Income Taxes |
6 Months Ended |
|---|---|
Aug. 03, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income Tax Provision Chewy is subject to taxation in the U.S. and various state, local, and foreign jurisdictions. The Company recorded an income tax provision during the thirteen and twenty-six weeks ended August 3, 2025 of $12.0 million and $27.5 million, respectively. The Company’s effective tax rate for the twenty-six weeks ended August 3, 2025 was lower than the U.S federal statutory rate, primarily due to federal and state research and development credits and tax benefits from share-based compensation, partially offset by state income taxes. The Company recorded an income tax benefit during the thirteen and twenty-six weeks ended July 28, 2024 of $252.6 million and $241.1 million, respectively. Deferred Tax Assets and Valuation Allowances The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence. The realizability of the Company’s net deferred tax assets is dependent on its ability to generate sufficient future taxable income prior to the expiration of tax attributes to support the utilization of these assets. During the thirteen weeks ended July 28, 2024, based on all available evidence, the Company determined that it was appropriate to release the valuation allowance on the Company’s U.S. federal and certain state deferred tax assets resulting in a $275.7 million tax benefit. As of August 3, 2025 and February 2, 2025, the Company maintained a full valuation allowance of $21.8 million against its foreign net deferred tax assets and certain U.S. state deferred tax assets. One Big Beautiful Bill Act In July 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The Company will continue to evaluate the OBBBA’s impact on its condensed consolidated financial statements throughout the remainder of Fiscal Year 2025 interim and annual reporting periods. Tax Payments and Refunds During the twenty-six weeks ended August 3, 2025 and July 28, 2024, the Company paid $9.2 million and $14.4 million, net of refunds received, for federal, state, and foreign income taxes other than those assumed in connection with the Transactions, respectively. In connection with the Transactions, the Company assumed $1.9 billion in income taxes which were fully indemnified by affiliates of BC Partners. During the twenty-six weeks ended August 3, 2025, the Company received refunds of $2.3 million, net of payments made, for federal and state income taxes in connection with the Transactions. During the twenty-six weeks ended July 28, 2024, the Company paid $98.9 million, net of refunds received, for federal and state income taxes in connection with the Transactions. For more information, see Note 1 - Description of Business and Note 12 - Certain Relationships and Related Party Transactions. In the aggregate, the Company paid $6.9 million and $113.3 million, net of refunds received, for federal, state, and foreign income taxes during the twenty-six weeks ended August 3, 2025, and July 28, 2024, respectively.
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