | 247,184 |
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| | (1) | Includes unamortized bond discount. |
| | (2) | The Term Loan was categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its Term Loan using a market approach based upon observable inputs, such as current market transactions involving this security. |
The following table sets forth, in thousands, the carrying value and the estimated current fair value of Ciena’s outstanding convertible notes:
| | | | | | | | | | | | October 31, 2015 | Description | | Carrying Value | | Fair Value(1) | 0.875% Convertible Senior Notes due June 15, 2017 | | $ | 494,105 |
| | $ | 494,723 |
| 3.75% Convertible Senior Notes, due October 15, 2018 | | 350,000 |
| | 482,125 |
| 4.0% Convertible Senior Notes, due December 15, 2020(2) | | 184,235 |
| | 265,791 |
| | | $ | 1,028,340 |
| | $ | 1,242,639 |
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| | (1) | The convertible notes were categorized as Level 2 in the fair value hierarchy. Ciena estimates the fair value of its outstanding convertible notes using a market approach based on observable inputs, such as current market transactions involving comparable securities. |
| | (2) | Includes unamortized discount and accretion of principal. |
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| Schedule of details of notes |
The principal balance, unamortized discount and net carrying value of the liability and equity components of our 2020 notes were as follows as of October 31, 2015 | | | | | | | | | | | | | | | | | | Liability Component | | Equity Component | | Principal Balance | | Unamortized Discount | | Net Carrying Amount | | Net Carrying Amount | 4.0% Convertible Senior Notes due December 15, 2020 | $ | 197,582 |
| | $ | (13,347 | ) | | $ | 184,235 |
| | $ | 43,131 |
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