Biglari (BH) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 03, 2020
Document Information Line Items
Entity Registrant Name	BIGLARI HOLDINGS INC.
Entity Central Index Key	0001726173
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2020
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding		206,864
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38477
Entity Incorporation State Country Code	IN
Entity Tax Identification Number	82-3784946
Entity Address City Or Town	San Antonio
Entity Address Address Line 2	Suite 400
Entity Address State Or Province	TX
Entity Address Postal Zip Code	78257
City Area Code	210
Local Phone Number	344-3400
Entity Interactive Data Current	Yes
Entity Address Address Line 1	17802 IH 10 West
Class A Common Stock [Member]
Document Information Line Items
Security 12b Title	Class A Common Stock, no par value
Security Exchange Name	NYSE
Trading Symbol	BH.A
Class B Common Stock [Member]
Document Information Line Items
Entity Common Stock Shares Outstanding		2,068,640
Security 12b Title	Class B Common Stock, no par value
Security Exchange Name	NYSE
Trading Symbol	BH

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 33,164	$ 67,772
Investments	85,082	44,856
Receivables	16,151	21,640
Inventories	2,908	4,674
Other current assets	5,622	6,449
Total current assets	142,927	145,391
Property and equipment	320,966	350,627
Operating lease assets	46,345	59,719
Goodwill and other intangible assets	75,656	67,389
Investment partnerships	383,670	505,542
Other assets	14,037	10,641
Total assets	983,601	1,139,309
Current liabilities:
Accounts payable and accrued expenses	117,888	121,079
Current portion of operating lease liabilities	10,671	11,635
Current portion of notes payable and other borrowings	159,631	7,103
Total current liabilities	288,190	139,817
Long-term notes payable and other borrowings	76,099	263,182
Operating lease liabilities	39,865	53,271
Deferred taxes	30,130	54,230
Asset retirement obligations	9,896	10,447
Other liabilities	1,203	2,064
Total liabilities	445,383	523,011
Shareholders' equity
Common stock	1,138	1,138
Additional paid-in capital	381,788	381,788
Retained earnings	536,721	611,039
Accumulated other comprehensive loss	(1,976)	(2,810)
Treasury stock, at cost	(379,453)	(374,857)
Biglari Holdings Inc. shareholders' equity	538,218	616,298
Total liabilities and shareholders' equity	$ 983,601	$ 1,139,309

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Restaurant operations	$ 79,674,000	$ 145,111,000	$ 272,582,000	$ 478,947,000
Insurance premiums and other	14,413,000	7,681,000	38,692,000	22,305,000
Oil and gas	6,029,000	6,500,000	19,554,000	6,500,000
Media and licensing	1,719,000	924,000	3,209,000	2,666,000
Revenues	101,835,000	160,216,000	334,037,000	510,418,000
Cost and expenses
Restaurant cost of sales	54,062,000	113,398,000	194,737,000	397,597,000
Insurance losses and underwriting expenses	11,290,000	5,242,000	28,866,000	16,400,000
Oil and gas production costs	2,171,000	2,595,000	6,570,000	2,595,000
Media and licensing costs	548,000	514,000	1,491,000	2,103,000
Selling, general and administrative	19,902,000	22,930,000	60,687,000	81,871,000
Impairments	3,698,000	5,079,000	21,817,000	7,417,000
Depreciation and amortization	7,275,000	7,514,000	24,284,000	18,191,000
Interest expense	3,743,000	5,024,000	11,652,000	15,244,000
Total	102,689,000	162,296,000	350,104,000	541,418,000
Other income
Gain on debt extinguishment	0	0	5,713,000	0
Investment gains	354,000	0	1,863,000	0
Investment partnership gains (losses)	27,218,000	1,449,000	(89,276,000)	69,801,000
Total	27,572,000	1,449,000	(81,700,000)	69,801,000
Earnings (loss) before income taxes	26,718,000	(631,000)	(97,767,000)	38,801,000
Income tax expense (benefit)	5,617,000	(614,000)	(23,449,000)	7,026,000
Net earnings (loss)	$ 21,101,000	$ (17,000)	$ (74,318,000)	$ 31,775,000
Earnings per share
Net earnings (loss) per equivalent Class A share *	$ 60.07	$ (0.05)	$ (213.31)	$ 92.04

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Net earnings (loss)	$ 21,101	$ (17)	$ (74,318)	$ 31,775
Other comprehensive income (loss):
Foreign currency translation	344	(628)	834	(736)
Other comprehensive income (loss), net	344	(628)	834	(736)
Total comprehensive income (loss)	$ 21,445	$ (645)	$ (73,484)	$ 31,039

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net earnings (loss)	$ (74,318,000)	$ 31,775,000
Adjustments to reconcile net earnings (loss) to operating cash flows:
Depreciation and amortization	24,284,000	18,191,000
Provision for deferred income taxes	(23,755,000)	(35,902,000)
Asset impairments and other non-cash expenses	22,545,000	8,105,000
(Gains) losses on disposal of assets	(1,251,000)	200,000
Gain on debt extinguishment	(5,713,000)	0
Investment gains	(1,863,000)	0
Investment partnership (gains) losses	89,276,000	(69,801,000)
Distributions from investment partnerships	97,330,000	64,329,000
Changes in receivables and inventories	9,964,000	8,817,000
Changes in other assets	955,000	(1,241,000)
Changes in accounts payable and accrued expenses	(31,087,000)	15,386,000
Net cash provided by operating activities	106,367,000	39,859,000
Investing activities
Capital expenditures	(13,297,000)	(8,357,000)
Proceeds from property and equipment disposals	3,914,000	815,000
Acquisition of business, net of cash acquired	(34,240,000)	(51,057,000)
Distributions from investment partnerships	0	40,000,000
Purchases of limited partner interests	(69,330,000)	(40,000,000)
Purchases of investments	(240,351,000)	(91,927,000)
Redemptions of fixed maturity securities	241,223,000	87,250,000
Net cash used in investing activities	(112,081,000)	(63,276,000)
Financing activities
Proceeds from revolving credit facility	500,000	0
Principal payments on long-term debt	(22,729,000)	(1,650,000)
Principal payments on direct financing lease obligations	(4,152,000)	(4,353,000)
Net cash used in financing activities	(26,381,000)	(6,003,000)
Effect of exchange rate changes on cash	(13,000)	(29,000)
Decrease in cash, cash equivalents and restricted cash	(32,108,000)	(29,449,000)
Cash, cash equivalents and restricted cash at beginning of year	70,696,000	55,010,000
Cash, cash equivalents and restricted cash at end of third quarter	$ 38,588,000	$ 25,561,000

