Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 77

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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arges included in other costs are primarily related to legal expenses incurred in connection with employee separation matters.In connection with the restructuring and strategic shift, we incurred an additional $388.6 million in costs. These include $359.3 million of accelerated amortization of certain intangible assets, $15.0 million of IPR&D impairment charges, $8.0 million related to excess inventory due to decreased external demand and $3.9 million for estimated losses on purchase commitments tied to anticipated future excess inventory included in cost of revenue, and $2.4 million of accelerated depreciation of fixed assets. See Note 3. Balance Sheet Components for additional information on the IPR&D impairment assessment and the change in estimated useful life of the intangible asset and accelerated amortization.A summary of the liabilities related to the restructuring is as follows:(In thousands, excluding non-cash activities)Employee Separation CostsOther CostsTotalExpense recorded in YTD 2025$4,787 $629 $5,416 Cash paid during YTD 2025(4,787)(528)(5,315)Amount recorded in current liabilitiesas of September 30, 2025$— $101 $101 Estimated total restructuring costs to still be incurred$— $— $— 

Q3 Fiscal 2025 Form 10-Q20

2024 RestructuringIn the second quarter of 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)Three Months Ended September 30, 2025Cumulative amount incurred to dateEmployee separation costs$— $10,008 Other costs— 16,102 Total restructuring charges(1)$— $26,110 (1) Cumulative charges incurred to date include $15.8 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 cumulative charges incurred to date are primarily related to accelerated amortization and depreciation of $8.