Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 102

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part II, Item 8
Chunk 102
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elling, general and administrative8,206 7,167 16,405 14,907  $11,580 $10,639 $23,111 $21,862 Income tax benefits for share-based awards were $1.4 million and $2.9 million in the second quarter and first six months of 2025, respectively, and $1.7 million and $3.5 million in the second quarter and first six months of 2024, respectively.

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Revenue and Customer Contract BalancesNet Sales and Gross BillingsWe provide certain services on an agent basis, whereby we procure product, materials and services on behalf of our customers and then resell such product, materials or services to our customers. As a result, we recognize only the amount related to the agent component as revenue in our results of operations. The cost of products, materials and services invoiced to our customers under these arrangements, but not recognized as revenue or cost of sales in our results of operations, were as follows:Three Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Cost of materials and services invoiced in connection with logistics services$230,661 $90,670 $443,608 $199,639 Customer Contract BalancesAs ofFebruary 28,2025August 30,2024Contract assets (1)$1,217 $1,801 Contract liabilities: (2)Deferred revenue$133,509 $76,178 Customer advances10,679 6,036 $144,188 $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 February 28, 2025, we expect to recognize revenue of $121.6 million of the balance of $133.5 million in the next 12 months and the remaining amount thereafter. In the first six months of 2025, we recognized revenue of $52.2 million from satisfying performance obligations related to amounts included in deferred revenue as of August 30, 2024. In addition,