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance, amount at Dec. 31, 2018	$ 570,455	$ 1,138	$ 381,904	$ 564,160	$ (2,516)	$ (374,231)
Net earnings	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, amount at Mar. 31, 2019	581,354	1,138	381,904	575,477	(2,820)	(374,345)
Net earnings	21,974			21,974
Other comprehensive income, net	196				196
Adjustment to treasury stock for holdings in investment partnerships	(1,162)					(1,162)
Balance, amount at Jun. 30, 2019	602,362	1,138	381,904	597,451	(2,624)	(375,507)
Net earnings	(17)			(17)
Other comprehensive income, net	(628)				(628)
Adjustment to treasury stock for holdings in investment partnerships	(197)					(197)
Balance, amount at Sep. 30, 2019	601,520	1,138	381,904	597,434	(3,252)	(375,704)
Balance, amount at Dec. 31, 2019	616,298	1,138	381,788	611,039	(2,810)	(374,857)
Net earnings	(137,885)			(137,885)
Other comprehensive income, net	(312)				(312)
Adjustment to treasury stock for holdings in investment partnerships	1,089					1,089
Balance, amount at Mar. 31, 2020	479,190	1,138	381,788	473,154	(3,122)	(373,768)
Net earnings	42,466			42,466
Other comprehensive income, net	802				802
Adjustment to treasury stock for holdings in investment partnerships	92					92
Balance, amount at Jun. 30, 2020	522,550	1,138	381,788	515,620	(2,320)	(373,676)
Net earnings	21,101			21,101
Other comprehensive income, net	344				344
Adjustment to treasury stock for holdings in investment partnerships	(5,777)					(5,777)
Balance, amount at Sep. 30, 2020	$ 538,218	$ 1,138	$ 381,788	$ 536,721	$ (1,976)	$ (379,453)

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Note 1. Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Description of Business The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. 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, 2019. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance, media and licensing, restaurants, and oil and gas. 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 investment and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. As of September 30, 2020, Mr. Biglari’s beneficial ownership was approximately 66.30% of the Company’s outstanding Class A common stock and 56.60% of the Company’s outstanding Class B common stock. The novel coronavirus (“COVID-19”) was declared a pandemic by the World Health Organization, which caused governments to contain its spread, thereby significantly affecting our operating businesses beginning in March and adversely affecting nearly all of our operations during the second and third quarters. Our restaurants were required to close their dining rooms during the first quarter. In order to reopen the dining rooms profitably, Steak n Shake will require funds for capital expenditures, which are limited under its current debt agreement. The purpose of the capital spending is to convert Steak n Shake’s full-service model into a self-service one. In addition, our restaurants have incurred costs to ensure compliance with health and safety standards in response to COVID-19. The COVID-19 pandemic has caused oil demand to decrease significantly, creating oversupplied markets that have resulted in lower commodity prices and margins. In response, the Company has significantly cut production and expenses in its oil and gas business. The risks and uncertainties resulting from the pandemic may continue to affect our future earnings, cash flows and financial condition. Business Acquisition On March 9, 2020, Biglari Holdings acquired the stock of Southern Pioneer Property & Casualty Insurance Company, and its agency, Southern Pioneer Insurance Agency, Inc. (collectively “Southern Pioneer”). Southern Pioneer underwrites specialty insurance products including garage liability insurance, commercial property coverage, as well as homeowners and dwelling fire insurance coverages. The financial results for Southern Pioneer from the acquisition date to the end of the third quarter are included in the Company’s consolidated financial statements. The acquisition date fair values of assets and liabilities of Southern Pioneer are provisional and subject to revision as the related valuations are completed. Pro-forma financial information of Southern Pioneer is not material. On September 9, 2019, a wholly-owned subsidiary of the Company, Southern Oil Company, acquired the stock of Southern Oil of Louisiana Inc. (collectively “Southern Oil”). Southern Oil primarily operates oil and natural gas properties offshore in the shallow waters of the Gulf of Mexico. Pro-forma financial information of Southern Oil is not material. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake Inc, Western Sizzlin Corporation, Maxim Inc., Southern Oil, First Guard Insurance Company, and Southern Pioneer. Intercompany accounts and transactions have been eliminated in consolidation. Change in Presentation Interest expense on finance leases and obligations has been combined with interest expense in 2020 and reclassified as a component of cost and expenses in the consolidated statement of earnings. Prior period balances have been adjusted to conform to the change in presentation.

New Accounting Standards

New Accounting Standards	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Note 2. New Accounting Standards	Note 2. New Accounting Standards In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings per share
Note 3. 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 September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 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 September 30, 2020 and December 31, 2019. 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 third quarters of 2020 and 2019 were 351,288 and 343,519, respectively. The equivalent Class A weighted average number of common shares during the first nine months of 2020 and 2019 were 348,396 and 345,249, respectively.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Investments
Note 4. Investments	Note 4. Investments Available for sale investments were $80,619 and $40,393 as of September 30, 2020 and December 31, 2019, respectively. Investments in equity securities and a related derivative position of $4,463 are also included in investments. The investments are recorded at fair value. The fair value of investments acquired with Southern Pioneer was $36,876. The Company recorded $354 and $1,863 in investment gains during the third quarter and first nine months of 2020, respectively. The Company did not have investment gains/losses during the first quarter of 2020 and during the first nine months of 2019. Interest and dividends earned on investments are reported as other income by our insurance companies. We consider investment income as a component of our aggregate insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as non-operating.

