ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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INDIANA
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37-0684070
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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17802 IH 10 West, Suite 400
San Antonio, Texas
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78257
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(Address of principal executive offices)
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(Zip Code)
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Name of each exchange on which registered
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||
Common Stock, stated value $.50 per share
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New York Stock Exchange
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Page No.
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|||
Part I
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|||
1
|
|||
4
|
|||
9
|
|||
10
|
|||
11
|
|||
11
|
|||
Part II
|
|||
12
|
|||
14
|
|||
15
|
|||
30
|
|||
31
|
|||
34
|
|||
35
|
|||
36
|
|||
37
|
|||
38
|
|||
39
|
|||
71
|
|||
71
|
|||
71
|
|||
Part III
|
|||
72
|
|||
72
|
|||
72
|
|||
72
|
|||
72
|
|||
Part IV
|
|||
73
|
|||
74
|
|||
82
|
|
Steak n Shake
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Western Sizzlin
|
|||||||||
Company- operated
|
Franchised
|
Company-operated
|
Franchised
|
Total
|
|||||||
Domestic:
|
|||||||||||
Alabama
|
2
|
7
|
—
|
6
|
15
|
||||||
Arizona
|
1
|
—
|
—
|
—
|
1
|
||||||
Arkansas
|
—
|
2
|
—
|
16
|
18
|
||||||
California
|
1
|
2
|
—
|
2
|
5
|
||||||
Colorado
|
2
|
2
|
—
|
—
|
4
|
||||||
Florida
|
80
|
3
|
—
|
—
|
83
|
||||||
Georgia
|
23
|
17
|
—
|
7
|
47
|
||||||
Illinois
|
63
|
7
|
—
|
—
|
70
|
||||||
Indiana
|
68
|
3
|
—
|
—
|
71
|
||||||
Iowa
|
3
|
—
|
—
|
—
|
3
|
||||||
Kansas
|
—
|
6
|
—
|
—
|
6
|
||||||
Kentucky
|
14
|
4
|
—
|
—
|
18
|
||||||
Louisiana
|
—
|
1
|
—
|
1
|
2
|
||||||
Maryland
|
—
|
1
|
—
|
2
|
3
|
||||||
Michigan
|
19
|
—
|
—
|
—
|
19
|
||||||
Mississippi
|
—
|
2
|
—
|
2
|
4
|
||||||
Missouri
|
39
|
24
|
—
|
1
|
64
|
||||||
Montana
|
—
|
1
|
—
|
—
|
1
|
||||||
Nevada
|
—
|
2
|
—
|
—
|
2
|
||||||
New Jersey
|
—
|
1
|
—
|
—
|
1
|
||||||
New York
|
1
|
—
|
—
|
—
|
1
|
||||||
North Carolina
|
6
|
7
|
—
|
8
|
21
|
||||||
Ohio
|
63
|
—
|
—
|
1
|
64
|
||||||
Oklahoma
|
—
|
5
|
—
|
9
|
14
|
||||||
Pennsylvania
|
6
|
4
|
—
|
—
|
10
|
||||||
South Carolina
|
1
|
5
|
—
|
3
|
9
|
||||||
Tennessee
|
9
|
11
|
—
|
4
|
24
|
||||||
Texas
|
14
|
10
|
—
|
—
|
24
|
||||||
Utah
|
—
|
1
|
—
|
—
|
1
|
||||||
Virginia
|
—
|
6
|
3
|
4
|
13
|
||||||
West Virginia
|
—
|
2
|
1
|
—
|
3
|
||||||
International:
|
|||||||||||
France
|
1
|
1
|
—
|
—
|
2
|
||||||
Kuwait
|
—
|
2
|
—
|
—
|
2
|
||||||
Italy
|
—
|
2
|
—
|
—
|
2
|
||||||
Saudi Arabia
|
—
|
1
|
—
|
—
|
1
|
||||||
Spain
|
1
|
2
|
—
|
—
|
3
|
||||||
Total
|
417
|
144
|
4
|
66
|
631
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
2015
|
||||||||
High
|
Low
|
|||||||
First Quarter
|
$ | 440.00 | $ | 394.87 | ||||
Second Quarter
|
425.79 | 344.99 | ||||||
Third Quarter
|
448.00 | 364.94 | ||||||
Fourth Quarter
|
385.96 | 325.82 |
2014
|
||||||||
High
|
Low
|
|||||||
Transition Period
|
$ | 399.51 | $ | 320.95 |
Fiscal Year 2014 | ||||||||
High
|
Low
|
|||||||
First quarter
|
$ | 460.28 | $ | 381.26 | ||||
Second quarter
|
482.14 | 384.05 | ||||||
Third quarter
|
430.82 | 378.03 | ||||||
Fourth quarter
|
415.97 | 338.88 |
Transition Period
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Revenue:
|
||||||||||||
Total revenues
|
$ | 861,452 | $ | 224,450 | $ | 204,442 | ||||||
Earnings:
|
||||||||||||
Net (loss) earnings attributable to Biglari Holdings Inc.
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | |||||
Basic (loss) earnings per share attributable to Biglari Holdings Inc. (1)
|
$ | (10.18 | ) | $ | 48.49 | $ | 11.05 | |||||
Diluted (loss) earnings per share attributable to Biglari Holdings Inc. (1)
|
$ | (10.18 | ) | $ | 48.45 | $ | 11.03 | |||||
Year-end data:
|
||||||||||||
Total assets
|
$ | 1,003,918 | $ | 1,314,791 | $ | 1,010,356 | ||||||
Long-term notes payable and other borrowings
|
298,950 | 312,595 | 199,601 | |||||||||
Biglari Holdings Inc. shareholders’ equity
|
$ | 451,372 | $ | 725,551 | $ | 587,885 |
(1)
|
Earnings per share of common stock is based on the weighted average number of shares outstanding during the period. For financial reporting purposes and for purposes of computing the weighted average common shares outstanding, the shares of Company stock attributable to the unrelated limited partners of the investment partnerships - based on their proportional ownership during the period - are considered outstanding shares.
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52 Weeks Ended
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||||||||||||||||
|
Fiscal
2014(2)(4)
|
Fiscal
2013(2)(4)
|
Fiscal
2012(2)(3)
|
Fiscal
2011(2)(3)
|
||||||||||||
Revenue:
|
||||||||||||||||
Total revenues
|
$ | 793,811 | $ | 755,822 | $ | 740,207 | $ | 709,200 | ||||||||
Earnings:
|
||||||||||||||||
Net earnings attributable to Biglari Holdings Inc.
|
$ | 28,804 | $ | 140,271 | $ | 21,593 | $ | 34,565 | ||||||||
Basic earnings per share attributable to Biglari Holdings Inc. (1)
|
$ | 16.85 | $ | 90.89 | $ | 13.92 | $ | 22.35 | ||||||||
Diluted earnings per share attributable to Biglari Holdings Inc. (1)
|
$ | 16.82 | $ | 90.69 | $ | 13.88 | $ | 22.23 | ||||||||
Year-end data:
|
||||||||||||||||
Total assets
|
$ | 1,174,732 | $ | 988,543 | $ | 773,787 | $ | 672,860 | ||||||||
Long-term notes payable and other borrowings
|
315,196 | 216,747 | 230,603 | 217,483 | ||||||||||||
Biglari Holdings Inc. shareholders’ equity
|
$ | 638,717 | $ | 564,589 | $ | 349,125 | $ | 279,678 |
(1)
|
Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. In fiscal year 2014 and 2013 the Company completed rights offerings in which 344,261 and 286,767 new shares of common stock were issued, respectively. The theoretical earnings per share have been retroactively restated for all years to give effect to the rights offerings.
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(2)
|
Fiscal years 2014, 2013, 2012, and 2011 ended on September 24, 2014, September 25, 2013, September 26, 2012, and September 28, 2011, respectively.
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(3)
|
For financial reporting purposes all common shares of the Company held by the consolidated affiliated partnerships are recorded in treasury stock on the consolidated balance sheet. For purposes of computing the weighted average common shares outstanding, the shares of treasury stock attributable to the unrelated limited partners of the consolidated affiliated partnerships - based on their proportional ownership during the period - are considered outstanding shares.
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(4)
|
For financial reporting purposes and for purposes of computing the weighted average common shares outstanding, the shares of Company stock attributable to the unrelated limited partners of the investment partnerships - based on their proportional ownership during the period - are considered outstanding shares.
|
Transition Period
|
Fiscal Year
|
|||||||||||||||||||||||
2015
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||
Operating businesses:
|
||||||||||||||||||||||||
Restaurant
|
$ | 26,985 | $ | 18,285 | $ | 6,857 | $ | 6,537 | $ | 17,965 | $ | 21,361 | ||||||||||||
Insurance
|
2,313 | 1,559 | 595 | - | 964 | - | ||||||||||||||||||
Media
|
(11,459 | ) | (13,404 | ) | (3,455 | ) | - | (9,949 | ) | - | ||||||||||||||
Other
|
197 | 1,068 | (58 | ) | (27 | ) | 1,099 | 5,382 | ||||||||||||||||
Total operating businesses
|
18,036 | 7,508 | 3,939 | 6,510 | 10,079 | 26,743 | ||||||||||||||||||
Corporate
|
(8,309 | ) | (5,502 | ) | (2,051 | ) | (2,060 | ) | (5,511 | ) | (12,515 | ) | ||||||||||||
Investment gains
|
- | 18,305 | - | - | 18,305 | 115,568 | ||||||||||||||||||
Investment partnership gains (losses)
|
(18,168 | ) | 87,991 | 91,191 | 15,516 | 12,316 | 14,537 | |||||||||||||||||
Interest expense on notes payable
|
(7,402 | ) | (7,397 | ) | (2,029 | ) | (1,017 | ) | (6,385 | ) | (4,062 | ) | ||||||||||||
$ | (15,843 | ) | $ | 100,905 | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 |
Steak n Shake
|
Western Sizzlin
|
|||||||||||||||||||
Company- operated
|
Franchised
|
Company-operated
|
Franchised
|
Total
|
||||||||||||||||
Total stores as of September 25, 2013
|
415 | 104 | 4 | 82 | 605 | |||||||||||||||
Net restaurants opened (closed)
|
1 | 20 | - | (11 | ) | 10 | ||||||||||||||
Total stores as of September 24, 2014
|
416 | 124 | 4 | 71 | 615 | |||||||||||||||
Net restaurants opened (closed)
|
1 | 4 | - | (3 | ) | 2 | ||||||||||||||
Total stores as of December 31, 2014
|
417 | 128 | 4 | 68 | 617 | |||||||||||||||
Net restaurants opened (closed)
|
- | 16 | - | (2 | ) | 14 | ||||||||||||||
Total stores as of December 31, 2015
|
417 | 144 | 4 | 66 | 631 |
2015
|
2014
|
|||||||||||||||
Revenue
|
||||||||||||||||
Net sales
|
$ | 799,660 | $ | 769,738 | ||||||||||||
Franchise royalties and fees
|
16,428 | 15,931 | ||||||||||||||
Other revenue
|
3,650 | 3,692 | ||||||||||||||
Total revenue
|
819,738 | 789,361 | ||||||||||||||
Restaurant cost of sales
|
||||||||||||||||
Cost of food
|
232,271 | 29.0 | % | 232,224 | 30.2 | % | ||||||||||
Restaurant operating costs
|
379,632 | 47.5 | % | 363,669 | 47.2 | % | ||||||||||
Rent
|
17,384 | 2.2 | % | 17,048 | 2.2 | % | ||||||||||
Total cost of sales
|
629,287 | 612,941 | ||||||||||||||
Selling, general and administrative
|
||||||||||||||||
General and administrative
|
62,055 | 7.6 | % | 65,022 | 8.2 | % | ||||||||||
Marketing
|
46,050 | 5.6 | % | 42,361 | 5.4 | % | ||||||||||
Other expenses
|
7,590 | 0.9 | % | 6,226 | 0.8 | % | ||||||||||
Total selling, general and administrative
|
115,695 | 14.1 | % | 113,609 | 14.4 | % | ||||||||||
Depreciation and amortization
|
23,736 | 2.9 | % | 24,091 | 3.1 | % | ||||||||||
Interest on obligations under leases
|
9,422 | 9,685 | ||||||||||||||
Earnings before income taxes
|
41,598 | 29,035 | ||||||||||||||
Income tax expense
|
14,613 | 10,750 | ||||||||||||||
Net earnings
|
$ | 26,985 | $ | 18,285 | ||||||||||||
Cost of food, restaurant operating costs and rent expense are expressed as a percentage of net sales.
|
||||||||||||||||
General and administrative, marketing, other expenses and depreciation and amortization are expressed as a percentage of total revenue.
|
Transition Period
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Revenue
|
||||||||||||||||
Net sales
|
$ | 210,256 | $ | 200,407 | ||||||||||||
Franchise royalties and fees
|
4,076 | 3,177 | ||||||||||||||
Other revenue
|
1,316 | 858 | ||||||||||||||
Total revenue
|
215,648 | 204,442 | ||||||||||||||
Restaurant cost of sales
|
||||||||||||||||
Cost of food
|
64,614 | 30.7 | % | 58,826 | 29.4 | % | ||||||||||
Restaurant operating costs
|
98,939 | 47.1 | % | 94,268 | 47.0 | % | ||||||||||
Rent
|
4,554 | 2.2 | % | 4,579 | 2.3 | % | ||||||||||
Total cost of sales
|
168,107 | 157,673 | ||||||||||||||
Selling, general and administrative
|
||||||||||||||||
General and administrative
|
16,570 | 7.7 | % | 16,420 | 8.0 | % | ||||||||||
Marketing
|
9,844 | 4.6 | % | 10,807 | 5.3 | % | ||||||||||
Other expenses
|
1,523 | 0.7 | % | 706 | 0.3 | % | ||||||||||
Total selling, general and administrative
|
27,937 | 13.0 | % | 27,933 | 13.7 | % | ||||||||||
Depreciation and amortization
|
6,461 | 3.0 | % | 6,434 | 3.1 | % | ||||||||||
Interest on obligations under leases
|
2,577 | 2,612 | ||||||||||||||
Earnings before income taxes
|
10,566 | 9,790 | ||||||||||||||
Income tax expense
|
3,709 | 3,253 | ||||||||||||||
Net earnings
|
$ | 6,857 | $ | 6,537 | ||||||||||||
Cost of food, restaurant operating costs and rent expense are expressed as a percentage of net sales.
|
||||||||||||||||
General and administrative, marketing, other expenses and depreciation and amortization are expressed as a percentage of total revenue.
|
Fiscal Year
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Revenue
|
||||||||||||||||
Net sales
|
$ | 759,889 | $ | 736,968 | ||||||||||||
Franchise royalties and fees
|
15,032 | 11,741 | ||||||||||||||
Other revenue
|
3,234 | 3,210 | ||||||||||||||
Total revenue
|
778,155 | 751,919 | ||||||||||||||
Restaurant cost of sales
|
||||||||||||||||
Cost of food
|
226,436 | 29.8 | % | 218,199 | 29.6 | % | ||||||||||
Restaurant operating costs
|
358,998 | 47.2 | % | 348,654 | 47.3 | % | ||||||||||
Rent
|
17,073 | 2.2 | % | 16,150 | 2.2 | % | ||||||||||
Total cost of sales
|
602,507 | 583,003 | ||||||||||||||
Selling, general and administrative
|
||||||||||||||||
General and administrative
|
64,872 | 8.3 | % | 56,485 | 7.5 | % | ||||||||||
Marketing
|
43,324 | 5.6 | % | 44,375 | 5.9 | % | ||||||||||
Other expenses
|
5,409 | 0.7 | % | 4,458 | 0.6 | % | ||||||||||
Total selling, general and administrative
|
113,605 | 105,318 | ||||||||||||||
Depreciation and amortization
|
24,064 | 3.1 | % | 24,882 | 3.3 | % | ||||||||||
Interest on obligations under leases
|
9,720 | 9,829 | ||||||||||||||
Earnings before income taxes
|
28,259 | 28,887 | ||||||||||||||
Income tax expense
|
10,294 | 7,526 | ||||||||||||||
Net earnings
|
$ | 17,965 | $ | 21,361 | ||||||||||||
Cost of food, restaurant operating costs and rent expense are expressed as a percentage of net sales.
|
||||||||||||||||
General and administrative, marketing, other expenses and depreciation and amortization are expressed as a percentage of total revenue.
|
2015
|
2014
|
|||||||
Premiums written
|
$ | 16,719 | $ | 8,719 | ||||
Insurance losses
|
10,454 | 4,709 | ||||||
Underwriting expenses
|
2,908 | 2,213 | ||||||
Pre-tax underwriting gain
|
3,357 | 1,797 | ||||||
Other income and expenses
|
||||||||
Commissions
|
360 | 343 | ||||||
Investment income
|
153 | 227 | ||||||
Other expenses
|
(341 | ) | - | |||||
Total other income
|
172 | 570 | ||||||
Earnings before income taxes
|
3,529 | 2,367 | ||||||
Income tax expense
|
1,216 | 808 | ||||||
Contribution to net earnings
|
$ | 2,313 | $ | 1,559 |
2015
|
2014
|
|||||||
Revenue
|
$ | 24,482 | $ | 15,169 | ||||
Media cost of sales
|
35,614 | 28,660 | ||||||
Selling, general and administrative expenses
|
6,677 | 7,626 | ||||||
Depreciation and amortization
|
296 | 362 | ||||||
Loss before income taxes
|
(18,105 | ) | (21,479 | ) | ||||
Income tax benefit
|
(6,646 | ) | (8,075 | ) | ||||
Contribution to net earnings
|
$ | (11,459 | ) | $ | (13,404 | ) |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||||||
2015
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||
Gain on contributions to partnerships
|
$ | - | $ | 29,524 | $ | - | $ | - | $ | 29,524 | $ | 182,746 | ||||||||||||
Gain on sale of Biglari Capital Corp.
|
- | - | - | - | - | 1,597 | ||||||||||||||||||
Realized investment gains
|
- | - | - | - | - | 1 | ||||||||||||||||||
Other than temporary impairment
|
- | - | - | - | - | (570 | ) | |||||||||||||||||
Total gain before tax expense
|
- | 29,524 | - | - | 29,524 | 183,774 | ||||||||||||||||||
Tax expense
|
- | 11,219 | - | - | 11,219 | 68,206 | ||||||||||||||||||
Contribution to net earnings
|
$ | - | $ | 18,305 | $ | - | $ | - | $ | 18,305 | $ | 115,568 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||||||
2015
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||
Investment partnership gains (losses)
|
$ | (39,356 | ) | $ | 135,264 | $ | 144,702 | $ | 23,493 | $ | 14,055 | $ | 20,068 | |||||||||||
Gains from consolidated affiliated partnerships
|
- | - | - | - | - | 3,903 | ||||||||||||||||||
Earnings attributable to noncontrolling interests
|
- | - | - | - | - | (1,901 | ) | |||||||||||||||||
Total partnership gains before tax expense
|
(39,356 | ) | 135,264 | 144,702 | 23,493 | 14,055 | 22,070 | |||||||||||||||||
Tax (benefit) expense
|
(21,188 | ) | 47,273 | 53,511 | 7,977 | 1,739 | 7,533 | |||||||||||||||||
Contribution to net earnings
|
$ | (18,168 | ) | $ | 87,991 | $ | 91,191 | $ | 15,516 | $ | 12,316 | $ | 14,537 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||||||
2015
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||
Interest expense on notes payable
|
$ | (11,939 | ) | $ | (10,797 | ) | $ | (3,272 | ) | $ | (1,641 | ) | $ | (9,166 | ) | $ | (6,551 | ) | ||||||
Loss on debt extinguishment
|
- | (1,133 | ) | - | - | (1,133 | ) | - | ||||||||||||||||
Total interest expense
|
(11,939 | ) | (11,930 | ) | (3,272 | ) | (1,641 | ) | (10,299 | ) | (6,551 | ) | ||||||||||||
Tax expense (benefit)
|
(4,537 | ) | (4,533 | ) | (1,243 | ) | (624 | ) | (3,914 | ) | (2,489 | ) | ||||||||||||
Contribution to net earnings
|
$ | (7,402 | ) | $ | (7,397 | ) | $ | (2,029 | ) | $ | (1,017 | ) | $ | (6,385 | ) | $ | (4,062 | ) |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cash and cash equivalents
|
$ | 56,523 | $ | 129,669 | ||||
Investments
|
23,750 | 10,800 | ||||||
Fair value of interest in investment partnerships
|
734,668 | 776,899 | ||||||
Total cash and investments
|
814,941 | 917,368 | ||||||
Less: portion of Company stock held by investment partnerships
|
(262,979 | ) | (78,917 | ) | ||||
Carrying value of cash and investments on balance sheet
|
$ | 551,962 | $ | 838,451 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||||||
2015
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||
Net cash provided by operating activities
|
$ | 52,497 | $ | 27,872 | $ | 5,643 | $ | 5,346 | $ | 27,575 | $ | 38,792 | ||||||||||||
Net cash (used in) provided by investing activities
|
(113,300 | ) | (163,512 | ) | 2,484 | (4,764 | ) | (170,760 | ) | (60,765 | ) | |||||||||||||
Net cash (used in) provided by financing activities
|
(12,307 | ) | 180,140 | (2,745 | ) | (10,020 | ) | 172,865 | 56,343 | |||||||||||||||
Effect of exchange rate changes on cash
|
(36 | ) | (308 | ) | (3 | ) | 289 | (16 | ) | (103 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents
|
$ | (73,146 | ) | $ | 44,192 | $ | 5,379 | $ | (9,149 | ) | $ | 29,664 | $ | 34,267 |
Payments due by period
|
||||||||||||||||||||
Contractual Obligations
|
Less than
1 year
|
1 – 3 years
|
3 – 5 years
|
More than
5 years
|
Total
|
|||||||||||||||
Long-term debt (1) (2)
|
$ | 13,982 | $ | 26,179 | $ | 25,908 | $ | 204,045 | 270,114 | |||||||||||
Capital leases and finance obligations (1)
|
14,843 | 23,657 | 13,321 | 6,832 | 58,653 | |||||||||||||||
Operating leases (3)
|
16,993 | 30,212 | 25,860 | 57,940 | 131,005 | |||||||||||||||
Purchase commitments (4)
|
4,973 | 2,623 | — | — | 7,596 | |||||||||||||||
Other long-term liabilities (5)
|
— | — | — | 2,184 | 2,184 | |||||||||||||||
Total
|
$ | 50,791 | $ | 82,671 | $ | 65,089 | $ | 271,001 | $ | 469,552 |
(1)
|
Includes principal and interest and assumes payoff of indebtedness at maturity date.
|
||||||||||||||||
(2)
|
Includes outstanding borrowings under Steak n Shake’s and Western’s credit facilities.
|
||||||||||||||||
(3)
|
Excludes amounts to be paid for contingent rents. Includes amounts to be paid for subleased properties.
|
||||||||||||||||
(4)
|
Includes agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms. Excludes agreements that are cancelable without penalty.
|
||||||||||||||||
(5)
|
Includes liabilities for Non-Qualified Deferred Compensation Plan. Excludes our unrecognized tax benefits of $413 as of December 31, 2015 because we cannot make a reliable estimate of the timing of cash payments.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Sardar Biglari
|
/s/ Bruce Lewis
|
|
Sardar Biglari
Chairman and Chief Executive Officer
|
Bruce Lewis
Controller
|
|
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Revenues
|
||||||||||||||||||||
Restaurant operations
|
$ | 819,738 | $ | 215,648 | $ | 204,442 | $ | 778,155 | $ | 751,919 | ||||||||||
Insurance premiums and other
|
17,232 | 3,574 | - | 5,715 | - | |||||||||||||||
Media advertising and other
|
24,482 | 5,228 | - | 9,941 | - | |||||||||||||||
Other
|
- | - | - | - | 3,903 | |||||||||||||||
861,452 | 224,450 | 204,442 | 793,811 | 755,822 | ||||||||||||||||
Cost and expenses
|
||||||||||||||||||||
Restaurant cost of sales
|
629,287 | 168,107 | 157,673 | 602,507 | 583,003 | |||||||||||||||
Insurance losses and underwriting expenses
|
13,362 | 2,668 | - | 4,254 | - | |||||||||||||||
Media cost of sales
|
35,614 | 9,261 | - | 19,399 | - | |||||||||||||||
Selling, general and administrative
|
135,132 | 30,847 | 31,630 | 128,472 | 126,835 | |||||||||||||||
Depreciation and amortization
|
24,780 | 6,828 | 6,566 | 24,905 | 25,250 | |||||||||||||||
838,175 | 217,711 | 195,869 | 779,537 | 735,088 | ||||||||||||||||
Other income (expenses)
|
||||||||||||||||||||
Interest and dividends
|
9 | 8 | 586 | 1,182 | 8,265 | |||||||||||||||
Interest expense
|
(11,939 | ) | (3,272 | ) | (1,641 | ) | (10,299 | ) | (6,551 | ) | ||||||||||
Interest on obligations under leases
|
(9,422 | ) | (2,577 | ) | (2,612 | ) | (9,720 | ) | (9,829 | ) | ||||||||||
Gain on sale of Biglari Capital Corp.
|
- | - | - | - | 1,597 | |||||||||||||||
Investment gains (including contributions)
|
- | - | - | 29,524 | 182,177 | |||||||||||||||
Investment partnership (losses) gains
|
(39,356 | ) | 144,702 | 23,493 | 14,055 | 20,068 | ||||||||||||||
Total other income (expenses)
|
(60,708 | ) | 138,861 | 19,826 | 24,742 | 195,727 | ||||||||||||||
Earnings (loss) before income taxes
|
(37,431 | ) | 145,600 | 28,399 | 39,016 | 216,461 | ||||||||||||||
Income tax expense (benefit)
|
(21,588 | ) | 54,550 | 9,450 | 10,212 | 74,289 | ||||||||||||||
Net earnings (loss)
|
(15,843 | ) | 91,050 | 18,949 | 28,804 | 142,172 | ||||||||||||||
Less: Earnings attributable to noncontrolling interests
|
- | - | - | - | (1,901 | ) | ||||||||||||||
Net earnings (loss) attributable to Biglari Holdings Inc.
