Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 103

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part II, Item 8
Chunk 103
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 as of February 28, 2025, other current liabilities included $18.6 million that is not included in the above remaining performance obligations. While this liability relates to amounts received from customers in connection with arrangements that are cancellable at the customer’s discretion, we have not had to refund any such amounts to our customers in the periods presented. Customer advances, which is included in other current liabilities in the accompanying consolidated balance sheets, represent amounts received from customers for advance payments to secure product. In the first six months of 2025, we recognized revenue of $0.5 million from satisfying performance obligations related to amounts included in customer advances as of August 30, 2024.As of February 28, 2025 and August 30, 2024, other current liabilities included $15.1 million and $12.2 million, respectively, for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.

Other Operating (Income) ExpenseIn recent periods, we initiated plans that included workforce reductions and the elimination of certain projects across our businesses. In connection therewith, we recorded restructuring charges of $1.0 million and $6.3 million in the first six months of 2025 and 2024, respectively, primarily for employee severance costs and other benefits. We anticipate that these activities will continue into future quarters and anticipate recording additional 

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restructuring charges. As of February 28, 2025, $0.9 million remained unpaid, which is expected to be paid by the end of fiscal 2025.

Other Non-operating (Income) ExpenseThree Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Loss on extinguishment or prepayment of debt$— $325 $— $325 Loss (gain) from changes in foreign currency exchange rates24 182 1,052 (364)Loss (gain) on disposition of assets93 41 73 86 Other(326)(300)(698)(375)$(209)$248 $427 $(328)

Income TaxesThree Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Income (loss) before taxes$16,514 $(10,809)$28,838 $(18,487)Income tax provision$7,643 $2,198 $14,003 $