What was the total current state and local income tax for Benihana in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
er 2020, the Company exited its contract with Bagatelle.
F-16
Note 7 – Income Taxes
The components of income before provision for income taxes were as follows (in thousands):
| For the years ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Domestic | $ 14,051 | $ | 33,331 | |||
| Foreign | 142 | 203 | ||||
| Total | $ 14,193 | $ | 33,534 |
The components of the Company's provision
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total current state and local income tax for the year ending December 31, 2021, was $564. This figure represents the amount of state and local income taxes that Benihana owed and expected to pay during that year.
For a prospective franchisee, this indicates the level of state and local tax obligations that Benihana, as a corporation, faces. While the franchisee's tax situation will differ, understanding the parent company's tax liabilities can provide insight into the overall financial health and tax planning strategies of the organization. It's important to note that this figure is part of the broader "Total current" tax line item, which also includes federal and foreign taxes.
It is also important to note that this is only the current portion of state and local income tax. There is also a deferred portion of state and local income tax, which was $1,107 for the same period. The deferred portion relates to future tax liabilities or assets that have been recognized in the financial statements but are not yet payable or receivable.