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 | |||||||||
Earnings (loss) per share
|
||||||||||||||||||||
Basic earnings (loss) per common share
|
$ | (10.18 | ) | $ | 48.49 | $ | 11.05 | $ | 16.85 | $ | 90.89 | |||||||||
Diluted earnings (loss) per common share
|
$ | (10.18 | ) | $ | 48.45 | $ | 11.03 | $ | 16.82 | $ | 90.69 | |||||||||
Weighted average shares and equivalents
|
||||||||||||||||||||
Basic
|
1,556,039 | 1,877,723 | 1,714,727 | 1,709,621 | 1,543,370 | |||||||||||||||
Diluted
|
1,556,039 | 1,879,414 | 1,718,261 | 1,712,775 | 1,546,665 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net earnings (loss) attributable to Biglari Holdings Inc.
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 | |||||||||
Other comprehensive income:
|
||||||||||||||||||||
Reclassification of investment appreciation in net earnings
|
62 | - | - | (29,578 | ) | (182,286 | ) | |||||||||||||
Applicable income taxes
|
(21 | ) | - | - | 11,237 | 67,640 | ||||||||||||||
Net change in unrealized gains and losses on investments
|
(892 | ) | (341 | ) | 6,540 | (4,930 | ) | 146,079 | ||||||||||||
Applicable income taxes
|
327 | 126 | (2,478 | ) | 1,874 | (53,881 | ) | |||||||||||||
Foreign currency translation
|
(2,372 | ) | (46 | ) | 289 | (582 | ) | 8 | ||||||||||||
Other comprehensive income (loss), net
|
(2,896 | ) | (261 | ) | 4,351 | (21,979 | ) | (22,440 | ) | |||||||||||
Total comprehensive income (loss)
|
$ | (18,739 | ) | $ | 90,789 | $ | 23,300 | $ | 6,825 | $ | 117,831 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 56,523 | $ | 129,669 | ||||
Investments
|
23,750 | 10,800 | ||||||
Receivables
|
17,716 | 19,003 | ||||||
Inventories
|
7,593 | 7,255 | ||||||
Deferred taxes
|
13,263 | 12,019 | ||||||
Other current assets
|
7,943 | 7,707 | ||||||
Total current assets
|
126,788 | 186,453 | ||||||
Property and equipment
|
332,324 | 353,875 | ||||||
Goodwill
|
40,022 | 40,164 | ||||||
Other intangible assets
|
21,673 | 22,756 | ||||||
Investment partnerships
|
471,689 | 697,982 | ||||||
Other assets
|
11,422 | 13,561 | ||||||
Total assets
|
$ | 1,003,918 | $ | 1,314,791 | ||||
Liabilities and shareholders’ equity
|
||||||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 34,649 | $ | 39,996 | ||||
Accrued expenses
|
74,429 | 65,476 | ||||||
Current portion of notes payable and other borrowings
|
8,477 | 9,315 | ||||||
Total current liabilities
|
117,555 | 114,787 | ||||||
Long-term notes payable and other borrowings
|
298,950 | 312,595 | ||||||
Deferred taxes
|
125,130 | 150,732 | ||||||
Other liabilities
|
10,911 | 11,126 | ||||||
Total liabilities
|
552,546 | 589,240 | ||||||
Shareholders’ equity
|
||||||||
Common stock - 2,066,691 and 2,065,586 shares outstanding
|
1,071 | 1,071 | ||||||
Additional paid-in capital
|
391,853 | 391,877 | ||||||
Retained earnings
|
415,982 | 431,825 | ||||||
Accumulated other comprehensive loss
|
(3,679 | ) | (783 | ) | ||||
Treasury stock, at cost
|
(353,855 | ) | (98,439 | ) | ||||
Biglari Holdings Inc. shareholders’ equity
|
451,372 | 725,551 | ||||||
Total liabilities and shareholders’ equity
|
$ | 1,003,918 | $ | 1,314,791 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating activities
|
||||||||||||||||||||
Net earnings (loss)
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 142,172 | |||||||||
Adjustments to reconcile net earnings to operating cash flows:
|
||||||||||||||||||||
Depreciation and amortization
|
24,780 | 6,828 | 6,566 | 24,905 | 25,250 | |||||||||||||||
Provision for deferred income taxes
|
(26,476 | ) | 52,909 | 6,623 | 9,164 | 72,035 | ||||||||||||||
Asset impairments and other non-cash expenses
|
2,232 | 84 | 162 | 3,253 | 3,508 | |||||||||||||||
Loss on disposal of assets
|
1,351 | 707 | 162 | 977 | 1,111 | |||||||||||||||
Gain on sale of Biglari Capital Corp.
|
- | - | - | - | (1,597 | ) | ||||||||||||||
Investment (gains) losses (including contributions)
|
62 | - | - | (29,578 | ) | (182,177 | ) | |||||||||||||
Investment partnership (gains) losses
|
39,356 | (144,702 | ) | (23,493 | ) | (14,055 | ) | (20,068 | ) | |||||||||||
Distributions from investment partnerships
|
19,775 | - | 1,469 | 10,340 | - | |||||||||||||||
Changes in receivables and inventories
|
686 | (3,404 | ) | (709 | ) | (5,926 | ) | 195 | ||||||||||||
Changes in other assets
|
2,299 | (855 | ) | (793 | ) | (2,599 | ) | (2,742 | ) | |||||||||||
Changes in accounts payable and accrued expenses
|
4,275 | 3,026 | (3,590 | ) | 2,290 | 3,764 | ||||||||||||||
Investment operations of consolidated affiliated partnerships:
|
||||||||||||||||||||
Sales of investments
|
- | - | - | - | 1,516 | |||||||||||||||
Investment gains/losses
|
- | - | - | - | (3,597 | ) | ||||||||||||||
Changes in cash and cash equivalents
|
- | - | - | - | (578 | ) | ||||||||||||||
Net cash provided by operating activities
|
52,497 | 5,643 | 5,346 | 27,575 | 38,792 | |||||||||||||||
Investing activities
|
||||||||||||||||||||
Additions of property and equipment
|
(11,083 | ) | (8,816 | ) | (5,283 | ) | (35,812 | ) | (14,167 | ) | ||||||||||
Proceeds from property and equipment disposals
|
135 | 924 | 519 | 2,641 | 2,449 | |||||||||||||||
Acquisitions of businesses, net of cash acquired
|
- | - | - | (40,143 | ) | - | ||||||||||||||
Purchase of lease rights
|
- | - | - | - | (3,770 | ) | ||||||||||||||
Proceeds from sale of Biglari Capital Corp., net of cash on hand
|
- | - | - | - | 1,699 | |||||||||||||||
Purchases of investments
|
(114,759 | ) | (1,372 | ) | - | (112,530 | ) | (46,977 | ) | |||||||||||
Sales of investments and redemptions of fixed maturity
securities
|
12,407 | 11,748 | - | 11,986 | 1 | |||||||||||||||
Changes in restricted assets
|
- | - | - | 3,098 | - | |||||||||||||||
Net cash (used in) provided by investing activities
|
(113,300 | ) | 2,484 | (4,764 | ) | (170,760 | ) | (60,765 | ) | |||||||||||
Financing activities
|
||||||||||||||||||||
Proceeds from revolving credit facility
|
- | - | 7,000 | 11,700 | 17,000 | |||||||||||||||
Payments on revolving credit facility
|
(194 | ) | (20 | ) | - | (10,700 | ) | (17,000 | ) | |||||||||||
Borrowings on long-term debt
|
- | - | - | 217,800 | - | |||||||||||||||
Principal payments on long-term debt
|
(5,975 | ) | (1,100 | ) | (15,438 | ) | (120,800 | ) | (12,138 | ) | ||||||||||
Deferred financing charges
|
- | - | - | (4,754 | ) | - | ||||||||||||||
Principal payments on direct financing lease obligations
|
(6,360 | ) | (1,628 | ) | (1,582 | ) | (6,278 | ) | (5,904 | ) | ||||||||||
Proceeds from stock rights offering
|
- | - | - | 85,873 | 75,595 | |||||||||||||||
Proceeds for exercise of stock options
|
222 | 3 | - | 24 | 16 | |||||||||||||||
Financing activities of consolidated affiliated partnerships:
|
||||||||||||||||||||
Contributions from and distributions to noncontrolling
interests, net
|
- | - | - | - | (1,226 | ) | ||||||||||||||
Net cash (used in) provided by financing activities
|
(12,307 | ) | (2,745 | ) | (10,020 | ) | 172,865 | 56,343 | ||||||||||||
Effect of exchange rate changes on cash
|
(36 | ) | (3 | ) | 289 | (16 | ) | (103 | ) | |||||||||||
Increase (decrease) in cash and cash equivalents
|
(73,146 | ) | 5,379 | (9,149 | ) | 29,664 | 34,267 | |||||||||||||
Cash and cash equivalents at beginning of period
|
129,669 | 124,290 | 94,626 | 94,626 | 60,359 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | 56,523 | $ | 129,669 | $ | 85,477 | $ | 124,290 | $ | 94,626 |
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
|
|||||||||||||||||||
Balance at September 26, 2012
|
$
|
756
|
$
|
143,035
|
$
|
251,983
|
$
|
43,897
|
$
|
(90,546
|
)
|
$
|
349,125
|
|||||||||||
Net earnings
|
140,271
|
140,271
|
||||||||||||||||||||||
Other comprehensive loss, net
|
(22,440
|
)
|
(22,440
|
)
|
||||||||||||||||||||
Deconsolidation of affiliated partnerships
|
12,224
|
25,640
|
37,864
|
|||||||||||||||||||||
Adjustment to treasury stock for holdings in investment partnerships
|
(11,033
|
)
|
(11,033
|
)
|
||||||||||||||||||||
Issuance of stock for rights offering
|
143
|
119,367
|
(43,915
|
)
|
75,595
|
|||||||||||||||||||
Exercise of stock options
|
(6
|
)
|
23
|
17
|
||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to maximum redemption value
|
(4,810
|
)
|
(4,810
|
)
|
||||||||||||||||||||
Balance at September 25, 2013
|
$
|
899
|
$
|
269,810
|
$
|
348,339
|
$
|
21,457
|
$
|
(75,916
|
)
|
$
|
564,589
|
|||||||||||
Net earnings
|
28,804
|
28,804
|
||||||||||||||||||||||
Other comprehensive loss, net
|
(21,979
|
)
|
(21,979
|
)
|
||||||||||||||||||||
Adjustment to treasury stock for holdings
in investment partnerships
|
(18,594 | ) | (18,594 | ) | ||||||||||||||||||||
Issuance of stock for rights offering
|
172
|
122,069
|
(36,368
|
)
|
85,873
|
|||||||||||||||||||
Exercise of stock options
|
(1
|
)
|
25
|
24
|
||||||||||||||||||||
Balance at September 24, 2014
|
$
|
1,071
|
$
|
391,878
|
$
|
340,775
|
$
|
(522
|
)
|
$
|
(94,485
|
)
|
$
|
638,717
|
||||||||||
Net earnings
|
91,050
|
91,050
|
||||||||||||||||||||||
Other comprehensive loss, net
|
(261
|
)
|
(261
|
)
|
||||||||||||||||||||
Adjustment to treasury stock for holdings in investment partnerships
|
(3,958
|
)
|
(3,958
|
)
|
||||||||||||||||||||
Exercise of stock options
|
(1
|
)
|
4
|
3
|
||||||||||||||||||||
Balance at December 31, 2014
|
$
|
1,071
|
$
|
391,877
|
$
|
431,825
|
$
|
(783
|
)
|
$
|
(98,439
|
)
|
$
|
725,551
|
||||||||||
Net loss
|
(15,843
|
)
|
(15,843
|
)
|
||||||||||||||||||||
Other comprehensive loss, net
|
(2,896
|
)
|
(2,896
|
)
|
||||||||||||||||||||
Adjustment to treasury stock for holdings in investment partnerships
|
(255,662
|
)
|
(255,662
|
)
|
||||||||||||||||||||
Exercise of stock options
|
(24
|
)
|
246
|
222
|
||||||||||||||||||||
Balance at December 31, 2015
|
$
|
1,071
|
$
|
391,853
|
$
|
415,982
|
$
|
(3,679
|
)
|
$
|
(353,855
|
)
|
$
|
451,372
|
December 31, 2015
|
December 31, 2014
|
September 24, 2014
|
September 25, 2013
|
|||||||||||||
Common stock authorized
|
2,500,000
|
2,500,000
|
2,500,000
|
2,500,000
|
||||||||||||
Common stock issued
|
2,142,202
|
2,142,202
|
2,142,202
|
1,797,941
|
||||||||||||
Treasury stock held by the Company
|
(75,511
|
)
|
(76,616
|
)
|
(76,636
|
)
|
(77,159
|
)
|
||||||||
Outstanding shares
|
2,066,691
|
2,065,586
|
2,065,566
|
1,720,782
|
||||||||||||
Proportional ownership of the Company's common stock in the investment partnerships
|
(807,069
|
)
|
(197,533
|
)
|
(187,109
|
)
|
(132,406
|
)
|
||||||||
Net outstanding shares for financial reporting purposes
|
1,259,622
|
1,868,053
|
1,878,457
|
1,588,376
|
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net sales
|
$ | 799,660 | $ | 210,256 | $ | 200,407 | $ | 759,889 | $ | 736,968 | ||||||||||
Franchise royalties and fees
|
16,428 | 4,076 | 3,177 | 15,032 | 11,741 | |||||||||||||||
Other
|
3,650 | 1,316 | 858 | 3,234 | 3,210 | |||||||||||||||
$ | 819,738 | $ | 215,648 | $ | 204,442 | $ | 778,155 | $ | 751,919 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
Basic earnings per share:
|
(unaudited) | |||||||||||||||||||
Weighted average common shares
|
1,556,039 | 1,877,723 | 1,714,727 | 1,709,621 | 1,543,370 | |||||||||||||||
Diluted earnings per share:
|
||||||||||||||||||||
Weighted average common shares
|
1,556,039 | 1,877,723 | 1,714,727 | 1,709,621 | 1,543,370 | |||||||||||||||
Dilutive effect of stock awards
|
- | 1,691 | 3,534 | 3,154 | 3,295 | |||||||||||||||
Weighted average common and incremental shares
|
1,556,039 | 1,879,414 | 1,718,261 | 1,712,775 | 1,546,665 | |||||||||||||||
Number of share-based awards excluded from the calculation of earning per share as the awards' exercise prices were greater than the average market price of the Company's common stock, or because they were anti-dilutive due to the Company's net loss in 2015
|
5,218 | 2,637 | - | - | 705 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cost
|
$ | 24,842 | $ | 11,056 | ||||
Gross unrealized gains
|
10 | 11 | ||||||
Gross unrealized losses
|
(1,102 | ) | (267 | ) | ||||
Fair value
|
$ | 23,750 | $ | 10,800 |
Fiscal Year
|
||||||||
2014
|
2013
|
|||||||
Gain on contributions to investment partnerships
|
$ | 29,524 | $ | 182,746 | ||||
Gross realized gains on sales
|
- | 1 | ||||||
Other than temporary impairment
|
- | (570 | ) | |||||
Investment gains (including contributions)
|
$ | 29,524 | $ | 182,177 |
Fair Value
|
Company
Common
Stock
|
Carrying
Value
|
||||||||||
Partnership interest at July 1, 2013
|
$ | 54,608 | $ | 43,580 | $ | 11,028 | ||||||
Investment partnership gains
|
23,053 | 2,985 | 20,068 | |||||||||
Contributions of cash and securities to investment partnerships
|
377,636 | - | 377,636 | |||||||||
Increase in proportionate share of Company stock held
|
- | 11,033 | (11,033 | ) | ||||||||
Partnership interest at September 25, 2013
|
$ | 455,297 | $ | 57,598 | $ | 397,699 | ||||||
Investment partnership gains (losses)
|
1,436 | (12,619 | ) | 14,055 | ||||||||
Contributions of cash and securities (net of distributions of $10,340)
|
164,078 | - | 164,078 | |||||||||
Increase in proportionate share of Company stock held
|
- | 18,594 | (18,594 | ) | ||||||||
Partnership interest at September 24, 2014
|
$ | 620,811 | $ | 63,573 | $ | 557,238 | ||||||
Investment partnership gains
|
156,088 | 11,386 | 144,702 | |||||||||
Increase in proportionate share of Company stock held
|
- | 3,958 | (3,958 | ) | ||||||||
Partnership interest at December 31, 2014
|
$ | 776,899 | $ | 78,917 | $ | 697,982 | ||||||
Investment partnership losses
|
(110,956 | ) | (71,600 | ) | (39,356 | ) | ||||||
Contributions of cash (net of distributions of $19,775)
|
68,725 | - | 68,725 | |||||||||
Increase in proportionate share of Company stock held
|
- | 255,662 | (255,662 | ) | ||||||||
Partnership interest at December 31, 2015
|
$ | 734,668 | $ | 262,979 | $ | 471,689 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Carrying value of investment partnerships
|
$ | 471,689 | $ | 697,982 | ||||
Deferred tax liability related to investment partnerships
|
(115,952 | ) | (141,836 | ) | ||||
Carrying value of investment partnerships net of deferred taxes
|
$ | 355,737 | $ | 556,146 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Investment partnership gains (losses)
|
$ | (39,356 | ) | $ | 144,702 | $ | 23,493 | $ | 14,055 | $ | 20,068 | |||||||||
Tax expense (benefit)
|
(21,188 | ) | 53,511 | 7,977 | 1,739 | 6,772 | ||||||||||||||
Contribution to net earnings (loss)
|
$ | (18,168 | ) | $ | 91,191 | $ | 15,516 | $ | 12,316 | $ | 13,296 |
2015
|
2014
|
2013
|
||||||||||
Incentive reallocation on investments other than Company common stock
|
$ | - | $ | 34,406 | $ | 11,047 | ||||||
Incentive reallocation on gains of Company common stock
|
23 | - | 3,655 | |||||||||
Total incentive reallocation from Biglari Holdings to Biglari Capital
|
$ | 23 | $ | 34,406 | $ | 14,702 |
Equity in Investment Partnerships
|
||||||||
Lion Fund
|
Lion Fund II
|
|||||||
Total assets as of December 31, 2015
|
$ | 165,996 | $ | 819,323 | ||||
Total liabilities as of December 31, 2015
|
$ | 409 | $ | 141,274 | ||||
Revenue for the year ended December 31, 2015
|
$ | (24,101 | ) | $ | (100,357 | ) | ||
Earnings for the year ended December 31, 2015
|
$ | (24,247 | ) | $ | (103,096 | ) | ||
Biglari Holdings’ Ownership Interest
|
60.9 | % | 93.5 | % | ||||
Total assets as of December 31, 2014
|
$ | 187,078 | $ | 719,344 | ||||
Total liabilities as of December 31, 2014
|
$ | 8,658 | $ | 44 | ||||
Revenue for the three months period ended December 31, 2014
|
$ | 24,082 | $ | 182,923 | ||||
Earnings for the three months period ended December 31, 2014
|
$ | 24,037 | $ | 182,902 | ||||
Biglari Holdings’ Ownership Interest
|
61.6 | % | 92.7 | % | ||||
Total assets as of September 30, 2014
|
$ | 154,561 | $ | 548,923 | ||||
Total liabilities as of September 30, 2014
|
$ | 58 | $ | 25 | ||||
Revenue for the year ended September 30, 2014
|
$ | (12,860 | ) | $ | 19,832 | |||
Earnings for the year ended September 30, 2014
|
$ | (12,950 | ) | $ | 19,789 | |||
Biglari Holdings’ Ownership Interest
|
61.6 | % | 95.8 | % | ||||
Total assets as of September 30, 2013
|
$ | 126,121 | $ | 408,883 | ||||
Total liabilities as of September 30, 2013
|
$ | 83 | $ | 11 | ||||
Revenue for the year ended September 30, 2013
|
$ | 9,200 | $ | 25,109 | ||||
Earnings for the year ended September 30, 2013
|
$ | 9,170 | $ | 25,098 | ||||
Biglari Holdings’ Ownership Interest
|
52.1 | % | 96.3 | % |
Fiscal Year
|
||||
2013
|
||||
Gross unrealized gains
|
$ | 3,746 | ||
Gross unrealized losses
|
(410 | ) | ||
Net realized gains from sale
|
261 | |||
Other income
|
306 | |||
Total
|
$ | 3,903 |
Carrying value at September 26, 2012
|
$ | 52,088 | ||
Contributions from noncontrolling interests
|
1,076 | |||
Distributions to noncontrolling interests
|
(2,302 | ) | ||
Incentive fee
|
(21 | ) | ||
Income allocation
|
1,922 | |||
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value
|
4,810 | |||
Adjustment to reflect deconsolidation of affiliated partnerships
|
(57,573 | ) | ||
Carrying value at September 25, 2013
|
$ | - |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Prepaid contractual obligations
|
$ | 4,819 | $ | 5,194 | ||||
Deferred commissions on gift cards sold by third parties
|
3,124 | 2,513 | ||||||
Other current assets
|
$ | 7,943 | $ | 7,707 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Land
|
$ | 160,697 | $ | 162,731 | ||||
Buildings
|
156,909 | 159,799 | ||||||
Land and leasehold improvements
|
165,042 | 162,887 | ||||||
Equipment
|
199,934 | 221,880 | ||||||
Construction in progress
|
3,478 | 5,307 | ||||||
|
686,060 | 712,604 | ||||||
Less accumulated depreciation and amortization
|
(353,736 | ) | (358,729 | ) | ||||
Property and equipment, net
|
$ | 332,324 | $ | 353,875 |
Restaurants
|
Other
|
Total
|
||||||||||
Goodwill at September 26, 2012
|
$ | 27,529 | $ | - | $ | 27,529 | ||||||
Acquisitions during fiscal year 2013
|
