Company: PCRX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001396814-25-000061
Chunk: 158

Company: Pacira BioSciences, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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 2025 Form 10-Q  |  Page 28

The Company’s income tax expense represents the estimated annual effective tax rate applied to the year-to-date domestic operating results, adjusted for certain discrete tax items.The Company’s effective tax rate for the three months ended March 31, 2025 was primarily impacted by costs related to non-deductible executive compensation, non-deductible stock-based compensation and a non-U.S. valuation allowance, partially offset by tax credits.The Company’s effective tax rate for the three months ended March 31, 2024 includes costs related to non-deductible stock-based compensation and non-deductible executive compensation, partially offset by tax credits and a fair value adjustment for contingent consideration.As of both March 31, 2025 and December 31, 2024, the Company had an income tax payable balance of $5.1 million that was included in other liabilities within the condensed consolidated balance sheet. As of March 31, 2025 and December 31, 2024, the Company has $1.5 million and $0.7 million, respectively, of current income taxes payable that is included in accrued expenses within the condensed consolidated balance sheet.

NOTE 15—CONTINGENT CONSIDERATION GAINS, ACQUISITION-RELATED EXPENSES, RESTRUCTURING AND OTHER

Contingent consideration gains, acquisition-related expenses, restructuring and other for the three months ended March 31, 2025 and 2024 summarized below (in thousands):Three Months EndedMarch 31,20252024Contingent consideration gains$(2,675)$(3,806)Restructuring charges— 5,535 Acquisition-related expenses1,511 174 Accrued key employee holdback351 — Legal settlement7,000 — Total contingent consideration gains, acquisition-related expenses, restructuring and other$6,187 $1,903 Flexion Acquisition Contingent ConsiderationThe Company recognized gains of $2.7 million and $3.8 million related to contingent consideration during the three months ended March 31, 2025 and 2024, respectively. See Note 10, Financial Instruments, for information regarding the method and key assumptions used in the fair value measurements of contingent consideration and more information regarding the changes in fair value.Restructuring ChargesIn February 2024, the Company initiated a restructuring plan designed to ensure it is well positioned for long-term growth. The restructuring