The Company leases all of its facilities, including its EXPAREL and iovera° manufacturing facility in San Diego, California. These leases have remaining terms up to 7.9 years, some of which provide renewal options at the then-current market value. The Company also has two embedded leases with Thermo Fisher Scientific Pharma Services for the use of their manufacturing facility in Swindon, England for the production of EXPAREL and ZILRETTA. A portion of the associated monthly base fees has been allocated to the lease components based on a relative fair value basis. During the three months ended September 30, 2022, the Company entered into a partial sublease for the former Flexion research and development laboratory in Woburn, Massachusetts which resulted in a $0.4 million ROU asset reclassified to a fixed asset.

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 expense, net is as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Fixed lease costs	$	3,440	$	2,919	$	10,509	$	8,762
Variable lease costs	540		416		1,520		1,318
Sublease income	(169)		—		(169)		—
Lease expense, net of sublease income	$	3,811	$	3,335	$	11,860	$	10,080


	Nine Months Ended
	September 30,
	2022		2021
Cash paid for operating lease liabilities, net of lease incentive	$	9,922	$	9,868
ROU assets recorded in exchange for lease obligations	$	—	$	212

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 condensed 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:


	September 30,
	2022		2021
Weighted average remaining lease term	7.11 years		8.46 years
Weighted average discount rate	6.95	%	6.88	%


Year	Aggregate Minimum Payments Due
2022 (remaining three months)	$	3,261
2023	13,304
2024	13,435
2025	12,575
2026	12,310
Thereafter	39,423
Total future lease payments	94,308
Less: imputed interest	(20,543)
Total operating lease liabilities	$	73,765

As of September 30, 2022, the Company has entered into one lease agreement not included above as the Company has not yet taken possession of the property. When the lease commences, the future lease obligations will be as follows (in thousands):