722 | - | 722 | |||||||||
Goodwill at September 25, 2013
|
28,251 | - | 28,251 | |||||||||
Acquisitions during fiscal year 2014
|
- | 11,913 | 11,913 | |||||||||
Goodwill at September 24, 2014
|
28,251 | 11,913 | 40,164 | |||||||||
Acquisitions during 2014 transition period
|
- | - | - | |||||||||
Goodwill at December 31, 2014
|
28,251 | 11,913 | 40,164 | |||||||||
Change in foreign exchange rates during 2015
|
(142 | ) | - | (142 | ) | |||||||
Goodwill at December 31, 2015
|
$ | 28,109 | $ | 11,913 | $ | 40,022 |
December 31,
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Gross carrying amount
|
Accumulated amortization
|
Total
|
Gross carrying amount
|
Accumulated amortization
|
Total
|
|||||||||||||||||||
Franchise agreement
|
$ | 5,310 | $ | (3,054 | ) | $ | 2,256 | $ | 5,310 | $ | (2,523 | ) | $ | 2,787 | ||||||||||
Right to operate
|
- | - | - | 1,480 | (1,480 | ) | - | |||||||||||||||||
Other
|
810 | (667 | ) | 143 | 810 | (624 | ) | 186 | ||||||||||||||||
Total
|
6,120 | (3,721 | ) | 2,399 | 7,600 | (4,627 | ) | 2,973 | ||||||||||||||||
Intangible assets with indefinite lives:
|
||||||||||||||||||||||||
Trade names
|
15,876 | - | 15,876 | 15,876 | - | 15,876 | ||||||||||||||||||
Other assets with indefinite lives
|
3,398 | - | 3,398 | 3,907 | - | 3,907 | ||||||||||||||||||
Total intangible assets
|
$ | 25,394 | $ | (3,721 | ) | $ | 21,673 | $ | 27,383 | $ | (4,627 | ) | $ | 22,756 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Salaries, wages, and vacation
|
$ | 13,584 | $ | 11,409 | ||||
Taxes payable
|
12,413 | 13,298 | ||||||
Gift card liability
|
22,358 | 16,068 | ||||||
Deferred revenue
|
8,514 | 7,934 | ||||||
Workers' compensation and other self-insurance accruals
|
8,485 | 9,787 | ||||||
Other
|
9,075 | 6,980 | ||||||
Accrued expenses
|
$ | 74,429 | $ | 65,476 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Deferred rent expense
|
$ | 6,658 | $ | 6,450 | ||||
Other
|
4,253 | 4,676 | ||||||
Other liabilities
|
$ | 10,911 | $ | 11,126 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Current:
|
||||||||||||||||||||
Federal
|
$ | 2,866 | $ | 752 | $ | 2,352 | $ | 571 | $ | 506 | ||||||||||
State
|
2,022 | 889 | 475 | 477 | 1,748 | |||||||||||||||
Deferred
|
(26,476 | ) | 52,909 | 6,623 | 9,164 | 72,035 | ||||||||||||||
Total income taxes
|
$ | (21,588 | ) | $ | 54,550 | $ | 9,450 | $ | 10,212 | $ | 74,289 | |||||||||
Reconciliation of effective income tax:
|
||||||||||||||||||||
Tax at U.S. statutory rates (35%)
|
$ | (13,100 | ) | $ | 50,960 | $ | 9,940 | $ | 13,656 | $ | 75,762 | |||||||||
State income taxes, net of federal benefit
|
(1,973 | ) | 4,186 | 840 | 1,369 | 5,043 | ||||||||||||||
Federal income tax credits
|
(4,837 | ) | (995 | ) | (960 | ) | (4,298 | ) | (4,249 | ) | ||||||||||
Tax attributed to noncontrolling interests
|
- | - | - | - | (666 | ) | ||||||||||||||
Dividends received deduction
|
(6,142 | ) | (341 | ) | (880 | ) | (3,650 | ) | (2,647 | ) | ||||||||||
Valuation allowance
|
919 | 499 | 180 | 985 | - | |||||||||||||||
Foreign tax rate differences
|
3,180 | 606 | 371 | 1,993 | - | |||||||||||||||
Other
|
365 | (365 | ) | (41 | ) | 157 | 1,046 | |||||||||||||
Total income taxes
|
$ | (21,588 | ) | $ | 54,550 | $ | 9,450 | $ | 10,212 | $ | 74,289 |
September 26, 2012
|
$ | 746 | ||
Gross increases – current period tax positions
|
25 | |||
Gross decreases – prior period tax positions
|
(6 | ) | ||
Lapse of statute of limitations
|
(62 | ) | ||
September 25, 2013
|
703 | |||
Gross increases – current period tax positions
|
37 | |||
Gross decreases – prior period tax positions
|
(1 | ) | ||
Lapse of statute of limitations
|
(356 | ) | ||
September 24, 2014
|
383 | |||
Gross increases – current period tax positions
|
4 | |||
Gross decreases – prior period tax positions
|
- | |||
Lapse of statute of limitations
|
- | |||
December 31, 2014
|
387 | |||
Gross increases – current period tax positions
|
179 | |||
Gross increases – prior period tax positions
|
15 | |||
Gross decreases – prior period tax positions
|
(6 | ) | ||
Lapse of statute of limitations
|
(197 | ) | ||
December 31, 2015
|
$ | 378 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Deferred tax assets:
|
||||||||
Insurance reserves
|
$ | 2,878 | $ | 3,394 | ||||
Compensation accruals
|
1,610 | 1,321 | ||||||
Gift card accruals
|
2,981 | 790 | ||||||
Net operating loss credit carryforward
|
3,444 | 2,525 | ||||||
Valuation allowance on net operating losses
|
(3,384 | ) | (2,465 | ) | ||||
Income tax credit carryforward
|
4,344 | 3,914 | ||||||
Other
|
1,642 | 3,085 | ||||||
Total deferred tax assets
|
13,515 | 12,564 | ||||||
Deferred tax liabilities:
|
||||||||
Investments
|
115,545 | 141,713 | ||||||
Fixed asset basis difference
|
6,311 | 4,621 | ||||||
Goodwill and intangibles
|
3,526 | 4,943 | ||||||
Total deferred tax liabilities
|
125,382 | 151,277 | ||||||
Net deferred tax liability
|
(111,867 | ) | (138,713 | ) | ||||
Less current portion
|
13,263 | 12,019 | ||||||
Long-term liability
|
$ | (125,130 | ) | $ | (150,732 | ) |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Notes payable
|
$ | 2,200 | $ | 2,200 | ||||
Unamortized original issue discount
|
(296 | ) | (287 | ) | ||||
Obligations under leases
|
5,787 | 6,422 | ||||||
Western revolver
|
786 | 980 | ||||||
Total current portion of notes payable and other borrowings
|
$ | 8,477 | $ | 9,315 | ||||
Notes payable
|
$ | 210,175 | $ | 216,150 | ||||
Unamortized original issue discount
|
(1,403 | ) | (1,694 | ) | ||||
Obligations under leases
|
90,178 | 98,139 | ||||||
Total long-term notes payable and other borrowings
|
$ | 298,950 | $ | 312,595 |
2016
|
$ | 2,986 | ||
2017
|
2,200 | |||
2018
|
2,200 | |||
2019
|
2,200 | |||
2020
|
2,200 | |||
2021
|
201,375 | |||
Total
|
$ | 213,161 |
Operating Leases
|
||||||||||||||||||||
Year
|
Finance
Obligations
|
Capital
Leases
|
Total
|
Operating
Property
|
Non-Operating
Property
|
|||||||||||||||
2016
|
$ | 14,449 | $ | 394 | $ | 14,843 | $ | 16,323 | $ | 670 | ||||||||||
2017
|
12,633 | 320 | 12,953 | 14,686 | 753 | |||||||||||||||
2018
|
10,638 | 66 | 10,704 | 13,912 | 861 | |||||||||||||||
2019
|
8,516 | — | 8,516 | 12,554 | 898 | |||||||||||||||
2020
|
4,805 | — | 4,805 | 11,439 | 969 | |||||||||||||||
After 2020
|
6,832 | — | 6,832 | 50,986 | 6,954 | |||||||||||||||
Total minimum future rental payments
|
57,873 | 780 | 58,653 | $ | 119,900 | $ | 11,105 | |||||||||||||
Less amount representing interest
|
34,327 | 50 | 34,377 | |||||||||||||||||
Total principal obligations under leases
|
23,546 | 730 | 24,276 | |||||||||||||||||
Less current portion
|
5,426 | 361 | 5,787 | |||||||||||||||||
Non-current principal obligations under leases
|
18,120 | 369 | 18,489 | |||||||||||||||||
Residual value at end of lease term
|
71,689 | — | 71,689 | |||||||||||||||||
Obligations under leases
|
$ | 89,809 | $ | 369 | $ | 90,178 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Minimum rent
|
$ | 18,476 | $ | 5,069 | $ | 4,706 | $ | 18,322 | $ | 17,097 | ||||||||||
Contingent rent
|
2,022 | 356 | 295 | 1,549 | 1,356 | |||||||||||||||
Rent expense
|
$ | 20,498 | $ | 5,425 | $ | 5,001 | $ | 19,871 | $ | 18,453 |
Options
|
Weighted
Average
Exercise Price
|
Weighted Average
Remaining
Contractual Life
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Outstanding at December 31, 2014
|
7,263 | $ | 275.00 | |||||||||||||
Exercised
|
(1,245 | ) | $ | 227.49 | ||||||||||||
Canceled or forfeited
|
(800 | ) | $ | 371.24 | ||||||||||||
Outstanding at December 31, 2015
|
5,218 | $ | 271.58 | 1.28 | $ | 365 | ||||||||||
Vested or expected to vest at December 31, 2015
|
5,218 | $ | 271.58 | 1.28 | $ | 365 | ||||||||||
Exercisable at December 31, 2015
|
5,218 | $ | 271.58 | 1.28 | $ | 365 |
|
·
|
Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.
|
|
·
|
Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector.
|
|
·
|
Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and we may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in pricing assets or liabilities.
|
December 31,
|
||||||||||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Cash equivalents
|
$
|
700
|
$
|
-
|
$
|
-
|
$
|
700
|
$
|
11,227
|
$
|
-
|
$
|
-
|
$
|
11,227
|
||||||||||||||||
Equity securities:
|
||||||||||||||||||||||||||||||||
Insurance
|
5,046
|
-
|
-
|
5,046
|
5,781
|
-
|
-
|
5,781
|
||||||||||||||||||||||||
Bonds
|
-
|
21,304
|
-
|
21,304
|
-
|
7,644
|
-
|
7,644
|
||||||||||||||||||||||||
Non-qualified deferred compensation plan investments
|
2,203
|
-
|
-
|
2,203
|
1,958
|
-
|
-
|
1,958
|
||||||||||||||||||||||||
Total assets at fair value
|
$
|
7,949
|
$
|
21,304
|
$
|
-
|
$
|
29,253
|
$
|
18,966
|
$
|
7,644
|
$
|
-
|
$
|
26,610
|
||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||
Interest rate swaps
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
175
|
$
|
-
|
$
|
175
|
||||||||||||||||
Total liabilities at fair value
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
175
|
$
|
-
|
$
|
175
|
2015
|
Transition Period 2014
|
|||||||||||||||||||||||
Foreign
Currency
Translation Adjustments
|
Investment Gain
|
Accumulated
Other
Comprehensive
Loss
|
Foreign
Currency
Translation
Adjustments
|
Investment
Gain
|
Accumulated
Other
Comprehensive
Loss
|
|||||||||||||||||||
Beginning Balance
|
$
|
(620
|
)
|
$
|
(163
|
)
|
$
|
(783
|
)
|
$
|
(574
|
)
|
$
|
52
|
$
|
(522
|
)
|
|||||||
Other comprehensive loss before reclassifications
|
(2,372
|
)
|
(565
|
)
|
(2,937
|
)
|
(46
|
)
|
(215
|
)
|
(261
|
)
|
||||||||||||
Reclassification to (earnings) loss
|
- |
41
|
41
|
-
|
-
|
-
|
||||||||||||||||||
Ending Balance
|
$
|
(2,992
|
)
|
$
|
(687
|
)
|
$
|
(3,679
|
)
|
$
|
(620
|
)
|
$
|
(163
|
)
|
$
|
(783
|
)
|
||||||
Fiscal Year 2014
|
Fiscal Year 2013
|
|||||||||||||||||||||||
Foreign
Currency
Translation Adjustments
|
Investment Gain
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Foreign
Currency
Translation
Adjustments
|
Investment
Gain
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|||||||||||||||||||
Beginning Balance
|
$
|
8
|
$
|
21,449
|
$
|
21,457
|
$
|
-
|
$
|
43,897
|
$
|
43,897
|
||||||||||||
Other comprehensive income (loss) before reclassifications
|
(582
|
)
|
(3,056
|
)
|
(3,638
|
)
|
8
|
92,198
|
92,206
|
|||||||||||||||
Reclassification to (earnings) loss
|
- |
(18,341
|
)
|
(18,341
|
)
|
-
|
(114,646
|
)
|
(114,646
|
)
|
||||||||||||||
Ending Balance
|
$
|
(574
|
)
|
$
|
52
|
$
|
(522
|
)
|
$
|
8
|
$
|
21,449
|
$
|
21,457
|
Reclassifications from Accumulated Other Comprehensive Income
|
2015
|
Transition
Period
2014
|
Affected Line Item in the
Consolidated Statement of Earnings
|
||||||
Investment loss
|
$ | - | $ | - |
Investment gains (including contributions)
|
||||
(62 | ) | - |
Insurance premiums and other
|
||||||
(21 | ) | - |
Income tax expense (benefit)
|
||||||
$ | (41 | ) | $ | - |
Net of tax
|
||||
Reclassifications from
Accumulated Other
Comprehensive Income
|
Fiscal
Year
2014
|
Fiscal
Year
2013
|
Affected Line Item in the
Consolidated Statement of Earnings
|
||||||
Investment gain
|
$ | 29,524 | $ | 182,286 |
Investment gains (including contributions)
|
||||
54 | - |
Insurance premiums and other
|
|||||||
11,237 | 67,640 |
Income tax expense (benefit)
|
|||||||
$ | 18,341 | $ | 114,646 |
Net of tax
|
Revenue
|
||||||||||||||||||||
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating Businesses:
|
||||||||||||||||||||
Restaurant Operations:
|
||||||||||||||||||||
Steak n Shake
|
$ | 805,771 | $ | 212,369 | $ | 201,483 | $ | 765,600 | $ | 737,090 | ||||||||||
Western
|
13,967 | 3,279 | 2,959 | 12,555 | 14,829 | |||||||||||||||
Total Restaurant Operations
|
819,738 | 215,648 | 204,442 | 778,155 | 751,919 | |||||||||||||||
First Guard
|
17,232 | 3,574 | - | 5,715 | - | |||||||||||||||
Maxim
|
24,482 | 5,228 | - | 9,941 | - | |||||||||||||||
Total Operating Businesses
|
861,452 | 224,450 | 204,442 | 793,811 | 751,919 | |||||||||||||||
Consolidated Affiliated Partnerships
|
- | - | - | - | 3,903 | |||||||||||||||
$ | 861,452 | $ | 224,450 | $ | 204,442 | $ | 793,811 | $ | 755,822 | |||||||||||
Earnings (Loss) Before Income Taxes | ||||||||||||||||||||
Transition Period
|
Fiscal Year | |||||||||||||||||||
2015 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating Businesses:
|
||||||||||||||||||||
Restaurant Operations:
|
||||||||||||||||||||
Steak n Shake
|
$ | 39,749 | $ | 10,172 | $ | 9,461 | $ | 26,494 | $ | 28,376 | ||||||||||
Western
|
1,849 | 394 | 329 | 1,765 | 511 | |||||||||||||||
Total Restaurant Operations
|
41,598 | 10,566 | 9,790 | 28,259 | 28,887 | |||||||||||||||
First Guard
|
3,529 | 906 | - | 1,461 | - | |||||||||||||||
Maxim
|
(18,105 | ) | (5,498 | ) | - | (15,981 | ) | - | ||||||||||||
Other
|
564 | 3 | 21 | 500 | 4,748 | |||||||||||||||
Total Operating Businesses
|
27,586 | 5,977 | 9,811 | 14,239 | 33,635 | |||||||||||||||
Corporate and investments:
|
||||||||||||||||||||
Corporate
|
(13,722 | ) | (1,807 | ) | (3,264 | ) | (8,503 | ) | (14,465 | ) | ||||||||||
Investment gains (including contributions)
|
- | - | - | 29,524 | 183,774 | |||||||||||||||
Investment partnership gains (loss)
|
(39,356 | ) | 144,702 | 23,493 | 14,055 | 20,068 | ||||||||||||||
Total corporate
|
(53,078 | ) | 142,895 | 20,229 | 35,076 | 189,377 | ||||||||||||||
Interest expense on notes payable and other borrowings
|
(11,939 | ) | (3,272 | ) | (1,641 | ) | (10,299 | ) | (6,551 | ) | ||||||||||
$ | (37,431 | ) | $ | 145,600 | $ | 28,399 | $ | 39,016 | $ | 216,461 |
Capital Expenditures
|
||||||||||||||||||||
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating Businesses:
|
||||||||||||||||||||
Restaurant Operations:
|
||||||||||||||||||||
Steak n Shake
|
$ | 8,434 | $ | 8,733 | $ | 4,997 | $ | 25,398 | $ | 6,337 | ||||||||||
Western
|
43 | - | 11 | 1,113 | 64 | |||||||||||||||
Total Restaurant Operations
|
8,477 | 8,733 | 5,008 | 26,511 | 6,401 | |||||||||||||||
First Guard
|
102 | 10 | - | - | - | |||||||||||||||
Maxim
|
16 | 57 | - | 312 | - | |||||||||||||||
Other
|
2,486 | 7 | 275 | 6,840 | 6,235 | |||||||||||||||
Total Operating Businesses
|
11,081 | 8,807 | 5,283 | 33,663 | 12,636 | |||||||||||||||
Corporate
|
2 | 9 | - | 2,149 | 1,531 | |||||||||||||||
Consolidated results
|
$ | 11,083 | $ | 8,816 | $ | 5,283 | $ | 35,812 | $ | 14,167 | ||||||||||
Depreciation and Amortization | ||||||||||||||||||||
Transition Period
|
Fiscal Year | |||||||||||||||||||
2015 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating Businesses:
|
||||||||||||||||||||
Restaurant Operations:
|
||||||||||||||||||||
Steak n Shake
|
$ | 23,045 | $ | 6,289 | $ | 6,274 | $ | 23,402 | $ | 24,230 | ||||||||||
Western
|
691 | 172 | 160 | 662 | 693 | |||||||||||||||
Total Restaurant Operations
|
23,736 | 6,461 | 6,434 | 24,064 | 24,923 | |||||||||||||||
First Guard
|
36 | 30 | - | 38 | - | |||||||||||||||
Maxim
|
296 | 151 | - | 211 | - | |||||||||||||||
Other
|
412 | 116 | 34 | 279 | - | |||||||||||||||
Total Operating Businesses
|
24,480 | 6,758 | 6,468 | 24,592 | 24,923 | |||||||||||||||
Corporate
|
300 | 70 | 98 | 313 | 327 | |||||||||||||||
Consolidated results
|
$ | 24,780 | $ | 6,828 | $ | 6,566 | $ | 24,905 | $ | 25,250 |
Identifiable Assets
|
||||||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Reportable segments:
|
||||||||
Restaurant Operations:
|
||||||||
Steak n Shake
|
$ | 409,505 | $ | 422,784 | ||||
Western
|
17,626 | 19,241 | ||||||
Total Restaurant Operations
|
427,131 | 442,025 | ||||||
First Guard
|
41,159 | 36,847 | ||||||
Maxim
|
24,418 | 23,759 | ||||||
Other
|
23,587 | 22,518 | ||||||
Corporate
|
15,934 | 91,660 | ||||||
Investment partnerships
|
471,689 | 697,982 | ||||||
Total assets
|
$ | 1,003,918 | $ | 1,314,791 |
1st Quarter
|
2nd Quarter
|
3rd Quarter (3)
|
4th Quarter (3)
|
|||||||||||||
For the year ended December 31, 2015
|
||||||||||||||||
Total revenues
|
$ | 205,828 | $ | 221,956 | $ | 218,443 | $ | 215,225 | ||||||||
Gross profit (2)
|
38,686 | 51,208 | 46,791 | 46,199 | ||||||||||||
Costs and expenses
|
206,144 | 213,172 | 209,493 | 209,366 | ||||||||||||
Earnings (loss) before income taxes
|
17,173 | (2,177 | ) | 9,050 | (61,477 | ) | ||||||||||
Net earnings (loss) attributable to Biglari Holdings Inc. (5)
|
9,983 | 26 | 9,298 | (35,150 | ) | |||||||||||
Basic earnings (loss) per common share (4)
|
$ | 5.36 | $ | 0.01 | $ | 7.36 | $ | (27.88 | ) | |||||||
Diluted earnings (loss) per common share (4)
|
$ | 5.36 | $ | 0.01 | $ | 7.35 | $ | (27.88 | ) | |||||||
For the year ended September 24, 2014 (52 weeks) (1)
|
||||||||||||||||
Total revenues
|
$ | 172,339 | $ | 234,574 | $ | 193,229 | $ | 193,669 | ||||||||
Gross profit (2)
|
38,377 | 52,191 | 39,724 | 37,359 | ||||||||||||
Costs and expenses
|
167,843 | 224,753 | 190,429 | 196,512 | ||||||||||||
Earnings (loss) before income taxes
|
24,864 | (12,263 | ) | 13,367 | 13,048 | |||||||||||
Net earnings (loss) attributable to Biglari Holdings Inc. (5)
|
16,491 | (5,803 | ) | 9,594 | 8,522 | |||||||||||
Basic earnings (loss) per common share (4)
|
$ | 9.62 | $ | (3.39 | ) | $ | 5.67 | $ | 4.96 | |||||||
Diluted earnings (loss) per common share (4)
|
$ | 9.60 | $ | (3.39 | ) | $ | 5.66 | $ | 4.95 | |||||||
For the year ended September 25, 2013 (52 weeks) (1)
|
||||||||||||||||
Total revenues
|
$ | 166,511 | $ | 225,210 | $ | 184,602 | $ | 179,499 | ||||||||
Gross profit (2)
|
37,613 | 50,189 | 43,476 | 41,541 | ||||||||||||
Costs and expenses
|
159,181 | 220,606 | 178,137 | 177,164 | ||||||||||||
Earnings before income taxes
|
5,930 | 1,420 | 169,834 | 39,277 | ||||||||||||
Net earnings attributable to Biglari Holdings Inc. (5)
|
4,562 | 2,180 | 106,704 | 26,825 | ||||||||||||
Basic earnings per common share (4)
|
$ | 2.94 | $ | 1.41 | $ | 69.08 | $ | 17.46 | ||||||||
Diluted earnings per common share (4)
|
$ | 2.94 | $ | 1.40 | $ | 68.92 | $ | 17.43 |
(1)
|
Our former fiscal year includes quarters consisting of 12, 16, 12 and 12 weeks, respectively.
