Biglari (BH) 10-Q 2 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Entity Registrant Name	Biglari Holdings Inc.
Entity Central Index Key	0001726173
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Class A Common Stock
Entity Common Stock, Shares Outstanding		206,864
Class B Common Stock
Entity Common Stock, Shares Outstanding		2,068,640

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 27,662	$ 48,557
Investments	41,476	33,860
Receivables	8,833	15,743
Inventories	5,166	7,537
Other current assets	4,610	9,236
Total current assets	87,747	114,933
Property and equipment	296,694	274,716
Operating lease assets	66,372	0
Goodwill and other intangible assets	67,820	68,166
Investment partnerships	622,066	557,480
Other assets	13,970	14,198
Total assets	1,154,669	1,029,493
Current liabilities:
Accounts payable and accrued expenses	130,442	117,265
Current portion of operating lease liabilities	11,918	0
Current portion of notes payable and other borrowings	6,924	5,720
Total current liabilities	149,284	122,985
Long-term notes payable and other borrowings	265,809	240,001
Operating lease liabilities	60,354	0
Deferred taxes	74,952	86,871
Other liabilities	1,908	9,181
Total liabilities	552,307	459,038
Shareholders' equity
Common stock	1,138	1,138
Additional paid-in capital	381,904	381,904
Retained earnings	597,451	564,160
Accumulated other comprehensive loss	(2,624)	(2,516)
Treasury stock, at cost	(375,507)	(374,231)
Biglari Holdings Inc. shareholders' equity	602,362	570,455
Total liabilities and shareholders' equity	$ 1,154,669	$ 1,029,493

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Restaurant operations		$ 160,061	$ 200,594	$ 333,836	$ 394,528
Insurance premiums and other		7,417	6,745	14,624	13,292
Media advertising and other		865	1,400	1,742	3,144
Total revenues		168,343	208,739	350,202	410,964
Cost and expenses
Restaurant cost of sales		131,750	160,559	284,199	318,909
Insurance losses and underwriting expenses		5,498	4,473	11,158	10,401
Media cost of sales		641	980	1,589	2,497
Selling, general and administrative		26,423	32,950	61,279	65,600
Depreciation and amortization		5,206	4,816	10,677	9,762
Total cost and expenses		169,518	203,778	368,902	407,169
Other income (expenses)
Interest expense		(3,150)	(2,898)	(6,208)	(5,652)
Interest on finance leases and obligations		(2,003)	(2,151)	(4,012)	(4,337)
Investment partnership gains (losses)		34,198	(8,341)	68,352	(4,846)
Total other income (expenses)		29,045	(13,390)	58,132	(14,835)
Earnings (loss) before income taxes		27,870	(8,429)	39,432	(11,040)
Income tax expense (benefit)		5,896	(890)	7,640	(1,687)
Net earnings (loss)		$ 21,974	$ (7,539)	$ 31,792	$ (9,353)
Earnings per share
Net earnings (loss) per equivalent Class A share	[1]	$ 63.50	$ (21.73)	$ 91.85	$ (26.76)
[1]	Net earnings (loss) per equivalent Class B share outstanding is one-fifth of the equivalent Class A share or $12.70 and $18.37 for the second quarter and first six months of 2019, respectively, and $(4.35) and $(5.35) for the second quarter and first six months of 2018, respectively.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements Of Comprehensive Income
Net earnings (loss)	$ 21,974	$ (7,539)	$ 31,792	$ (9,353)
Other comprehensive income:
Reclassification to earnings	0	0	0	(73)
Applicable income taxes	0	0	0	15
Foreign currency translation	196	(1,141)	(108)	(645)
Other comprehensive income (loss), net	196	(1,141)	(108)	(703)
Total comprehensive income (loss)	$ 22,170	$ (8,680)	$ 31,684	$ (10,056)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities
Net earnings (loss)	$ 31,792	$ (9,353)
Adjustments to reconcile net earnings (loss) to operating cash flows:
Depreciation and amortization	10,677	9,762
Provision for deferred income taxes	(12,184)	(2,858)
Asset impairments and other non-cash expenses	3,442	714
(Gains) losses on disposal of assets	(663)	103
Investment partnership (gains) losses	(68,352)	4,846
Distributions from investment partnerships	2,490	7,700
Changes in receivables and inventories	9,272	4,817
Changes in other assets	35	1,212
Changes in accounts payable and accrued expenses	15,196	(17,408)
Net cash used in operating activities	(8,295)	(465)
Investing activities
Capital expenditures	(6,238)	(7,218)
Proceeds from property and equipment disposals	390	2,476
Distributions from investment partnerships	40,000	0
Purchases of limited partner interests	(40,000)	0
Purchases of investments	(56,321)	(24,972)
Redemptions of fixed maturity securities	53,550	24,000
Net cash used in investing activities	(8,619)	(5,714)
Financing activities
Payments on revolving credit facility	0	(132)
Principal payments on long-term debt	(1,100)	(1,100)
Principal payments on direct financing lease obligations	(2,884)	(2,749)
Proceeds from exercise of stock options	0	49
Net cash used in financing activities	(3,984)	(3,932)
Effect of exchange rate changes on cash	3	(55)
Decrease in cash, cash equivalents and restricted cash	(20,895)	(10,166)
Cash, cash equivalents and restricted cash at beginning of year	55,010	67,230
Cash, cash equivalents and restricted cash at end of second quarter	$ 34,115	$ 57,064

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at Dec. 31, 2017	$ 1,071	$ 382,014	$ 565,504	$ (1,404)	$ (375,857)	$ 571,328
Net earnings (loss)			(1,814)			(1,814)
Adoption of accounting standards			90			90
Other comprehensive income, net				438		438
Adjustment to treasury stock for holdings in investment partnerships					(18,377)	(18,377)
Exercise of stock options		(39)			81	42
Balance at Mar. 31, 2018	1,071	381,975	563,780	(966)	(394,153)	551,707
Balance at Dec. 31, 2017	1,071	382,014	565,504	(1,404)	(375,857)	571,328
Net earnings (loss)						(9,353)
Other comprehensive income, net						(703)
Balance at Jun. 30, 2018	1,138	381,904	535,415	(2,107)	(373,620)	542,730
Balance at Mar. 31, 2018	1,071	381,975	563,780	(966)	(394,153)	551,707
Net earnings (loss)			(7,539)			(7,539)
Other comprehensive income, net				(1,141)		(1,141)
Conversion of common stock	67	(67)	(20,826)		20,826	0
Adjustment to treasury stock for holdings in investment partnerships					(304)	(304)
Exercise of stock options		(4)			11	7
Balance at Jun. 30, 2018	1,138	381,904	535,415	(2,107)	(373,620)	542,730
Balance at Dec. 31, 2018	1,138	381,904	564,160	(2,516)	(374,231)	570,455
Net earnings (loss)			9,818			9,818
Adoption of accounting standards			1,499			1,499
Other comprehensive income, net				(304)		(304)
Adjustment to treasury stock for holdings in investment partnerships					(114)	(114)
Balance at Mar. 31, 2019	1,138	381,904	575,477	(2,820)	(374,345)	581,354
Balance at Dec. 31, 2018	1,138	381,904	564,160	(2,516)	(374,231)	570,455
Net earnings (loss)						31,792
Other comprehensive income, net						(108)
Balance at Jun. 30, 2019	1,138	381,904	597,451	(2,624)	(375,507)	602,362
Balance at Mar. 31, 2019	1,138	381,904	575,477	(2,820)	(374,345)	581,354
Net earnings (loss)			21,974			21,974
Other comprehensive income, net				196		196
Adjustment to treasury stock for holdings in investment partnerships					(1,162)	(1,162)
Balance at Jun. 30, 2019	$ 1,138	$ 381,904	$ 597,451	$ (2,624)	$ (375,507)	$ 602,362

Note 1. Summary of Significant

Note 1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Note 1. Summary of Significant Accounting Policies	Description of Business The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. (“Biglari Holdings” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary to present fairly the results of the interim periods have been included and consist only of normal recurring adjustments. The results for the interim periods shown are not necessarily indicative of results for the entire fiscal year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2018. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Company’s 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 the Company. The Company’s 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. As of June 30, 2019, Mr. Biglari’s beneficial ownership was approximately 60.7% of the Company’s outstanding Class A common stock and 55.4% of the Company’s outstanding Class B common stock. 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”), Western Sizzlin Corporation (“Western Sizzlin”), Maxim Inc. (“Maxim”) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively “First Guard”). Intercompany accounts and transactions have been eliminated in consolidation.

