Company: PENG
Filing Date: 2025-04-30
Form Type: CORRESP
Source: 0001193125-25-107591
Chunk: 2

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-30
Form: CORRESP
Chunk 2
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 the elimination of certain projects across your businesses. In connection therewith, you recorded restructure charges of $ 7.1 million and $ 7.0 million in 2024 and 2023, respectively, primarily for employee severance costs and other 
 benefits. To the extent this amount is material to operating and/or net income, please revise to include the disclosures set forth in ASC                                                                                                 
 420-10-50-1. See also Staff Accounting Bulletin Topic 5.P.4.                                                                                                                                                                              |

Response:We respectfully acknowledge the Staff’s comment. In future filings, to the extent the Company’s restructure charges are material to its operating and/or net income, the Company will include the applicable disclosures set forth in ASC 420-10-50-1,including disclosures regarding communication of any plans regarding workforce reductions or the elimination of certain projects as well as additional detail regarding the timing of any payment of liability balances. With regard to the $7.1 million and $7.0 million restructure charges, these disclosures will include the information already presented in our Form 10-Kfor the fiscal year ended August 30, 2024, filed on October 24, 2024, in the Consolidated Statement of Operations (page 68), the Other Operating (Income) Expense note (page 97), and the Segment and Other Information section (page 102). We will also include that these restructure charges consisted solely of employee severance and other benefit costs, reflected in Other Operating (Income) Expense in the Consolidated Statement of Operations. In addition, we will disclose that these charges were primarily concentrated in the period management defined, committed, and communicated the plan, and that therefore, they were accrued and recorded in the period announced, with the related liability typically settled within the subsequent twelve months. While we believe the liability balances are not material, we will reconcile the restructuring liability balances by specifying that the fiscal year 2024 (“FY24”) beginning restructuring liability balance of $1.4M was fully settled in FY24, and the FY24 ending restructuring liability balance of $0.8M is expected to be fully settled in FY25. Income Taxes, page 98

| 3. | We note that you released $69.8 million of your deferred tax valuation allowance during the year ended                                                                                                                                               
 August 25, 2023. With reference to ASC 740-10-30-16 through 25, provide us with a comprehensive analysis to support this