Investment Partnerships

Investment Partnerships	9 Months Ended
	Sep. 30, 2020
Investment Partnerships
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. (“Biglari Capital”) 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 Common Stock Carrying Value Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (123,524 ) (34,248 ) (89,276 ) Distributions (net of contributions) to investment partnerships (28,000 ) - (28,000 ) Increase in proportionate share of Company stock held - 4,596 (4,596 ) Partnership interest at September 30, 2020 $ 514,599 $ 130,929 $ 383,670 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains (losses) 63,419 (6,382 ) 69,801 Distributions (net of contributions) to investment partnerships (64,329 ) - (64,329 ) Increase in proportionate share of Company stock held - 1,473 (1,473 ) Partnership interest at September 30, 2019 $ 714,192 $ 152,713 $ 561,479 The carrying value of the investment partnerships net of deferred taxes is presented below. September 30, December 31, 2019 Carrying value of investment partnerships $ 383,670 $ 505,542 Deferred tax liability related to investment partnerships (38,313 ) (56,518 ) Carrying value of investment partnerships net of deferred taxes $ 345,357 $ 449,024 The Company’s proportionate share of Company stock held by investment partnerships at cost is $379,453 and $374,857 at September 30, 2020 and December 31, 2019, 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. Third Quarter First Nine Months 2020 2019 2020 2019 Gains (losses) on investment partnership $ 27,218 $ 1,449 $ (89,276 ) $ 69,801 Tax expense (benefit) 6,163 49 (21,337 ) 15,910 Net earnings (loss) $ 21,055 $ 1,400 $ (67,939 ) $ 53,891 On December 31 of each year, the general partner of the investment partnerships, Biglari Capital, will earn an incentive reallocation fee for the Company’s 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 Company’s common stock. Gains and losses on the Company’s common stock and the related incentive reallocations are eliminated in our financial statements. Our investments in these partnerships are committed on a rolling 5-year basis. There were no incentive reallocations from Biglari Holdings to Biglari Capital during the first nine months of 2020 and 2019. 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 September 30, 2020 $ 98,041 $ 497,761 Total liabilities as of September 30, 2020 $ 120 $ 27,768 Revenue for the first nine months of 2020 $ (18,941 ) $ (119,644 ) Earnings for the first nine months of 2020 $ (18,992 ) $ (120,849 ) Biglari Holdings' ownership interest as of September 30, 2020 66.20 % 95.30 % Total assets as of December 31, 2019 $ 117,135 $ 758,663 Total liabilities as of December 31, 2019 $ 158 $ 114,639 Revenue for the first nine months of 2019 $ 3,332 $ 71,578 Earnings for the first nine months of 2019 $ 3,278 $ 65,637 Biglari Holdings' ownership interest as of September 30, 2019 66.10 % 93.50 % Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property and Equipment
Note 6. Property and Equipment	Note 6. Property and Equipment Property and equipment is composed of the following. September 30, December 31, 2019 Land $ 143,839 $ 150,147 Buildings 139,320 144,243 Land and leasehold improvements 140,940 157,141 Equipment 192,201 196,264 Oil and gas properties 75,853 77,475 Construction in progress 1,036 3,789 693,189 729,059 Less accumulated depreciation and amortization (372,223 ) (378,432 ) Property and equipment, net $ 320,966 $ 350,627 Depletion expense related to oil and gas properties was $9,249 during the first nine months of 2020 and is included in depreciation and amortization in the consolidated statement of earnings. The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company-operated restaurants for recoverability. Consequently, the Company recorded impairment charges of $3,698 in the third quarter of 2020 and $18,117 in the first nine months of 2020 mainly because of the decision to permanently close some Steak n Shake restaurants as well as to close the dining rooms of all company-operated restaurants. The Company recorded an impairment to long-lived assets of $5,079 in the third quarter of 2019 and $7,417 in the first nine months of 2019 primarily related to Steak n Shake closed stores. The fair value of the long-lived assets was determined based on Level 3 inputs using a discounted cash flow model. Moreover, we also applied a market analysis for certain properties. The COVID-19 pandemic has caused oil demand to decrease significantly, creating oversupplied markets that have resulted in lower commodity prices and margins. The Company evaluated the potential impact on its oil and gas properties, but concluded they were not impaired during the first nine months of 2020. However, protracted low commodity prices may require impairments in future periods. The duration and extent of the COVID-19 pandemic cannot be reasonably estimated at this time. The risks and uncertainties resulting from the pandemic may lead to future impairment of long-lived assets including right-of-use assets. In addition, significant estimates and assumptions used in the evaluation of long-lived assets for impairment may be subject to significant adjustments in future periods.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill and Other Intangible Assets
Note 7. Goodwill and Other Intangible Assets	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. The Company purchased Southern Pioneer on March 9, 2020. The preliminary purchase price allocation reflects goodwill of $11,865. A reconciliation of the change in the carrying value of goodwill is as follows. September 30, Balance at beginning of year $ 40,040 Goodwill from acquisition 11,865 Change in foreign exchange rates during the first nine months of 2020 27 Balance at end of period $ 51,932 We evaluate 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 nine months of 2020 or 2019. In response to the adverse effects of the COVID-19 pandemic, we considered whether goodwill needed to be evaluated for impairment as of September 30, 2020, specifically related to goodwill for certain restaurant reporting units. Making estimates of the fair value of reporting units at this time are significantly affected by assumptions on the severity, duration and long-term effects of the pandemic on the reporting unit’s operations. We considered the available facts and made qualitative assessments and judgments for what we believed represent reasonably possible outcomes. Although the fair values of certain of these reporting units declined since the time that the most recent annual impairment tests were conducted, we concluded it is more likely than not that goodwill was not impaired as of September 30, 2020. However, COVID-19 pandemic events will continue to evolve and the negative effects on our operations could prove to be worse than we currently estimate. The Company may record goodwill impairment charges in future periods. Other Intangible Assets Other intangible assets are composed of the following. September 30, 2020 December 31, 2019 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement $ 5,310 $ (5,310 ) $ - $ 5,310 $ (5,178 ) $ 132 Other 810 (810 ) - 810 (792 ) 18 Total 6,120 (6,120 ) - 6,120 (5,970 ) 150 Intangible assets with indefinite lives: Trade names 15,876 - 15,876 15,876 - 15,876 Other assets with indefinite lives 7,848 - 7,848 11,323 - 11,323 Total intangible assets $ 29,844 $ (6,120 ) $ 23,724 $ 33,319 $ (5,970 ) $ 27,349 Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights. During the first nine months of 2020, the Company recorded impairment charges of $3,700 on lease rights related to our international restaurant operations because of the adverse effects of the COVID-19 pandemic. The impairment and fair value were determined using Level 3 inputs and available market data. Amortization expense for the first nine months of 2020 and 2019 was $150 and $412, respectively. The Company’s intangible assets with definite lives are fully amortized.

Restaurant Operations Revenues

Restaurant Operations Revenues	9 Months Ended
	Sep. 30, 2020
Restaurant Operations Revenues
Note 8. Restaurant Operations Revenues	Note 8. Restaurant Operations Revenues Restaurant operations revenues were as follows. Third Quarter First Nine Months 2020 2019 2020 2019 Net sales $ 67,617 $ 136,651 $ 241,832 $ 454,344 Franchise royalties and fees 4,421 6,638 13,704 20,017 Franchise partner fees 6,894 989 14,775 1,668 Other 742 833 2,271 2,918 $ 79,674 $ 145,111 $ 272,582 $ 478,947 Net sales Net sales are composed of retail sales of food through company-operated stores. Company-operated store revenues are recognized, net of discounts and sales taxes, when our obligation to perform is satisfied 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. Royalties are based upon a percentage of sales of the franchise restaurant and are recognized as earned. Franchise royalties are billed on a monthly basis. Initial franchise fees when a new restaurant opens or at the start of a new franchise term are recorded as deferred revenue when received and recognized as revenue over the term of the franchise agreement. Our advertising arrangements with franchisees are reported in franchise royalties and fees. Franchise partner fees Steak n Shake is in the process of transitioning company-operated restaurants to franchise partners. The franchise agreement stipulates that the franchisee make an upfront investment totaling ten thousand dollars. Potential franchise partners are screened based on entrepreneurial attitude and ability, but they become franchise partners based on achievement. Each must meet the gold standard in service. Franchise partners are required to be hands-on operators. We limit a franchisee to a single location. As the franchisor Steak n Shake assesses a fee of up to 15% of sales as well as 50% of profits. 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.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
	Sep. 30, 2020
Accounts Payable and Accrued Expenses
Note 9. Accounts Payable and Accrued Expenses	Note 9. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses include the following. September 30, December 31, 2019 Accounts payable $ 26,546 $ 32,626 Gift card and other marketing 19,762 23,787 Salaries and wages 8,441 10,667 Taxes payable 14,497 29,275 Insurance accruals 32,091 11,418 Deferred revenue 10,905 10,454 Other 5,646 2,852 Accounts payable and accrued expenses $ 117,888 $ 121,079

