Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 84

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part II, Item 8
Chunk 84
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 from the divestiture of an 81% interest in SMART Brazil is accounted for as a derivative financial instrument and is revalued at the end of each reporting period. The asset’s fair value, as measured on a recurring basis, was based on Level 2 measurements, including market-based observable inputs of interest rates and credit-risk spreads.

The fair value of the Amended 2027 TLA, as measured on a non-recurring basis, was estimated based on Level 2 measurements, including discounted cash flows and interest rates based on similar debt issued by parties with credit ratings similar to ours. The fair values of our convertible senior notes, as measured on a non-recurring basis, were determined based on Level 2 measurements, including the trading prices of the notes.

Equity PlansAs of November 29, 2024, 7.7 million of our ordinary shares were available for future awards under our equity plans.The disclosures related to our restricted awards and employee share purchase plan include both our continuing and discontinued operations.Restricted Share Awards and Restricted Share Units Awards (“Restricted Awards”)Restricted Award activity was as follows:Three Months EndedNovember 29,2024December 1,2023Restricted awards granted635419Weighted-average grant date fair value per share$30.25 $30.49 Aggregate vesting date fair value of shares vested$9,028 $8,733 As of November 29, 2024, total unrecognized compensation costs for unvested Restricted Awards were $78.7 million, which were expected to be recognized over a weighted-average period of 2.5 years.Employee Share Purchase Plan (“ESPP”)Under our ESPP, employees purchased 253 thousand ordinary shares for $3.2 million in the first quarter of 2025 and 298 thousand ordinary shares for $3.3 million in the first quarter of 2024.Share-Based Compensation ExpenseShare-based compensation expense for our continuing operations was as follows:Three Months EndedNovember 29,2024December 1,2023Share-based compensation expense by caption:Cost of sales$1,643 $1,815 Research and development1,689 1,597 Selling, general and administrative8,199 7,558  $11,531 $10,970 Income tax benefits for share-based awards were $1.5 million and $1.8 million in the first quarter of 2025 and 2024, respectively.

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Revenue and Customer Contract Bal