What were Benihana's property and equipment, net of accumulated depreciation, and operating lease right-of-use assets as of December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
h flows exclusive of operating lease payments, expected to be generated by those restaurant assets. This process requires the use of estimates and assumptions, which are subject to a high degree of judgment. If the carrying amount of an individual restaurant's assets exceeds its e
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, as of December 31, 2022, the company's property and equipment, net of accumulated depreciation, totaled $94.1 million. Additionally, the operating lease right-of-use assets amounted to $85.2 million as of the same date.
These figures represent the value of Benihana's physical assets (property and equipment) after accounting for depreciation, alongside the value of assets the company uses under operating leases. These assets are crucial for Benihana's operations, as they include restaurant buildings, kitchen equipment, and other necessary items for running the business.
It's important to note that these values are subject to impairment reviews, as indicated in the FDD. Benihana assesses these assets for impairment whenever events or changes in circumstances suggest that the carrying value may not be fully recoverable. However, for the year ended December 31, 2022, no impairment loss related to long-lived assets was recognized.