Notes Payable and Other Borrowi

Notes Payable and Other Borrowings	9 Months Ended
	Sep. 30, 2020
Notes Payable and Other Borrowings
Note 10. Notes Payable and Other Borrowings	Note 10. Notes Payable and Other Borrowings Notes payable and other borrowings include the following. Current portion of notes payable and other borrowings September 30, December 31, Notes payable $ 153,056 $ 2,200 Unamortized original issue discount and debt issuance costs (506 ) (982 ) Western Sizzlin revolver 500 - Finance obligations 4,948 4,252 Finance lease liabilities 1,633 1,633 Total current portion of notes payable and other borrowings $ 159,631 $ 7,103 Long-term notes payable and other borrowings Notes payable $ - $ 179,298 Unamortized original issue discount and debt issuance costs - (252 ) Finance obligations 69,663 74,497 Finance leases liabilities 6,436 9,639 Total long-term notes payable and other borrowings $ 76,099 $ 263,182 Steak n Shake Credit Facility On March 19, 2014, Steak n Shake and its subsidiaries entered into a credit agreement that 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. As of September 30, 2020, $153,056 was outstanding. Biglari Holdings is not a guarantor under the credit facility and has no plans to provide a guarantee to the term loan lenders. Absent a resolution with the lenders, Steak n Shake may need to seek refinancing options, which may not be available. The term loan amortizes in equal quarterly installments at an annual rate of 1.00% 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. 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 4.75% as of September 30, 2020. 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. The fair value of long-term debt, excluding capitalized lease obligations, was approximately $80,000 at September 30, 2020. The fair value of our debt was estimated based on quoted market prices. The fair value was determined to be a Level 3 fair value measurement. The Company retired $26,792 of debt during the first nine months of 2020. Interest expense is summarized as follows. Third Quarter First Nine Months 2020 2019 2020 2019 Interest expense $ 2,150 $ 3,090 $ 6,973 $ 9,298 Interest on finance leases and obligations 1,593 1,934 4,679 5,946 $ 3,743 $ 5,024 $ 11,652 $ 15,244 Western Sizzlin Revolver Western Sizzlin had $500 and $0 of debt outstanding under its revolver as of September 30, 2020 and December 31, 2019, respectively. Western Sizzlin reduced its revolver to $0 on October 30, 2020.

Leased Assets and Lease Commitm

Leased Assets and Lease Commitments	9 Months Ended
	Sep. 30, 2020
Leased Assets and Lease Commitments
Note 11. Leased Assets and Lease Commitments	Note 11. Leased Assets and Lease Commitments 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. During 2020, the Company negotiated lease concessions on certain lease arrangements related to the COVID-19 pandemic and has accounted for these under the ASC 842 COVID-19 Election. Total lease cost consists of the following. Third Quarter First Nine Months 2020 2019 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 279 $ 487 $ 1,087 $ 1,466 Interest on lease liabilities 136 208 392 630 Operating lease costs * 2,096 4,445 8,321 12,305 Total lease costs $ 2,511 $ 5,140 $ 9,800 $ 14,401 *Includes short-term leases, variable lease costs and sublease income, which are immaterial. Supplemental cash flow information related to leases is as follows. First Nine Months 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,132 $ 1,201 Operating cash flows from finance leases $ 463 $ 630 Operating cash flows from operating leases $ 10,382 $ 12,558 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities $ - $ 1,097 Operating lease liabilities $ 73 $ 11,069 Supplemental balance sheet information related to leases is as follows. September 30, December 31, Finance leases: Property and equipment, net $ 6,476 $ 10,783 Current portion of notes payable and other borrowings $ 1,633 $ 1,633 Long-term notes payable and other borrowings 6,436 9,639 Total finance lease liablities $ 8,069 $ 11,272 Weighted-average lease terms and discount rates are as follows. September 30, Weighted-average remaining lease terms: Finance leases 5.8 years Operating leases 5.8 years Weighted-average discount rates: Finance leases 7.10 % Operating leases 6.90 % Maturities of lease liabilities as of September 30, 2020 are as follows. Year Operating Leases Finance 2020 $ 3,853 $ 545 2021 13,244 2,135 2022 11,162 1,614 2023 9,821 1,410 2024 7,902 1,373 After 2024 15,680 2,756 Total lease payments 61,662 9,833 Less interest 11,126 1,764 Total lease liabilities $ 50,536 $ 8,069

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2020
Accumulated Other Comprehensive Income
Note 12. Accumulated Other Comprehensive Income	Note 12. Accumulated Other Comprehensive Income During the third quarter of 2020 accumulated other comprehensive losses decreased by $344 and increased by $628 during the third quarter of 2019. During the first nine months of 2020 accumulated other comprehensive losses decreased by $834 and increased by $736 during the first nine months of 2019. As of September 30, 2020 and 2019, the balances in accumulated other comprehensive loss were $1,976 and $3,252, respectively. There were no reclassifications from accumulated other comprehensive income to earnings during the first nine months of 2020 and 2019. All changes in accumulated other comprehensive income during the first nine months of 2020 and 2019 were because of foreign currency translation adjustments.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes
Note 13. Income Taxes	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 the first nine months of 2020 and 2019. 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 third quarter of 2020 was $5,617 compared to a tax benefit of $614 for the third quarter of 2019. Income tax benefit for the first nine months of 2020 was $23,449 compared to an income tax expense of $7,026 for the first nine months of 2019. The variance in income taxes between 2020 and 2019 is attributable to taxes on income generated by the investment partnerships. Investment partnership pretax losses were $89,276 during the first nine months of 2020, compared to pretax gains of $69,801 during the first nine months of 2019. As of September 30, 2020 and December 31, 2019, we had $348 of unrecognized tax benefits, which are included in other liabilities in the consolidated balance sheets.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies
Note 14. Commitments and Contingencies	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 shareholder withdrew the motion 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, including the ability to vote the Company’s shares that are eliminated for financial reporting purposes. 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. On December 4, 2019, the Indiana Court of Appeals issued a unanimous decision affirming the trial court’s decision to dismiss the shareholder litigation. On January 20, 2020, the shareholders filed a petition to transfer with the Indiana Supreme Court seeking review of the decision of the Court of Appeals. The Company opposed the petition. On April 7, 2020, the Indiana Supreme Court denied the petition to transfer. All of the cases referenced above are completed and each case was concluded in the Company’s favor.

Fair Value of Financial Assets

Fair Value of Financial Assets	9 Months Ended
	Sep. 30, 2020
Fair Value of Financial Assets
Note 15. Fair Value of Financial Assets	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 September 30, 2020 and December 31, 2019, the fair values of financial assets were as follows. September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 17,719 $ - $ - $ 17,719 $ 43,095 $ - $ - $ 43,095 Equity securities 6,488 5,691 - 12,179 25 6,397 - 6,422 Bonds 55,007 - - 55,007 38,911 - - 38,911 Options on equity securities - 2,872 - 2,872 - 2,166 - 2,166 Non-qualified deferred compensation plan investments 1,382 - - 1,382 2,175 - - 2,175 Total assets at fair value $ 80,596 $ 8,563 $ - $ 89,159 $ 84,206 $ 8,563 $ - $ 92,769 There were no changes in our valuation techniques used to measure fair values on a recurring basis.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions
Note 16. Related Party Transactions	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 services to the Company. The services agreement has a five-year term, effective on October 1, 2017. The fixed fee of $700 per month can be adjusted annually. The monthly fee will remain at $700 during 2020. The Company paid Biglari Enterprises $6,300 in service fees during the first nine months of 2020 and 2019. The services agreement does not alter the hurdle rate connected with the incentive reallocation paid to Biglari Capital Corp. The Biglari Entities are owned by Mr. Biglari. 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 became effective in 2019.

