LEASES

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

LEASES

The 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 10.2 years, some of which provide renewal options at the then-current market value. The Company also has a lease with Thermo Fisher Scientific Pharma Services, or Thermo Fisher (formerly Patheon UK Limited), for the use of their manufacturing facility in Swindon, England, which is embedded in agreements the Company has with Thermo Fisher. A portion of the associated monthly base fees has been allocated to the lease component based on a relative fair value basis.

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):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Operating Lease Costs	2020		2019		2020		2019
Fixed lease costs	$	2,422	$	1,516	$	3,986	$	2,959
Variable lease costs	601		449		1,049		829
Total	$	3,023	$	1,965	$	5,035	$	3,788

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

	Six Months Ended
	June 30,
	2020		2019
Cash paid for operating lease liabilities	$	8,503	$	3,121
Right-of-use assets recorded in exchange for lease obligations	$	42,101	$	38,419

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

The Company has measured its operating lease liabilities at an estimated discount rate in 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:

	June 30, 2020
Weighted average remaining lease term	9.55 years
Weighted average discount rate	6.88%

Maturities of the Company’s operating lease liabilities are as follows (in thousands):

Year	Aggregate Minimum Payments Due
2020 (remaining six months)	$	7,497
2021	10,745
2022	10,423
2023	10,697
2024	10,980
2025 through 2030	62,072
Total lease payments	112,414
Less: imputed interest	(30,906)
Total operating lease liabilities	$	81,508