Note 2. New Accounting Standard

Note 2. New Accounting Standards	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Note 2. New Accounting Standards	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases Leases In adopting and applying ASC 842, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. In addition, we elected certain practical expedients and accounting policies, including an accounting policy election to keep leases with an initial term of 12 months or less from the balance sheet. We recognize those lease payments in the consolidated statements of earnings on a straight-line basis over the lease term.

Note 3. Earnings Per Share

Note 3. Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings per share
Note 3. Earnings Per Share	Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. The shares of Company stock attributable to our limited partner interest in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively, 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. The following table presents shares authorized, issued and outstanding on June 30, 2019 and December 31, 2018. June 30, 2019 December 31, 2018 Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 The Company has applied the “two-class method” of computing earnings per share as prescribed in ASC 260, “Earnings Per Share.” On an equivalent Class A common stock basis, there were 620,592 shares outstanding as of June 30, 2019 and December 31, 2018. There are no dilutive securities outstanding. For financial reporting purposes, the proportional ownership of the Company’s common stock owned by the investment partnerships is excluded in the earnings per share calculation. After giving effect for the investment partnerships’ proportional ownership of common stock, the equivalent Class A weighted average number of common shares during the second quarters of 2019 and 2018 were 346,034 and 346,988, respectively. The equivalent Class A weighted average number of common shares during the first six months of 2019 and 2018 were 346,129 and 349,575, respectively. Each Class A common share is entitled to one vote. Class B common stock possesses economic rights equal to one-fifth (1/5 th

Note 4. Investments

Note 4. Investments	6 Months Ended
	Jun. 30, 2019
Schedule of Investments [Abstract]
Note 4. Investments	Available for sale investments were $37,013 and $33,860 as of June 30, 2019 and December 31, 2018, respectively. Investments in equity securities and a related derivative position of $4,463 are included in investments as of June 30, 2019 and in other current assets as of December 31, 2018. The investments are recorded at fair value.

Note 5. Investment Partnerships

Note 5. Investment Partnerships	6 Months Ended
	Jun. 30, 2019
Note 5. Investment Partnerships
Note 5. Investment Partnerships	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 Company’s 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 partner’s 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. Biglari Capital Corp. is the general partner of the investment partnerships and is an entity solely owned by Mr. Biglari. The fair value and adjustment for Company common stock held by the investment partnerships to determine the carrying value of our partnership interest is presented below. Fair Value Company Carrying Value Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains 54,374 (13,978 ) 68,352 Contributions (net of distributions) to investment partnerships (2,490 ) (2,490 ) Increase in proportionate share of Company stock held 1,276 (1,276 ) Partnership interest at June 30, 2019 $ 766,986 $ 144,920 $ 622,066 Fair Value Company Carrying Value Partnership interest at December 31, 2017 $ 925,279 $ 359,258 $ 566,021 Investment partnership gains (losses) (128,725 ) (123,879 ) (4,846 ) Contributions (net of distributions) to investment partnerships (7,700 ) (7,700 ) Increase in proportionate share of Company stock held 18,681 (18,681 ) Partnership interest at June 30, 2018 $ 788,854 $ 254,060 $ 534,794 The carrying value of the investment partnerships net of deferred taxes is presented below. June 30, 2019 December 31, 2018 Carrying value of investment partnerships $ 622,066 $ 557,480 Deferred tax liability related to investment partnerships (83,187 ) (92,703 ) Carrying value of investment partnerships net of deferred taxes $ 538,879 $ 464,777 The Company’s proportionate share of Company stock held by investment partnerships at cost is $375,507 and $374,231 at June 30, 2019 and December 31, 2018, 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 Company’s consolidated statements of earnings are presented below. Second Quarter First Six Months 2019 2018 2019 2018 Gains (losses) on investment partnership $ 34,198 $ (8,341 ) $ 68,352 $ (4,846 ) Tax expense (benefit) 7,944 (2,464 ) 15,861 (2,044 ) Net earnings (loss) $ 26,254 $ (5,877 ) $ 52,491 $ (2,802 ) On December 31 of each year, the general partner of the investment partnerships will earn an incentive reallocation fee for the Company’s investments equal to 25% of the net profits above a hurdle rate of 6% over the previous high-water mark. Our policy is to accrue an estimated incentive fee throughout the year. The Company did not accrue an incentive fee during the first six months of 2019 or 2018. Our investments in these partnerships are committed on a rolling 5-year basis. Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below. Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of June 30, 2019 $ 106,657 $ 911,690 Total liabilities as of June 30, 2019 $ 90 $ 165,787 Revenue for the first six months of 2019 $ 121 $ 62,499 Earnings for the first six months of 2019 $ 88 $ 58,068 Biglari Holdings’ ownership interest as of June 30, 2019 66.1 % 93.4 % Total assets as of December 31, 2018 $ 107,207 $ 901,750 Total liabilities as of December 31, 2018 $ 447 $ 202,770 Revenue for the first six months of 2018 $ (49,773 ) $ (99,751 ) Earnings (loss) for the first six months of 2018 $ (49,805 ) $ (104,290 ) Biglari Holdings’ ownership interest as of June 30, 2018 65.3 % 92.2 % Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments. The investments held by the investment partnerships are largely concentrated in the common stock of one investee, Cracker Barrel Old Country Store, Inc. Transactions with The Lion Fund II, L.P. were as follows. Second Quarter First Six Months 2019 2018 2019 2018 Contributions $ — $ — $ 40,000 $ — Distributions (2,490 ) (2,500 ) (42,490 ) (7,700 ) $ (2,490 ) $ (2,500 ) $ (2,490 ) $ (7,700 )

Note 6. Property and Equipment

Note 6. Property and Equipment	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Note 6. Property and Equipment	Property and equipment is composed of the following. June 30, 2019 December 31, 2018 Land $ 151,671 $ 146,015 Buildings 145,915 142,658 Land and leasehold improvements 162,839 158,938 Equipment 200,076 201,738 Construction in progress 2,910 1,703 663,411 651,052 Less accumulated depreciation and amortization (366,717 ) (376,336 ) Property and equipment, net $ 296,694 $ 274,716 The Company recorded an impairment to long-lived assets of $438 and $2,338 in selling, general and administrative expenses in the second quarter and first six months of 2019, respectively, and no impairment to long-lived assets in the first six months of 2018. The fair value of the long-lived assets was determined based on Level 2 inputs using a discounted cash flow model and quoted prices for the properties. The fair value of the assets impaired was not material for any of the applicable periods. As of June 30, 2019, a total of 103 Steak n Shake restaurants have been temporarily closed. The Company is actively working to identify franchise partners for these stores. The Company has recorded impairments of $2,006 during the first six months of 2019 associated with temporarily closed units. Although the Company is committed to the franchise partnership model, future impairments are possible.