|
||||||||
(2)
|
We define gross profit as net revenue less restaurant cost of sales, media cost of sales, and insurance losses and underwriting expenses, which excludes depreciation and amortization.
|
||||||||
(3)
|
We recorded pre-tax gain on contribution to investment partnerships of $29,524 during the third quarter of 2014, $162,869 during the third quarter of 2013 and $19,877 during the fourth quarter of 2013.
|
||||||||
(4)
|
Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. In fiscal year 2014 and 2013 the Company completed rights offerings in which 344,261 and 286,767 new shares of common stock were issued, respectively. Earnings per share have been retroactively restated to give effect to the rights offerings.
|
||||||||
(5)
|
Net earnings attributable to Biglari Holdings Inc. includes investment partnership losses of $39,356 ($18,168 net of tax) in 2015 and investment partnership gains of $14,055 ($12,316 net of tax) in 2014 and $20,068 ($13,296 net of tax) in 2013.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
(a) 1. Financial Statements
|
PAGE
|
|
Reports of Independent Registered Public Accounting Firm
|
31-32
|
Management’s Report on Internal Control over Financial Reporting
|
33
|
Consolidated Statements of Earnings
|
34
|
Consolidated Statements of Comprehensive Income
|
35
|
Consolidated Balance Sheets
|
36
|
Consolidated Statements of Cash Flows
|
37
|
Consolidated Statements of Changes in Shareholders’ Equity
|
38
|
Notes to Consolidated Financial Statements
|
39
|
2. Financial Statement Schedule
|
|
Schedule I—Parent Company
|
|
Condensed Balance Sheets
|
75
|
Condensed Statements of Earnings
|
76
|
Condensed Statements of Comprehensive Income
|
76
|
Condensed Statements of Cash Flows
|
77
|
Notes to Condensed Parent Company Financial Statements
|
78
|
Other schedules have been omitted for the reason that they are not required, are not applicable, or the required information is set forth in the financial statements or notes thereto.
|
|
(b) Exhibits
|
|
See the “Exhibit Index” at page 82.
|
Biglari Holdings inc.
|
|||||
|
By:
|
/s/ Bruce Lewis
|
|||
Bruce Lewis
Controller
|
Signature
|
Title
|
|
/s/ Sardar Biglari
|
Chief Executive Officer and Chairman of the Board (Principal Executive Officer)
|
|
Sardar Biglari
|
||
/s/ Bruce Lewis
|
Controller (Principal Financial and Accounting Officer)
|
|
Bruce Lewis
|
||
/s/ Philip Cooley
|
Director
|
|
Philip Cooley
|
||
/s/ Dr. Ruth J. Person
|
Director
|
|
Dr. Ruth J. Person
|
||
/s/ Kenneth R. Cooper
|
Director
|
|
Kenneth R. Cooper
|
||
/s/ William L. Johnson
|
Director
|
|
William L. Johnson
|
||
/s/ James P. Mastrian
|
Director
|
|
James P. Mastrian
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 7,611 | $ | 76,041 | ||||
Investments
|
5,046 | 5,781 | ||||||
Receivables
|
559 | 3,439 | ||||||
Other
|
2,948 | 6,262 | ||||||
Investment partnerships
|
292,021 | 493,203 | ||||||
Investments in subsidiaries
|
244,170 | 252,668 | ||||||
Total assets
|
$ | 552,355 | $ | 837,394 | ||||
Liabilities and shareholders’ equity
|
||||||||
Accounts payable and accrued expenses
|
$ | 1,914 | $ | 1,221 | ||||
Deferred income taxes
|
99,069 | 110,622 | ||||||
Total liabilities
|
100,983 | 111,843 | ||||||
Shareholders’ equity
|
451,372 | 725,551 | ||||||
Total liabilities and shareholders’ equity
|
$ | 552,355 | $ | 837,394 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Income items:
|
||||||||||||||||||||
From consolidated subsidiaries:
|
||||||||||||||||||||
Dividends
|
$ | 17,725 | $ | 150 | $ | - | $ | 32,223 | $ | - | ||||||||||
Undistributed (loss) earnings
|
(25,357 | ) | 23,206 | 8,678 | (5,009 | ) | 29,777 | |||||||||||||
(7,632 | ) | 23,356 | 8,678 | 27,214 | 29,777 | |||||||||||||||
Costs and expense items:
|
||||||||||||||||||||
General and administrative
|
13,731 | 1,815 | 3,269 | 8,522 | 19,685 | |||||||||||||||
Other income (loss):
|
||||||||||||||||||||
Other income
|
9 | 8 | 5 | 19 | 5,220 | |||||||||||||||
Investment gains (including contributions)
|
- | - | - | - | 162,300 | |||||||||||||||
Investment partnership (losses) gains
|
(8,845 | ) | 110,268 | 20,457 | 6,749 | 20,068 | ||||||||||||||
Gain on sale of Biglari Capital Corp.
|
- | - | - | - | 1,597 | |||||||||||||||
Total other income (loss)
|
(8,836 | ) | 110,276 | 20,462 | 6,768 | 189,185 | ||||||||||||||
Earnings (loss) before income taxes
|
(30,199 | ) | 131,817 | 25,871 | 25,460 | 199,277 | ||||||||||||||
Income taxes
|
(14,356 | ) | 40,767 | 6,922 | (3,344 | ) | 59,006 | |||||||||||||
Net earnings (loss)
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net (loss) earnings attributable to Biglari Holdings Inc.
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 | |||||||||
Other comprehensive income:
|
||||||||||||||||||||
Reclassification of investment appreciation in net earnings
|
62 | - | - | (29,578 | ) | (182,286 | ) | |||||||||||||
Applicable income taxes
|
(21 | ) | - | - | 11,237 | 67,640 | ||||||||||||||
Net change in unrealized gains and losses on investments
|
(892 | ) | (341 | ) | 6,540 | (4,930 | ) | 146,079 | ||||||||||||
Applicable income taxes
|
327 | 126 | (2,478 | ) | 1,874 | (53,881 | ) | |||||||||||||
Foreign currency translation
|
(2,372 | ) | (46 | ) | 289 | (582 | ) | 8 | ||||||||||||
Other comprehensive income (loss), net
|
(2,896 | ) | (261 | ) | 4,351 | (21,979 | ) | (22,440 | ) | |||||||||||
Total comprehensive income (loss)
|
$ | (18,739 | ) | $ | 90,789 | $ | 23,300 | $ | 6,825 | $ | 117,831 |
Transition Period
|
Fiscal Year
|
|||||||||||||||||||
2015
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Operating activities
|
||||||||||||||||||||
Net earnings (loss)
|
$ | (15,843 | ) | $ | 91,050 | $ | 18,949 | $ | 28,804 | $ | 140,271 | |||||||||
Adjustments to reconcile net earnings to net cash:
|
||||||||||||||||||||
Excess distributed earnings of subsidiaries
|
- | - | - | 20,341 | - | |||||||||||||||
Undistributed (earnings) loss of subsidiaries
|
25,357 | (23,206 | ) | (8,678 | ) | 5,009 | (29,777 | ) | ||||||||||||
Provision for deferred income taxes
|
(9,861 | ) | 40,523 | 8,142 | (1,886 | ) | 56,396 | |||||||||||||
Gain on sale of Biglari Capital Corp.
|
- | - | - | - | (1,597 | ) | ||||||||||||||
Investment gains (including contributions)
|
- | - | - | - | (162,300 | ) | ||||||||||||||
Investment partnership (gains) losses
|
8,845 | (110,268 | ) | (20,457 | ) | (6,749 | ) | (20,068 | ) | |||||||||||
Distributions from investment partnerships
|
15,175 | - | - | 7,776 | - | |||||||||||||||
Changes in accounts payable and accrued expenses
|
693 | (185 | ) | 689 | (10,554 | ) | 785 | |||||||||||||
Changes in receivables and other
|
4,774 | 952 | (723 | ) | (4,016 | ) | 3,410 | |||||||||||||
Net cash provided by (used in) operating activities
|
29,140 | (1,134 | ) | (2,078 | ) | 38,725 | (12,880 | ) | ||||||||||||
Investing activities
|
||||||||||||||||||||
Investments in and advances to/from subsidiaries, net
|
(19,290 | ) | (5,172 | ) | (2,348 | ) | (13,318 | ) | 30,000 | |||||||||||
Additions of property and equipment
|
(2 | ) | - | - | (1,096 | ) | (1,106 | ) | ||||||||||||
Acquisitions of businesses, net of cash acquired
|
- | - | - | (40,143 | ) | - | ||||||||||||||
Proceeds from sale of Biglari Capital Corp, net of cash on hand
|
- | - | - | - | 1,699 | |||||||||||||||
Purchases of investments
|
(78,500 | ) | - | - | (60,000 | ) | (46,977 | ) | ||||||||||||
Sales of investments
|
- | - | - | - | 1 | |||||||||||||||
Net cash used in investing activities
|
(97,792 | ) | (5,172 | ) | (2,348 | ) | (114,557 | ) | (16,383 | ) | ||||||||||
Financing activities
|
||||||||||||||||||||
Proceeds from stock rights offering
|
- | - | - | 85,873 | 75,595 | |||||||||||||||
Proceeds from exercise of stock options
|
222 | 3 | - | 24 | 16 | |||||||||||||||
Net cash provided by financing activities
|
222 | 3 | - | 85,897 | 75,611 | |||||||||||||||
Increase (decrease) in cash and cash equivalents
|
(68,430 | ) | (6,303 | ) | (4,426 | ) | 10,065 | 46,348 | ||||||||||||
Cash and cash equivalents at beginning of period
|
76,041 | 82,344 | 72,279 | 72,279 | 25,931 | |||||||||||||||
Cash and cash equivalents at end of period
|
$ | 7,611 | $ | 76,041 | $ | 67,853 | $ | 82,344 | $ | 72,279 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cost
|
$ | 5,988 | $ | 5,989 | ||||
Gross unrealized gains
|
- | - | ||||||
Gross unrealized losses
|
(942 | ) | (208 | ) | ||||
Fair value
|
$ | 5,046 | $ | 5,781 |
2013
|
||||
Gain on contributions to investment partnerships
|
$ | 162,869 | ||
Gross realized gains on sales
|
1 | |||
Gross realized losses on sales
|
- | |||
Other than temporary impairment
|
(570 | ) | ||
Gains on contributions and sales of investments
|
$ | 162,300 |
Fair Value
|
Company Common Stock
|
Carrying Value
|
||||||||||
Partnership interest at July 1, 2013
|
$ | 54,608 | $ | 43,580 | $ | 11,028 | ||||||
Investment partnership gains
|
23,053 | 2,985 | 20,068 | |||||||||
Contributions of cash and securities to investment partnerships
|
326,451 | - | 326,451 | |||||||||
Increase in proportionate share of Company stock held
|
- | 11,033 | (11,033 | ) | ||||||||
Partnership interest at September 25, 2013
|
404,112 | 57,598 | 346,514 | |||||||||
Investment partnership gains (losses)
|
1,071 | (5,678 | ) | 6,749 | ||||||||
Contributions of cash (net of distributions) to partnerships
|
52,224 | - | 52,224 | |||||||||
Increase in proportionate share of Company stock held
|
- | 18,594 | (18,594 | ) | ||||||||
Partnership interest at September 24, 2014
|
457,407 | 70,514 | 386,893 | |||||||||
Investment partnership gains
|
117,664 | 7,396 | 110,268 | |||||||||
Increase in proportionate share of Company stock held
|
- | 3,958 | (3,958 | ) | ||||||||
Partnership interest at December 31, 2014
|
$ | 575,071 | $ | 81,868 | $ | 493,203 | ||||||
Investment partnership losses
|
(83,396 | ) | (74,551 | ) | (8,845 | ) | ||||||
Contributions of cash (net of distributions) to partnerships
|
63,325 | - | 63,325 | |||||||||
Increase in proportionate share of Company stock held
|
- | 255,662 | (255,662 | ) | ||||||||
Partnership interest at December 31, 2015
|
$ | 555,000 | $ | 262,979 | $ | 292,021 |
Exhibit
Number
|
Description
|
||
All documents referenced below were filed pursuant to the Securities Exchange Act of 1934 by the Company, file number
0-8445, unless otherwise indicated.
|
|||
2.01
|
Agreement and Plan of Merger, dated as of October 22, 2009, by and among the Company, Grill Acquisition Corporation and Western. (Incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated October 23, 2009).
|
||
3.01
|
Amended and Restated Articles of Incorporation of the Company, filed March 27, 2002, as amended by Articles of Amendment dated December 17, 2009, January 27, 2010 and April 8, 2010. (Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-8 dated April 15, 2010).
|
||
3.02
|
Amended and Restated By-Laws of the Company, as amended through June 3, 2015. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated June 4, 2015).
|
||
4.01
|
Specimen certificate representing Common Stock of the Company. (Incorporated by reference to Exhibit 4.01 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 11, 2001).
|
||
10.01*
|
1997 Employee Stock Option Plan. (Incorporated by reference to the Appendix to the Company’s definitive Proxy Statement dated December 24, 1996).
|
||
10.02*
|
Amendment No. 1 to 1997 Employee Stock Option Plan. (Incorporated by reference to the Appendix to the Company’s definitive Proxy Statement dated December 19, 2001).
|
||
10.03*
|
Form of Stock Option Agreement under the Company’s 1997 Employee Stock Option Plan. (Incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended September 29, 2004 filed on December 16, 2004).
|
||
10.04*
|
2005 Director Stock Option Plan. (Incorporated by reference to Appendix B to the Company’s definitive Proxy Statement dated December 20, 2004).
|
||
10.05*
|
2006 Employee Stock Option Plan. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 8, 2006).
|
||
10.06*
|
Form of Incentive Stock Option Agreement under the 2006 Employee Stock Option Plan (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K dated February 8, 2006).
|
||
10.07*
|
2007 Non-Employee Director Restricted Stock Plan. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 9, 2007).
|
||
10.08*
|
2008 Equity Incentive Plan. (Incorporated by reference to Appendix A to the Company’s definitive Proxy Statement dated February 8, 2008).
|
||
10.09*
|
Form of Employee Stock Option Agreement under the Company’s 2008 Equity Incentive Plan. (Incorporated by reference to Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 9, 2008).
|
||
10.10*
|
Form of 2008 Equity Incentive Plan Restricted Stock Agreement under the Company’s 2008 Equity Incentive Plan. (Incorporated by reference to Exhibit 10.02 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 9, 2008).
|
||
10.11*
|
The Steak n Shake Non-Qualified Savings Plan, amended and restated as of March 15, 2010. (Incorporated by reference to Exhibit 4.3 to the Company’s Registration Statement on Form S-8 dated April 22, 2010).
|
||
10.12
|
Multiple Unit Franchise Agreement, dated as of September 21, 2005, by and among the Company, Reinwald Enterprises Emory, LLC and Reinwald Enterprises Wild Geese, LLC. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 27, 2005).
|
||
10.13*
|
Form of Indemnity Agreement entered into on October 9, 2007 with the following Officers and Directors of the Company: Jeffrey A. Blade, Duane E. Geiger, Alan B. Gilman, Omar Janjua, David C. Milne, Thomas Murrill, Gary T. Reinwald, Steven M. Schiller, J. Michael Vance, Geoff Ballotti, Wayne Kelley, Charles Lanham, Ruth Person, John W. Ryan, J. Fred Risk, Steven M. Schmidt, Edward Wilhelm, and James Williamson, Jr. (Incorporated by reference to Exhibit 10.35 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 26, 2007).
|
Exhibit
Number
|
Description
|
||
10.14*
|
Severance Agreement, dated as of January 26, 2010, by and between the Company and Duane Geiger. (Incorporated by reference to Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended December 23, 2009).
|
|
10.15*
|
Amended and Restated Incentive Bonus Agreement, dated September 28, 2010, by and between the Company and Sardar Biglari. (Incorporated by reference to Annex A to the Company’s definitive Proxy Statement dated September 28, 2011).
|
|
10.16
|
Trademark License Agreement, dated as of January 11, 2013, by and between Biglari Holdings Inc. and Sardar Biglari. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated January 11, 2013).
|
|
10.17
|
Trademark Sublicense Agreement, entered as of May 14, 2013, by and among the Company, Steak n Shake, LLC and Steak n Shake Enterprises, Inc. (Incorporated by reference to Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 10, 2013).
|
|
10.18
|
Stock Purchase Agreement, dated July 1, 2013, by and between Biglari Holdings Inc. and Sardar Biglari. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated July 2, 2013).
|
|
10.29
|
Shared Services Agreement, dated July 1, 2013, by and between Biglari Holdings Inc. and Biglari Capital Corp. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated July 2, 2013).
|
|
10.20*
|
First Amendment, dated as of July 1, 2013, to the Amended and Restated Incentive Bonus Agreement, dated as of September 28, 2010, by and between Biglari Holdings Inc. and Sardar Biglari. (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K dated July 2, 2013).
|
|
10.21
|
Credit Agreement, dated as of March 19, 2014, among Steak n Shake Operations, Inc., as borrower, Steak n Shake Enterprises, Inc. and Steak n Shake, LLC, as subsidiary guarantors, the lenders party thereto, Jefferies Finance LLC, as joint lead arranger, syndication agent, documentation agent, book manager, administrative agent and collateral agent, and Fifth Third Bank, as joint lead arranger, swingline lender and issuing bank. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 21, 2014).
|
|
10.22
|
Security Agreement, dated as of March 19, 2014, by Steak n Shake Operations, Inc., Steak n Shake Enterprises, Inc. and Steak n Shake, LLC, as pledgors, assignors and debtors, in favor of Jefferies Finance LLC, in its capacity as collateral agent, pledgee, assignee and secured party. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated March 21, 2014).
|
|
10.23
|
Form of Indemnity Agreement for Directors of the Company, as adopted on June 3, 2015. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 4, 2015).
|
|
10.24
|
Amended and Restated Partnership Agreement of The Lion Fund II, L.P. as amended on June 3, 2015. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 4, 2015).
|
|
14.01
|
Code of Conduct, dated December 30, 2015.
|
|
21.01
|
Subsidiaries of the Company.
|
|
23.01
|
Consent of Independent Registered Public Accounting Firm.
|
|
31.01
|
Rule 13(a)-14(a)/15d-14(a) Certification of Chief Executive Officer.
|
|
31.02
|
Rule 13(a)-14(a)/15d-14(a) Certification of Chief Financial Officer.
|
|
32.01
|
Section 1350 Certifications.
|
|
101**
|
Interactive Data Files.
|
|
*
|
Indicates management contract or compensatory plans or arrangements required to be filed as an exhibit to the Annual Report on Form 10-K.
|
|
**
|
In accordance with Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 19 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
Subsidiaries
|
Jurisdiction of Incorporation or Organization
|
|
Biglari Group S.A.R.L.
|
Monaco
|
|
Biglari Real Estate Development Corp.
|
Indiana
|
|
First Guard Insurance Company
|
Arizona
|
|
1st Guard Corporation
|
Florida
|
|
Maxim Inc.
|
Delaware
|
|
Steak n Shake Inc.
