Business Segment Reporting

3 Months Ended

Dec. 21, 2011

Notes to Financial Statements

Business Segment Reporting

18. Business Segment Reporting

Net revenue and earnings before income taxes and noncontrolling interests for the twelve weeks ended December 21, 2011 and December 22, 2010 were as follows:

	Net Revenue
	2011		2010
Operating Business:
Restaurant Operations:
Steak n Shake	$          160,492		$          151,896
Western	3,698		3,719
Total Restaurant Operations	164,190		155,615
Investment Management:
Management fees		—		110
Consolidated affiliated partnerships	2,200		2,997
Total Investment Management Operations	2,200		3,107
	$          166,390		$          158,722

The earnings presentation was adjusted from the prior year to show interest expense, excluding interest allocated to operating businesses, as a reconciliation of segments to consolidated amounts in order to more accurately reflect the earnings before and after tax of the restaurant operations.

	Earnings before income taxes and noncontrolling interests						Net earnings attributable to Biglari Holdings Inc.
	2011			2010			2011		2010
Operating Business:
Restaurant Operations:
Steak n Shake	$        13,649			$          9,556			$         8,959		$          6,589
Western	391			423			241		257
Total Restaurant Operations	14,040			9,979			9,200		6,846
Investment Management:
Biglari Capital Corp. (Incentive Fee)		36			2,510		22		1,535
Management fees		—			110		—		68
Consolidated affiliated partnerships	2,098			1,791			276		(81	)
Total Investment Management Operations	2,134			4,411			298		1,522
Corporate and Other:
Corporate and other	(3,125		)	(1,262		)	(1,782	)	(818	)
Investment and derivative gains/losses	3,595			3,053			2,229		1,923
Total Corporate and Other	470			1,791			447		1,105
Reconciliation of segments to consolidated amount:
Eliminations	(36		)	(2,510		)	—		340
Interest expense, excluding interest allocated to operating businesses	(1,855		)	(565		)	(1,150	)	(350	)
	$        14,753			$        13,106			$        8,795		$         9,463

Biglari Capital, the general partner of the Lion Fund, earned a $36 incentive reallocation fee at December 31, 2011. At December 31, 2010, Biglari Capital earned a $5,199 incentive reallocation fee; however, $2,689 was eliminated, for that amount represents the Company’s fee as a limited partner, which was uncharged because the Company owns the general partner. The remaining $2,510 is an incentive fee that was charged and reallocated from outside limited partners of the Lion Fund. The incentive fee is assessed only once a year, on December 31, and no predictability of such earnings exists because the Lion Fund annual performance is unpredictable.