Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 255

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 255
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 State1,207 718 88 Subtotal current1,207 718 88 Deferred:Federal(56,021)20 2 State(15,595)30 3 Subtotal deferred(71,616)50 5 (Benefit from) provision for income taxes$(70,409)$768 $93 

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The (benefit from) provision for income taxes differs from the amount computed by applying the U.S. federal statutory income tax rate to income (loss) before taxes for the reasons set forth below for the fiscal years indicated:(in thousands)202420232022Income tax expense (benefit) at federal statutory rate$12,581 $2,950 $(12,323)State income tax expense (benefit)5,931 996 (1,885)(Decrease) increase in valuation allowance(83,662)(4,699)13,428 Deferred taxes— 1,032 1,318 Equity-based compensation(5,251)(556)(541)Nondeductible executive compensation227 915 — Other permanent adjustments(235)130 96 (Benefit from) provision for income taxes$(70,409)$768 $93 As a result of the release of the valuation allowance, the Company recorded a deferred tax liability related to the federal tax impact of its state deferred tax assets, which resulted in an increase to income tax expense of $3.6 million in fiscal 2024 presented within state income tax expense (benefit) in the table above.The following table presents the Company’s deferred tax assets and liabilities as of the periods indicated: (in thousands)December 29,2024December 31,2023Deferred tax assets:Net operating loss$52,797 $59,012 Operating lease liabilities97,358 89,700 Property and equipment— 4,692 Equity-based compensation1,226 1,596 Other5,705 5,732 Gross deferred tax assets157,086 160,732 Valuation allowance— (83,662)Net deferred tax assets157,086 77,070 Deferred tax liabilities:Operating lease assets(82,737)(77,149)Property and equipment(2,812)— Net deferred tax liabilities(85,549)(77,149)Total net deferred tax assets (liabilities)$71,537 $(79)The Company had available as of December