Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 799

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 3
Chunk 799
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 their estimated useful lives.The estimated future amortization expense of acquisition-related intangible assets with finite lives is estimated as follows:(in thousands)2025$27,412 202627,412 202727,412 202827,412 202927,412 2030 and thereafter237,512 Total$374,572 Accrued ExpensesAccrued expenses consisted of the following components: December 31,(in thousands)20242023Salaries and benefits$11,706 $29,337 Accrued interest payable2,470 2,834 Accrued purchase commitments— 2,613 Accrued product development costs1,111 1,033 Accrued professional services and legal fees824 2,641 Inventory accrual1,237 353 Warranty accrual3,100 4,681 Other 2,147 2,216 Accrued expenses $22,595 $45,708 Product WarrantiesWe generally provide a one-year warranty on instruments. In addition, we provide a limited warranty on consumables. At the time revenue is recognized, an accrual is established for estimated warranty costs based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranties are recorded as part of accrued expenses on our consolidated balance sheets and warranty expense is recorded as a component of cost of product revenue on our consolidated statements of operations and comprehensive loss. There were no material changes in estimates for the periods presented below. 

Fiscal 2024 Form 10-K106

Changes in the reserve for product warranties were as follows:Years Ended December 31,(in thousands)20242023Balance at beginning of period$4,681 $1,651 Additions charged to cost of product revenue6,144 8,227 Repairs and replacements(7,725)(5,197)Balance at end of period$3,100 $4,681 Deferred RevenueAs of December 31, 2024, we had a total of $19.8 million of deferred revenue, $13.9 million of which was recorded as deferred revenue, current and $5.9 million of which was recorded as deferred revenue, non-current, which primarily relates to deferred service contract revenues and is scheduled to be recognized in the next five years. Revenue recorded in the