|
Indiana
|
|
Western Sizzlin Corporation
|
Delaware
|
|
/s/ Deloitte & Touche LLP
|
Indianapolis, Indiana
|
February 20, 2016
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 20, 2016
|
||||
/s/ Sardar Biglari
|
||||
Sardar Biglari
|
||||
Chairman and Chief Executive Officer
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 20, 2016
|
||||
/s/ Bruce Lewis
|
||||
Bruce Lewis
|
||||
Controller
|
/s/ Sardar Biglari
|
||||
Sardar Biglari
|
||||
Chairman and Chief Executive Officer
February 20, 2016
|
||||
/s/ Bruce Lewis
|
||||
Bruce Lewis
|
||||
Controller
February 20, 2016
|
,_13[4 8WA+QXTD5M;:W:WJB9[I5U-XT6"1HF=BH .>$4\[<':: -+PSX]
MLM>U&&T6RN;,7<;2V."]BND*-G!#QG'4$$'!% &%XZGU2'Q#*U_=^)+'2%B3[)/HD*RH'P=_G
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Document and Entity Information - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 15, 2016 |
Jun. 30, 2015 |
|
Document And Entity Information | |||
Entity Registrant Name | BIGLARI HOLDINGS INC. | ||
Entity Central Index Key | 0000093859 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 686,120,384 | ||
Entity Common Stock, Shares Outstanding | 2,066,864 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2015 |
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Earnings attributable to redeemable noncontrolling interest: | |||||
Net earnings (loss) attributable to Biglari Holdings Inc. | $ 91,050 | $ (15,843) | $ 28,804 | $ 140,271 | |
Consolidated | |||||
Revenues: | |||||
Restaurant operations | 215,648 | $ 204,442 | 819,738 | 778,155 | 751,919 |
Insurance premiums and other | 3,574 | 0 | 17,232 | 5,715 | 0 |
Media advertising and other | 5,228 | 0 | 24,482 | 9,941 | 0 |
Other | 0 | 0 | 0 | 0 | 3,903 |
Total | 224,450 | 204,442 | 861,452 | 793,811 | 755,822 |
Costs and expenses | |||||
Restaurant cost of sales | 168,107 | 157,673 | 629,287 | 602,507 | 583,003 |
Insurance losses and underwriting expenses | 2,668 | 0 | 13,362 | 4,254 | 0 |
Media cost of sales | 9,261 | 0 | 35,614 | 19,399 | 0 |
Selling general and administrative | 30,847 | 31,630 | 135,132 | 128,472 | 126,835 |
Depreciation and amortization | 6,828 | 6,566 | 24,780 | 24,905 | 25,250 |
Total costs and expenses, net | 217,711 | 195,869 | 838,175 | 779,537 | 735,088 |
Other income (expenses) | |||||
Interest and dividends | 8 | 586 | 9 | 1,182 | 8,265 |
Interest expense | (3,272) | (1,641) | (11,939) | (10,299) | (6,551) |
Interest on obligations under leases | (2,577) | (2,612) | (9,422) | (9,720) | (9,829) |
Gain on sale of Biglari Capital Corp | 0 | 0 | 0 | 0 | 1,597 |
Investment gains (including contributions) | 0 | 0 | 0 | 29,524 | 182,177 |
Investment partnership (losses) gains | 144,702 | 23,493 | (39,356) | 14,055 | 20,068 |
Total other income (expenses) | 138,861 | 19,826 | (60,708) | 24,742 | 195,727 |
Earnings (loss) before income taxes | 145,600 | 28,399 | (37,431) | 39,016 | 216,461 |
Income tax (benefit) expense | 54,550 | 9,450 | (21,588) | 10,212 | 74,289 |
Net earnings (loss) | 91,050 | 18,949 | (15,843) | 28,804 | 142,172 |
Less: Earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | (1,901) |
Earnings attributable to redeemable noncontrolling interest: | |||||
Net earnings (loss) attributable to Biglari Holdings Inc. | $ 91,050 | $ 18,949 | $ (15,843) | $ 28,804 | $ 140,271 |
Earnings (loss) per share | |||||
Basic earnings (loss) per common share | $ 48.49 | $ 11.05 | $ (10.18) | $ 16.85 | $ 90.89 |
Diluted earnings (loss) per common share | $ 48.45 | $ 11.03 | $ (10.18) | $ 16.82 | $ 90.69 |
Weighted average shares and equivalents | |||||
Basic | 1,877,723 | 1,714,727 | 1,556,039 | 1,709,621 | 1,543,370 |
Diluted | 1,879,414 | 1,718,261 | 1,556,039 | 1,712,775 | 1,546,665 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Net earnings (loss) attributable to Biglari Holdings Inc. | $ 91,050 | $ (15,843) | $ 28,804 | $ 140,271 | |
Other comprehensive income: | |||||
Other comprehensive income (loss), net | (261) | (2,896) | (21,979) | (22,440) | |
Consolidated | |||||
Net earnings (loss) attributable to Biglari Holdings Inc. | 91,050 | $ 18,949 | (15,843) | 28,804 | 140,271 |
Other comprehensive income: | |||||
Reclassification of investment appreciation in net earnings | 0 | 0 | 62 | (29,578) | (182,286) |
Applicable income taxes | 0 | 0 | (21) | 11,237 | 67,640 |
Net change in unrealized gains and losses on investments | (341) | 6,540 | (892) | (4,930) | 146,079 |
Applicable income taxes | 126 | (2,478) | 327 | 1,874 | (53,881) |
Foreign currency translation | (46) | 289 | (2,372) | (582) | 8 |
Other comprehensive income (loss), net | (261) | 4,351 | (2,896) | (21,979) | (22,440) |
Total comprehensive income (loss) | $ 90,789 | $ 23,300 | $ (18,739) | $ 6,825 | $ 117,831 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 24, 2014 |
Sep. 25, 2013 |
---|---|---|---|---|
Consolidated | ||||
Shareholders' equity | ||||
Common stock, shares outstanding | 2,066,691 | 2,065,586 | 2,065,566 | 1,720,782 |
Schedule of Balance Sheets - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Liabilities and shareholders' equity | ||
Shareholders’ equity | $ 451,372 | $ 725,551 |
Parent Company | ||
Assets | ||
Cash and cash equivalents | 7,611 | 76,041 |
Investments | 5,046 | 5,781 |
Receivables | 559 | 3,439 |
Other | 2,948 | 6,262 |
Investment partnerships | 292,021 | 493,203 |
Investments in subsidiaries | 244,170 | 252,668 |
Total assets | 552,355 | 837,394 |
Liabilities and shareholders' equity | ||
Accounts payable and accrued expenses | 1,914 | 1,221 |
Deferred income taxes | 99,069 | 110,622 |
Total liabilities | 100,983 | 111,843 |
Shareholders’ equity | 451,372 | 725,551 |
Total liabilities and shareholders' equity | $ 552,355 | $ 837,394 |
Schedule of Income Statement - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Parent Company | |||||
Income items: | |||||
Dividends | $ 150 | $ 0 | $ 17,725 | $ 32,223 | $ 0 |
Undistributed (loss) earnings | 23,206 | 8,678 | (25,357) | (5,009) | 29,777 |
Total | 23,356 | 8,678 | (7,632) | 27,214 | 29,777 |
Costs and expense items: | |||||
General and administrative | 1,815 | 3,269 | 13,731 | 8,522 | 19,685 |
Other income (loss): | |||||
Other income | 8 | 5 | 9 | 19 | 5,220 |
Investment gains (including contributions) | 0 | 0 | 0 | 0 | 162,300 |
Investment partnership (losses) gains | 110,268 | 20,457 | (8,845) | 6,749 | 20,068 |
Gain on sale of Biglari Capital Corp | 0 | 0 | 0 | 0 | 1,597 |
Total other income (loss) | 110,276 | 20,462 | (8,845) | 6,768 | 189,185 |
Earnings (loss) before income taxes | 131,817 | 25,871 | (30,199) | 25,460 | 199,277 |
Income taxes | 40,767 | 6,922 | (14,356) | (3,344) | 59,006 |
Net earnings (loss) | $ 91,050 | $ 18,949 | $ (15,843) | $ 28,804 | $ 140,271 |
Schedule of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Net (loss) earnings attributable to Biglari Holdings Inc. | $ 91,050 | $ (15,843) | $ 28,804 | $ 140,271 | |
Other comprehensive income: | |||||
Other comprehensive income (loss), net | (261) | (2,896) | (21,979) | (22,440) | |
Parent Company | |||||
Net (loss) earnings attributable to Biglari Holdings Inc. | 91,050 | $ 18,949 | (15,843) | 28,804 | 140,271 |
Other comprehensive income: | |||||
Reclassification of investment appreciation in net earnings | 0 | 0 | 62 | (29,578) | (182,286) |
Applicable income taxes | 0 | 0 | (21) | 11,237 | 67,640 |
Net change in unrealized gains and losses on investments | (341) | 6,540 | (892) | (4,930) | 146,079 |
Applicable income taxes | 126 | (2,478) | 327 | 1,874 | (53,881) |
Foreign currency translation | (46) | 289 | (2,372) | (582) | 8 |
Other comprehensive income (loss), net | (261) | 4,351 | (2,896) | (21,979) | (22,440) |
Total comprehensive income (loss) | $ 90,789 | $ 23,300 | $ (18,739) | $ 6,825 | $ 117,831 |
Note 1. Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 1. Summary of Significant Accounting Policies | Description of Business Biglari Holdings Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Companys largest operating subsidiaries are involved in the franchising and operating of restaurants. Biglari Holdings is founded and led by Sardar Biglari, Chairman and Chief Executive Officer of Biglari Holdings and its major operating subsidiaries. The Companys long-term objective is to maximize per-share intrinsic value. All major operating, investment, and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari.
Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake, Inc. (Steak n Shake) and Western Sizzlin Corporation (Western). The consolidated financial statements also include the accounts of Maxim Inc. (Maxim) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively First Guard) from the dates of their respective acquisitions during 2014. In addition to consolidating wholly-owned entities we consolidate entities if we have a controlling interest in the general partner. Intercompany accounts and transactions have been eliminated in consolidation.
Prior to July 2013, the consolidated financial statements included the accounts of the Company, its wholly-owned subsidiaries (including Biglari Capital Corp. [Biglari Capital]), and investment related limited partnerships The Lion Fund, L.P. and Western Acquisitions, L.P. (collectively the consolidated affiliated partnerships), in which we had a controlling interest.
In July 2013 the Company liquidated the partners interest in Western Acquisitions, L.P. by distributing assets of the partnership to the partners and Biglari Holdings sold all of the outstanding shares of Biglari Capital to Mr. Biglari. Biglari Capital is the general partner of The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the investment partnerships"), which are limited partnerships that operate as private investment funds.
As a result of the sale of Biglari Capital and the related liquidation of Western Acquisitions, L.P. the Company ceased to have a controlling interest in Biglari Capital and the consolidated affiliated partnerships. Accordingly, Biglari Capital and the consolidated affiliated partnerships are no longer consolidated in the Companys consolidated financial statements.
Fiscal Year In 2014, the Companys Board of Directors approved a change in the Companys fiscal year-end moving from the last Wednesday in September to December 31 of each year. This form 10-K includes an audited statement of earnings, statement of comprehensive income, statement of cash flows and statement of shareholders equity for the year ended December 31, 2015, transition period for September 25, 2014 to December 31, 2014 (the 2014 transition period) and fiscal years ended September 24, 2014 and September 25, 2013, and an audited balance sheet as of December 31, 2015 and 2014. Fiscal years 2014 and 2013 each contained 52 weeks. For comparative purposes, an unaudited statement of earnings, statement of comprehensive income and statement of cash flows have been included for September 26, 2013 to December 31, 2013 (the 2013 transition period). The comparative transition period has not been audited and is derived from the books and records of the Company. In the opinion of management, the comparative transition period reflects all adjustments necessary to present the financial position and results of operations in accordance with accounting principles generally accepted in the United States (GAAP).
Purchases of Equity Securities On April 20, 2015, The Lion Fund, L.P. completed a Rule 10b5-1 Trading Plan purchasing 62,000 shares of the Companys common stock from December 18, 2014 through April 20, 2015. On July 1, 2015, The Lion Fund II, L.P. completed a tender offer for common stock of Biglari Holdings purchasing 616,312 shares of the Companys common stock. On December 17, 2015, The Lion Fund II, L.P. initiated a Rule 10b5-1 Trading Plan thereby purchasing 24,000 shares of the Companys common stock from January 4, 2016 through February 3, 2016. As of February 3, 2016, Mr. Biglaris beneficial ownership of the outstanding common stock was approximately 50.6%.
Business Acquisitions On February 27, 2014 the Company acquired certain assets and liabilities of Maxim. Maxim is a brand management company whose business lies in media, both in print and in digital, and in licensing of products and services. On March 19, 2014, the Company acquired the stock of First Guard, a direct underwriter of commercial trucking insurance, selling physical damage and nontrucking liability insurance to truckers. These acquisitions were not material, individually or in aggregate, to the Company. The fair value of the assets and liabilities acquired other than investments, goodwill and intangibles was not material.
Cash and Cash Equivalents Cash equivalents primarily consist of U.S. Government securities and money market accounts, all of which have original maturities of three months or less. Cash equivalents are carried at fair value.
Investments Our investments consist of available-for-sale securities and held-to-maturity securities. Available-for-sale securities are carried at fair value with net unrealized gains or losses reported as a component of accumulated other comprehensive income in shareholders equity. Held-to-maturity securities are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Realized gains and losses on disposals of investments are determined by specific identification of cost of investments sold and are included in investment gains/losses, a component of other income.
Investment Partnerships Our interests in the investment partnerships are accounted as equity method investments because of our retained limited partner interests. The Company records investment partnership gains (inclusive of the investment partnerships unrealized gains and losses on their securities) as a component of other income based on our proportional ownership interest in the partnerships.
The investment partnerships are for purposes of GAAP, investment companies under the AICPA Audit and Accounting Guide Investment Companies. For periods prior to July 1, 2013, the Company retained the specialized accounting for the consolidated affiliated partnerships, pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946-810-45.
Concentration of Equity Price Risk The majority of our investments are conducted through investment partnerships which generally hold common stocks. We also hold marketable securities directly. Through the investment partnerships we hold a concentrated position in the common stock of Cracker Barrel Old Country Store, Inc. A significant decline in the general stock market or in the prices of major investments may have a materially adverse effect on our earnings and on consolidated shareholders equity.
Receivables Our accounts receivable balance consists primarily of franchisee, customer, and other receivables. We carry our accounts receivable at cost less an allowance for doubtful accounts, which is based on a history of past write-offs and collections and current credit conditions. Allowance for doubtful accounts was $2,378 at December 31, 2015 and $1,608 at December 31, 2014. Amounts charged to expense and deductions from the allowance totaled $1,426 and $662 in 2015. Amounts charged to expense and deductions from the allowance in the 2014 and 2013 transition periods and in fiscal years 2014 and 2013 were insignificant.
Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market, and consist primarily of restaurant food items and supply inventory.
Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the assets (10 to 30 years for buildings and land improvements, and 3 to 10 years for equipment). Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the term of the related leases. Interest costs associated with the construction of new restaurants are capitalized. Major improvements are also capitalized while repairs and maintenance are expensed as incurred. We review our long-lived assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For purposes of this assessment, assets are evaluated at the lowest level for which there are identifiable cash flows. If the future undiscounted cash flows of an asset are less than the recorded value, an impairment is recorded for the difference between the carrying value and the estimated fair value of the asset. Refer to Note 3 for information regarding asset impairments.
Goodwill and Other Intangible Assets Goodwill and indefinite life intangibles are not amortized, but are tested for potential impairment on an annual basis, or more often if events or circumstances change that could cause goodwill or indefinite life intangibles to become impaired. Other purchased intangible assets are amortized over their estimated useful lives, generally on a straight-line basis. We perform reviews for impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying value. When an impairment is identified, we reduce the carrying value of the asset to its estimated fair value. No impairments were recorded on goodwill or indefinite life intangibles during 2015, the 2014 and 2013 transition periods, or during fiscal year 2014. During fiscal year 2013, the Company recorded an impairment related to the trade name of Westerns company-operated stores. Refer to Note 8 for information regarding our goodwill and other intangible assets.
Operating Leases The Company leases certain property under operating leases. Many of these lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense is recognized on a straight-line basis over the expected lease term, including cancellable option periods when failure to exercise such options would result in an economic penalty. In addition, the rent commencement date of the lease term is the earlier due date when we become legally obligated for the rent payments, the date when we take access to the property, or the grounds for build out.
Common Stock and Treasury Stock The Companys common stock is $0.50 stated value. The following table presents shares authorized, issued and outstanding.
Revenue Recognition Restaurant operations We record revenue from restaurant sales at the time of sale, net of discounts. Revenue from the sale of gift cards is deferred at the time of sale and recognized either upon redemption by the customer or at expiration of the gift cards. Sales revenues are presented net of sales taxes. Unit franchise fees and area development fees are recorded as revenue when said-related restaurant begins operations. Royalty fees and administrative services fees based on franchise sales are recognized as revenue as earned. License revenue and rental revenues are recognized as revenue when earned.
Restaurant operations revenues were as follows.
Insurance premiums and commissions Insurance premiums are earned over the terms of the related policies. Expenses incurred in connection with acquiring new insurance business, including acquisition costs, are charged to operations as incurred. Premiums earned are stated net of amounts ceded to reinsurer. Commissions, gains and investment income for 2015, the 2014 transition period and fiscal year 2014 were not significant.
Media advertising and other Magazine subscription and advertising revenues are recognized at the magazine cover date. The unearned portion of magazine subscriptions is deferred until the magazines cover date, at which time a proportionate share of the gross subscription price is recognized as revenues, net of any commissions paid to subscription agents. Also included in subscription revenues are revenues generated from single-copy sales of magazines through retail outlets such as newsstands, supermarkets, convenience stores and drugstores and on certain digital devices, which may or may not result in future subscription sales. Revenues from retail outlet sales are recognized based on gross sales less a provision for estimated returns.
Other revenue Other revenue represents realized and unrealized gains/losses on investments held by consolidated affiliated partnerships. Realized gains/losses from the disposal of investments held by consolidated affiliated partnerships are determined by specific identification of cost of investments sold.
Restaurant Cost of Sales Cost of sales includes the cost of food, restaurant operating costs and restaurant rent expense. Cost of sales excludes depreciation and amortization, which is presented as a separate line item on the consolidated statement of earnings.
Earnings Per Share Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. In fiscal years 2014 and 2013, Biglari Holdings completed offerings of transferable subscription rights. The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively. The Company received net proceeds of $85,873 and $75,595 from the offerings, respectively. Earnings per share for the 2013 transition period and fiscal year 2013 have been retroactively restated to account for the rights offerings.
For periods after July 1, 2013, the shares of Company stock attributable to our limited partner interest in the investment partnerships based on our proportional ownership during this period are considered treasury stock on the consolidated balance sheet and thereby deemed not to be included in the calculation of weighted average common shares outstanding. However, these shares are legally outstanding.
For financial reporting purposes during periods before July 1, 2013, all common shares of the Company held by the consolidated affiliated partnerships including those attributable to the unrelated limited partners were recorded in treasury stock on the consolidated balance sheet. In order to compute the weighted average common shares outstanding, only the shares of treasury stock attributable to the unrelated limited partners of the consolidated affiliated partnerships based on their proportional ownership during the period were deemed outstanding shares.
The following table presents a reconciliation of basic and diluted weighted average common shares.
Marketing Expense Advertising costs are charged to expense at the later of the date the expenditure is incurred or the date the promotional item is first communicated. Marketing expense is included in selling, general and administrative expenses on the consolidated statement of earnings.
Insurance Losses Liabilities for losses and loss adjustment expenses are established under insurance contracts issued by our insurance subsidiaries. These losses and loss adjustment expenses include an amount for reported losses and an amount for losses incurred but not reported. Reserves for incurred but not reported losses are estimates based upon past experience. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance contracts. Liabilities for insurance losses of $2,796 and $779 are included in accrued expenses in the consolidated balance sheet as of December 31, 2015 and December 31, 2014, respectively.
Insurance Reserves We self-insure a significant portion of expected losses under our workers compensation, general liability, auto, directors and officers and medical liability insurance programs, and record a reserve for our estimated losses on all unresolved open claims and our estimated incurred but not reported claims at the anticipated cost to us. Insurance reserves are recorded in accrued expenses in the consolidated balance sheet.
Savings Plans Several of our subsidiaries also sponsor deferred compensation and defined contribution retirement plans, such as 401(k) or profit sharing plans. Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Some of the plans allow for discretionary contributions as determined by management. Employer contributions expensed with respect to these plans were not material.
Use of Estimates Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from the estimates.
New Accounting Standards In November 2015, the FASB issued Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent deferred tax asset or liability. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted. The Company does not believe the adoption of ASU 2015-17 will have a material effect on its consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2015-03 will have a material effect on its consolidated financial statements.
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidations Analysis. The amendments in this update provide guidance under GAAP about limited partnerships, which will be variable interest entities, unless the limited partners have either substantive kick-out rights or participation rights. It also changes the effect that fees paid to a decision maker or service provider have on consolidation analysis and amends how variable interests held by related parties affect the consolidation conclusion. The amendments in this update are effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures.
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern. The amendments in this update provide guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this update are effective for the annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effect, if any, on its consolidated financial statements.
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and in August 2015 issued ASU No. 2015-14, which amended ASU No. 2014-09 as to its effective date. This update, as amended, provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The update allows companies to use either a full retrospective or a modified retrospective approach upon adoption and is effective for annual periods beginning after December 15, 2017 and interim periods therein, which will require us to adopt these provisions in the first quarter of 2018. Early adoption is permitted. We are evaluating which transition approach to use and the effect this guidance will have on our consolidated financial statements and related disclosures.
In April 2014, the FASB issued ASU 2014-08, Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides a narrower definition of discontinued operations than under existing GAAP. ASU 2014-08 requires that only disposals of components of an entity (or groups of components) that represent a strategic shift that have or will have a major effect on the reporting entitys operations are reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. ASU 2014-08 is effective prospectively for disposals (or classifications of held-for-sale) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. The adoption of ASU 2014-08 did not have a material effect on the Companys consolidated financial statements. |
Note 2. Divestitures |
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Business Combinations [Abstract] | |
Note 2. Divestitures | In July 2013, Biglari Holdings sold all of the outstanding shares of Biglari Capital to Mr. Biglari for $1,700. The Company recorded a gain on the sale of $1,597. Biglari Capital is the general partner of the investment partnerships. The Company also liquidated the partners interests in Western Acquisitions, L.P. by distributing assets of the partnership to the partners. |
Note 3. Impairment and Restaurant Closings |
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Note 3. Impairment And Restaurant Closings | |
Note 3. Impairment and Restaurant Closings | During 2015, Steak n Shake recorded an asset impairment of $51 in selling, general and administrative expenses. No asset impairment charges were recorded during the 2014 transition period. During the 2013 transition period Steak n Shake recorded an asset impairment of $41. Steak n Shake recorded asset impairment during fiscal years 2014 and 2013 of $1,433 and $1,666, respectively, in selling, general and administrative expenses. Western recorded restaurant closing costs of $72 during the fiscal year 2013 in selling, general and administrative expenses. Steak n Shake did not close any company-operated restaurants in 2015, transition period 2014 or in fiscal year 2013. Steak n Shake closed two company-operated restaurants and sold two company-operated restaurants in fiscal year 2014. Western did not close any company-operated restaurants in 2015 or in transition period 2014. Western closed one company-operated restaurant in each of fiscal years 2014 and 2013. |
Note 4. Investments |
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Note 4. Investments | Investments consisted of the following.
Investment gains/losses are recognized when investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have little, if any, impact on total shareholders equity because the investments are carried at fair value with any unrealized gains/losses included as a component of accumulated other comprehensive income in shareholders equity. We believe that realized investment gains/losses are often meaningless in terms of understanding reported results. Short-term investment gains/losses have caused and may continue to cause significant volatility in our results.
Investment gains were as follows.
The Company did not recognize any investment gains during 2015 or during the 2014 and 2013 transition periods.
The Company recognized a pre-tax gain of $29,524 ($18,305 net of tax) on a contribution of $74,418 in securities and $182,746 ($114,931 net of tax) on a contribution of $375,936 in securities to the investment partnerships during fiscal years 2014 and 2013, respectively. The gains had a material accounting effect on the Companys fiscal years 2014 and 2013 earnings. However, these gains had no impact on total shareholders equity because the investments were carried at fair value prior to the contribution, with the unrealized gains included as a component of accumulated other comprehensive income.
In connection with the acquisition of First Guard during fiscal year 2014, we acquired $15,043 of investments.
Beginning July 1, 2013, as a result of the sale of Biglari Capital the Company reports on the limited partnership interests in investment partnerships under the equity method of accounting. We record our proportional share of equity in the investment partnerships but exclude Company common stock held by said partnerships. The Companys pro-rata share of its common stock held by the investment partnerships is recorded as treasury stock even though they are legally outstanding. The Company records gains/losses from investment partnerships (inclusive of the investment partnerships unrealized gains and losses on their securities) in the consolidated statements of earnings based on our carrying value of these partnerships. The fair value is calculated net of the general partners accrued incentive fees. Gains and losses on Company common stock included in the earnings of these partnerships are eliminated because they are recorded as treasury stock. |
Note 5. Investment Partnerships |
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Note 5. Investment Partnerships | The fair value and adjustment for Company common stock held by the investment partnerships to determine carrying value of our partnership interest is presented below.
The carrying value of the investment partnerships net of deferred taxes is presented below.
The Companys proportionate share of Company stock held by investment partnerships at cost is $332,827, $77,165, $73,207 and $54,613 at December 31, 2015, December 31, 2014, September 24, 2014 and September 25, 2013, respectively, and is recorded as treasury stock.
The carrying value of the partnership interest approximates fair value adjusted by the value of held Company stock. Fair value is according to our proportional ownership interest of the fair value of investments held by the investment partnerships. The fair value measurement is classified as level 3 within the fair value hierarchy.
Gains/losses from investment partnerships recorded in the Companys consolidated statements of earnings are presented below.
On December 31 of each year, the general partner of the investment partnerships, Biglari Capital, will earn an incentive reallocation fee for the Companys investments equal to 25% of the net profits above an annual hurdle rate of 6% over the previous high-water mark. Our policy is to accrue an estimated incentive fee throughout the year. The total incentive reallocation from Biglari Holdings to Biglari Capital includes gains on the Companys common stock. The gains on the Companys common stock are eliminated in our financial statements and the incentive reallocations associated with gains from the Companys common stock are also eliminated in our financial statements. Our investments in these partnerships are committed on a rolling 5-year basis.
The incentive reallocations from Biglari Holdings to Biglari Capital on December 31 are presented below.
Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below.
Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments.
