What does Benihana's depreciation and amortization expense consist of?

According to Benihana's 2024 Franchise Disclosure Document, depreciation and amortization expense primarily includes charges related to the depreciation of fixed assets. These fixed assets encompass leasehold improvements, equipment, furniture, and fixtures. Additionally, the expense includes amortization of intangible assets specifically related to the Kona Grill tradename.

For Benihana, computers, equipment, furniture, and fixtures are depreciated over their useful lives, which range from three to fifteen years. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the remaining term of the associated lease. The lease term begins when Benihana takes possession of the property and includes any option periods where failure to exercise such options would result in an economic penalty.

Furthermore, Benihana's intangible assets consist of the Kona Grill trade name and other finite-lived intangible assets. These intangible assets are amortized using the straight-line method over their estimated useful life of 10 years. As of December 31, 2023, the gross carrying amount of the Kona Grill trade name intangible was $17.4 million, and the gross carrying amount of other finite-lived intangible assets was $0.1 million. The amortization expense was nominal and $0.2 million for the years ending December 31, 2023 and 2022, respectively. The company's estimated aggregate amortization expense for each of the five succeeding fiscal years is a nominal amount annually.