Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 50

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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$— Level 1:Money market funds25,213 — 29,110 — U.S. Treasury securities— 25,323 — 6,337  $621,682 $25,323 $383,147 $6,337 

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Non-marketable Equity InvestmentsAs of both February 28, 2025 and August 30, 2024, other noncurrent assets included $53.0 million of non-marketable equity investments, which are accounted for under the measurement alternative at cost less impairment, if any. In the event an observable price change occurs in an orderly transaction for an identical or a similar investment, the carrying value of investments would be remeasured to fair value as of the date that the observable transaction occurred, with any resulting gains or losses recorded in results of operations.

Accounts ReceivableIn the third quarter of 2023, we entered into a trade accounts receivable sale program with a third-party financial institution to sell certain of our trade accounts receivable on a non-recourse basis pursuant to a factoring arrangement. This program allows us to sell certain of our trade accounts receivables up to $60.0 million. As of February 28, 2025, there have been no trade accounts receivable sold under this program.

InventoriesAs ofFebruary 28,2025August 30,2024Raw materials$85,545 $75,514 Work in process27,857 18,742 Finished goods86,335 56,957  $199,737 $151,213 As of February 28, 2025 and August 30, 2024, 19% and 14%, respectively, of total inventories were owned and held under our logistics services program.

Property and EquipmentAs ofFebruary 28,2025August 30,2024Equipment$89,775 $89,848 Buildings and building improvements67,563 70,462 Furniture, fixtures and software47,404 48,027 Land14,983 16,126 219,725 224,463 Accumulated depreciation(122,609)(117,915) $97,116 $106,548 Depreciation expense for property and equipment was $5.0 million and $10.0 million in the second quarter and first six months of 2025, respectively, and $7.2 million and $14