Consolidated Affiliated Partnerships
Realized investment gains/losses in the consolidated affiliated partnerships arose when investments were sold. The net unrealized and realized gains/losses from investments held by consolidated affiliated partnerships, other than holdings of the Companys debt and equity securities, for the fiscal year ended September 25, 2013 were as follows.
The limited partners of each of the investment funds had the ability to redeem their capital upon certain occurrences; therefore, the ownership of the investment funds held by the limited partners was presented as redeemable noncontrolling interests of consolidated affiliated partnerships and measured at the greater of carrying value or fair value.
The following is a reconciliation of the redeemable noncontrolling interests in the consolidated affiliated partnerships for the fiscal year ended September 25, 2013.
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Note 6. Other Current Assets |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Note 6. Other Current Assets | ||||||||||||||||||||||||||||||||||||||||||||||
Note 6. Other Current Assets | Other current assets include the following.
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Note 7. Property and Equipment |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 7. Property and Equipment | Property and equipment is composed of the following.
Depreciation and amortization expense for property and equipment for 2015 was $24,113. Depreciation and amortization expense for property and equipment for the 2014 and 2013 transition periods was $6,380 and $6,105, respectively. Depreciation and amortization expense for property and equipment for fiscal years 2014 and 2013 was $23,112 and $23,422, respectively.
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Note 8. Goodwill and Other Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 8. Goodwill and Other Intangibles | Goodwill Goodwill consists of the excess of the purchase price over the fair value of the net assets acquired in connection with business acquisitions.
A reconciliation of the change in the carrying value of goodwill is as follows.
We are required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The analysis of potential impairment of goodwill requires a two-step approach. The first is the estimation of fair value of each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment occurs when the estimated fair value of goodwill is less than its carrying value.
The valuation methodology and underlying financial information included in our determination of fair value require significant management judgments. We use both market and income approaches to derive fair value. The judgments in these two approaches include, but are not limited to, comparable market multiples, long-term projections of future financial performance, and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results. No impairment charges for goodwill were recorded in 2015, the 2014 or 2013 transition periods or in fiscal years 2014 and 2013.
Other Intangibles Other intangibles are composed of the following.
Intangible assets subject to amortization consist of franchise agreements connected with the purchase of Western as well as rights to favorable leases related to prior acquisitions. These intangible assets are being amortized over their estimated weighted average of useful lives ranging from eight to twelve years.
Amortization expense for 2015 was $574. Amortization expense for the 2014 and 2013 transition periods was $151 and $169, respectively. Amortization expense for fiscal years 2014 and 2013 was $690. Total annual amortization expense for each of the next five years will approximate $507.
The Company acquired Maxim and First Guard during fiscal year 2014 and lease rights during fiscal year 2013. As a result of the acquisitions during fiscal year 2014, $15,876 of the purchase prices were allocated to intangible assets with indefinite lives.
Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights. During fiscal year 2013, the Company recorded an impairment loss for an intangible asset of $1,244 in selling, general and administrative. This number represents the trade name of Westerns company-operated stores, which we decided not to use any longer. The calculation of fair value for the trade name was determined primarily by using a discounted cash flow analysis. |
Note 9. Other Assets |
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Dec. 31, 2015 | |
Other Assets [Abstract] | |
Note 9. Other Assets | Other assets primarily include non-qualified plan investments, the non-current portion of capitalized loan acquisition costs, restricted cash and bonds and the non-current portion of prepaid rent. |
Note 10. Accrued Expenses |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 10. Accrued Expenses | Accrued expenses include the following.
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Note 11. Other Liabilities |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Note 11. Other Liabilities | Other liabilities include the following.
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Note 12. Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 12. Income Taxes |
The components of the provision for income taxes consist of the following.
Income taxes paid during 2015 was $2,063. Income taxes paid for the 2014 transition period was $22. Income taxes paid totaled $4,829 in fiscal year 2014 and $1,518 in fiscal year 2013. Income tax refunds totaled $16 in 2015, $17 in fiscal year 2014 and $52 in fiscal year 2013.
As of December 31, 2015, we had approximately $413 of unrecognized tax benefits, including approximately $35 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. As of December 31, 2014, we had approximately $453 of unrecognized tax benefits, including approximately $66 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. We recognized approximately $20 and $6 in potential interest and penalties associated with uncertain tax positions during 2015 and the 2014 transition period, respectively. Our continuing practice is to recognize interest expense and penalties related to income tax matters in income tax expense. The unrecognized tax benefits of $413 would impact the effective income tax rate if recognized.
The following table summarizes the Companys unrecognized tax benefits, excluding interest and penalties.
We file income tax returns which are periodically audited by various foreign, federal, state, and local jurisdictions. With few exceptions, we are no longer subject to federal, state, and local tax examinations for fiscal years prior to 2012. We believe we have certain state income tax exposures related to fiscal years 2011 through 2014. Because of the expiration of the various state statutes of limitations for these fiscal years, it is possible that the total amount of unrecognized tax benefits will decrease by approximately $148 within 12 months.
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. Our deferred tax assets and liabilities consist of the following.
Receivables on the consolidated balance sheet include income tax receivables of $559 and $3,439 as of December 31, 2015, December 31, 2014, respectively.
In September 2013, the IRS issued final and proposed regulations under IRC Sections 162, 263(a), and 168. These regulations provide guidance regarding the deduction and capitalization of expenditures related to tangible property and the disposition of tangible depreciable property. The regulations are generally effective for tax years beginning on or after January 1, 2014 and taxpayers will be allowed to rely on, and early adopt, both the final regulations and the proposed disposition rules to facilitate implementation efforts. The application of the new regulations did not have a material effect on the Companys consolidated financial statements. |
Note 13. Notes Payable and other borrowings |
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Note 13. Notes Payable And Other Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13. Notes payable and other borrowings | Notes payable and other borrowings include the following.
Steak n Shake Credit Facility On March 19, 2014, Steak n Shake and its subsidiaries entered into a new credit agreement. This credit agreement provides for a senior secured term loan facility in an aggregate principal amount of $220,000 and a senior secured revolving credit facility in an aggregate principal amount of up to $30,000.
The term loan is scheduled to mature on March 19, 2021. It amortizes at an annual rate of 1.0% in equal quarterly installments, beginning June 30, 2014, at 0.25% of the original principal amount of the term loan, subject to mandatory prepayments from excess cash flow, asset sales and other events described in the credit agreement. The balance will be due at maturity. The revolver will be available on a revolving basis until March 19, 2019.
Steak n Shake has the right to request an incremental term loan facility from participating lenders and/or eligible assignees at any time, up to an aggregate total principal amount not to exceed $70,000 if certain customary conditions within the credit agreement are met.
Borrowings bear interest at a rate per annum equal to a base rate or a Eurodollar rate (minimum of 1%) plus an applicable margin. Interest on the term loan is based on a Eurodollar rate plus an applicable margin of 3.75% or on the prime rate plus an applicable margin of 2.75%. Interest on loans under the revolver is based on a Eurodollar rate plus an applicable margin ranging from 2.75% to 4.25% or on the prime rate plus an applicable margin ranging from 1.75% to 3.25%. The applicable margins on revolver loans are contingent on Steak n Shakes total leverage ratio. The revolver also carries a commitment fee ranging from 0.40% to 0.50% per annum, according to Steak n Shakes total leverage ratio, on the unused portion of the revolver.
The interest rate on the term loan was 4.75% on December 31, 2015.
The credit agreement includes customary affirmative and negative covenants and events of default, as well as a financial maintenance covenant, solely with respect to the revolver, relating to the maximum total leverage ratio. Steak n Shakes credit facility contains restrictions on its ability to pay dividends to Biglari Holdings.
Both the term loan and the revolver have been secured by first priority security interests in substantially all the assets of Steak n Shake. Biglari Holdings is not a guarantor under the credit facility. Approximately $118,589 of the proceeds of the term loan were used to repay all outstanding amounts under Steak n Shakes former credit facility and to pay related fees and expenses, $50,000 of such proceeds were used to pay a cash dividend to Biglari Holdings, and the remaining term loan proceeds of approximately $51,411 are being used by Steak n Shake for working capital and general corporate purposes. As of December 31, 2015, $212,375 was outstanding under the term loan, and no amount was outstanding under the revolver.
We recorded losses of $1,133 in interest expense for the extinguishment of debt for fiscal year 2014 related to the write-off of deferred loan costs associated with former credit facilities. We capitalized $4,754 in debt issuance costs in fiscal year 2014.
We had $10,188 in standby letters of credit outstanding as of December 31, 2015 and December 31, 2014.
Western Revolver As of December 31, 2015, Western has $786 due June 13, 2016.
Interest Rate Swap During fiscal year 2013, Steak n Shake entered into an interest rate swap for a notional amount of $65,000 which matured on September 30, 2015. During fiscal year 2011, Steak n Shake entered into an interest rate swap agreement which matures on February 15, 2016. The notional amount of the interest rate swap was $1,000 with a fair value of $2 on December 31, 2015.
The carrying amounts for debt reported in the consolidated balance sheet did not differ materially from their fair values at December 31, 2015 and December 31, 2014. The fair value was determined to be a Level 3 fair value measurement.
Expected principal payments for notes payable and Westerns revolver as of December 31, 2015, are as follows.
Interest No interest was capitalized in connection with financing additions to property and equipment during 2015 and the 2014 and 2013 transition periods. Interest paid on debt amounted to $10,186 for 2015, $2,841 for the 2014 transition period and $1,956 for the 2013 transition period. Interest paid on obligations under leases was $9,422, $2,577, and $2,612 for 2015, the 2014 transition period, and the 2013 transition period, respectively. No interest was capitalized in connection with financing additions to property and equipment during fiscal years 2014 and 2013. Interest paid on debt amounted to $8,158 in fiscal year 2014 and $4,950 in fiscal year 2013. Interest paid on obligations under leases was $9,720 and $9,829 in fiscal years 2014 and 2013, respectively. |
Note 14. Leased Assets and Lease Commitments |
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Note 14. Leased Assets and Lease Commitments | We lease certain physical facilities under non-cancelable lease agreements. These leases require the payment of real estate taxes, insurance and maintenance costs. Certain leased facilities, which are no longer operated but are subleased to third parties or franchisees, are classified below as non-operating properties. Minimum future rental payments for non-operating properties have not been reduced by minimum sublease rentals of $10,863 related to operating leases receivable under non-cancelable subleases. The property and equipment cost related to finance obligations and capital leases as of December 31, 2015 is as follows: $69,919 buildings, $59,678 land, $28,157 land and leasehold improvements, $2,312 equipment and $72,474 accumulated depreciation.
On December 31, 2015, obligations under non-cancelable finance obligations, capital leases, and operating leases (excluding real estate taxes, insurance and maintenance costs) require the following minimum future rental payments.
Rent expense is presented below.
Non-cancellable finance obligations were created when the Company, under prior management, entered into certain build-to-suit or sale leaseback arrangements. As a result of continuing involvement in the underlying leases (generally due to right of substitution or purchase option provisions of the leases), the Company accounts for the leases as financings. |
Note 15. Related Party Transactions |
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Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Note 15. Related Party Transactions |
On July 1, 2013, Biglari Holdings entered into the following agreements with Mr. Biglari, its Chairman and Chief Executive Officer: (i) a Stock Purchase Agreement for the sale of Biglari Capital to Mr. Biglari; (ii) a Shared Services Agreement with Biglari Capital, and (iii) a First Amendment to the Amended and Restated Incentive Bonus Agreement, dated September 28, 2010, with Mr. Biglari (the Incentive Agreement Amendment). The transactions contemplated thereby were unanimously approved by the independent Governance, Compensation and Nominating Committee of the Board of Directors of the Company (the Committee), which retained separate counsel, tax/accounting advisors, an independent compensation consultant, and a financial advisor to assist the Committee in the structuring, evaluation, and negotiation of such transactions.
Stock Purchase Agreement Pursuant to the Stock Purchase Agreement, Biglari Holdings sold all the shares of Biglari Capital to Mr. Biglari for a purchase price of $1,700 in cash (the Biglari Capital Transaction) and recorded a gain of $1,597. Prior to the execution and delivery of the Stock Purchase Agreement, Biglari Capital distributed to the Company substantially all of Biglari Capitals partnership interests in The Lion Fund, L.P. (including, without limitation, Biglari Capitals adjusted capital balance in its capacity as general partner of The Lion Fund, L.P., which totaled $5,721). Biglari Capital thus retained solely a general partner interest in each of The Lion Fund, L.P. and The Lion Fund II, L.P. at the time of the Biglari Capital Transaction.
Shared Services Agreement
Investments in The Lion Fund, L.P.
and The Lion Fund II, L.P.
As the general partner of the investment partnerships, Biglari Capital on December 31 of each year will earn an incentive reallocation fee for the Companys investments equal to 25% of the net profits above an annual hurdle rate of 6%. Our policy is to accrue an estimated incentive fee throughout the year. For calendar year 2015, the incentive reallocation from Biglari Holdings to Biglari Capital was $23, all of which was associated with gains on the Companys common stock. Based on Biglari Holdings $166,168 of earnings from the investment partnerships for calendar year 2014, the total incentive reallocation from Biglari Holdings to Biglari Capital was $34,406. Based on Biglari Holdings $74,526 of earnings from the investment partnerships for calendar year 2013, the total incentive reallocation from Biglari Holdings to Biglari Capital was $14,702, including $3,655 associated with gains on the Companys common stock. Gains on the Companys common stock are eliminated in our financial statements. As of September 25, 2013, the Company accrued $5,033 for the incentive fee for Biglari Capital. No amount was accrued as of September 24, 2014 because net profits for the calendar year to date did not exceed the hurdle.
Incentive Agreement Amendment Also in connection with the Biglari Capital Transaction, Biglari Holdings and Mr. Biglari entered into the Incentive Agreement Amendment which amends the Amended and Restated Incentive Bonus Agreement with Mr. Biglari to reflect and give effect to the Biglari Capital Transaction, which excludes earnings by the investment partnerships from the calculation of Mr. Biglaris incentive bonus.
License Agreement On January 11, 2013, the Company entered into a Trademark License Agreement (the License Agreement) with Mr. Biglari. The License Agreement was unanimously approved by the Committee. In addition, the license under the License Agreement is provided on a royalty-free basis in the absence of specified extraordinary events described below. Accordingly, the Company and its subsidiaries have paid no royalties to Mr. Biglari under the License Agreement since its inception.
Under the License Agreement, Mr. Biglari granted to the Company an exclusive license to use the Biglari and Biglari Holdings names (the Licensed Marks) in association with various products and services (collectively the Products and Services). Upon (a) the expiration of twenty years from the date of the License Agreement (subject to extension as provided in the License Agreement), (b) Mr. Biglaris death, (c) the termination of Mr. Biglaris employment by the Company for Cause (as defined in the License Agreement), or (d) Mr. Biglaris resignation from his employment with the Company absent an Involuntary Termination Event (as defined in the License Agreement), the Licensed Marks for the Products and Services will transfer from Mr. Biglari to the Company, without any compensation, if the Company is continuing to use the Licensed Marks in the ordinary course of its business. Otherwise, the rights will revert to Mr. Biglari.
If (i) a Change of Control (as defined in the License Agreement) of the Company; (ii) the termination of Mr. Biglaris employment by the Company without Cause; or (iii) Mr. Biglaris resignation from his employment with the Company due to an Involuntary Termination Event (each, a Triggering Event) were to occur, Mr. Biglari would be entitled to receive a 2.5% royalty on Revenues with respect to the Royalty Period. The royalty payment to Mr. Biglari would not apply to all revenues received by Biglari Holdings and its subsidiaries nor would it apply retrospectively (i.e., to revenues received with respect to the period prior to the Triggering Event). The royalty would apply to revenues recorded by the Company on an accrual basis under GAAP, solely with respect to the defined period of time after the Triggering Event equal to the Royalty Period, from a covered Product, Service or business that (1) has used the Biglari Holdings or Biglari name at any time during the term of the License Agreement, whether prior to or after a Triggering Event, or (2) the Company has specifically identified, prior to a Triggering Event, will use the name Biglari or Biglari Holdings.
Revenues means all revenues received, on an accrual basis under GAAP, by the Company, its subsidiaries and affiliates from the following: (1) all Products and Services covered by the License Agreement bearing or associated with the names Biglari and Biglari Holdings at any time (whether prior to or after a Triggering Event). This category would include, without limitation, the use of Biglari or Biglari Holdings in the public name of a business providing any covered Product or Service; and (2) all covered Products, Services and businesses that the Company has specifically identified, prior to a Triggering Event, will bear, use or be associated with the name Biglari or Biglari Holdings.
The Committee unanimously approved the association of the Biglari name and mark with all of Steak n Shakes restaurants (including Company operated and franchised locations), products and brands. On May 14, 2013, the Company, Steak n Shake, LLC and Steak n Shake Enterprises, Inc. entered into a Trademark Sublicense Agreement in connection therewith. Accordingly, revenues received by the Company, its subsidiaries and affiliates from Steak n Shakes restaurants, products and brands would come within the definition of Revenues for purposes of the License Agreement.
The Royalty Period is a defined period of time, after the Triggering Event, calculated as follows: (i) if, following three months after a Triggering Event, the Company or any of its subsidiaries or affiliates continues to use the Biglari or Biglari Holdings name in connection with any covered product or service, or continues to use Biglari as part of its corporate or public company name, then the Royalty Period will equal (a) the period of time during which the Company or any of its subsidiaries or affiliates continues any such use, plus (b) a period of time after the Company, its subsidiaries and affiliates have ceased all uses of the names Biglari and Biglari Holdings equal to the length of the term of the License Agreement prior to the Triggering Event, plus three years. As an example, if a Triggering Event occurs five years after the date of the License Agreement, and the Company ceases all uses of the Biglari and Biglari Holdings names two years after the Triggering Event, the Royalty Period will equal a total of ten years (the sum of two years after the Triggering Event during which the Biglari and Biglari Holdings names are being used, plus a period of time equal to the five years prior to the Triggering Event, plus three years); or (ii) if the Company, its subsidiaries and affiliates cease all uses of the Biglari and Biglari Holdings names within three months after a Triggering Event, then the Royalty Period will equal the length of the term of the License Agreement prior to the Triggering Event, plus three years. As an example, if a Triggering Event occurs five years after the date of the License Agreement, and the Company ceases all uses of the Biglari and Biglari Holdings names two months after the Triggering Event, the Royalty Period will equal a total of eight years (the sum of the period of time equal to the five years prior to the Triggering Event, plus three years). Notwithstanding the above methods of determining the Royalty Period, the minimum Royalty Period is five years after a Triggering Event. |
Note 16. Common Stock Plans |
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Note 16. Common Stock Plans | On March 7, 2008, our shareholders approved the 2008 Equity Incentive Plan. During fiscal 2010, we resolved to suspend, indefinitely, the future issuance of stock-based awards under the 2008 plan. No shares have been granted under the 2008 plan since 2010. To date, 11,660 restricted stock awards have vested and 10,235 stock options have been granted under the 2008 plan.
The following table summarizes the options activity under all of our stock option plans.
There was no unrecognized stock option compensation cost at December 31, 2015. No amounts were charged to expense during 2015, the 2014 or 2013 transition periods, or during fiscal years 2014 or 2013. |
Note 17. Commitments and Contingencies |
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Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Note 17. Commitments and Contingencies | We are involved in various legal proceedings and have certain unresolved claims pending. We believe, based on examination of these matters and experiences to date, that the ultimate liability, if any, in excess of amounts already provided in our consolidated financial statements is not likely to have a material effect on our results of operations, financial position or cash flows.
In 2013 two shareholders of the Company filed derivative actions putatively on behalf of the Company against the members of our Board of Directors in the United States District Courts for the Southern District of Indiana and the Western District of Texas. The actions were consolidated in the Southern District of Indiana in 2014. On March 18, 2015, the United States District Court for the Southern District of Indiana granted a motion to dismiss the derivative actions in favor of the Company. In addition, the Court issued judgment on all counts in favor of the Company and its directors. The two shareholders have appealed the Courts decision.
The two shareholders appealed the Southern District of Indiana Courts March 18, 2015 decision. On February 17, 2016, the United States Court of Appeals for the Seventh Circuit affirmed the decision of the district court dismissing, in their entirety, all claims made against the Company and its Board of Directors. |
Note 18. Fair Value of Financial Assets and Liabilities |
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Note 18. Fair Value of Financial Assets and Liabilities | The fair values of substantially all of our financial instruments were measured using market or income approaches. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, the fair values presented are not necessarily indicative of the amounts that could be realized in an actual current market exchange. The use of alternative market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.
The following methods and assumptions were used to determine the fair value of each class of the following assets and liabilities recorded at fair value in the consolidated balance sheet:
Cash equivalents: Cash equivalents primarily consist of money market funds which are classified within Level 1 of the fair value hierarchy.
Equity securities: The Companys investments in equity securities are classified within Level 1 of the fair value hierarchy.
Bonds: The Companys investments in bonds are classified within Level 2 of the fair value hierarchy.
Non-qualified deferred compensation plan investments: The assets of the non-qualified plan are set up in a rabbi trust. They represent mutual funds and are classified within Level 1 of the fair value hierarchy.
Interest rate swaps: Interest rate swaps are marked to market each reporting period and are classified within Level 2 of the fair value hierarchy.
As of December 31, 2015 and December 31, 2014 the fair values of financial assets and liabilities were as follows.
There were no changes in our valuation techniques used to measure fair values on a recurring basis.
The Company recorded an impairment to long-lived assets of $51 during 2015. The Company did not record any impairment during the 2014 transition period. The Company recorded an impairment of $41 during the 2013 transition period. During fiscal years 2014 and 2013, the Company recorded impairments on long-lived assets of $1,433 and $1,666, respectively. The fair value of the long-lived assets was determined based on Level 2 inputs using quoted prices for similar properties and quoted prices for the properties from brokers. The fair value of the assets impaired was not material for any of the applicable periods.
During fiscal year 2013, the Company recorded impairment on intangible assets of $1,244. The fair value was determined based on a discounted cash flow analysis which is a level 3 measurement. The fair value of the trade name was not material at impairment. |
Note 19. Accumulated Other Comprehensive Income |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 19. Accumulated Other Comprehensive Income | Changes in the balances of each component of accumulated other comprehensive loss, net of tax, were as follows.
The following reclassifications were made from accumulated other comprehensive income to the consolidated statement of earnings.
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Note 20. Business Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 20. Business Segment Reporting | Our reportable business segments are organized in a manner that reflects how management views those business activities. Certain businesses have been grouped together for segment reporting based upon operations even though those business units are operated under separate management.
Our restaurant operations includes Steak n Shake and Western. As a result of the acquisitions of Maxim and First Guard, the Company reports segment information for these businesses. Prior to 2015, other business activities not specifically identified with reportable business segments were presented in corporate. Beginning in 2015, such other business activities are presented in other within total operating businesses. Prior periods have been reclassified to conform to the current year presentation. We report our earnings from investment partnerships separate from corporate.
We assess and measure segment operating results based on segment earnings as disclosed below. Segment earnings from operations are not necessarily indicative of cash available to fund cash requirements, nor are they synonymous with cash flow from operations.
The tabular information that follows shows data of our reportable segments reconciled to amounts reflected in the consolidated financial statements.
A disaggregation of select data from our consolidated statements of earnings for 2015, transition periods 2014 and 2013, and fiscal years 2014 and 2013 is presented in the tables that follow.
Revenue and earnings (loss) before income taxes for 2015, transition periods 2014 and 2013, and fiscal years 2014 and 2013 were as follows.
