Company: PCRX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001396814-25-000041
Chunk: 69

Company: Pacira BioSciences, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 69
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31, 20242023Deferred tax assets:  Net operating loss carryforwards$124,536 $132,265 Federal and state credits12,351 24,018 Accruals and reserves16,114 18,936 Stock based compensation23,078 27,520 Inventory reserves2,639 2,149 Interest5,716 — Other5,126 7,143 Total deferred tax assets189,560 212,031 Deferred tax liabilities:Depreciation and amortization(34,368)(42,026)Total deferred tax liabilities(34,368)(42,026)Deferred tax assets, net of deferred tax liabilities155,192 170,005 Less: valuation allowance(24,816)(25,520)Net deferred tax assets$130,376 $144,485 On May 9, 2024, and on May 10, 2024, the Company entered into privately negotiated Capped Call Transactions related to the 2029 Notes. See Note 10, Debt, for further discussion of the Capped Call Transactions. The capped call was recorded as a reduction to additional paid-in-capital at its cost of $26.7 million. A related deferred tax asset of $6.5 million was recorded with an offset to additional paid-in-capital and will be amortized as a current tax deduction over a 60-month period. As of December 31, 2024, $5.7 million of the related capped call deferred tax asset remains in the Company’s deferred tax balances.As of December 31, 2024, the Company’s federal net operating losses, or NOLs, and federal tax credit carryforwards totaled $451.2 million and $4.9 million, respectively. The Company also had state NOLs and state tax credit carryforwards of $499.4 million and $7.5 million, respectively, which are subject to change on an annual basis due to variations in the Company’s annual state apportionment factors. The state NOLs will begin to expire in 2028. The Company had non-U.S. NOLs of $3.5 million at December 31, 2024, which do not expire.Since the Company had cumulative changes in ownership of more than 50% within a three-year period, under IRC sections 382 and 383, the Company’s ability to use certain NOLs, tax attributes and