Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 256

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 256
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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, 2022, with no immediate impact to our current income tax expense or net DTAs. We do not currently expect that the Inflation Reduction Act will have a material impact on our financial results.

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8.    LEASES

The weighted average remaining lease term and discount rate were as follows as of the period indicated:December 29,2024December 31,2023Weighted average remaining lease term (years)8.28.2Weighted average discount rate6.26 %6.01 %The components of lease cost were as follows for the fiscal years indicated:(in thousands)Classification202420232022Operating lease cost1Occupancy, General and administrative expenses$52,573 $44,201 $42,551 Pre-opening lease costPre-opening costs3,867 4,296 3,823 Closed restaurant lease costRestructuring and other costs97 558 840 Short-term lease costsGeneral and administrative expenses328 364 460 Variable lease costOccupancy2,695 1,421 327 Sublease incomeOther