A disaggregation of our consolidated capital expenditure and depreciation and amortization captions for 2015, transition periods 2014 and 2013, and fiscal years 2014 and 2013 is presented in the tables that follow.
A disaggregation of our consolidated asset captions is presented in the table that follows.
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Note 21. Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 21. Quarterly Financial Data (Unaudited) |
The investment partnerships concentrate investments, which expose them to more market price fluctuations than might be the case were investments more diversified. |
Note 22. Supplemental Disclosures of Cash Flow Information |
12 Months Ended |
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Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Note 22. Supplemental Disclosures of Cash Flow Information | During 2015, we had no new capital lease obligations or lease retirements, and had $537 of capital expenditures in accounts payable at December 31, 2015. During the 2014 transition period, we had no new capital lease obligations or lease retirements, and had $981 of capital expenditures in accounts payable at December 31, 2014. During the 2013 transition period, we had no new capital lease obligations and had $409 of capital expenditures in accounts payable at December 31, 2013. During fiscal year 2014, we had no new capital lease obligations or lease retirements, and had $2,269 of capital expenditures in accounts payable at year-end. During fiscal year 2013, we had four new capital lease obligations of $2,311 and had $1,043 of capital expenditures in accounts payable at year-end. |
Notes to Condensed Parent Company Financial Statements |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Condensed Parent Company Financial Statements | Note 1. Basis of Presentation
Biglari Holdings Inc.s (the Company) condensed financial information has been derived from the consolidated financial statements and should be read in conjunction with the consolidated financial statements included in this report on form 10-K.
Prior to July 2013, the consolidated financial statements included the accounts of the Company, its wholly-owned subsidiaries (including Biglari Capital Corp. (Biglari Capital)), and investment related limited partnerships The Lion Fund, L.P. and Western Acquisitions, L.P. (collectively the consolidated affiliated partnerships), in which we had a controlling interest.
In July 2013 the Company liquidated the partners interest in Western Acquisitions, L.P. by distributing assets of the partnership to the partners and Biglari Holdings sold all of the outstanding shares of Biglari Capital to Mr. Biglari. Biglari Capital is the general partner of The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the investment partnerships"), which are limited partnerships that operate as private investment funds.
As a result of the sale of Biglari Capital and the related liquidation of Western Acquisitions, L.P. the Company ceased to have a controlling interest in Biglari Capital and the consolidated affiliated partnerships. Accordingly, Biglari Capital and the consolidated affiliated partnerships are no longer consolidated in the Companys financial statements.
During 2015, the Company contributed cash in exchange for limited partner interests in the investment partnerships. During fiscal years 2014 and 2013, the Company contributed cash and securities in exchange for limited partner interests in the investment partnerships. Prior to the contributions of securities to the investment partnerships the Company accounted for the securities as available-for-sale securities with unrealized gains and losses recorded as a component of shareholders equity in the condensed balance sheet. Our interests in the investment partnerships are accounted for as equity method investments due to our retained limited partner interest. The Company records earnings from investment partnerships in the condensed statement of earnings based on our proportional ownership interest in the investment partnerships total earnings.
Our investments consist of available-for-sale securities and are carried at fair value with net unrealized gains or losses reported as a component of accumulated other comprehensive income in shareholders equity. Realized gains and losses on disposals of investments are determined by specific identification of cost of investments sold and are included in realized investment gains/losses, a component of investment gains.
In each of fiscal years 2014 and 2013, Biglari Holdings completed an offering of transferable subscription rights. The offerings were oversubscribed and 344,261 and 286,767, respectively, new shares of common stock were issued. The Company received net proceeds of $85,873 and $75,595 from the offerings, respectively.
Note 2. Subsidiary Transactions
Dividends During 2015, the Company received cash dividends from subsidiaries of $17,725. The Company received $150 cash dividends from subsidiaries during the 2014 transition period. During fiscal year 2014, the Company received cash dividends from subsidiaries of $52,564. No cash dividends were received during fiscal year 2013.
One of our wholly-owned subsidiaries has a credit facility that imposes restrictions on its ability to transfer funds to the Company through intercompany loans, distributions, or dividends.
Investment in Subsidiaries The Companys investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries.
Note 3. Investments
Investments consisted of the following.
The investments are deemed as available-for-sale securities.
Investment gains/losses are recognized when investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have little, if any, impact on total shareholders equity because the investments are carried at fair value with any unrealized gains/losses included as a component of accumulated other comprehensive income in shareholders equity. We believe that realized investment gains/losses are often meaningless in terms of understanding reported results. Short-term investment gains/losses have caused and may continue to cause significant volatility in our results.
Investment gains were as follows.
The Company did not recognize a gain during 2015, the 2014 or 2013 transition periods, or during fiscal 2014.
The Company recognized a pre-tax gain of $162,869 ($102,607 net of tax) on contributions of $324,751 in securities to investment partnerships for fiscal year 2013. The gain had a material effect on the Companys fiscal 2013 earnings. However, this gain had no impact on total shareholders equity because the investments were carried at fair value prior to the contribution, with the unrealized gains included as a component of accumulated other comprehensive income.
During fiscal year 2013, the Company had unrealized losses on available-for-sale securities in a continuous unrealized loss position for more than twelve consecutive months. Therefore, we recorded an impairment of $570 in fiscal year 2013.
Note 4. Investment Partnerships
The fair value and adjustment for Company common stock held by the investment partnerships to determine carrying value of our partnership interest is presented below.
The Companys proportionate share of Company stock held by investment partnerships at cost is $332,827 and $77,165 at December 31, 2015 and December 31, 2014, respectively, and is recorded as treasury stock.
The carrying value of the partnership interest approximates fair value adjusted by changes in the value of held Company stock. Fair value is according to our proportional ownership interest of the fair value of investments held by the investment partnerships. The fair value measurement is classified as level 3 within the fair value hierarchy. On December 31 of each year, the general partner of the investment partnerships, Biglari Capital, will earn an incentive reallocation fee for the Companys investments equal to 25% of the net profits above an annual hurdle rate of 6%. Our policy is to accrue an estimated incentive fee throughout the year. The total incentive reallocation from Biglari Holdings to Biglari Capital for calendar years 2015 and 2014 was $20 and $24,163, respectively. Our investments in these partnerships are committed on a rolling 5-year basis.
The investments held by the investment partnerships are largely concentrated in the common stock of Cracker Barrel Old Country Store, Inc.
Note 5. Income Taxes
Federal income taxes are paid based on the consolidated results of Biglari Holdings. |
Note 1. Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business | Biglari Holdings Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Companys largest operating subsidiaries are involved in the franchising and operating of restaurants. Biglari Holdings is founded and led by Sardar Biglari, Chairman and Chief Executive Officer of Biglari Holdings and its major operating subsidiaries. The Companys long-term objective is to maximize per-share intrinsic value. All major operating, investment, and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. |
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Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake, Inc. (Steak n Shake) and Western Sizzlin Corporation (Western). The consolidated financial statements also include the accounts of Maxim Inc. (Maxim) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively First Guard) from the dates of their respective acquisitions during 2014. In addition to consolidating wholly-owned entities we consolidate entities if we have a controlling interest in the general partner. Intercompany accounts and transactions have been eliminated in consolidation.
Prior to July 2013, the consolidated financial statements included the accounts of the Company, its wholly-owned subsidiaries (including Biglari Capital Corp. [Biglari Capital]), and investment related limited partnerships The Lion Fund, L.P. and Western Acquisitions, L.P. (collectively the consolidated affiliated partnerships), in which we had a controlling interest.
In July 2013 the Company liquidated the partners interest in Western Acquisitions, L.P. by distributing assets of the partnership to the partners and Biglari Holdings sold all of the outstanding shares of Biglari Capital to Mr. Biglari. Biglari Capital is the general partner of The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the investment partnerships"), which are limited partnerships that operate as private investment funds.
As a result of the sale of Biglari Capital and the related liquidation of Western Acquisitions, L.P. the Company ceased to have a controlling interest in Biglari Capital and the consolidated affiliated partnerships. Accordingly, Biglari Capital and the consolidated affiliated partnerships are no longer consolidated in the Companys consolidated financial statements. |
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Fiscal Year | In 2014, the Companys Board of Directors approved a change in the Companys fiscal year-end moving from the last Wednesday in September to December 31 of each year. This form 10-K includes an audited statement of earnings, statement of comprehensive income, statement of cash flows and statement of shareholders equity for the year ended December 31, 2015, transition period for September 25, 2014 to December 31, 2014 (the 2014 transition period) and fiscal years ended September 24, 2014 and September 25, 2013, and an audited balance sheet as of December 31, 2015 and 2014. Fiscal years 2014 and 2013 each contained 52 weeks. For comparative purposes, an unaudited statement of earnings, statement of comprehensive income and statement of cash flows have been included for September 26, 2013 to December 31, 2013 (the 2013 transition period). The comparative transition period has not been audited and is derived from the books and records of the Company. In the opinion of management, the comparative transition period reflects all adjustments necessary to present the financial position and results of operations in accordance with accounting principles generally accepted in the United States (GAAP). |
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Purchases of Equity Securities |
On April 20, 2015, The Lion Fund, L.P. completed a Rule 10b5-1 Trading Plan purchasing 62,000 shares of the Companys common stock from December 18, 2014 through April 20, 2015. On July 1, 2015, The Lion Fund II, L.P. completed a tender offer for common stock of Biglari Holdings purchasing 616,312 shares of the Companys common stock. On December 17, 2015, The Lion Fund II, L.P. initiated a Rule 10b5-1 Trading Plan thereby purchasing 24,000 shares of the Companys common stock from January 4, 2016 through February 3, 2016. As of February 3, 2016, Mr. Biglaris beneficial ownership of the outstanding common stock was approximately 50.6%. |
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Business Acquisitions | On February 27, 2014 the Company acquired certain assets and liabilities of Maxim. Maxim is a brand management company whose business lies in media, both in print and in digital, and in licensing of products and services. On March 19, 2014, the Company acquired the stock of First Guard, a direct underwriter of commercial trucking insurance, selling physical damage and nontrucking liability insurance to truckers. These acquisitions were not material, individually or in aggregate, to the Company. The fair value of the assets and liabilities acquired other than investments, goodwill and intangibles was not material. |
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Cash and Cash Equivalents | Cash equivalents primarily consist of U.S. Government securities and money market accounts, all of which have original maturities of three months or less. Cash equivalents are carried at fair value. |
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Investments | Our investments consist of available-for-sale securities and held-to-maturity securities. Available-for-sale securities are carried at fair value with net unrealized gains or losses reported as a component of accumulated other comprehensive income in shareholders equity. Held-to-maturity securities are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Realized gains and losses on disposals of investments are determined by specific identification of cost of investments sold and are included in investment gains/losses, a component of other income. |
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Investment Partnerships | Our interests in the investment partnerships are accounted as equity method investments because of our retained limited partner interests. The Company records investment partnership gains (inclusive of the investment partnerships unrealized gains and losses on their securities) as a component of other income based on our proportional ownership interest in the partnerships.
The investment partnerships are for purposes of GAAP, investment companies under the AICPA Audit and Accounting Guide Investment Companies. For periods prior to July 1, 2013, the Company retained the specialized accounting for the consolidated affiliated partnerships, pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946-810-45. |
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Concentration of Equity Price Risk | The majority of our investments are conducted through investment partnerships which generally hold common stocks. We also hold marketable securities directly. Through the investment partnerships we hold a concentrated position in the common stock of Cracker Barrel Old Country Store, Inc. A significant decline in the general stock market or in the prices of major investments may have a materially adverse effect on our earnings and on consolidated shareholders equity. |
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Receivables | Our accounts receivable balance consists primarily of franchisee, customer, and other receivables. We carry our accounts receivable at cost less an allowance for doubtful accounts, which is based on a history of past write-offs and collections and current credit conditions. Allowance for doubtful accounts was $2,378 at December 31, 2015 and $1,608 at December 31, 2014. Amounts charged to expense and deductions from the allowance totaled $1,426 and $662 in 2015. Amounts charged to expense and deductions from the allowance in the 2014 and 2013 transition periods and in fiscal years 2014 and 2013 were insignificant. |
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Inventories | Inventories are valued at the lower of cost (first-in, first-out method) or market, and consist primarily of restaurant food items and supply inventory. |
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Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the assets (10 to 30 years for buildings and land improvements, and 3 to 10 years for equipment). Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the term of the related leases. Interest costs associated with the construction of new restaurants are capitalized. Major improvements are also capitalized while repairs and maintenance are expensed as incurred. We review our long-lived assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For purposes of this assessment, assets are evaluated at the lowest level for which there are identifiable cash flows. If the future undiscounted cash flows of an asset are less than the recorded value, an impairment is recorded for the difference between the carrying value and the estimated fair value of the asset. Refer to Note 3 for information regarding asset impairments. |
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Goodwill and Intangible Assets | Goodwill and indefinite life intangibles are not amortized, but are tested for potential impairment on an annual basis, or more often if events or circumstances change that could cause goodwill or indefinite life intangibles to become impaired. Other purchased intangible assets are amortized over their estimated useful lives, generally on a straight-line basis. We perform reviews for impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying value. When an impairment is identified, we reduce the carrying value of the asset to its estimated fair value. No impairments were recorded on goodwill or indefinite life intangibles during 2015, the 2014 and 2013 transition periods, or during fiscal year 2014. During fiscal year 2013, the Company recorded an impairment related to the trade name of Westerns company-operated stores. Refer to Note 8 for information regarding our goodwill and other intangible assets. |
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Operating Leases | The Company leases certain property under operating leases. Many of these lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense is recognized on a straight-line basis over the expected lease term, including cancellable option periods when failure to exercise such options would result in an economic penalty. In addition, the rent commencement date of the lease term is the earlier due date when we become legally obligated for the rent payments, the date when we take access to the property, or the grounds for build out. |
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Common stock and treasury stock | The Companys common stock is $0.50 stated value. The following table presents shares authorized, issued and outstanding.
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Revenue Recognition | Restaurant operations We record revenue from restaurant sales at the time of sale, net of discounts. Revenue from the sale of gift cards is deferred at the time of sale and recognized either upon redemption by the customer or at expiration of the gift cards. Sales revenues are presented net of sales taxes. Unit franchise fees and area development fees are recorded as revenue when said-related restaurant begins operations. Royalty fees and administrative services fees based on franchise sales are recognized as revenue as earned. License revenue and rental revenues are recognized as revenue when earned.
Restaurant operations revenues were as follows.
Insurance premiums and commissions Insurance premiums are earned over the terms of the related policies. Expenses incurred in connection with acquiring new insurance business, including acquisition costs, are charged to operations as incurred. Premiums earned are stated net of amounts ceded to reinsurer. Commissions, gains and investment income for 2015, the 2014 transition period and fiscal year 2014 were not significant.
Media advertising and other Magazine subscription and advertising revenues are recognized at the magazine cover date. The unearned portion of magazine subscriptions is deferred until the magazines cover date, at which time a proportionate share of the gross subscription price is recognized as revenues, net of any commissions paid to subscription agents. Also included in subscription revenues are revenues generated from single-copy sales of magazines through retail outlets such as newsstands, supermarkets, convenience stores and drugstores and on certain digital devices, which may or may not result in future subscription sales. Revenues from retail outlet sales are recognized based on gross sales less a provision for estimated returns.
Other revenue Other revenue represents realized and unrealized gains/losses on investments held by consolidated affiliated partnerships. Realized gains/losses from the disposal of investments held by consolidated affiliated partnerships are determined by specific identification of cost of investments sold.
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Restaurant cost of sales | Cost of sales includes the cost of food, restaurant operating costs and restaurant rent expense. Cost of sales excludes depreciation and amortization, which is presented as a separate line item on the consolidated statement of earnings. |
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Earnings Per Share | Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. In fiscal years 2014 and 2013, Biglari Holdings completed offerings of transferable subscription rights. The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively. The Company received net proceeds of $85,873 and $75,595 from the offerings, respectively. Earnings per share for the 2013 transition period and fiscal year 2013 have been retroactively restated to account for the rights offerings.
For periods after July 1, 2013, the shares of Company stock attributable to our limited partner interest in the investment partnerships based on our proportional ownership during this period are considered treasury stock on the consolidated balance sheet and thereby deemed not to be included in the calculation of weighted average common shares outstanding. However, these shares are legally outstanding.
For financial reporting purposes during periods before July 1, 2013, all common shares of the Company held by the consolidated affiliated partnerships including those attributable to the unrelated limited partners were recorded in treasury stock on the consolidated balance sheet. In order to compute the weighted average common shares outstanding, only the shares of treasury stock attributable to the unrelated limited partners of the consolidated affiliated partnerships based on their proportional ownership during the period were deemed outstanding shares.
The following table presents a reconciliation of basic and diluted weighted average common shares.
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Marketing Expense | Advertising costs are charged to expense at the later of the date the expenditure is incurred or the date the promotional item is first communicated. Marketing expense is included in selling, general and administrative expenses on the consolidated statement of earnings. |
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Insurance Losses | Liabilities for losses and loss adjustment expenses are established under insurance contracts issued by our insurance subsidiaries. These losses and loss adjustment expenses include an amount for reported losses and an amount for losses incurred but not reported. Reserves for incurred but not reported losses are estimates based upon past experience. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance contracts. Liabilities for insurance losses of $2,796 and $779 are included in accrued expenses in the consolidated balance sheet as of December 31, 2015 and December 31, 2014, respectively. |
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Insurance Reserves | We self-insure a significant portion of expected losses under our workers compensation, general liability, auto, directors and officers and medical liability insurance programs, and record a reserve for our estimated losses on all unresolved open claims and our estimated incurred but not reported claims at the anticipated cost to us. Insurance reserves are recorded in accrued expenses in the consolidated balance sheet. |
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Savings Plans | Several of our subsidiaries also sponsor deferred compensation and defined contribution retirement plans, such as 401(k) or profit sharing plans. Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Some of the plans allow for discretionary contributions as determined by management. Employer contributions expensed with respect to these plans were not material. |
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Use of Estimates | Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from the estimates. |
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New Accounting Standards | In November 2015, the FASB issued Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent deferred tax asset or liability. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted. The Company does not believe the adoption of ASU 2015-17 will have a material effect on its consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2015-03 will have a material effect on its consolidated financial statements.
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidations Analysis. The amendments in this update provide guidance under GAAP about limited partnerships, which will be variable interest entities, unless the limited partners have either substantive kick-out rights or participation rights. It also changes the effect that fees paid to a decision maker or service provider have on consolidation analysis and amends how variable interests held by related parties affect the consolidation conclusion. The amendments in this update are effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures.
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern. The amendments in this update provide guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this update are effective for the annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effect, if any, on its consolidated financial statements.
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and in August 2015 issued ASU No. 2015-14, which amended ASU No. 2014-09 as to its effective date. This update, as amended, provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The update allows companies to use either a full retrospective or a modified retrospective approach upon adoption and is effective for annual periods beginning after December 15, 2017 and interim periods therein, which will require us to adopt these provisions in the first quarter of 2018. Early adoption is permitted. We are evaluating which transition approach to use and the effect this guidance will have on our consolidated financial statements and related disclosures.
In April 2014, the FASB issued ASU 2014-08, Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides a narrower definition of discontinued operations than under existing GAAP. ASU 2014-08 requires that only disposals of components of an entity (or groups of components) that represent a strategic shift that have or will have a major effect on the reporting entitys operations are reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. ASU 2014-08 is effective prospectively for disposals (or classifications of held-for-sale) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. The adoption of ASU 2014-08 did not have a material effect on the Companys consolidated financial statements. |
Note 1. Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Treasury Stock |
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Summary of restaurant operations revenues |
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Schedule of Weighted Average Number of Shares |
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Note 4. Investments (Tables) |
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Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of Investments |
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Schedule of investment gains/losses |
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Note 5. Investment Partnerships (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 5. Investment Partnerships Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value and carrying value of our partnership interest |
The fair value and adjustment for Company common stock held by the investment partnerships to determine carrying value of our partnership interest is presented below.
The carrying value of the investment partnerships net of deferred taxes is presented below.