Note 7. Goodwill and Other Inta

Note 7. Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Note 7. Goodwill and Other Intangible Assets	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. Restaurants Other Total Goodwill at December 31, 2018 $ 28,139 $ 11,913 $ 40,052 Change in foreign exchange rates during the first six months of 2019 (4 ) — (4 ) Goodwill at June 30, 2019 $ 28,135 $ 11,913 $ 40,048 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. 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 the first six months of 2019 or 2018. Other Intangible Assets Other intangible assets are composed of the following. June 30, 2019 December 31, 2018 Gross Accumulated Total Gross Accumulated Total Franchise agreement $ 5,310 $ (4,912 ) $ 398 $ 5,310 $ (4,647 ) $ 663 Other 810 (783 ) 27 810 (774 ) 36 Total 6,120 (5,695 ) 425 6,120 (5,421 ) 699 Intangible assets with indefinite lives: Trade names 15,876 — 15,876 15,876 — 15,876 Other assets with indefinite lives 11,471 — 11,471 11,539 — 11,539 Total intangible assets $ 33,467 $ (5,695 ) $ 27,772 $ 33,535 $ (5,421 ) $ 28,114 Intangible assets subject to amortization consist of franchise agreements connected with the purchase of Western Sizzlin 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 the first six months of 2019 and 2018 was $274 and $281, respectively. The Company’s intangible assets with definite lives will fully amortize in 2020. Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights.

Note 8. Restaurant Operations R

Note 8. Restaurant Operations Revenues	6 Months Ended
	Jun. 30, 2019
Note 8. Restaurant Operations Revenues
Note 8. Restaurant Operations Revenues	Restaurant operations revenues were as follows. Second Quarter First Six Months 2019 2018 2019 2018 Net sales $ 152,062 $ 191,797 $ 317,693 $ 377,368 Franchise royalties and fees 7,146 7,773 14,058 14,875 Other 853 1,024 2,085 2,285 $ 160,061 $ 200,594 $ 333,836 $ 394,528 Net sales Net sales were composed of retail sales of food through Company-owned stores. Company-owned store revenues are recognized when control of the food items are transferred to our customers at the point of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate taxing authority and are not reflected in the Company’s consolidated statements of earnings as revenue. Franchise royalties and fees Franchise royalties and fees are composed of royalties and fees from Steak n Shake and Western Sizzlin franchisees. Royalty revenues are based on a percentage of franchise sales and are recognized when the retail food items are purchased by franchise customers. Initial franchise fees received are deferred when amounts are received and recognized as revenue on a straight-line basis over the term of each respective franchise agreement, which is typically 20 years. Our advertising arrangements with franchisees are reported in franchise royalties and fees. Gift card revenue Restaurant operations sells gift cards to customers which can be redeemed for retail food sales within our stores. Gift cards are recorded as deferred revenue when issued and are subsequently recorded as net sales upon redemption. Restaurant operations estimates breakage related to gift cards when the likelihood of redemption is remote. This estimate utilizes historical trends based on the vintage of the gift card. Breakage on gift cards is recorded as other revenue in proportion to the rate of gift card redemptions by vintage.

Note 9. Accounts Payable and Ac

Note 9. Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Note 9. Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses include the following. June 30, December 31, Accounts payable $ 31,416 $ 41,967 Gift card liability 17,199 22,685 Salaries, wages, and vacation 19,000 13,107 Taxes payable 30,264 11,214 Insurance accruals 13,693 12,127 Deferred revenue 13,657 11,681 Other 5,213 4,484 Accounts payable and accrued expenses $ 130,442 $ 117,265

Note 10. Notes Payable and Othe

Note 10. Notes Payable and Other Borrowings	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Note 10. Notes Payable and Other Borrowings	Notes payable and other borrowings include the following. Current portion of notes payable and other borrowings June 30, 2019 December 31, 2018 Notes payable $ 2,200 $ 2,200 Unamortized original issue discount and debt issuance costs (962 ) (943 ) Finance obligations 4,052 4,463 Finance lease liabilities 1,634 — Total current portion of notes payable and other borrowings $ 6,924 $ 5,720 Long-term notes payable and other borrowings Notes payable $ 180,398 $ 181,498 Unamortized original issue discount and debt issuance costs (748 ) (1,234 ) Finance obligations 75,709 59,737 Finance leases liabilities 10,450 — Total long-term notes payable and other borrowings $ 265,809 $ 240,001 Steak n Shake Credit Facility On March 19, 2014, Steak n Shake and its subsidiaries entered into a credit agreement which provided for a senior secured term loan facility in an aggregate principal amount of $220,000. 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. 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. 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%. The interest rate on the term loan was 6.19% as of June 30, 2019. The credit agreement includes customary affirmative and negative covenants and events of default. Steak n Shake’s credit facility contains restrictions on its ability to pay dividends to Biglari Holdings. The term loan is secured by first priority security interests in substantially all the assets of Steak n Shake. Disruptions in debt capital markets that restrict access to funding when needed could adversely affect the results of operations, liquidity and capital resources of Steak n Shake. Biglari Holdings is not a guarantor under the credit facility. As of June 30, 2019, $182,598 was outstanding under the term loan.

Note 11. Leases

Note 11. Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Note 11. Leases	The Company adopted ASC 842 on January 1, 2019, as discussed in Note 2. Under ASC 842, leases are generally classified as either operating right-of-use assets or finance lease assets. Right-of-use assets represent the Company's right to use an underlying asset during the lease term. Right-of-use liabilities represent the Company's obligation to make lease payments arising from the lease. These assets and liabilities are calculated by using the net present value of fixed lease payments over the lease term. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The Company applied an incremental borrowing rate to determine the present value of lease payments. Finance lease agreements include an interest rate that is used to determine the present value of future lease payments. A significant portion of our operating and finance lease portfolio includes restaurant locations. The Company’s operating leases with a term of 12 months or greater were recognized as operating right-of-use assets and liabilities and recorded as operating lease assets and operating lease liabilities. Historical capital leases and certain historical build-to-suit leases were reclassified from obligations under leases to finance lease assets and liabilities. Finance lease assets are recorded in property and equipment and finance lease liabilities are recorded in notes payable and other borrowings. Historical sale-and-leaseback transactions in which the Company is deemed to have a continued interest in the leased asset are recorded as property and equipment and as finance obligations. Finance obligations are recorded in notes payable and other borrowings. Operating lease expense and finance lease depreciation expense are recognized on a straight line basis over the lease term. Total lease cost consists of the following. Second Quarter First Six Months Finance lease costs: Amortization of right-of-use assets $ 487 $ 979 Interest on lease liabilities 215 422 Operating lease costs * 4,003 7,860 Total lease costs $ 4,705 $ 9,261 *Includes short-term leases, variable lease costs and sublease income, which are immaterial. Supplemental cash flow information related to leases is as follows. First Six Months 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 797 Operating cash flows from finance leases $ 422 Operating cash flows from operating leases $ 8,375 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities $ 1,097 Operating lease liabilities $ 8,919 Supplemental balance sheet information related to leases is as follows. June 30, 2019 Finance leases: Property and equipment, net $ 11,755 Current portion of notes payable and other borrowings $ 1,634 Long-term notes payable and other borrowings 10,450 Total finance lease liabilities $ 12,084 Weighted-average lease terms and discount rates are as follows. June 30, 2019 Weighted-average remaining lease terms: Finance leases 8.7 years Operating leases 7.3 years Weighted-average discount rates: Finance leases 7.1 % Operating leases 6.9 % Maturities of lease liabilities as of June 30, 2019 are as follows. Year Operating Leases Finance Leases 2019 $ 8,439 $ 1,218 2020 15,797 2,377 2021 14,701 2,358 2022 12,438 1,869 2023 10,588 1,669 After 2023 31,397 6,815 Total lease payments 93,360 16,306 Less interest 21,088 4,222 Total lease liabilities $ 72,272 $ 12,084 On December 31, 2018, 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. Operating Leases Year Finance Capital Total Operating Non-Operating 2019 $ 11,114 $ 55 $ 11,169 $ 17,914 $ 483 2020 8,040 55 8,095 16,691 554 2021 5,925 55 5,980 16,787 578 2022 2,951 5 2,956 15,603 599 2023 1,587 — 1,587 14,071 539 After 2023 1,673 — 1,673 36,709 1,790 Total minimum future rental payments 31,290 170 31,460 $ 117,775 $ 4,543 Less amount representing interest 18,004 60 18,064 Total principal obligations under leases 13,286 110 13,396 Less current portion 4,433 30 4,463 Non-current principal obligations under leases 8,853 80 8,933 Residual value at end of lease term 50,744 60 50,804 Obligations under leases $ 59,597 $ 140 $ 59,737

