LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASESThe Company leases all of its facilities, including its EXPAREL manufacturing facility in San Diego, California and its iovera° manufacturing facility in Fremont, California. These leases have remaining terms up to 8.7 years, some of which provide renewal options at the then-current market value. The Company also has an embedded lease with Thermo Fisher Scientific Pharma Services for the use of their manufacturing facility in Swindon, England. A portion of the associated monthly base fees has been allocated to the lease component based on a relative fair value basis. As a result of the Flexion Acquisition, the Company recorded new operating lease liabilities of $6.6 million arising from obtaining ROU lease assets for three locations.

The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease costs are as follows (in thousands):

	Year Ended December 31,
Operating Lease Costs	2021		2020		2019
Fixed lease costs	$	11,976	$	10,055	$	6,225
Variable lease costs	1,722		2,096		1,651
Total	$	13,698	$	12,151	$	7,876

Supplemental cash flow information related to operating leases is as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Cash paid for operating lease liabilities, net of lease incentive	$	12,709	$	14,347	$	7,346
Right-of-use assets recorded in exchange for lease obligations	$	8,692	$	42,191	$	41,605

The Company has elected to net the amortization of the ROU asset and the reduction of the lease liability principal in other liabilities in the consolidated statement of cash flows.

The Company has measured its operating lease liabilities at an estimated discount rate at which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease term and the weighted average discount rate are summarized as follows:

	December 31,
	2021	2020
Weighted average remaining lease term	7.77 years	9.18 years
Weighted average discount rate	6.96%	6.87%

As of December 31, 2021, maturities of the Company’s operating lease liabilities are as follows (in thousands):

Year	Aggregate Payments Due
2022	$	13,171
2023	13,292
2024	13,422
2025	12,561
2026	12,296
2027 and thereafter	39,423
Total lease payments	104,165
Less: imputed interest	(24,547)
Total operating lease liabilities	$	79,618