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Incentive reallocation |
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Tabular disclosure of realized and unrealized gains and losses on investments of consolidated affiliated partnerships reported in the statement of income. |
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Summarized financial information for Equity in Investment Partnerships |
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Net unrealized and realized gains/losses from investments held by consolidated affiliated partnerships |
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Tabular disclosure of redeemable noncontrolling interests of consolidated affiliated partnerships reported in the balance sheet. |
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Note 6. Other Current Assets (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Note 6. Other Current Assets Tables | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other current assets |
|
Note 7. Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment |
|
Note 8. Goodwill and Other Intangibles (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill |
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Schedule Of Definite and Indefinite Lived Intangible Assets |
|
Note 10. Accrued Expenses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses |
|
Note 11. Other Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Note 11. Other Liabilities Tables | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Liabilities |
|
Note 12. Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense |
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Schedule of Effective Income Tax Rate Reconciliation |
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Schedule of Unrecognized Tax Benefits |
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Schedule of Deferred Tax Assets and Liabilities |
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Note 13. Notes Payable and Other Borrowings (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13. Notes Payable And Other Borrowings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of notes payable and other borrowings |
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Expected Principle Payment |
|
Note 14. Leased Assets and Lease Commitments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 14. Leased Assets And Lease Commitments Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of minimum future payment |
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Schedule of rent expense |
|
Note 16. Common Stock Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Options Activity |
|
Note 18. Fair Value of Financial Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Fair Value Assets And Liabilities |
|
Note 19. Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Component of accumulated other comprehensive income |
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Reclassifications from accumulated other comprehensive income (loss) |
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Note 20. Business Segment Reporting (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Net Revenue by Segment |
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Schedule of reconciliation of segments earnings to consolidated |
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Schedule of consolidated capital expenditure, depreciation, and amortization captions |
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Reconciliation of Assets from Segment to Consolidated |
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Note 21. Quarterly Financial Data (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Note 1. Summary of Significant Accounting Policies (Details 1) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 24, 2014 |
Sep. 25, 2013 |
---|---|---|---|---|
Common stock authorized | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 |
Common stock issued | 2,142,202 | 2,142,202 | 2,142,202 | 1,797,941 |
Treasury stock held by the Company | (75,511) | (76,616) | (76,636) | (77,159) |
Outstanding shares | 2,066,691 | 2,065,586 | 2,065,566 | 1,720,782 |
Proportional ownership of the Company's common stock in the investment partnerships | $ (807,069) | $ (197,533) | $ (187,109) | $ (132,406) |
Net outstanding shares for financial reporting purposes | 1,259,622 | 1,868,053 | 1,878,457 | 1,588,376 |
Note 1. Summary of restaurant operations revenues (Details) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Net sales | $ 210,256 | $ 200,407 | $ 799,660 | $ 759,889 | $ 736,968 |
Franchise royalties and fees | 4,076 | 3,177 | 16,428 | 15,032 | 11,741 |
Other | 1,316 | 858 | 3,650 | 3,234 | 3,210 |
Total revenue from restaurant operations | $ 215,648 | $ 204,442 | $ 819,738 | $ 778,155 | $ 751,919 |
Note 1. Schedule of Earnings Per Share Reconciliation (Details) - Consolidated - shares |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Basic earnings per share: | |||||
Weighted average common shares, basic | 1,877,723 | 1,714,727 | 1,556,039 | 1,709,621 | 1,543,370 |
Diluted earnings per share: | |||||
Weighted average common shares, diluted | 1,877,723 | 1,714,727 | 1,556,039 | 1,709,621 | 1,543,370 |
Dilutive effect of stock awards | 1,691 | 3,534 | 0 | 3,154 | 3,295 |
Weighted average common and incremental shares | 1,879,414 | 1,718,261 | 1,556,039 | 1,712,775 | 1,546,665 |
Number of share - based awards excluded from the calculation of earnings per share as the awards' exercise prices were greater than the average market price of the Company's common stock, or because they were anti-dilutive due to the Company's net loss in 2015 | 2,637 | 0 | 5,218 | 0 | 705 |
Note 3. Impairment and Restaurant Closings (Details Narrative) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Asset impairments and provision for restaurant closings | $ 0 | $ 41 | $ 51 | $ 1,433 | $ 1,666 |
Restaurant closing costs | $ 72 |
Note 4. Schedule of fair value of Investments (Details) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
|
Cost | $ 11,056 | $ 24,842 |
Gross unrealized gains | 11 | 10 |
Gross unrealized losses | (267) | (1,102) |
Fair value | $ 10,800 | $ 23,750 |
Note 4. Schedule of investment gains/losses (Details) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Gain on contributions to investment partnerships | $ 29,524 | $ 182,746 | |||
Gross realized gains on sales | 0 | 1 | |||
Other than temporary impairment | 0 | (570) | |||
Investment gains (including contributions) | $ 0 | $ 0 | $ 0 | $ 29,524 | $ 182,177 |
Note 4. Investments (Details Narrative) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Consolidated | ||
Pretax gain on contributions to investment partnerships | $ 29,524 | $ 182,746 |
Note 5. Carrying value of partnership interest (Details 1) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Carrying value of investment partnerships | $ 471,689 | $ 697,982 |
Deferred tax liability related to investment partnerships | (115,952) | (141,836) |
Carrying value of investment partnerships net of deferred taxes | $ 355,737 | $ 556,146 |
Note 5. Partnership interest gain/loss (Details 2) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Investment partnership gains (losses) | $ 144,702 | $ 23,493 | $ (39,356) | $ 14,055 | $ 20,068 |
Tax expense | 53,511 | 7,977 | (21,188) | 1,739 | 6,772 |
Contribution to net earnings | $ 91,191 | $ 15,516 | $ (18,168) | $ 12,316 | $ 13,296 |
Note 5. Incentive reallocations (Details 3) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Note 5. Incentive Reallocations Details 3 | |||
Incentive reallocation on investments other than Company common stock | $ 0 | $ 34,406 | $ 11,047 |
Incentive reallocation on gains of Company common stock | 23 | 0 | 3,655 |
Total incentive reallocation from Biglari Holdings to Biglari Capital | $ 23 | $ 34,406 | $ 14,702 |
Note 5. Summarized financial information for Equity in Investment Partnerships (Details 4) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Sep. 30, 2013 |
|
Lion Fund | ||||
Current and Total Assets | $ 165,996 | $ 187,078 | $ 154,561 | $ 126,121 |
Current and Total Liabilities | 409 | 8,658 | 58 | 83 |
Revenue for the period | (24,101) | 24,082 | (12,860) | 9,200 |
Earnings for the period | $ (24,247) | $ 24,037 | $ (12,950) | $ 9,170 |
Biglari Holding's Ownership Interest | 60.90% | 61.60% | 61.60% | 52.10% |
Lion Fund II | ||||
Current and Total Assets | $ 819,323 | $ 719,344 | $ 548,923 | $ 408,883 |
Current and Total Liabilities | 141,274 | 44 | 25 | 11 |
Revenue for the period | (100,357) | 182,923 | 19,832 | 25,109 |
Earnings for the period | $ (103,096) | $ 182,902 | $ 19,789 | $ 25,098 |
Biglari Holding's Ownership Interest | 93.50% | 92.70% | 95.80% | 96.30% |
Note 5. Schedule of gain/losses on affiliated partnership (Details 5) - Consolidated $ in Thousands |
12 Months Ended |
---|---|
Sep. 25, 2013
USD ($)
| |
Schedule of gain/losses on affiliated partnership | |
Gross unrealized gains | $ 3,746 |
Gross unrealized losses | (410) |
Net realized gains from sale | 261 |
Other Income | 306 |
Total unrealized and realized gains/losses from Consolidated Affiliated Partnerships | $ 3,903 |
Note 5. Schedule of redeemable noncontrolling interest (Details 6) $ in Thousands |
12 Months Ended |
---|---|
Sep. 25, 2013
USD ($)
| |
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value | $ 4,810 |
Consolidated | |
Carrying value at beginning of period | 52,088 |
Contributions from noncontrolling interests | 1,076 |
Distributions to noncontrolling interests | (2,302) |
Incentive fee | (21) |
Income allocation | 1,922 |
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value | 4,810 |
Adjustment to reflect deconsolidation of affiliated partnerships | (57,573) |
Carrying value at end of period | $ 0 |
Note 6. Schedule of Other Current Assets (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Prepaid contractual obligations | $ 4,819 | $ 5,194 |
Deferred commissions on gift cards sold by third parties | 3,124 | 2,513 |
Other current assets | $ 7,943 | $ 7,707 |
Note 7. Schedule of Property, Plant and Equipment (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Land | $ 160,697 | $ 162,731 |
Buildings | 156,909 | 159,799 |
Land and leasehold improvements | 165,042 | 162,887 |
Equipment | 199,934 | 221,880 |
Construction in progress | 3,478 | 5,307 |
Property and equipment, gross | 686,060 | 712,604 |
Less accumulated depreciation and amortization | (353,736) | (358,729) |
Property and equipment, net | $ 332,324 | $ 353,875 |
Note 7. Property and Equipment (Details Narrative) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Consolidated | |||||
Depreciation and amortization expense | $ 6,380 | $ 6,105 | $ 24,113 | $ 23,112 | $ 23,422 |
Note 8. Schedule of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Consolidated | ||||
Balance at beginning of year | $ 40,164 | $ 40,164 | $ 28,521 | $ 27,529 |
Acquisition during year | 0 | (142) | 11,913 | 722 |
Balance at end of year | 40,164 | 40,022 | 40,164 | 28,521 |
Restaurant | ||||
Balance at beginning of year | 28,521 | 28,521 | 28,521 | 27,529 |
Acquisition during year | 0 | (142) | 0 | 722 |
Balance at end of year | 28,521 | 28,109 | 28,521 | 28,521 |
Other | ||||
Balance at beginning of year | 11,913 | 11,913 | 0 | 0 |
Acquisition during year | 0 | 0 | 11,913 | 0 |
Balance at end of year | $ 11,913 | $ 11,913 | $ 11,913 | $ 0 |
Note 8. Schedule Of Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Consolidated | ||
Gross carrying amount | $ 25,394 | $ 27,383 |
Accumulated amortization | (3,721) | (4,627) |
Total intangible assets | 21,673 | 22,756 |
Franchise Agreement | ||
Gross carrying amount | 5,310 | 5,310 |
Accumulated amortization | (3,054) | (2,523) |
Total intangible assets | 2,256 | 2,787 |
Right to Operate | ||
Gross carrying amount | 0 | 1,480 |
Accumulated amortization | 0 | (1,480) |
Total intangible assets | 0 | 0 |
Other | ||
Gross carrying amount | 810 | 810 |
Accumulated amortization | (667) | (624) |
Total intangible assets | 143 | 186 |
Finite Lived Intangible Assets | ||
Gross carrying amount | 6,120 | 7,600 |
Accumulated amortization | (3,721) | (4,627) |
Total intangible assets | 2,399 | 2,973 |
Trade Names | ||
Gross carrying amount | 15,876 | 15,876 |
Accumulated amortization | 0 | 0 |
Total intangible assets | 15,876 | 15,876 |
Other Assets With Indefinite Lives | ||
Gross carrying amount | 3,398 | 3,907 |
Accumulated amortization | 0 | 0 |
Total intangible assets | $ 3,398 | $ 3,907 |
Note 8. Goodwill and Other Intangibles (Details Narrative) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Consolidated | |||||
Amortization expense | $ 151 | $ 169 | $ 574 | $ 690 | $ 690 |
Note 10. Schedule of Accrued Expenses (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Salaries, wages, and vacation | $ 13,584 | $ 11,409 |
Taxes payable | 12,413 | 13,298 |
Gift card liability | 22,358 | 16,068 |
Deferred revenue | 8,514 | 7,934 |
Workers' compensation and other self insurance accruals | 8,485 | 9,787 |
Other | 9,075 | 6,980 |
Total accrued expenses | $ 74,429 | $ 65,476 |
Note 11. Other Liabilities (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred rent expense | $ 6,658 | $ 6,450 |
Other | 4,253 | 4,676 |
Other liabilities | $ 10,911 | $ 11,126 |
Note 12. Schedule of Components of Income Tax Expense (Details) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Current: | |||||
Federal | $ 752 | $ 2,352 | $ 2,866 | $ 571 | $ 506 |
State | 889 | 475 | 2,022 | 477 | 1,748 |
Deferred | 52,909 | 6,623 | (26,476) | 9,164 | 72,035 |
Total income taxes | 54,550 | 9,450 | (21,588) | 10,212 | 74,289 |
Reconciliation of effective income tax: | |||||
Tax at U.S. statutory rates (35%) | 50,960 | 9,940 | (13,100) | 13,656 | 75,762 |
State income taxes, net of federal benefit | 4,186 | 840 | (1,973) | 1,369 | 5,043 |
Federal income tax credits | (995) | (960) | (4,837) | (4,298) | (4,249) |
Tax attributed to noncontrolling interests | 0 | 0 | 0 | 0 | (666) |
Dividends received deduction | (341) | (880) | (6,142) | (3,650) | (2,647) |
Valuation allowance | 499 | 180 | 919 | 985 | 0 |
Foreign tax rate differences | 606 | 371 | 3,180 | 1,993 | 0 |
Other | (365) | (41) | 365 | 157 | 1,046 |
Total income taxes | $ 54,550 | $ 9,450 | $ (21,588) | $ 10,212 | $ 74,289 |
Note 12. Schedule of Unrecognized Tax Benefits (Details) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Unrecognized tax benefits, Beginning | $ 383 | $ 387 | $ 703 | $ 746 |
Gross increases - current period tax positions | 4 | 179 | 37 | 25 |
Gross increases (decreases) - prior period tax positions | 0 | 9 | (1) | (6) |
Lapse of statute of limitations | 0 | (197) | (356) | (62) |
Unrecognized tax benefits, Ending | $ 387 | $ 378 | $ 383 | $ 703 |
Note 12. Schedule of Deferred Tax Assets and Liabilities (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Insurance reserves | $ 2,878 | $ 3,394 |
Compensation accruals | 1,610 | 1,321 |
Gift card accruals | 2,981 | 790 |
Net operating loss credit carryforward | 3,444 | 2,525 |
Valuation allowance on net operating losses | (3,384) | (2,465) |
Income tax credit carryforward | 4,344 | 3,914 |
Other | 1,642 | 3,085 |
Total deferred tax assets | 13,515 | 12,564 |
Deferred tax liabilities: | ||
Investments | 115,545 | 141,713 |
Fixed asset basis difference | 6,311 | 4,621 |
Goodwill and intangibles | 3,526 | 4,943 |
Total deferred tax liabilities | 125,382 | 151,277 |
Net deferred tax liability | (111,867) | (138,713) |
Less current portion | 13,263 | 12,019 |
Long-term liability | $ (125,130) | $ (150,732) |
Note 12. Income Taxes (Details Narrative) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
Sep. 26, 2012 |
|
Income taxes paid | $ 22 | $ 2,063 | $ 4,829 | $ 1,518 | |
Income tax refunds | 16 | 17 | 52 | ||
Unrecognized tax benefits | 387 | 378 | 383 | 703 | $ 746 |
Income tax receivables | $ 3,439 | $ 559 | $ 5,050 | $ 1,662 |
Note 13. Notes Payable and Other Borrowings (Details) - Consolidated - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Notes payable - current | $ 2,200 | $ 2,200 |
Unamortized original issue discount | (296) | (287) |
Obligations under leases - current | 5,787 | 6,422 |
Western revolver | 786 | 980 |
Total current portion of notes payable and other borrowings | 8,477 | 9,315 |
Notes payable - long term | 210,175 | 216,150 |
Unamortized original issue discount | (1,403) | (1,694) |
Obligations under leases - long term | 90,178 | 98,139 |
Total long-term notes payable and other borrowings | $ 298,950 | $ 312,595 |
Note 13. Notes Payable and Other Borrowings (Details 1) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Note 13. Notes Payable And Other Borrowings Details 1 | |
2016 | $ 2,986 |
2017 | 2,200 |
2018 | 2,200 |
2019 | 2,200 |
2020 | 2,200 |
2021 | 201,375 |
Total | $ 213,161 |
Note 14. Schedule of minimum future payment (Details 2) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Operating Property | |
2016 | $ 16,323 |
2017 | 14,686 |
2018 | 13,912 |
2019 | 12,554 |
2020 | 11,439 |
After 2020 | 50,986 |
Total minimum future rental payments | 119,900 |
Non-Operating Property | |
2016 | 670 |
2017 | 753 |
2018 | 861 |
2019 | 898 |
2020 | 969 |
After 2020 | 6,954 |
Total minimum future rental payments | $ 11,105 |
Note 14. Schedule of rent expense (Details 3) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Minimum rent | $ 5,069 | $ 4,706 | $ 18,476 | $ 18,322 | $ 17,097 |
Contingent rent | 356 | 295 | 2,022 | 1,549 | 1,356 |
Rent expense | $ 5,425 | $ 5,001 | $ 20,498 | $ 19,871 | $ 18,453 |
Note 14. Leased Assets and Lease Commitments (Details Narrative) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Consolidated | |
Capital Leased assets - accumulated depreciation | $ 72,474 |
Building | |
Capital Leased assets - gross | 69,919 |
Land | |
Capital Leased assets - gross | 59,678 |
Land and leasehold improvements | |
Capital Leased assets - gross | 28,157 |
Equipment | |
Capital Leased assets - gross | $ 2,312 |
Note 15. Related Party Transactions (Details Narrative) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Proceeds from sale of Biglari Capital | $ 1,700 | ||||
Gain on sale of Biglari Capital Corp | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,597 |
Note 16. Common Stock Plans (Details Narrative) |
12 Months Ended |
---|---|
Dec. 31, 2015
shares
| |
Note 16. Common Stock Plans Details Narrative | |
Number of shares vested under 2008 Plan | 11,660 |
Note 18. Fair Value of Financial Assets and Liabilities (Details Narrative) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Impairments on long-lived assets | $ 0 | $ 41 | $ 51 | $ 1,433 | $ 1,666 |
Impairment of intangible asset | $ 1,244 |
Note 19. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Beginning Balance | $ (522) | $ (783) | $ 21,457 | $ 43,897 |
Other comprehensive income (loss) before reclassifications | (261) | (2,937) | (3,638) | 92,206 |
Reclassification to (earnings) loss | 0 | 41 | (18,341) | (114,646) |
Ending Balance | (783) | (3,679) | (522) | 21,457 |
Foreign Currency Translation Adjustments | ||||
Beginning Balance | (574) | (620) | 8 | 0 |
Other comprehensive income (loss) before reclassifications | (46) | (2,372) | (582) | 8 |
Reclassification to (earnings) loss | 0 | 0 | 0 | 0 |
Ending Balance | (620) | (2,992) | (574) | 8 |
Investment Gain | ||||
Beginning Balance | 52 | (163) | 21,449 | 43,897 |
Other comprehensive income (loss) before reclassifications | (215) | (565) | (3,056) | 92,198 |
Reclassification to (earnings) loss | 0 | 41 | (18,341) | (114,646) |
Ending Balance | $ (163) | $ (687) | $ 52 | $ 21,449 |
Note 19. Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Reclassifications from Accumulated Other Comprehensive Income (Loss) | $ 0 | $ (41) | $ 18,341 | $ 114,646 |
Investment gains (including contributions) | ||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 29,524 | 182,286 |
Insurance Premiums and Other | ||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | 0 | (62) | 54 | 0 |
Income Tax Expense | ||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | $ 0 | $ (21) | $ 11,237 | $ 67,640 |
Note 20. Schedule Of Net Revenue by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 24, 2014 |
[1] | Jun. 24, 2014 |
[1],[2] | Mar. 25, 2014 |
[1] | Dec. 31, 2013 |
Dec. 26, 2013 |
[1] | Sep. 25, 2013 |
[1],[2] | Jun. 25, 2013 |
[1],[2] | Mar. 26, 2013 |
[1] | Dec. 27, 2012 |
[1] | Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|||||
Net Revenue | $ 215,225 | $ 218,443 | $ 221,956 | $ 205,828 | $ 193,669 | $ 193,229 | $ 234,574 | $ 172,339 | $ 179,499 | $ 184,602 | $ 225,210 | $ 166,511 | |||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||
Net Revenue | $ 224,450 | $ 204,442 | $ 861,429 | $ 793,811 | $ 755,822 | ||||||||||||||||||||||||
Operating Businesses | |||||||||||||||||||||||||||||
Net Revenue | 224,450 | 204,442 | 861,452 | 793,811 | 751,919 | ||||||||||||||||||||||||
Operating Businesses | Restaurant | |||||||||||||||||||||||||||||
Net Revenue | 215,648 | 204,442 | 819,738 | 778,155 | 751,919 | ||||||||||||||||||||||||
Operating Businesses | First Guard | |||||||||||||||||||||||||||||
Net Revenue | 3,574 | 0 | 17,232 | 5,715 | 0 | ||||||||||||||||||||||||
Operating Businesses | Maxim | |||||||||||||||||||||||||||||
Net Revenue | 5,228 | 0 | 24,482 | 9,941 | 0 | ||||||||||||||||||||||||
Operating Businesses | Other | |||||||||||||||||||||||||||||
Net Revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 3,903 | ||||||||||||||||||||||||
|
Note 20. Schedule of consolidated capital expenditure, depreciation and amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Operating Businesses | |||||
Capital Expenditures | $ 8,807 | $ 5,283 | $ 11,081 | $ 33,663 | $ 12,636 |
Depreciation and Amortization | 6,758 | 6,468 | 24,480 | 24,592 | 24,923 |
Restaurant Operations - SteakNShake | |||||
Capital Expenditures | 8,733 | 4,997 | 8,434 | 25,398 | 6,337 |
Depreciation and Amortization | 6,289 | 6,274 | 23,045 | 23,402 | 24,230 |
Restaurant Operations - Western | |||||
Capital Expenditures | 0 | 11 | 43 | 1,113 | 64 |
Depreciation and Amortization | 172 | 160 | 691 | 662 | 693 |
Restaurant | |||||
Capital Expenditures | 8,733 | 5,008 | 8,477 | 26,511 | 6,401 |
Depreciation and Amortization | 6,461 | 6,434 | 23,736 | 24,064 | 24,923 |
First Guard | |||||
Capital Expenditures | 10 | 0 | 102 | 0 | 0 |
Depreciation and Amortization | 30 | 0 | 36 | 38 | 0 |
Maxim | |||||
Capital Expenditures | 57 | 0 | 16 | 312 | 0 |
Depreciation and Amortization | 151 | 0 | 296 | 211 | 0 |
Other | |||||
Capital Expenditures | 7 | 275 | 2,486 | 6,840 | 6,235 |
Depreciation and Amortization | 116 | 34 | 412 | 279 | 0 |
Consolidated | |||||
Capital Expenditures | 8,816 | 5,283 | 11,083 | 35,812 | 14,167 |
Depreciation and Amortization | 6,828 | 6,566 | 24,780 | 24,905 | 25,250 |
Corporate | |||||
Capital Expenditures | 9 | 0 | 2 | 2,149 | 1,531 |
Depreciation and Amortization | $ 70 | $ 98 | $ 300 | $ 313 | $ 327 |
Note 20. Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Consolidated | ||
Identifiable Assets | $ 1,003,918 | $ 1,314,791 |
Other | ||
Identifiable Assets | 23,587 | 22,518 |
Corporate | ||
Identifiable Assets | 15,934 | 91,660 |
Restaurant Operations - SteakNShake | ||
Identifiable Assets | 409,505 | 422,784 |
Western | ||
Identifiable Assets | 17,626 | 19,241 |
Restaurant | ||
Identifiable Assets | 427,131 | 442,025 |
First Guard | ||
Identifiable Assets | 41,159 | 36,847 |
Maxim | ||
Identifiable Assets | 24,418 | 23,759 |
Investment Partnerships | ||
Identifiable Assets | $ 471,689 | $ 697,982 |
Note 21. Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 24, 2014 |
Jun. 24, 2014 |
Mar. 25, 2014 |
Dec. 26, 2013 |
Sep. 25, 2013 |
Jun. 25, 2013 |
Mar. 26, 2013 |
Dec. 27, 2012 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ 215,225 | $ 218,443 | $ 221,956 | $ 205,828 | $ 193,669 | [1] | $ 193,229 | [1],[2] | $ 234,574 | [1] | $ 172,339 | [1] | $ 179,499 | [1],[2] | $ 184,602 | [1],[2] | $ 225,210 | [1] | $ 166,511 | [1] | |||||||||||||||||||
Gross profit | [3] | 46,199 | 46,791 | 51,208 | 38,686 | 37,359 | 39,724 | 52,191 | 38,377 | 41,541 | 43,476 | 50,189 | 37,613 | ||||||||||||||||||||||||||
Costs and expenses | 209,366 | 209,493 | 213,172 | 206,144 | 196,512 | 190,429 | 224,753 | 167,843 | 177,164 | 178,137 | 220,606 | 159,181 | |||||||||||||||||||||||||||
Earnings (loss) before income taxes | (61,477) | 9,050 | (2,177) | 17,173 | 13,048 | 13,367 | (12,263) | 24,864 | 39,277 | 169,834 | 1,420 | 5,930 | |||||||||||||||||||||||||||
Net earnings (loss) attributable to Biglari Holdings Inc. | $ (35,150) | [4] | $ 9,298 | [4] | $ 26 | [4] | $ 9,983 | [4] | $ 91,050 | $ 8,522 | [4] | $ 9,594 | [4] | $ (5,803) | [4] | $ 16,491 | [4] | $ 26,825 | [4] | $ 106,704 | [4] | $ 2,180 | [4] | $ 4,562 | [4] | $ (15,843) | $ 28,804 | $ 140,271 | |||||||||||
Basic earnings (loss) per common share | [5] | $ (27.88) | $ 7.36 | $ 0.01 | $ 5.36 | $ 4.96 | $ 5.67 | $ (3.39) | $ 9.62 | $ 17.46 | $ 69.08 | $ 1.41 | $ 2.94 | ||||||||||||||||||||||||||
Diluted earnings (loss) per common share | [5] | $ (27.88) | $ 7.35 | $ 0.01 | $ 5.36 | $ 4.95 | $ 5.66 | $ (3.39) | $ 9.60 | $ 17.43 | $ 68.92 | $ 1.40 | $ 2.94 | ||||||||||||||||||||||||||
|
Note 22. Supplemental Disclosures of Cash Flow Information (Details Narrative) - Consolidated - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 24, 2014 |
Sep. 25, 2013 |
|
Lease obligations | $ 0 | $ 0 | $ 0 | $ 2,311 | |
Lease retirements | $ 0 | 0 | |||
Capital expenditures in Accounts payable | $ 981 | $ 409 | $ 537 | $ 2,269 | $ 1,043 |
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