Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Income Taxes | |
| Income Taxes |
Note 8 – Income Taxes For the nine months ended September 30, 2024, the Company has computed its interim tax provision using the estimated annual effective tax rate method. For the six months ended June 30, 2024, the Company had elected to compute its interim tax provision using the actual year-to-date effective tax rate method as small changes in projected income could have produced large variations in the Company’s estimated annual effective tax rate. The Company recorded a benefit for income taxes of $8.2 million for the nine months ended September 30, 2024 compared to income tax benefit of $0.2 million for the nine months ended September 30, 2023.
The Company’s effective income tax rate was 30.6% for the nine months ended September 30, 2024 compared to 30.9% for the nine months ended September 30, 2023. The Company’s effective tax rate differs from the statutory U.S. tax rate of 21% primarily due to the following: (i) tax credits for FICA taxes on certain employees’ tips (ii) taxes owed in foreign jurisdictions with tax rates that differ from the U.S. statutory rate; (iii) taxes owed in state and local jurisdictions; (iv) transaction costs associated with the Benihana Acquisition; and (v) the tax effect of non-deductible compensation. The income tax benefit recorded for the nine months ended September 30, 2024 and 2023 included the discrete period tax benefits resulting from the vesting of restricted stock units.
The Company is subject to U.S. federal, state, local and various foreign income taxes for the jurisdictions in which it operates. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In the normal course of business, the Company is subject to examination by the federal, state, local and foreign taxing authorities. There are no ongoing federal, state, local, or foreign tax examinations as of September 30, 2024. |