Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 30

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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, 2023. Accordingly, we recognized withholding taxes on the expected capital gain and deferred tax liabilities of $28.6 million in 2023.Assets and liabilities of SMART Brazil as of the November 29, 2023 disposal date were as follows:As ofNovember 29,2023Cash and cash equivalents$40,927 Accounts receivable, net16,482 Inventories26,103 Other current assets17,800 Total current assets101,312 Property and equipment, net66,870 Operating lease right-of-use assets6,912 Goodwill19,856 Other noncurrent assets27,490 Total assets222,440 Impairment of SMART Brazil assets(153,036)Total assets, net of impairment$69,404 Accounts payable and accrued expenses$20,576 Current debt3,872 Other current liabilities1,023 Total current liabilities25,471 Long-term debt11,938 Noncurrent operating lease liabilities5,686 Noncurrent deferred tax liabilities28,564 Other noncurrent liabilities93 Total liabilities$71,752 Net assets (liabilities) of discontinued operations$(2,348)

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The following table presents the results of operations for SMART Brazil:Three Months EndedDecember 1,2023Net sales$55,159 Cost of sales50,560 Gross profit4,599 Operating expenses:Research and development157 Selling, general and administrative5,421 Other operating (income) expense64 Total operating expenses5,642 Operating loss(1,043) Non-operating (income) expense:Loss from divestiture of 81% interest in SMART Brazil10,888 Interest (income) expense, net(1,262)Other non-operating (income) expense138 Total non-operating (income) expense9,764 Loss before taxes(10,807)Income tax benefit(2,659)Net loss from discontinued operations$(8,148)Loss from Divestiture of SMART BrazilThe following table presents the calculation of the loss from the divestiture of an 81% interest in SMART Brazil:Proceeds, less costs to sell and other expenses:Consideration$194,092 Costs to sell and other expenses(4,150)189,942 Basis in 81% interest in SMART Brazil:Net assets of SMART Brazil145,194 Cumulative translation adjustment (1)212,397 357