Business Segment Reporting

Business Segment Reporting	9 Months Ended
	Sep. 30, 2020
Business Segment Reporting
Note 17. Business Segment Reporting	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. Our insurance operations include First Guard and Southern Pioneer. The Company also reports segment information for Maxim and Southern Oil. Other business activities not specifically identified with reportable business segments are presented in corporate. 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. A disaggregation of our consolidated data for the third quarters and first nine months of 2020 and 2019 is presented in the tables which follow. Revenue Third Quarter First Nine Months 2020 2019 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 78,313 $ 141,354 $ 267,637 $ 467,471 Western Sizzlin 1,361 3,757 4,945 11,476 Total Restaurant Operations 79,674 145,111 272,582 478,947 Insurance Operations: First Guard 7,898 7,681 23,194 22,305 Southern Pioneer 6,515 - 15,498 - Total Insurance Operations 14,413 7,681 38,692 22,305 Southern Oil 6,029 6,500 19,554 6,500 Maxim 1,719 924 3,209 2,666 $ 101,835 $ 160,216 $ 334,037 $ 510,418 Earnings (Losses) Before Income Taxes Third Quarter First Nine Months 2020 2019 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ (63 ) $ (861 ) $ (12,075 ) $ (22,776 ) Western Sizzlin (396 ) 544 (937 ) 1,433 Total Restaurant Operations (459 ) (317 ) (13,012 ) (21,343 ) Insurance Operations: First Guard 2,152 2,279 7,193 5,673 Southern Pioneer 518 - 1,458 - Total Insurance Operations 2,670 2,279 8,651 5,673 Southern Oil 592 1,448 1,355 1,448 Maxim 1,150 364 1,605 428 Total Operating Businesses 3,953 3,774 (1,401 ) (13,794 ) Corporate and Investments: Corporate (2,657 ) (2,764 ) (7,693 ) (7,908 ) Investment gains 354 - 1,863 - Investment partnership gains (losses) 27,218 1,449 (89,276 ) 69,801 Total Corporate and Investments 24,915 (1,315 ) (95,106 ) 61,893 Interest expense and debt exinguishment gains not allocated to segments (2,150 ) (3,090 ) (1,260 ) (9,298 ) $ 26,718 $ (631 ) $ (97,767 ) $ 38,801

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Description of Business	The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. 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, 2019. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance, media and licensing, restaurants, and oil and gas. 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 investment and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. As of September 30, 2020, Mr. Biglari’s beneficial ownership was approximately 66.30% of the Company’s outstanding Class A common stock and 56.60% of the Company’s outstanding Class B common stock. The novel coronavirus (“COVID-19”) was declared a pandemic by the World Health Organization, which caused governments to contain its spread, thereby significantly affecting our operating businesses beginning in March and adversely affecting nearly all of our operations during the second and third quarters. Our restaurants were required to close their dining rooms during the first quarter. In order to reopen the dining rooms profitably, Steak n Shake will require funds for capital expenditures, which are limited under its current debt agreement. The purpose of the capital spending is to convert Steak n Shake’s full-service model into a self-service one. In addition, our restaurants have incurred costs to ensure compliance with health and safety standards in response to COVID-19. The COVID-19 pandemic has caused oil demand to decrease significantly, creating oversupplied markets that have resulted in lower commodity prices and margins. In response, the Company has significantly cut production and expenses in its oil and gas business. The risks and uncertainties resulting from the pandemic may continue to affect our future earnings, cash flows and financial condition.
Business Acquisition	On March 9, 2020, Biglari Holdings acquired the stock of Southern Pioneer Property & Casualty Insurance Company, and its agency, Southern Pioneer Insurance Agency, Inc. (collectively “Southern Pioneer”). Southern Pioneer underwrites specialty insurance products including garage liability insurance, commercial property coverage, as well as homeowners and dwelling fire insurance coverages. The financial results for Southern Pioneer from the acquisition date to the end of the third quarter are included in the Company’s consolidated financial statements. The acquisition date fair values of assets and liabilities of Southern Pioneer are provisional and subject to revision as the related valuations are completed. Pro-forma financial information of Southern Pioneer is not material. On September 9, 2019, a wholly-owned subsidiary of the Company, Southern Oil Company, acquired the stock of Southern Oil of Louisiana Inc. (collectively “Southern Oil”). Southern Oil primarily operates oil and natural gas properties offshore in the shallow waters of the Gulf of Mexico. Pro-forma financial information of Southern Oil is not material.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake Inc, Western Sizzlin Corporation, Maxim Inc., Southern Oil, First Guard Insurance Company, and Southern Pioneer. Intercompany accounts and transactions have been eliminated in consolidation.
Change in Presentation	Interest expense on finance leases and obligations has been combined with interest expense in 2020 and reclassified as a component of cost and expenses in the consolidated statement of earnings. Prior period balances have been adjusted to conform to the change in presentation.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings per share
Summary of outstanding shares	September 30, 2020 December 31, 2019 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

Investment Partnerships (Tables

Investment Partnerships (Tables)	9 Months Ended
	Sep. 30, 2020
Investment Partnerships
Fair value and carrying value of our partnership interest	Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (123,524 ) (34,248 ) (89,276 ) Distributions (net of contributions) to investment partnerships (28,000 ) - (28,000 ) Increase in proportionate share of Company stock held - 4,596 (4,596 ) Partnership interest at September 30, 2020 $ 514,599 $ 130,929 $ 383,670 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains (losses) 63,419 (6,382 ) 69,801 Distributions (net of contributions) to investment partnerships (64,329 ) - (64,329 ) Increase in proportionate share of Company stock held - 1,473 (1,473 ) Partnership interest at September 30, 2019 $ 714,192 $ 152,713 $ 561,479
Carrying value of investment partnerships net of deferred taxes	September 30, December 31, 2019 Carrying value of investment partnerships $ 383,670 $ 505,542 Deferred tax liability related to investment partnerships (38,313 ) (56,518 ) Carrying value of investment partnerships net of deferred taxes $ 345,357 $ 449,024
Gains (loss) from investment partnerships	Third Quarter First Nine Months 2020 2019 2020 2019 Gains (losses) on investment partnership $ 27,218 $ 1,449 $ (89,276 ) $ 69,801 Tax expense (benefit) 6,163 49 (21,337 ) 15,910 Net earnings (loss) $ 21,055 $ 1,400 $ (67,939 ) $ 53,891
Summarized financial information for equity in investment partnerships	Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of September 30, 2020 $ 98,041 $ 497,761 Total liabilities as of September 30, 2020 $ 120 $ 27,768 Revenue for the first nine months of 2020 $ (18,941 ) $ (119,644 ) Earnings for the first nine months of 2020 $ (18,992 ) $ (120,849 ) Biglari Holdings' ownership interest as of September 30, 2020 66.20 % 95.30 % Total assets as of December 31, 2019 $ 117,135 $ 758,663 Total liabilities as of December 31, 2019 $ 158 $ 114,639 Revenue for the first nine months of 2019 $ 3,332 $ 71,578 Earnings for the first nine months of 2019 $ 3,278 $ 65,637 Biglari Holdings' ownership interest as of September 30, 2019 66.10 % 93.50 %

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property and Equipment
Schedule of Property and Equipment	September 30, December 31, 2019 Land $ 143,839 $ 150,147 Buildings 139,320 144,243 Land and leasehold improvements 140,940 157,141 Equipment 192,201 196,264 Oil and gas properties 75,853 77,475 Construction in progress 1,036 3,789 693,189 729,059 Less accumulated depreciation and amortization (372,223 ) (378,432 ) Property and equipment, net $ 320,966 $ 350,627

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Other Intangible Assets
Schedule of goodwill	September 30, Balance at beginning of year $ 40,040 Goodwill from acquisition 11,865 Change in foreign exchange rates during the first nine months of 2020 27 Balance at end of period $ 51,932
Schedule of other intangible assets	September 30, 2020 December 31, 2019 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement $ 5,310 $ (5,310 ) $ - $ 5,310 $ (5,178 ) $ 132 Other 810 (810 ) - 810 (792 ) 18 Total 6,120 (6,120 ) - 6,120 (5,970 ) 150 Intangible assets with indefinite lives: Trade names 15,876 - 15,876 15,876 - 15,876 Other assets with indefinite lives 7,848 - 7,848 11,323 - 11,323 Total intangible assets $ 29,844 $ (6,120 ) $ 23,724 $ 33,319 $ (5,970 ) $ 27,349

