Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 705

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1A
Chunk 705
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 balance sheets. The debt issuance costs were amortized to interest expense using the effective interest method over the term of the 2028 Notes, resulting in an effective interest rate of 1.6%. In connection with the 2024 Exchange Transaction, the remaining unamortized debt issuance costs related to the 2028 Notes of $1.1 million were extinguished by offsetting the carrying amount of the convertible senior notes. The net carrying amount of the liability for the 2028 Notes is included as convertible senior notes, net, non-current on our consolidated balance sheets as follows:December 31,(in thousands)20242023Principal amount$— $459,000 Unamortized debt issuance costs— (1,374)Net carrying amount$— $457,626 Interest expense for the 2028 Notes was as follows for the years ended December 31, 2024, 2023, and 2022: Years Ended December 31,(in thousands)202420232022Contractual interest expense$6,139 $10,133 $13,500 Amortization of debt issuance costs289 472 617 Total interest expense$6,428 $10,605 $14,117 

Fiscal 2024 Form 10-K112

NOTE 6.  RESTRUCTURINGDuring the year ended December 31, 2024, we implemented an expense reduction initiative that included workforce reductions, the closing of our San Diego office, and other actions to reduce annualized run-rate operating expenses.A summary of the pre-tax restructuring charges are as follows:(in thousands)Year EndedDecember 31, 2024Cumulative amount incurred to dateEmployee separation costs$10,008 $10,008 Other costs15,214 15,214 Total restructuring charges(1)$25,222 $25,222 (1) For the year ended December 31, 2024, cumulative charges incurred to date include $14.9 million in sales, general and administrative expense; $5.9 million in research and development expense; and $4.4 million in cost of revenue.Cumulative charges incurred to date include employee separation costs comprised of approximately $5.5 million related to salaries, wages and other employee benefits paid to terminated employees pursuant to the Worker Adjustment and Retraining Notification (WARN) Act and approximately $4.5 million of severance costs.Other costs in the year ended December