Note 12. Accumulated Other Comp

Note 12. Accumulated Other Comprehensive Income	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Note 12. Accumulated Other Comprehensive Income	During the first six months of 2019 and 2018, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows. Six months ended June 30, 2019 Six months ended June 30, 2018 Foreign Accumulated Foreign Accumulated Beginning Balance $ (2,516 ) $ — $ (2,516 ) $ (1,462 ) $ 58 $ (1,404 ) Reclassification to (earnings) loss — — (58 ) (58 ) Foreign currency translation (108 ) (108 ) (645 ) (645 ) Ending Balance $ (2,624 ) $ — $ (2,624 ) $ (2,107 ) $ — $ (2,107 ) During the second quarter of 2019 and 2018, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows. Second Quarter 2019 Second Quarter 2018 Foreign Accumulated Foreign Accumulated Beginning Balance $ (2,820 ) $ — $ (2,820 ) $ (966 ) $ — $ (966 ) Reclassification to (earnings) loss — — — — Foreign currency translation 196 196 (1,141 ) (1,141 ) Ending Balance $ (2,624 ) $ — $ (2,624 ) $ (2,107 ) $ — $ (2,107 ) There were no reclassifications from accumulated other comprehensive income to earnings during the second quarters of 2019 and 2018 and first six months of 2019. Reclassifications made from accumulated other comprehensive income to earnings during the first six months of 2018 were $58.

Note 13. Income Taxes

Note 13. Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Note 13. Income Taxes	In determining the quarterly provision for income taxes, the Company used a discrete effective tax rate method based on statutory tax rates for 2019 and an estimated annual effective tax rate for 2018. Our periodic effective income tax rate is affected by the relative mix of pre-tax earnings or losses and underlying income tax rates applicable to the various taxing jurisdictions. Income tax expense for the second quarter of 2019 was $5,896 compared to an income tax benefit of $890 for the second quarter of 2018. Income tax expense for the first six months of 2019 was $7,640 compared to an income tax benefit of $1,687 for the first six months of 2018. The variance in income taxes between 2019 and 2018 is attributable to taxes on income generated by the investment partnerships. As of June 30, 2019 and December 31, 2018, we had approximately $352 and $341, respectively, of unrecognized tax benefits, which are included in other liabilities in the consolidated balance sheets.

Note 14. Commitments and Contin

Note 14. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Note 14. 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 flow. On January 29, 2018, a shareholder of the Company filed a purported class action complaint against the Company and the members of our Board of Directors in the Superior Court of Hamilton County, Indiana. The shareholder generally alleges claims of breach of fiduciary duty by the members of our Board of Directors and unjust enrichment to Mr. Biglari as a result of the dual class structure. On March 26, 2018, a shareholder of the Company filed a purported class action complaint against the Company and the members of our Board of Directors in the Superior Court of Hamilton County, Indiana. This shareholder generally alleges claims of breach of fiduciary duty by the members of our Board of Directors. This shareholder sought to enjoin the shareholder vote on April 26, 2018 to approve the dual class structure. On April 16, 2018, the shareholders withdrew their motions to enjoin the shareholder vote on April 26, 2018. On May 17, 2018, the shareholders who filed the January 29, 2018 complaint and the March 26, 2018 complaint filed a new, consolidated complaint against the Company and the members of our Board of Directors in the Superior Court of Hamilton County, Indiana. The shareholders generally allege claims of breach of fiduciary duty by the members of our Board of Directors and unjust enrichment to Mr. Biglari arising out of the dual class structure. The shareholders seek, for themselves and on behalf of all other shareholders as a class, a declaration that the defendants breached their duty to the shareholders and the class, and to recover unspecified damages, pre-judgment and post-judgment interest, and an award of their attorneys’ fees and other costs. On December 14, 2018, the judge of the Superior Court of Hamilton County, Indiana issued an order granting the Company’s motion to dismiss the shareholders’ lawsuits. On January 11, 2019, the shareholders filed an appeal of the judge’s order dismissing the lawsuits. The Company continues to believe the claim is without merit and will defend the appeal vigorously. On September 8, 2014, two former restaurant manager employees filed a purported class action lawsuit against Steak n Shake (Drake v. Steak n Shake). On January 30, 2017, a former restaurant manager employee filed a purported class action lawsuit against Steak n Shake (Clendenen v. Steak n Shake). The plaintiffs generally allege claims that Steak n Shake improperly classified its managerial employees as exempt. On February 28, 2019, a jury returned a verdict in the Drake case against Steak n Shake. The Company agreed to settle both cases for $8,350 and the Court approved the terms of the settlement on July 26, 2019.

Note 15. Fair Value of Financia

Note 15. Fair Value of Financial Assets	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Note 15. Fair Value of Financial Assets	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. · 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. The following methods and assumptions were used to determine the fair value of each class of the following assets recorded at fair value in the consolidated balance sheets: Cash equivalents: Equity securities: Bonds: Non-qualified deferred compensation plan investments: Derivative instruments: As of June 30, 2019 and December 31, 2018, the fair values of financial assets were as follows. June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,118 $ — $ — $ 10,118 $ 21,448 $ — $ — $ 21,448 Equity securities: Consumer goods — 6,421 — 6,421 1,708 4,100 — 5,808 Bonds 35,557 — — 35,557 32,404 — — 32,404 Options on equity securities — 2,142 — 2,142 — 2,755 — 2,755 Non-qualified deferred compensation plan investments 2,057 — — 2,057 2,149 — — 2,149 Total assets at fair value $ 47,732 $ 8,563 $ — $ 56,295 $ 57,709 $ 6,855 $ — $ 64,564 There were no changes in our valuation techniques used to measure fair values on a recurring basis.

