v3.24.2
LEASES
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES LEASES
The Company leases all of its facilities, including its EXPAREL and iovera° handpiece manufacturing facility at its Science Center Campus in San Diego, California. The Company also has two embedded leases with Thermo Fisher Scientific Pharma Services for the use of their manufacturing facility in Swindon, England for the production of EXPAREL and ZILRETTA. A portion of the associated monthly base fees has been allocated to the lease components based on a relative fair value basis.
Since July 2022 and February 2023, the Company has been recognizing sublease income for laboratory space leased in Woburn, Massachusetts and a portion of office space leased in Burlington, Massachusetts, respectively, from leases that were
assumed as part of the Flexion Acquisition. In February 2024, the lease and sublease term concluded for the laboratory space in Woburn, Massachusetts.
The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease expense, net is as follows (in thousands):
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Fixed lease costs$3,460 $3,631 $6,957 $7,259 
Variable lease costs289 378 783 945 
Sublease income(61)(169)(192)(322)
Total$3,688 $3,840 $7,548 $7,882 
Supplemental cash flow information related to operating leases is as follows (in thousands):
Six Months Ended
June 30,
20242023
Cash paid for operating lease liabilities, net of lease incentives$6,429 $7,325 
The Company has elected to net the amortization of the right-of-use asset and the reduction of the lease liability principal in other liabilities in the condensed consolidated statements of cash flows.
The Company has measured its operating lease liabilities at an estimated discount rate at which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease terms and the weighted average discount rates are summarized as follows:
June 30,
20242023
Weighted average remaining lease term5.58 years6.39 years
Weighted average discount rate7.00 %7.03 %
Maturities of the Company’s operating lease liabilities are as follows (in thousands):
YearAggregate Minimum
Payments Due
2024 (remaining six months)$6,516 
202512,788 
202612,823 
202712,587 
202810,924 
Thereafter16,426 
   Total future lease payments72,064 
   Less: imputed interest(12,769)
   Total operating lease liabilities$59,295