Company: PCRX
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001396814-25-000102
Chunk: 64

Company: Pacira BioSciences, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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ANCIAL INSTRUMENTS

Fair Value MeasurementsFair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in the principal or most advantageous market in an orderly transaction. To increase consistency and comparability in fair value measurements, the FASB established a three-level hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of fair value measurements are:•Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.•Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.•Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these items. The fair value of the Company’s convertible senior notes and its TLA Term Loan are calculated utilizing market quotations from an over-the-counter trading market for these notes (Level 2). The fair value of the Company’s acquisition-related contingent consideration is reported at fair value on a recurring basis (Level 3). The carrying amount of equity investments and convertible notes receivable without readily determinable fair values are recorded at cost minus impairment, if any, plus or minus observable price changes of identical or similar investments.

Pacira BioSciences, Inc.  |  Q2 2025 Form 10-Q  |  Page 23

At June 30, 2025, the carrying values and fair values of the following financial assets and liabilities were as follows (in thousands):Carrying ValueFair Value Measurements UsingLevel 1Level 2Level 3Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis:Financial Assets:Equity investments$7,750 $— $— $7,750 Convertible notes receivable$2,500 $— $— $2,500 Financial Liabilities:   Acquisition-related contingent consideration$17,209 $— $— $17,209 Financial Liabilities Measured at Amortized Cost:Term loan A facility due March 2028$97,828 $