Company: PCRX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001396814-25-000061
Chunk: 150

Company: Pacira BioSciences, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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 million due to revisions to the latest discount rates. During the three months ended March 31, 2024, the Company recognized gains of $3.8 million due to adjustments to long-term forecasts which reduced the probability of meeting the sales-based contingent consideration milestones by December 31, 2030, the expiration date for achieving the milestones. These adjustments were recorded within contingent consideration gains, acquisition-related expenses, restructuring and other in the condensed consolidated statements of operations. At March 31, 2025, the weighted average discount rate was 8.2%. The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:AssumptionRanges Utilized as ofMarch 31, 2025Discount rates8.0% to 8.4%Probability of payment for remaining regulatory milestone0%The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):Contingent ConsiderationFair ValueBalance at December 31, 2023$24,698 Fair value adjustments and accretion(4,457)Balance at December 31, 202420,241    Fair value adjustments and accretion(2,675)Balance at March 31, 2025$17,566 Available-for-Sale InvestmentsShort-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate, federal agency, government and Yankee bonds with maturities greater than three months, but less than one year. Net unrealized gains and losses (excluding credit losses, if any) from the Company’s short-term investments are reported in other comprehensive income. At March 31, 2025 and December 31, 2024, all of the Company’s short-term and noncurrent investments are classified as available-for-sale investments and are determined to be Level 2 instruments, with the exception of U.S. government bonds, which are measured at fair value using standard industry models with observable inputs. The fair value of the commercial paper is measured based on a standard industry model that uses the three-month U.S. Treasury bill rate as an observable input. The fair value of the asset-backed securities and corporate bonds is principally measured or corroborated by trade data for identical issues in which related trading activity is not sufficiently frequent to be considered a Level 1 input or that of comparable securities. The fair value of U.S. government bonds is based on level 1 trading activity. At the time of purchase