What was the total provision for income taxes for Benihana in 2022 (in thousands)?
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 provision for income taxes in 2022 was $874,000. This figure represents the sum of current and deferred income taxes for that year.
Breaking down the components, the current income taxes include federal, state and local, and foreign taxes, totaling $883,000. Deferred income taxes, which arise from temporary differences between book and tax income, resulted in a deduction of $9,000. The federal deferred income tax was a deduction of $429,000, while state and local deferred income taxes amounted to $420,000. There was no foreign deferred income tax.
Understanding the provision for income taxes is crucial for prospective franchisees as it reflects Benihana's profitability and overall financial health. Significant changes in these provisions from year to year can indicate shifts in profitability, tax strategies, or accounting practices. Reviewing these figures in the context of Benihana's broader financial statements can provide a more comprehensive understanding of the company's financial performance.