Company: PENG
Filing Date: 2025-07-08
Form Type: 10-Q
Source: 0001628280-25-034541
Chunk: 151

Company: Penguin Solutions, Inc.
Filing Date: 2025-07-08
Form: 10-Q
Item: Part II, Item 8
Chunk 151
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2026 Notes, our 2.00% Convertible Senior Notes due 2029 (the “2029 Notes”) and our 2.00% Convertible Senior Notes due 2030 (the “2030 Notes,” and together with the 2026 Notes and the 2029 Notes, the “Convertible Senior Notes”) using the effective interest method. As of May 30, 2025 and August 30, 2024, the effective interest rate for our 2026 Notes was 2.83%. As of May 30, 2025 and August 30, 2024, the effective interest rate for our 2029 Notes was 2.40%. As of May 30, 2025 and August 30, 2024, the effective interest rate for our 2030 Notes was 2.65%. Aggregate interest expense for our Convertible Senior Notes consisted of contractual stated interest and amortization of issuance costs and included the following:Three Months EndedNine Months EndedMay 30,2025May 31,2024May 30,2025May 31,2024Contractual stated interest$1,904 $1,313 $5,588 $4,025 Amortization of debt issuance costs402 267 1,321 828 $2,306 $1,580 $6,909 $4,853 Maturities of DebtAs of May 30, 2025, maturities of debt were as follows:Remainder of 2025$— 202620,000 2027300,015 2028— 2029150,000 2030 and thereafter200,000 Less unamortized discount and issuance costs(10,537)$659,478 

LeasesWe have operating leases through which we utilize facilities, offices, and equipment in our manufacturing operations, research and development activities and selling, general and administrative functions. Sublease income was not significant in any period presented. The components of operating lease expense were as follows:Three Months EndedNine Months EndedMay 30,2025May 31,2024May 30,2025May 31,2024Fixed lease cost$2,585 $3,192 $8,535 $9,878 Variable lease cost822 479 1,885 1,327 Short-term lease cost466 415 1,379 1,617