Note 16. Related Party Transact

Note 16. Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Note 16. Related Party Transactions	Services Agreement During 2017, the Company entered into a services agreement with Biglari Enterprises LLC and Biglari Capital Corp. (collectively, the “Biglari Entities”) under which the Biglari Entities provide business and administrative related services to the Company. The Biglari Entities are owned by Mr. Biglari. The services agreement has a five-year term, effective on October 1, 2017. The fixed fee is $700 per month for the first year with adjustments in years two through five. The monthly fee will remain at $700 during 2019. The Company paid Biglari Enterprises $4,200 in service fees during the first six months of 2019 and 2018. The services agreement does not alter the hurdle rate connected with the incentive reallocation paid to Biglari Capital Corp. by the Company. License Agreement During 2013, the Company entered into a Trademark License Agreement (the “License Agreement”) with Mr. Biglari. The Company and its subsidiaries paid no royalties to Mr. Biglari under the License Agreement during its term. The License Agreement was terminated on March 26, 2019. Incentive Agreement Amendment The Incentive Agreement was amended on March 26, 2019 to remove the annual limitation on Mr. Biglari’s incentive compensation, as well as the requirement of Mr. Biglari to use 30% of his incentive payments to purchase shares of the Company. In connection with the amendment, the change of control and severance provisions contained in the Incentive Agreement were eliminated and the License Agreement was terminated. The amendment is effective in 2019.

Note 17. Business Segment Repor

Note 17. Business Segment Reporting	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Note 17. Business Segment Reporting	Our reportable business segments are organized in a manner that reflects how management views those business activities. Our restaurant operations include Steak n Shake and Western Sizzlin. The Company also reports segment information for First Guard and Maxim. Other business activities not specifically identified with reportable business segments are presented in “other” within total operating businesses. We report our earnings from investment partnerships separate from our corporate expenses. We assess and measure segment operating results based on segment earnings as disclosed below. Segment earnings from operations are neither necessarily indicative of cash available to fund cash requirements, nor 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. Revenue for the second quarters and first six months of 2019 and 2018 were as follows. Revenue Second Quarter First Six Months 2019 2018 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 156,006 $ 196,578 $ 326,117 $ 386,871 Western Sizzlin 4,055 4,016 7,719 7,657 Total Restaurant Operations 160,061 200,594 333,836 394,528 First Guard 7,417 6,745 14,624 13,292 Maxim 865 1,400 1,742 3,144 $ 168,343 $ 208,739 $ 350,202 $ 410,964 Earnings (losses) before income taxes for the second quarters and first six months of 2019 and 2018 were as follows. Earnings (Losses) Before Income Taxes Second Quarter First Six Months 2019 2018 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ (3,057 ) $ 2,659 $ (21,915 ) $ 1,667 Western Sizzlin 506 674 889 1,048 Total Restaurant Operations (2,551 ) 3,333 (21,026 ) 2,715 First Guard 1,850 2,301 3,394 2,811 Maxim 176 16 64 (201 ) Other 114 164 253 303 Total Operating Businesses (411 ) 5,814 (17,315 ) 5,628 Corporate and Investments: Corporate (2,767 ) (3,004 ) (5,397 ) (6,170 ) Investment partnership gains (losses) 34,198 (8,341 ) 68,352 (4,846 ) Total Corporate and Investments 31,431 (11,345 ) 62,955 (11,016 ) Interest expense on notes payable and other borrowings (3,150 ) (2,898 ) (6,208 ) (5,652 ) $ 27,870 $ (8,429 ) $ 39,432 $ (11,040 )

Note 1. Summary of Significan_2

Note 1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Description of Business	The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. (“Biglari Holdings” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary to present fairly the results of the interim periods have been included and consist only of normal recurring adjustments. The results for the interim periods shown are not necessarily indicative of results for the entire fiscal year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2018. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Company’s 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 the Company. The Company’s 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. As of June 30, 2019, Mr. Biglari’s beneficial ownership was approximately 60.7% of the Company’s outstanding Class A common stock and 55.4% of the Company’s outstanding Class B common stock.
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”), Western Sizzlin Corporation (“Western Sizzlin”), Maxim Inc. (“Maxim”) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively “First Guard”). Intercompany accounts and transactions have been eliminated in consolidation.

Note 3. Earnings Per Share (Tab

Note 3. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per share
Summary of outstanding shares	June 30, 2019 December 31, 2018 Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640

Note 5. Investment Partnershi_2

Note 5. Investment Partnerships (Tables)	6 Months Ended
	Jun. 30, 2019
Note 5. Investment Partnerships
Fair value and carrying value of our partnership interest	Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains 54,374 (13,978 ) 68,352 Contributions (net of distributions) to investment partnerships (2,490 ) (2,490 ) Increase in proportionate share of Company stock held 1,276 (1,276 ) Partnership interest at June 30, 2019 $ 766,986 $ 144,920 $ 622,066 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2017 $ 925,279 $ 359,258 $ 566,021 Investment partnership gains (losses) (128,725 ) (123,879 ) (4,846 ) Contributions (net of distributions) to investment partnerships (7,700 ) (7,700 ) Increase in proportionate share of Company stock held 18,681 (18,681 ) Partnership interest at June 30, 2018 $ 788,854 $ 254,060 $ 534,794
Carrying value of investment partnerships net of deferred taxes	June 30, 2019 December 31, 2018 Carrying value of investment partnerships $ 622,066 $ 557,480 Deferred tax liability related to investment partnerships (83,187 ) (92,703 ) Carrying value of investment partnerships net of deferred taxes $ 538,879 $ 464,777
Gains (loss) from investment partnerships	Second Quarter First Six Months 2019 2018 2019 2018 Gains (losses) on investment partnership $ 34,198 $ (8,341 ) $ 68,352 $ (4,846 ) Tax expense (benefit) 7,944 (2,464 ) 15,861 (2,044 ) Net earnings (loss) $ 26,254 $ (5,877 ) $ 52,491 $ (2,802 )
Summarized financial information for equity in investment partnerships	Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of June 30, 2019 $ 106,657 $ 911,690 Total liabilities as of June 30, 2019 $ 90 $ 165,787 Revenue for the first six months of 2019 $ 121 $ 62,499 Earnings for the first six months of 2019 $ 88 $ 58,068 Biglari Holdings’ ownership interest as of June 30, 2019 66.1 % 93.4 % Total assets as of December 31, 2018 $ 107,207 $ 901,750 Total liabilities as of December 31, 2018 $ 447 $ 202,770 Revenue for the first six months of 2018 $ (49,773 ) $ (99,751 ) Earnings (loss) for the first six months of 2018 $ (49,805 ) $ (104,290 ) Biglari Holdings’ ownership interest as of June 30, 2018 65.3 % 92.2 %
Contributions to and distributions from the investment partnerships	Second Quarter First Six Months 2019 2018 2019 2018 Contributions $ — $ — $ 40,000 $ — Distributions (2,490 ) (2,500 ) (42,490 ) (7,700 ) $ (2,490 ) $ (2,500 ) $ (2,490 ) $ (7,700 )

Note 6. Property and Equipment

Note 6. Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	June 30, 2019 December 31, 2018 Land $ 151,671 $ 146,015 Buildings 145,915 142,658 Land and leasehold improvements 162,839 158,938 Equipment 200,076 201,738 Construction in progress 2,910 1,703 663,411 651,052 Less accumulated depreciation and amortization (366,717 ) (376,336 ) Property and equipment, net $ 296,694 $ 274,716

Note 7. Goodwill and Other In_2

Note 7. Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	Restaurants Other Total Goodwill at December 31, 2018 $ 28,139 $ 11,913 $ 40,052 Change in foreign exchange rates during the first six months of 2019 (4 ) — (4 ) Goodwill at June 30, 2019 $ 28,135 $ 11,913 $ 40,048
Schedule of other intangible assets	June 30, 2019 December 31, 2018 Gross Accumulated Total Gross Accumulated Total Franchise agreement $ 5,310 $ (4,912 ) $ 398 $ 5,310 $ (4,647 ) $ 663 Other 810 (783 ) 27 810 (774 ) 36 Total 6,120 (5,695 ) 425 6,120 (5,421 ) 699 Intangible assets with indefinite lives: Trade names 15,876 — 15,876 15,876 — 15,876 Other assets with indefinite lives 11,471 — 11,471 11,539 — 11,539 Total intangible assets $ 33,467 $ (5,695 ) $ 27,772 $ 33,535 $ (5,421 ) $ 28,114

