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FIXED ASSETS
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
FIXED ASSETS FIXED ASSETS
Fixed assets, net, summarized by major category, consist of the following (in thousands):
June 30,December 31,
20262025
Machinery and equipment$162,840 $163,144 
Leasehold improvements77,653 77,450 
Computer equipment and software26,979 26,187 
Office furniture and equipment2,101 2,127 
Construction in progress11,584 9,485 
        Total281,157 278,393 
Less: accumulated depreciation(150,880)(137,703)
        Fixed assets, net$130,277 $140,690 
In June 2026, $0.5 million of fixed assets related to iovera°, comprised of $0.5 million of machinery and equipment, net, along with nominal amounts of computer equipment and software, net, and office furniture and equipment, net, were reclassified to assets held for sale in conjunction with entering into the Purchase Agreement with Zimmer. Depreciation on these fixed assets ceased being recorded at the time the assets were classified as held for sale. For more information, see Note 3, Assets and Liabilities Held for Sale.
For the three and six months ended June 30, 2026, depreciation expense was $7.0 million and $14.0 million, respectively. For the three and six months ended June 30, 2025, depreciation expense was $13.0 million and $19.8 million, respectively.
The Company recognized $5.5 million of accelerated depreciation expense during the three and six months ended June 30, 2025 as a result of decommissioning its 45-liter EXPAREL batch manufacturing suite located at its Science Center Campus in San Diego, California. The Company continues to operate its 200-liter EXPAREL batch manufacturing suite at the same facility.
As of June 30, 2026 and December 31, 2025, total fixed assets, net, includes manufacturing process equipment and leasehold improvements located outside of the U.S. in the amount of $38.0 million and $41.9 million, respectively.
As of June 30, 2026 and December 31, 2025, the Company had asset retirement obligations of $4.1 million and $3.9 million, respectively, included in accrued expenses and other liabilities on its condensed consolidated balance sheets, for costs associated with returning leased spaces to their original condition upon the termination of certain of its lease agreements.