Petco Health & Wellness Company, Inc. New Standards Disclosure
Recent Accounting Pronouncements
In December 2023, the FASB issued Accounting Standards Update No. 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency of income tax matters within financial statements. The ASU requires public business entities to disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a specific quantitative threshold. The Company adopted this ASU effective January 31, 2026. The adoption did not have any impact on the Company’s consolidated financial statements, outside of the enhanced disclosures in Note 12, "Income Taxes."
In November 2024, the FASB issued ASU No. 2024-03 – Income Statement (Subtopic 220-40): Expense Disaggregation Disclosures, which is intended to improve disclosures on the nature of expenses included in the income statement. The ASU requires additional disclosures about specific expense categories in the notes to financial statements at interim and annual reporting periods, including purchases of inventory, employee
compensation, depreciation, amortization, and depletion. ASU 2024-03 will be effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact of this accounting standard on the Company's consolidated financial statements and related disclosures.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 13, 2026 | Showing above |
| 2025 | Mar 31, 2025 | |
| 2024 | Apr 3, 2024 | |
| 2023 | Mar 28, 2023 | |
| 2022 | Mar 24, 2022 | |
About New Standards Disclosures
New accounting standards disclosures describe recently adopted pronouncements and those not yet effective, along with management's assessment of their expected impact. This section provides an early warning system for upcoming changes to how a company reports its financial results, often years before the new rules take effect.
Key signals: when management describes a not-yet-adopted standard's impact as "material" or "still being evaluated," it signals potential significant changes to reported metrics upon adoption. Watch for standards that affect a company's core operations — for example, revenue recognition changes for software companies or lease accounting changes for retailers with large store footprints. The transition method chosen (full retrospective versus modified retrospective) affects comparability with prior periods. Companies that delay adoption to the latest permitted date may be struggling with implementation complexity. Compare the disclosed impact assessments against peers in the same industry to gauge whether management's expectations are reasonable.