Restaurant Operations Revenues

Restaurant Operations Revenues (Tables)	9 Months Ended
	Sep. 30, 2020
Restaurant Operations Revenues (Tables)
Schedule of restaurant operations revenues	Third Quarter First Nine Months 2020 2019 2020 2019 Net sales $ 67,617 $ 136,651 $ 241,832 $ 454,344 Franchise royalties and fees 4,421 6,638 13,704 20,017 Franchise partner fees 6,894 989 14,775 1,668 Other 742 833 2,271 2,918 $ 79,674 $ 145,111 $ 272,582 $ 478,947

Accounts Payable And Accrued _2

Accounts Payable And Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
Accounts Payable and Accrued Expenses
Schedule of accounts payable and accrued expenses	September 30, December 31, 2019 Accounts payable $ 26,546 $ 32,626 Gift card and other marketing 19,762 23,787 Salaries and wages 8,441 10,667 Taxes payable 14,497 29,275 Insurance accruals 32,091 11,418 Deferred revenue 10,905 10,454 Other 5,646 2,852 Accounts payable and accrued expenses $ 117,888 $ 121,079

Notes Payable and Other Borro_2

Notes Payable and Other Borrowings (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Payable and Other Borrowings
Schedule of notes payable and other borrowings	Current portion of notes payable and other borrowings September 30, December 31, Notes payable $ 153,056 $ 2,200 Unamortized original issue discount and debt issuance costs (506 ) (982 ) Western Sizzlin revolver 500 - Finance obligations 4,948 4,252 Finance lease liabilities 1,633 1,633 Total current portion of notes payable and other borrowings $ 159,631 $ 7,103 Long-term notes payable and other borrowings Notes payable $ - $ 179,298 Unamortized original issue discount and debt issuance costs - (252 ) Finance obligations 69,663 74,497 Finance leases liabilities 6,436 9,639 Total long-term notes payable and other borrowings $ 76,099 $ 263,182
Schedule of interest expense	Third Quarter First Nine Months 2020 2019 2020 2019 Interest expense $ 2,150 $ 3,090 $ 6,973 $ 9,298 Interest on finance leases and obligations 1,593 1,934 4,679 5,946 $ 3,743 $ 5,024 $ 11,652 $ 15,244

Leased Assets and Lease Commi_2

Leased Assets and Lease Commitments (Tables)	9 Months Ended
	Sep. 30, 2020
Leased Assets and Lease Commitments
Schedule of lease cost	Third Quarter First Nine Months 2020 2019 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 279 $ 487 $ 1,087 $ 1,466 Interest on lease liabilities 136 208 392 630 Operating lease costs * 2,096 4,445 8,321 12,305 Total lease costs $ 2,511 $ 5,140 $ 9,800 $ 14,401
Schedule of supplemental cash flow information related to leases	First Nine Months 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,132 $ 1,201 Operating cash flows from finance leases $ 463 $ 630 Operating cash flows from operating leases $ 10,382 $ 12,558 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities $ - $ 1,097 Operating lease liabilities $ 73 $ 11,069
Schedule of supplemental balance sheet information related to leases	September 30, December 31, Finance leases: Property and equipment, net $ 6,476 $ 10,783 Current portion of notes payable and other borrowings $ 1,633 $ 1,633 Long-term notes payable and other borrowings 6,436 9,639 Total finance lease liablities $ 8,069 $ 11,272
Schedule of weighted-average lease terms and discount rates	September 30, Weighted-average remaining lease terms: Finance leases 5.8 years Operating leases 5.8 years Weighted-average discount rates: Finance leases 7.10 % Operating leases 6.90 %
Schedule of maturities of lease liabilities at September 30, 2020	Year Operating Leases Finance 2020 $ 3,853 $ 545 2021 13,244 2,135 2022 11,162 1,614 2023 9,821 1,410 2024 7,902 1,373 After 2024 15,680 2,756 Total lease payments 61,662 9,833 Less interest 11,126 1,764 Total lease liabilities $ 50,536 $ 8,069

Fair Value of Financial Assets

Fair Value of Financial Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value of Financial Assets
Schedule of fair value assets	September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 17,719 $ - $ - $ 17,719 $ 43,095 $ - $ - $ 43,095 Equity securities 6,488 5,691 - 12,179 25 6,397 - 6,422 Bonds 55,007 - - 55,007 38,911 - - 38,911 Options on equity securities - 2,872 - 2,872 - 2,166 - 2,166 Non-qualified deferred compensation plan investments 1,382 - - 1,382 2,175 - - 2,175 Total assets at fair value $ 80,596 $ 8,563 $ - $ 89,159 $ 84,206 $ 8,563 $ - $ 92,769

Business Segment Reporting (Tab

Business Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2020
Business Segment Reporting
Schedule of revenue by segment	Revenue Third Quarter First Nine Months 2020 2019 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 78,313 $ 141,354 $ 267,637 $ 467,471 Western Sizzlin 1,361 3,757 4,945 11,476 Total Restaurant Operations 79,674 145,111 272,582 478,947 Insurance Operations: First Guard 7,898 7,681 23,194 22,305 Southern Pioneer 6,515 - 15,498 - Total Insurance Operations 14,413 7,681 38,692 22,305 Southern Oil 6,029 6,500 19,554 6,500 Maxim 1,719 924 3,209 2,666 $ 101,835 $ 160,216 $ 334,037 $ 510,418
Schedule of earnings (losses) before income taxes by segment	Earnings (Losses) Before Income Taxes Third Quarter First Nine Months 2020 2019 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ (63 ) $ (861 ) $ (12,075 ) $ (22,776 ) Western Sizzlin (396 ) 544 (937 ) 1,433 Total Restaurant Operations (459 ) (317 ) (13,012 ) (21,343 ) Insurance Operations: First Guard 2,152 2,279 7,193 5,673 Southern Pioneer 518 - 1,458 - Total Insurance Operations 2,670 2,279 8,651 5,673 Southern Oil 592 1,448 1,355 1,448 Maxim 1,150 364 1,605 428 Total Operating Businesses 3,953 3,774 (1,401 ) (13,794 ) Corporate and Investments: Corporate (2,657 ) (2,764 ) (7,693 ) (7,908 ) Investment gains 354 - 1,863 - Investment partnership gains (losses) 27,218 1,449 (89,276 ) 69,801 Total Corporate and Investments 24,915 (1,315 ) (95,106 ) 61,893 Interest expense and debt exinguishment gains not allocated to segments (2,150 ) (3,090 ) (1,260 ) (9,298 ) $ 26,718 $ (631 ) $ (97,767 ) $ 38,801

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - Mr. Biglari [Member]	Sep. 30, 2020
Class A Common Stock [Member]
Equity method investment, ownership percentage	66.30%
Class B Common Stock [Member]
Equity method investment, ownership percentage	56.60%

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	Sep. 30, 2020	Dec. 31, 2019
Class A Common Stock [Member]
Common stock authorized	500,000	500,000
Common stock issued and outstanding	206,864	206,864
Class B Common Stock [Member]
Common stock authorized	10,000,000	10,000,000
Common stock issued and outstanding	2,068,640	2,068,640

