Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 40

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 follows:Three Months EndedNovember 29,2024December 1,2023Cost of materials and services invoiced in connection with logistics services$212,947 $108,969 Customer Contract BalancesAs ofNovember 29,2024August 30,2024Contract assets (1)$1,389 $1,801 Contract liabilities: (2)Deferred revenue$53,960 $76,178 Customer advances57,869 6,036 $111,829 $82,214 (1)Contract assets are included in other current and noncurrent assets.(2)Contract liabilities are included in other current and noncurrent liabilities based on the timing of when our customers are expected to take control of the asset or receive the benefit of the service.Contract assets represent amounts recognized as revenue for which we do not have the unconditional right to consideration.Deferred revenue represents amounts received from customers in advance of satisfying performance obligations. As of November 29, 2024, we expect to recognize revenue of $41.3 million of the balance of $54.0 million in the next 12 months and the remaining amount thereafter. In the first quarter of 2025, we recognized revenue of $34.6 million from satisfying performance obligations related to amounts included in deferred revenue as of August 30, 2024. In addition, as of November 29, 2024, other current liabilities included $19.9 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 quarter of 2025, we recognized revenue of $0.7 million from satisfying performance obligations related to amounts included in customer advances as of August 30, 2024.As of November 29, 2024 and August 30, 2024, other current liabilities included $14.5 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 $0.1 million and $2.