Note 8. Restaurant Operations_2

Note 8. Restaurant Operations Revenues (Tables)	6 Months Ended
	Jun. 30, 2019
Note 8. Restaurant Operations Revenues
Summary of restaurant operations revenues	Second Quarter First Six Months 2019 2018 2019 2018 Net sales $ 152,062 $ 191,797 $ 317,693 $ 377,368 Franchise royalties and fees 7,146 7,773 14,058 14,875 Other 853 1,024 2,085 2,285 $ 160,061 $ 200,594 $ 333,836 $ 394,528

Note 9. Accounts Payable And _2

Note 9. Accounts Payable And Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Note 9. Accounts Payable And Accrued Expenses
Schedule of accounts payable and accrued expenses	June 30, December 31, Accounts payable $ 31,416 $ 41,967 Gift card liability 17,199 22,685 Salaries, wages, and vacation 19,000 13,107 Taxes payable 30,264 11,214 Insurance accruals 13,693 12,127 Deferred revenue 13,657 11,681 Other 5,213 4,484 Accounts payable and accrued expenses $ 130,442 $ 117,265

Note 10. Notes Payable and Ot_2

Note 10. Notes Payable and Other Borrowings (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of notes payable and other borrowings	Current portion of notes payable and other borrowings June 30, 2019 December 31, 2018 Notes payable $ 2,200 $ 2,200 Unamortized original issue discount and debt issuance costs (962 ) (943 ) Finance obligations 4,052 4,463 Finance lease liabilities 1,634 — Total current portion of notes payable and other borrowings $ 6,924 $ 5,720 Long-term notes payable and other borrowings Notes payable $ 180,398 $ 181,498 Unamortized original issue discount and debt issuance costs (748 ) (1,234 ) Finance obligations 75,709 59,737 Finance leases liabilities 10,450 — Total long-term notes payable and other borrowings $ 265,809 $ 240,001

Note 11. Leases (Tables)

Note 11. Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of lease cost	Second Quarter 2019 First Six Months 2019 Finance lease costs: Amortization of right-of-use assets $ 487 $ 979 Interest on lease liabilities 215 422 Operating lease costs * 4,003 7,860 Total lease costs $ 4,705 $ 9,261 *Includes short-term leases, variable lease costs and sublease income, which are immaterial.
Schedule of supplemental cash flow information related to leases	First Six Months 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 797 Operating cash flows from finance leases $ 422 Operating cash flows from operating leases $ 8,375 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities $ 1,097 Operating lease liabilities $ 8,919
Schedule of supplemental balance sheet information related to leases	June 30, 2019 Finance leases: Property and equipment, net $ 11,755 Current portion of notes payable and other borrowings $ 1,634 Long-term notes payable and other borrowings 10,450 Total finance lease liabilities $ 12,084
Schedule of weighted-average lease terms and discount rates	June 30, 2019 Weighted-average remaining lease terms: Finance leases 8.7 years Operating leases 7.3 years Weighted-average discount rates: Finance leases 7.1 % Operating leases 6.9 %
Schedule of maturities of lease liabilities at June 30, 2019	Year Operating Leases Finance Leases 2019 $ 8,439 $ 1,218 2020 15,797 2,377 2021 14,701 2,358 2022 12,438 1,869 2023 10,588 1,669 After 2023 31,397 6,815 Total lease payments 93,360 16,306 Less interest 21,088 4,222 Total lease liabilities $ 72,272 $ 12,084
Schedule of future minimum lease payments at December 31, 2018	Operating Leases Year Finance Capital Total Operating Non-Operating 2019 $ 11,114 $ 55 $ 11,169 $ 17,914 $ 483 2020 8,040 55 8,095 16,691 554 2021 5,925 55 5,980 16,787 578 2022 2,951 5 2,956 15,603 599 2023 1,587 — 1,587 14,071 539 After 2023 1,673 — 1,673 36,709 1,790 Total minimum future rental payments 31,290 170 31,460 $ 117,775 $ 4,543 Less amount representing interest 18,004 60 18,064 Total principal obligations under leases 13,286 110 13,396 Less current portion 4,433 30 4,463 Non-current principal obligations under leases 8,853 80 8,933 Residual value at end of lease term 50,744 60 50,804 Obligations under leases $ 59,597 $ 140 $ 59,737

Note 12. Accumulated Other Co_2

Note 12. Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Component of accumulated other comprehensive income	Six months ended June 30, 2019 Six months ended June 30, 2018 Foreign Accumulated Foreign Accumulated Beginning Balance $ (2,516 ) $ — $ (2,516 ) $ (1,462 ) $ 58 $ (1,404 ) Reclassification to (earnings) loss — — (58 ) (58 ) Foreign currency translation (108 ) (108 ) (645 ) (645 ) Ending Balance $ (2,624 ) $ — $ (2,624 ) $ (2,107 ) $ — $ (2,107 ) Second Quarter 2019 Second Quarter 2018 Foreign Accumulated Foreign Accumulated Beginning Balance $ (2,820 ) $ — $ (2,820 ) $ (966 ) $ — $ (966 ) Reclassification to (earnings) loss — — — — Foreign currency translation 196 196 (1,141 ) (1,141 ) Ending Balance $ (2,624 ) $ — $ (2,624 ) $ (2,107 ) $ — $ (2,107 )

Note 15. Fair Value of Financ_2

Note 15. Fair Value of Financial Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value assets	June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,118 $ — $ — $ 10,118 $ 21,448 $ — $ — $ 21,448 Equity securities: Consumer goods — 6,421 — 6,421 1,708 4,100 — 5,808 Bonds 35,557 — — 35,557 32,404 — — 32,404 Options on equity securities — 2,142 — 2,142 — 2,755 — 2,755 Non-qualified deferred compensation plan investments 2,057 — — 2,057 2,149 — — 2,149 Total assets at fair value $ 47,732 $ 8,563 $ — $ 56,295 $ 57,709 $ 6,855 $ — $ 64,564

Note 17. Business Segment Rep_2

Note 17. Business Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of revenue by segment	Revenue Second Quarter First Six Months 2019 2018 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 156,006 $ 196,578 $ 326,117 $ 386,871 Western Sizzlin 4,055 4,016 7,719 7,657 Total Restaurant Operations 160,061 200,594 333,836 394,528 First Guard 7,417 6,745 14,624 13,292 Maxim 865 1,400 1,742 3,144 $ 168,343 $ 208,739 $ 350,202 $ 410,964
Schedule of earnings (losses) before income taxes by segment	Earnings (Losses) Before Income Taxes Second Quarter First Six Months 2019 2018 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ (3,057 ) $ 2,659 $ (21,915 ) $ 1,667 Western Sizzlin 506 674 889 1,048 Total Restaurant Operations (2,551 ) 3,333 (21,026 ) 2,715 First Guard 1,850 2,301 3,394 2,811 Maxim 176 16 64 (201 ) Other 114 164 253 303 Total Operating Businesses (411 ) 5,814 (17,315 ) 5,628 Corporate and Investments: Corporate (2,767 ) (3,004 ) (5,397 ) (6,170 ) Investment partnership gains (losses) 34,198 (8,341 ) 68,352 (4,846 ) Total Corporate and Investments 31,431 (11,345 ) 62,955 (11,016 ) Interest expense on notes payable and other borrowings (3,150 ) (2,898 ) (6,208 ) (5,652 ) $ 27,870 $ (8,429 ) $ 39,432 $ (11,040 )

