Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 911

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 3
Chunk 911
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 their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors.As of December 31, 2024, the maturities of our operating lease liabilities were as follows:(in thousands)2025$11,481 20268,780 20277,110 2028— 2029— Thereafter— Total undiscounted operating lease payments27,371 Less: imputed interest(2,431)Present value of operating lease liabilities $24,940 Balance Sheet ClassificationOperating lease liabilities, current$10,026 Operating lease liabilities, non-current14,914 Total operating lease liabilities$24,940 We use our incremental borrowing rate to determine the present value of lease payments, as the implicit rates in our leases are not readily determinable. The weighted-average discount rate used to measure our operating lease liabilities was 7.7%. The weighted-average remaining lease term for our operating leases as of December 31, 2024 was 2.7 years.Cash FlowsCash paid for amounts included in the present value of operating lease liabilities was $14.2 million and $12.1 million for the years ended December 31, 2024 and 2023, respectively, and were included in operating cash flows.Operating Lease CostsOperating lease costs were $14.5 million and $10.4 million for the years ended December 31, 2024 and 2023, respectively.ContingenciesWe may become involved in legal proceedings, claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. 

Fiscal 2024 Form 10-K114

We do not believe that the ultimate outcome of any such pending matters is probable or reasonably estimable, or that these matters will have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of litigation and settlement costs, diversion of management resources, and other factors.Please see subsection titled Legal Proceedings, in Part I, Item 3 of this Annual Report on Form 10-K.IndemnificationPursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and