Earnings Per Share (Details Nar

Earnings Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Earnings per share
Equivalent Class A weighted average number of common shares	351,288	343,519	348,396	345,249
Equivalent Class A common stock outsanding	620,592		620,592		620,592

Investments (Details Narrative)

Investments (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Available for sale investments	$ 80,619	$ 80,619	$ 40,393
Investments in equity securities and a related derivative position	4,463	4,463
Gain on investment	354	1,863
Southern Pioneer [Member]
Fair value of investment	$ 36,876	$ 36,876

Investment Partnerships (Detail

Investment Partnerships (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Fair Value [Member]
Partnership interest at Beginning	$ 666,123,000	$ 715,102,000
Investment partnership gains (losses)	(123,524,000)	63,419,000
Distributions (net of contributions) to investment partnerships	(28,000,000)	(64,329,000)
Increase in proportionate share of Company stock held	0	0
Partnership interest at Ending	514,599,000	714,192,000
Company Common Stock [Member]
Partnership interest at Beginning	160,581,000	157,622,000
Investment partnership gains (losses)	(34,248,000)	(6,382,000)
Distributions (net of contributions) to investment partnerships	0	0
Increase in proportionate share of Company stock held	4,596,000	1,473,000
Partnership interest at Ending	130,929,000	152,713,000
Carrying Value [Member]
Partnership interest at Beginning	505,542,000	557,480,000
Investment partnership gains (losses)	(89,276,000)	69,801,000
Distributions (net of contributions) to investment partnerships	(28,000,000)	(64,329,000)
Increase in proportionate share of Company stock held	(4,596,000)	(1,473,000)
Partnership interest at Ending	$ 383,670,000	$ 561,479,000

Investment Partnerships (Deta_2

Investment Partnerships (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment Partnerships
Carrying value of investment partnerships	$ 383,670	$ 505,542
Deferred tax liability related to investment partnerships	(38,313)	(56,518)
Carrying value of investment partnerships net of deferred taxes	$ 345,357	$ 449,024

Investment Partnerships (Deta_3

Investment Partnerships (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investment Partnerships
Gains (losses) on investment partnership	$ 27,218	$ 1,449	$ (89,276)	$ 69,801
Tax expense (benefit)	6,163	49	(21,337)	15,910
Net earnings (loss)	$ 21,055	$ 1,400	$ (67,939)	$ 53,891

Investment Partnerships (Deta_4

Investment Partnerships (Details 3) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Lion Fund [Member]
Total assets	$ 98,041		$ 117,135
Total liabilities	120		158
Revenue	(18,941)	$ 3,332
Earnings	$ (18,992)	$ 3,278
Biglari Holdings' ownership interest	66.20%	66.10%
Lion Fund II [Member]
Total assets	$ 497,761		758,663
Total liabilities	27,768		$ 114,639
Revenue	(119,644)	$ 71,578
Earnings	$ (120,849)	$ 65,637
Biglari Holdings' ownership interest	95.30%	93.50%

Investment Partnerships (Deta_5

Investment Partnerships (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment Partnerships
Proportionate share of Company stock held by investment partnerships at cost	$ 379,453	$ 374,857

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property and Equipment
Land	$ 143,839	$ 150,147
Buildings	139,320	144,243
Land and leasehold improvements	140,940	157,141
Equipment	192,201	196,264
Oil and gas properties	75,853	77,475
Construction in progress	1,036	3,789
Property and equipment, gross	693,189	729,059
Less accumulated depreciation and amortization	(372,223)	(378,432)
Property and equipment, net	$ 320,966	$ 350,627

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property and Equipment
Oil and gas properties, depletion expenses			$ 9,249
Impairments charges	$ 3,698		$ 18,117
Impairment to long-lived assets		$ 5,079		$ 7,417

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Goodwill and Other Intangible Assets
Goodwill, beginning balance	$ 40,040
Goodwill from acquisition	11,865
Change in foreign exchange rates during the first nine months of 2020	27
Goodwill, ending balance	$ 51,932

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets (Details 1) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Gross carrying amount	$ 29,844,000	$ 33,319,000
Accumulated amortization	(6,120,000)	(5,970,000)
Total intangible assets	23,724,000	27,349,000
Finite-Lived Intangible Assets [Member]
Gross carrying amount	6,120,000	6,120,000
Accumulated amortization	(6,120,000)	(5,970,000)
Total intangible assets	0	150,000
Finite-Lived Intangible Assets [Member] | Franchise Agreement [Member]
Gross carrying amount	5,310,000	5,310,000
Accumulated amortization	(5,310,000)	(5,178,000)
Total intangible assets	0	132,000
Finite-Lived Intangible Assets [Member] | Other [Member]
Gross carrying amount	810,000	810,000
Accumulated amortization	(810,000)	(792,000)
Total intangible assets	0	18,000
Indefinite-lived Intangible Assets [Member] | Other [Member]
Gross carrying amount	7,848,000	11,323,000
Accumulated amortization	0	0
Total intangible assets	7,848,000	11,323,000
Indefinite-lived Intangible Assets [Member] | Trade names [Member]
Gross carrying amount	15,876,000	15,876,000
Accumulated amortization	0	0
Total intangible assets	$ 15,876,000	$ 15,876,000

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Other Intangible Assets
Amortization expense	$ 150	$ 412
Effect of preliminary price allocation on goodwill	11,865
Impairment charges	$ 3,700

Restaurant Operations Revenue_2

Restaurant Operations Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restaurant Operations Revenues
Net sales	$ 67,617	$ 136,651	$ 241,832	$ 454,344
Franchise royalties and fees	4,421	6,638	13,704	20,017
Franchise partner fees	6,894	989	14,775	1,668
Other	742	833	2,271	2,918
Restaurant operations revenue	$ 79,674	$ 145,111	$ 272,582	$ 478,947

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accounts Payable and Accrued Expenses
Accounts payable	$ 26,546	$ 32,626
Gift card and other marketing	19,762	23,787
Salaries and wages	8,441	10,667
Taxes payable	14,497	29,275
Insurance accruals	32,091	11,418
Deferred revenue	10,905	10,454
Other	5,646	2,852
Accounts payable and accrued expenses	$ 117,888	$ 121,079

Notes Payable and Other Borro_3

Notes Payable and Other Borrowings (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current portion of notes payable and other borrowings
Notes payable	$ 153,056,000	$ 2,200,000
Unamortized original issue discount and debt issuance costs	(506,000)	(982,000)
Western Sizzlin revolver	500,000	0
Finance obligations	4,948,000	4,252,000
Finance lease liabilities	1,633,000	1,633,000
Total current portion of notes payable and other borrowings	159,631,000	7,103,000
Long-term notes payable and other borrowings
Notes payable	0	179,298,000
Unamortized original issue discount and debt issuance costs	0	(252,000)
Finance obligations	69,663,000	74,497,000
Finance lease liabilities	6,436,000	9,639,000
Total long-term notes payable and other borrowings	$ 76,099,000	$ 263,182,000

Notes Payable and Other Borro_4

Notes Payable and Other Borrowings (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Notes Payable and Other Borrowings
Interest expense	$ 2,150	$ 3,090	$ 6,973	$ 9,298
Interest on finance leases and obligations	1,593	1,934	4,679	5,946
Total interest expense	$ 3,743	$ 5,024	$ 11,652	$ 15,244

