Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 36

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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4, the effective interest rate for our 2029 Notes was 2.40%. As of November 29, 2024 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 EndedNovember 29,2024December 1,2023Contractual stated interest$1,842 $1,400 Amortization of debt issuance costs458 297 $2,300 $1,697 Maturities of DebtAs of November 29, 2024, maturities of debt were as follows:Remainder of 2025$— 202620,000 2027300,015 2028— 2029150,000 2030 and thereafter200,000 Less unamortized discount and issuance costs(11,945)$658,070 

17

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 EndedNovember 29,2024December 1,2023Fixed lease cost$2,975 $3,505 Variable lease cost448 449 Short-term lease cost468 639  $3,891 $4,593 Cash flows used for operating activities included payments for operating leases of $2.3 million and $2.5 million in the first quarter of 2025 and 2024, respectively.As of November 29, 2024 and August 30, 2024, the weighted-average remaining lease term for our operating leases was 10.1 years and 10.1 years, respectively, and the weighted-average discount rate was 6.0% and 6.1%, respectively. Certain of our operating leases include one or more options to extend the lease term for periods from two to five years. In determining the present value of our operating lease liabilities, we have assumed we will not extend any lease terms.As of November 29, 2024, minimum payments of lease liabilities were as follows:Remainder of 2025$9,503 202610,417 20277,985 20287,920 20298,097