Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 257

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 257
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 income(470)(479)(659)Total lease cost$59,090 $50,361 $47,342 __________________1    Excludes $10.6 million, $9.4 million, and $8.5 million in fiscal 2024, 2023, and 2022, respectively, relating to variable real estate taxes, insurance, and common area maintenance costs.Supplemental disclosures of cash flow information related to leases were as follows for the fiscal years indicated:(in thousands)202420232022Cash paid for operating lease liabilities$58,172 $48,739 $49,984 Operating lease assets obtained in exchange for operating lease liabilities166,820 43,985 322,015 Derecognition of operating lease assets due to termination or impairment109 4,946 17,041 __________________1    Amount presented for fiscal 2022 includes a $256.9 million transition adjustment for the adoption of ASC 842.Refer to Note 4 (Fair Value) for a description of impairment charges that included a reduction to operating lease assets in fiscal 2023 and 2022.  Future minimum lease payments by fiscal year for operating leases consist of the following as of December 29, 2024:(in thousands)Operating Leases2025$59,936 202665,339 202763,273 202858,377 202954,400 Thereafter194,819 Total496,144 Less: imputed interest117,436 Operating lease liabilities (current and non-current)$378,708 

As of December 29, 2024, future minimum lease payments excluded $146.7 million relating to legally binding leases executed but not yet commenced. 

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9.    COMMITMENTS AND CONTINGENCIES

Purchase Obligations—The Company enters into various purchase obligations in the ordinary course of business, generally of a short-term nature. Those that are binding primarily relate to amounts owed for produce and other ingredients and supplies, including supplies and materials used for new restaurant openings.Letters of Credit—As of December 29, 2024 and December 31, 2023, the Company had four irrevocable letters of credit in favor of various landlords in the aggregate amount of $0.7 million. The letters of credit do not require a compensating balance and automatically renew in accordance with the terms of the underlying lease agreement.Litigation—The Company is currently involved