Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 220

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 220
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 unamortized portion of the liability, which will be applied until there is a change in future cash flow expectations or the debt is legally extinguished. The imputed effective interest for periods shown prior to first quarter 2025 was 10.1%. Changes in this liability related to interest accretion are recognized in Non-operating income (expense) in the Condensed Consolidated Statements of Operations. The liability for sale of future royalties is reflected at the unamortized carrying amount and thus is no longer considered to be at fair value commencing the first quarter 2025, with the estimated fair value being immaterial.The liability is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions):Six Months Ended June 30,20252024Beginning balance$21 $19 Interest accretion— 1 Ending balance$21 $20 Long-term debtAs of June 30, 2025, the estimated fair value of our long-term debt approximated the carrying amount. The fair value of the long-term debt was estimated for disclosure purposes only and was determined based on other inputs that are observable, and thus categorized as Level 2 in the fair value hierarchy.

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Note 15. Business segment

We operate and manage our business as one reportable and operating segment, which is the business of developing and commercializing highly differentiated therapies that have a meaningful impact on patients. Our chief operating decision maker ("CODM") is the Chief Executive Officer, who decides how to allocate resources and assesses segment performance based on net income (loss) reported in the Condensed Consolidated Statements of Operations.The table below is a summary of the segment net income (loss), including significant segment expenses (in millions):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Total revenues160 39 188 184 Less:Late-stage development programs (1)74 64 129 127 Early-stage development and preclinical programs (2)38 33 80 58 Compensation and personnel costs61 64 128 128 Depreciation and amortization2 2 5 5 Impairment of long-lived assets— — — 20 Interest income, net(8)(13)(18)(25)Income tax expense— — — — Other segment items (3)26 22 47 45 Partnership reimbursements(