Note 3. Earnings Per Share (Det

Note 3. Earnings Per Share (Details) - shares	Jun. 30, 2019	Dec. 31, 2018
Class A Common Stock
Common stock authorized	500,000	500,000
Common stock issued	206,864	206,864
Common stock outstanding	206,864	206,864
Class B Common Stock
Common stock authorized	10,000,000	10,000,000
Common stock issued	2,068,640	2,068,640
Common stock outstanding	2,068,640	2,068,640

Note 3. Earnings Per Share (D_2

Note 3. Earnings Per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Note 3.Earnings Per Share Details Narrative Abstract
Equivalent Class A weighted average number of common shares	346,034	346,988	346,129	349,575

Note 4. Investments (Details Na

Note 4. Investments (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Investments [Abstract]
Available for sale investments	$ 37,013	$ 33,860
Investments in equity securities and a related derivative position	$ 4,463	$ 4,463

Note 5. Investment Partnershi_3

Note 5. Investment Partnerships (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investment partnership gains (losses)	$ 34,198	$ (8,341)	$ 68,352	$ (4,846)
Fair Value
Partnership interest, beginning			715,102	925,279
Investment partnership gains (losses)			54,374	(128,725)
Contributions (net of distributions) to investment partnerships			(2,490)	(7,700)
Increase in proportionate share of Company stock held			0	0
Partnership interest, ending	766,986	788,854	766,986	788,854
Company Common Stock
Partnership interest, beginning			157,622	359,258
Investment partnership gains (losses)			(13,978)	(123,879)
Contributions (net of distributions) to investment partnerships			0	0
Increase in proportionate share of Company stock held			1,276	18,681
Partnership interest, ending	144,920	254,060	144,920	254,060
Carrying Value
Partnership interest, beginning			557,480	566,021
Investment partnership gains (losses)			68,352	(4,846)
Contributions (net of distributions) to investment partnerships			(2,490)	(7,700)
Increase in proportionate share of Company stock held			(1,276)	(18,681)
Partnership interest, ending	$ 622,066	$ 534,794	$ 622,066	$ 534,794

Note 5. Investment Partnershi_4

Note 5. Investment Partnerships (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Note 5. Investment Partnerships
Carrying value of investment partnerships	$ 622,066	$ 557,480
Deferred tax liability related to investment partnerships	(83,187)	(92,703)
Carrying value of investment partnerships net of deferred taxes	$ 538,879	$ 464,777

Note 5. Investment Partnershi_5

Note 5. Investment Partnerships (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Note 5.Investment Partnerships Details 2Abstract
Gains (losses) on investment partnership	$ 34,198	$ (8,341)	$ 68,352	$ (4,846)
Tax expense (benefit)	7,944	(2,464)	15,861	(2,044)
Net earnings (loss)	$ 26,254	$ (5,877)	$ 52,491	$ (2,802)

Note 5. Investment Partnershi_6

Note 5. Investment Partnerships (Details 3) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Lion Fund
Total assets	$ 106,657		$ 107,207
Total liabilities	90		447
Revenue for the first six months	121	$ (49,773)
Earnings (loss) for the first six months	$ 88	$ (49,805)
Biglari Holdings' ownership interest	66.10%	65.30%
Lion Fund II
Total assets	$ 911,690		901,750
Total liabilities	165,787		$ 202,770
Revenue for the first six months	62,499	$ (99,751)
Earnings (loss) for the first six months	$ 58,068	$ (104,290)
Biglari Holdings' ownership interest	93.40%	92.20%

Note 5. Investment Partnershi_7

Note 5. Investment Partnerships (Details 4) - Lion Fund II - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Contributions	$ 0	$ 0	$ 40,000	$ 0
Distributions	(2,490)	(2,500)	(42,490)	(7,700)
Total contributions and distributions	$ (2,490)	$ (2,500)	$ (2,490)	$ (7,700)

Note 5. Investment Partnershi_8

Note 5. Investment Partnerships (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Note 5. Investment Partnerships
Proportionate share of Company stock held by investment partnerships at cost	$ 375,507	$ 374,231

Note 6. Property and Equipmen_2

Note 6. Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Land	$ 151,671	$ 146,015
Buildings	145,915	142,658
Land and leasehold improvements	162,839	158,938
Equipment	200,076	201,738
Construction in progress	2,910	1,703
Property and equipment, gross	663,411	651,052
Less accumulated depreciation and amortization	(366,717)	(376,336)
Property and equipment, net	$ 296,694	$ 274,716

Note 7. Goodwill and Other In_3

Note 7. Goodwill and Other Intangible Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Goodwill, beginning	$ 40,052
Change in foreign exchange rates during the first six months of 2019	(4)
Goodwill, ending	40,048
Restaurant
Goodwill, beginning	28,139
Change in foreign exchange rates during the first six months of 2019	(4)
Goodwill, ending	28,135
Other
Goodwill, beginning	11,913
Change in foreign exchange rates during the first six months of 2019	0
Goodwill, ending	$ 11,913

Note 7. Goodwill and Other In_4

Note 7. Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Gross carrying amount	$ 33,467	$ 33,535
Accumulated amortization	(5,695)	(5,421)
Total intangible assets	27,772	28,114
Finite-Lived Intangible Assets
Gross carrying amount	6,120	6,120
Accumulated amortization	(5,695)	(5,421)
Total intangible assets	425	699
Franchise Agreement | Finite-Lived Intangible Assets
Gross carrying amount	5,310	5,310
Accumulated amortization	(4,912)	(4,647)
Total intangible assets	398	663
Other | Finite-Lived Intangible Assets
Gross carrying amount	810	810
Accumulated amortization	(783)	(774)
Total intangible assets	27	36
Other | Indefinite-lived Intangible Assets
Gross carrying amount	11,471	11,539
Accumulated amortization	0	0
Total intangible assets	11,471	11,539
Trade names | Indefinite-lived Intangible Assets
Gross carrying amount	15,876	15,876
Accumulated amortization	0	0
Total intangible assets	$ 15,876	$ 15,876

Note 7. Goodwill and Other In_5

Note 7. Goodwill and Other Intangible Assets (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 274	$ 281

Note 8. Restaurant Operations_3

Note 8. Restaurant Operations Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Note 8. Restaurant Operations Revenues
Net sales	$ 152,062	$ 191,797	$ 317,693	$ 377,368
Franchise royalties and fees	7,146	7,773	14,058	14,875
Other	853	1,024	2,085	2,285
Restaurant operations revenue	$ 160,061	$ 200,594	$ 333,836	$ 394,528

Note 9. Accounts Payable and _3

Note 9. Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accounts payable	$ 31,416	$ 41,967
Gift card liability	17,199	22,685
Salaries, wages, and vacation	19,000	13,107
Taxes payable	30,264	11,214
Insurance accruals	13,693	12,127
Deferred revenue	13,657	11,681
Other	5,213	4,484
Accounts payable and accrued expenses	$ 130,442	$ 117,265

Note 10. Notes Payable and Ot_3

Note 10. Notes Payable and Other Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current portion of notes payable and other borrowings
Notes payable	$ 2,200	$ 2,200
Unamortized original issue discount and debt issuance costs	(962)	(943)
Finance obligations	4,052	4,463
Finance lease liabilities	1,634	0
Total current portion of notes payable and other borrowings	6,924	5,720
Long-term notes payable and other borrowings
Notes payable	180,398	181,498
Unamortized original issue discount and debt issuance costs	(748)	(1,234)
Finance obligations	75,709	59,737
Finance lease liabilities	10,450	0
Total long-term notes payable and other borrowings	$ 265,809	$ 240,001

Note 10. Notes Payable and Ot_4

Note 10. Notes Payable and Other Borrowings (Details Narrative) - Steak n Shake Agreement 2014 $ in Thousands	Jun. 30, 2019USD ($)
Interest rate	6.19%
Outstanding debt	$ 182,598

Note 11. Leases (Details)

Note 11. Leases (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2019	Jun. 30, 2019
Finance lease costs:
Amortization of right-of-use assets		$ 487	$ 979
Interest on lease liabilities		215	422
Operating lease costs	[1]	4,003	7,860
Total lease costs		$ 4,705	$ 9,261
[1]	Includes short-term leases, variable lease costs and sublease income, which are immaterial.

