What is the range of expiration dates for Benihana's state net operating loss carryforwards?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the years ended December 31 | ecember 31, | |||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Deferred tax assets: | _ | |||
| Operating lease liabilities | $ | 23,798 | $ | 18,871 |
| Stock compensation | 371 | 415 | ||
| FICA tip credit carryforward | 18,312 | 13,976 | ||
| Net operating loss | 5,543 | 3,203 | ||
| Goodwill | 753 | 906 | ||
| Inventory | 52 | 20 | ||
| Charitable contributions carryforward | 26 | 3 | ||
| Foreign tax credit carryforward | 622 | 622 | ||
| Deferred revenue | 126 | 190 | ||
| State and local tax credit carryforward | 78 | 135 | ||
| Expenses not deductible until paid | 83 | 298 | ||
| IRC 163(j) disallowed interest carryforward | 2,152 | 483 | ||
| Debt issuance costs | 82 | 113 | ||
| Kona Grill related acquisition costs | 693 | 755 | ||
| Total deferred tax assets | 52,691 | 39,990 | ||
| Deferred tax liabilities: | ||||
| Operating lease right-of-use assets | (17,360) | (13,974) | ||
| Depreciation and am |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company has various state net operating loss (NOL) carryforwards. The expiration dates for these state NOLs range from 2036 to 2043.
These state NOL carryforwards are subject to change due to apportionment percentages and state laws, which can vary annually and affect the carryforward amounts. This means the actual benefit a franchisee might receive from these carryforwards can fluctuate based on these external factors.
It's important to note that Benihana also has federal net operating loss carryforwards, which, as of December 31, 2023, amounted to $25.2 million and do not have an expiration date. Additionally, the company has state and local tax credit carryforwards that expire at various dates from 2024 through 2029. A prospective franchisee should consult with a financial advisor to understand the potential impact of these tax attributes.