Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 188

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 188
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 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 29, 2024, $215.2 million and $154.8 million of unused federal and state net operating loss carryforwards, respectively. Under the Tax Cuts and Jobs Act of 2017, net operating losses may be carried forward indefinitely. However, net operating losses arising in tax years that begin after December 31, 2017, are limited to 80% of the respective future year’s taxable income. In addition, net operating loss carryforwards may be limited in situations where there is a change in the Company’s ownership. The Company has performed an analysis to substantiate existing net operating loss carryforwards are available for use related to historical changes in the Company’s ownership. The Company’s federal net operating losses generated before December 31, 2017, and outstanding as of December 29, 2024, of $0.7 million will start to expire if not utilized, beginning in 2037, and state net operating losses expire over varying intervals in the future.On August 16, 2022, the U.S. government enacted the Inflation Reduction Act, which includes a new 15% alternative minimum tax based upon financial statement income (“book minimum tax”), a 1% excise tax on stock buybacks, and tax incentives for energy and climate initiatives, among other provisions. The provisions of the Inflation Reduction Act are generally effective for periods after December 31, 202