Note 11. Leases (Details 1)

Note 11. Leases (Details 1) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liablities:
Financing cash flows from finance leases	$ 797
Operating cash flows from finance leases	422
Operating cash flows from operating leases	8,375
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	1,097
Operating lease liabilities	$ 8,919

Note 11. Leases (Details 2)

Note 11. Leases (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Finance leases:
Property and equipment, net	$ 11,755
Current portion of notes payable and other borrowings	1,634	$ 0
Long-term notes payable and other borrowings	10,450	$ 0
Total finance lease liablities	$ 12,084

Note 11. Leases (Details 3)

Note 11. Leases (Details 3)	Jun. 30, 2019
Weighted-average remaining lease terms:
Finance leases	8 years 8 months 12 days
Operating leases	7 years 3 months 18 days
Weighted-average discount rates:
Finance leases	7.10%
Operating leases	6.90%

Note 11. Leases (Details 4)

Note 11. Leases (Details 4) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases
2019	$ 8,439
2020	15,797
2021	14,701
2022	12,438
2023	10,588
After 2023	31,397
Total lease payments	93,360
Less interest	21,088
Total lease liabilities	72,272
Finance Leases
2019	1,218
2020	2,377
2021	2,358
2022	1,869
2023	1,669
After 2023	6,815
Total lease payments	16,306
Less interest	4,222
Total lease liabilities	$ 12,084

Note 11. Leases (Details 5)

Note 11. Leases (Details 5) $ in Thousands	Dec. 31, 2018USD ($)
2019	$ 11,169
2020	8,095
2021	5,980
2022	2,956
2023	1,587
After 2023	1,673
Total minimum future rental payments	31,460
Less amount representing interest	18,064
Total principal obligations under leases	13,396
Less current portion	4,463
Non-current principal obligations under leases	8,933
Residual value at end of lease term	50,804
Obligations under leases	59,737
Finance Obligations
2019	11,114
2020	8,040
2021	5,925
2022	2,951
2023	1,587
After 2023	1,673
Total minimum future rental payments	31,290
Less amount representing interest	18,004
Total principal obligations under leases	13,286
Less current portion	4,433
Non-current principal obligations under leases	8,853
Residual value at end of lease term	50,744
Obligations under leases	59,597
Capital Leases
2019	55
2020	55
2021	55
2022	5
2023	0
After 2023	0
Total minimum future rental payments	170
Less amount representing interest	60
Total principal obligations under leases	110
Less current portion	30
Non-current principal obligations under leases	80
Residual value at end of lease term	60
Obligations under leases	140
Operating Property
2019	17,914
2020	16,691
2021	16,787
2022	15,603
2023	14,071
After 2023	36,709
Total minimum future rental payments	117,775
Non-Operating Property
2019	483
2020	554
2021	578
2022	599
2023	539
After 2023	1,790
Total minimum future rental payments	$ 4,543

Note 12. Accumulated Other Co_3

Note 12. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Beginning balance	$ (2,820)	$ (966)	$ (2,516)	$ (1,404)
Reclassification to (earnings) loss	0	0	0	(58)
Foreign currency translation	196	(1,141)	(108)	(645)
Ending balance	(2,624)	(2,107)	(2,624)	(2,107)
Foreign Currency Translation Adjustments
Beginning balance	(2,820)	(966)	(2,516)	(1,462)
Reclassification to (earnings) loss	0	0	0	0
Foreign currency translation	196	(1,141)	(108)	(645)
Ending balance	(2,624)	(2,107)	(2,624)	(2,107)
Investment Gain (Loss)
Beginning balance	0	0	0	58
Reclassification to (earnings) loss	0	0	0	(58)
Foreign currency translation	0	0	0	0
Ending balance	$ 0	$ 0	$ 0	$ 0

Note 13. Income Taxes (Details

Note 13. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ 5,896	$ (890)	$ 7,640	$ (1,687)
Unrecognized tax benefits	$ 352		$ 352		$ 341

Note 15. Fair Value of Financ_3

Note 15. Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash equivalents	$ 10,118	$ 21,448
Equity securities: Consumer goods	6,421	5,808
Bonds	35,557	32,404
Options on equity securities	2,142	2,755
Non-qualified deferred compensation plan investments	2,057	2,149
Total assets at fair value	56,295	64,564
Level 1
Assets
Cash equivalents	10,118	21,448
Equity securities: Consumer goods	0	1,708
Bonds	35,557	32,404
Options on equity securities	0	0
Non-qualified deferred compensation plan investments	2,057	2,149
Total assets at fair value	47,732	57,709
Level 2
Assets
Cash equivalents	0	0
Equity securities: Consumer goods	6,421	4,100
Bonds	0	0
Options on equity securities	2,142	2,755
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	8,563	6,855
Level 3
Assets
Cash equivalents	0	0
Equity securities: Consumer goods	0	0
Bonds	0	0
Options on equity securities	0	0
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	$ 0	$ 0

Note 17. Business Segment Rep_3

Note 17. Business Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 168,343	$ 208,739	$ 350,202	$ 410,964
Steak n Shake
Revenue	156,006	196,578	326,117	386,871
Western Sizzlin
Revenue	4,055	4,016	7,719	7,657
Total Restaurant Operations
Revenue	160,061	200,594	333,836	394,528
First Guard
Revenue	7,417	6,745	14,624	13,292
Maxim
Revenue	865	1,400	1,742	3,144
Total Revenue
Revenue	$ 168,343	$ 208,739	$ 350,202	$ 410,964

Note 17. Business Segment Rep_4

Note 17. Business Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings (loss) before income taxes	$ 27,870	$ (8,429)	$ 39,432	$ (11,040)
Restaurant | Steak n Shake
Earnings (loss) before income taxes	(3,057)	2,659	(21,915)	1,667
Restaurant | Western Sizzlin
Earnings (loss) before income taxes	506	674	889	1,048
Restaurant | Total Restaurant Operations
Earnings (loss) before income taxes	(2,551)	3,333	(21,026)	2,715
Operating Business
Earnings (loss) before income taxes	(411)	5,814	(17,315)	5,628
Operating Business | First Guard
Earnings (loss) before income taxes	1,850	2,301	3,394	2,811
Operating Business | Maxim
Earnings (loss) before income taxes	176	16	64	(201)
Operating Business | Other
Earnings (loss) before income taxes	114	164	253	303
Corporate | Corporate
Earnings (loss) before income taxes	(2,767)	(3,004)	(5,397)	(6,170)
Corporate | Investment Partnership Gains (Losses)
Earnings (loss) before income taxes	34,198	(8,341)	68,352	(4,846)
Corporate | Total Corporate And Investments
Earnings (loss) before income taxes	31,431	(11,345)	62,955	(11,016)
Reconciliation Of Segments | Interest expense on notes payable and other borrowings
Earnings (loss) before income taxes	$ (3,150)	$ (2,898)	$ (6,208)	$ (5,652)