Notes Payable and Other Borro_5

Notes Payable and Other Borrowings (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 19, 2014	Sep. 30, 2020	Oct. 30, 2020	Dec. 31, 2019
Secured debt retired		$ 26,792,000
Fair value of long-term debt		$ 80,000,000
Steak n Shake Credit Facility [Member]
Debt instrument, interest rate		4.75%
Debt instrument, face amount	$ 220,000,000
Debt instrument, maturity date	March 19, 2021
Debt instrument, outstanding balance		$ 153,056,000
Loan amortization rate		1.00%
Western Sizzlin [Member]
Debt, line of credit		$ 500,000		$ 0
Subsequent Event [Member] | Western Sizzlin [Member]
Reduction in revolver			$ 0

Leased Assets and Lease Commi_3

Leased Assets and Lease Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Finance lease costs:
Amortization of right-of-use assets	$ 279	$ 487	$ 1,087	$ 1,466
Interest on lease liabilities	136	208	392	630
Operating lease costs	2,096	4,445	8,321	12,305
Total lease costs	$ 2,511	$ 5,140	$ 9,800	$ 14,401

Leased Assets and Lease Commi_4

Leased Assets and Lease Commitments (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash paid for amounts included in the measurement of lease liablities:
Financing cash flows from finance leases	$ 1,132	$ 1,201
Operating cash flows from finance leases	463	630
Operating cash flows from operating leases	10,382	12,558
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	0	1,097
Operating lease liabilities	$ 73	$ 11,069

Leased Assets and Lease Commi_5

Leased Assets and Lease Commitments (Details 2) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finance leases:
Property and equipment, net	$ 6,476	$ 10,783
Current portion of notes payable and other borrowings	1,633	1,633
Long-term notes payable and other borrowings	6,436	9,639
Total finance lease liablities	$ 8,069	$ 11,272

Leased Assets and Lease Commi_6

Leased Assets and Lease Commitments (Details 3)	9 Months Ended
	Sep. 30, 2020
Weighted-average remaining lease terms:
Finance leases	5.8 years
Operating leases	5.8 years
Weighted-average discount rates:
Finance leases	7.10%
Operating leases	6.90%

Leased Assets and Lease Commi_7

Leased Assets and Lease Commitments (Details 4) $ in Thousands	Sep. 30, 2020USD ($)
Operating Leases [Member]
2020	$ 3,853
2021	13,244
2022	11,162
2023	9,821
2024	7,902
After 2024	15,680
Total lease payments	61,662
Less interest	11,126
Total lease liabilities	50,536
Finance Leases [Member]
2020	545
2021	2,135
2022	1,614
2023	1,410
2024	1,373
After 2024	2,756
Total lease payments	9,833
Less interest	1,764
Total lease liabilities	$ 8,069

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accumulated Other Comprehensive Income
Accumulated other comprehensive loss increase/decrease	$ 344	$ 628	$ 834	$ 736
Accumulated other comprehensive loss	$ (1,976)	$ (3,252)	$ (1,976)	$ (3,252)	$ (2,810)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Taxes
Income tax (benefit) expense	$ 5,617,000	$ 614,000	$ 23,449,000	$ 7,026,000
Unrecognized tax benefits	$ 348,000		348,000		$ 348
Investment partnership pretax gains (losses)			$ 89,276,000	$ 69,801,000

Fair Value of Financial Asset_2

Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash equivalents	$ 17,719	$ 43,095
Equity securities	12,179	6,422
Bonds	55,007	38,911
Options on equity securities	2,872	2,166
Non-qualified deferred compensation plan investments	1,382	2,175
Total assets at fair value	89,159	92,769
Level 1 [Member]
Assets
Cash equivalents	17,719	43,095
Equity securities	6,488	25
Bonds	55,007	38,911
Options on equity securities	0	0
Non-qualified deferred compensation plan investments	1,382	2,175
Total assets at fair value	80,596	84,206
Level 2 [Member]
Assets
Cash equivalents	0	0
Equity securities	5,691	6,397
Bonds	0	0
Options on equity securities	2,872	2,166
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	8,563	8,563
Level 3 [Member]
Assets
Cash equivalents	0	0
Equity securities	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

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - Services Agreement [Member] - Biglari Entities [Member] - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Period fees payment	$ 700,000
Services fees	$ 6,300,000	$ 6,300

Business Segment Reporting (Det

Business Segment Reporting (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total revenues	$ 101,835,000	$ 160,216,000	$ 334,037,000	$ 510,418,000
Steak n Shake [Member]
Total revenues	78,313,000	141,354,000	267,637,000	467,471,000
Western Sizzlin [Member]
Total revenues	1,361,000	3,757,000	4,945,000	11,476,000
Total Restaurant Operations [Member]
Total revenues	79,674,000	145,111,000	272,582,000	478,947,000
First Guard [Member]
Total revenues	7,898,000	7,681,000	23,194,000	22,305,000
Southern Pioneer [Member]
Total revenues	6,515,000	0	15,498,000	0
Total Insurance Operations [Member]
Total revenues	14,413,000	7,681,000	38,692,000	22,305,000
Southern Oil [Member]
Total revenues	6,029,000	6,500,000	19,554,000	6,500,000
Maxim [Member]
Total revenues	$ 1,719,000	$ 924,000	$ 3,209,000	$ 2,666,000

Business Segment Reporting (D_2

Business Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings (loss) before income taxes	$ 26,718	$ (631)	$ (97,767)	$ 38,801
Restaurant [Member] | Total Restaurant Operations [Member]
Earnings (loss) before income taxes	(459)	(317)	(13,012)	(21,343)
Restaurant [Member] | Western Sizzlin [Member]
Earnings (loss) before income taxes	(396)	544	(937)	1,433
Restaurant [Member] | Steak n Shake [Member]
Earnings (loss) before income taxes	(63)	(861)	(12,075)	(22,776)
Operating Business [Member]
Earnings (loss) before income taxes	3,953	3,774	(1,401)	(13,794)
Operating Business [Member] | First Guard [Member]
Earnings (loss) before income taxes	2,152	2,279	7,193	5,673
Operating Business [Member] | Southern Pioneer [Member]
Earnings (loss) before income taxes	518	0	1,458	0
Operating Business [Member] | Total Insurance Operations [Member]
Earnings (loss) before income taxes	2,670	2,279	8,651	5,673
Operating Business [Member] | Southern Oil [Member]
Earnings (loss) before income taxes	592	1,448	1,355	1,448
Operating Business [Member] | Maxim [Member]
Earnings (loss) before income taxes	1,150	364	1,605	428
Corporate [Member] | Corporate 1 [Member]
Earnings (loss) before income taxes	(2,657)	(2,764)	(7,693)	(7,908)
Corporate [Member] | Investment Gains [Member]
Earnings (loss) before income taxes	354	0	1,863	0
Corporate [Member] | Investment Partnership Gains (Losses) [Member]
Earnings (loss) before income taxes	27,218	1,449	(89,276)	69,801
Corporate [Member] | Total Corporate And Investments [Member]
Earnings (loss) before income taxes	24,915	(1,315)	(95,106)	61,893
Reconciliation Of Segments [Member] | Interest expense on notes payable and other borrowings [Member]
Earnings (loss) before income taxes	$ (2,150)	$ (3,090)	$ (1,260)	$ (9,298)