What was the total provision (benefit) for income taxes for Benihana in 2020, in thousands of dollars?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
s (in thousands):
| | | For the years ended December 31, | | | | | |----------|--------------------|----------------------------------|--|--|--|--| | | 2021 | 2020 | | | | | | Domestic | $ 33,331 $ | (19,129) | | | | | | Foreign | 203 | 106 | | | | | | Total | $ 33,534 $ | (19,023) | | | | | The components of the Company's provision (benefit) for income taxes were as follows (in thousands):
| For the years ended December 31, | ||||
|---|---|---|---|---|
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total provision (benefit) for income taxes in 2020 was a benefit of $5,400,000. This is based on the components of the company's provision for income taxes, which are presented in thousands of dollars.
Specifically, the table shows a breakdown of current and deferred taxes. The current portion includes federal, state and local, and foreign taxes, totaling $75,000. The deferred portion also includes federal, state and local, and foreign taxes, totaling a benefit of $5,475,000.
The total provision (benefit) for income taxes is calculated by combining the current and deferred portions, resulting in the overall benefit of $5,400,000 for the year 2020. A benefit for income taxes suggests that Benihana had a tax advantage or credit that reduced its overall tax liability during that period.