Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38477 | ||
Entity Registrant Name | BIGLARI HOLDINGS INC. | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 82-3784946 | ||
Entity Address, Address Line One | 17802 IH 10 West, | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | San Antonio, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78257 | ||
City Area Code | 210 | ||
Local Phone Number | 344-3400 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 88,264,442 | ||
Entity Central Index Key | 0001726173 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive Proxy Statement to be filed for its 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. | ||
Common Class A | |||
Title of 12(b) Security | Class A Common Stock, no par value | ||
Trading Symbol | BH.A | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 206,864 | ||
Common Class B | |||
Title of 12(b) Security | Class B Common Stock, no par value | ||
Trading Symbol | BH | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 2,068,640 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 24,503 | $ 67,772 |
Investments | 94,861 | 44,856 |
Receivables | 19,185 | 21,640 |
Inventories | 2,737 | 4,674 |
Other current assets | 6,492 | 6,449 |
Total current assets | 147,778 | 145,391 |
Property and equipment | 316,122 | 350,627 |
Operating lease assets | 42,832 | 59,719 |
Goodwill | 53,596 | 40,040 |
Other intangible assets | 24,065 | 27,349 |
Investment partnerships | 419,550 | 505,542 |
Other assets | 14,025 | 10,641 |
Total assets | 1,017,968 | 1,139,309 |
Current liabilities: | ||
Accounts payable and accrued expenses | 118,821 | 121,079 |
Current portion of operating lease liabilities | 10,614 | 11,635 |
Current portion of notes payable and other borrowings | 159,012 | 7,103 |
Total current liabilities | 288,447 | 139,817 |
Long-term notes payable and other borrowings | 75,182 | 263,182 |
Operating lease liabilities | 36,463 | 53,271 |
Deferred taxes | 41,346 | 54,230 |
Asset retirement obligations | 10,022 | 10,447 |
Other liabilities | 1,680 | 2,064 |
Total liabilities | 453,140 | 523,011 |
Shareholders’ equity | ||
Common stock | 1,138 | 1,138 |
Additional paid-in capital | 381,788 | 381,788 |
Retained earnings | 573,050 | 611,039 |
Accumulated other comprehensive loss | (1,531) | (2,810) |
Treasury stock, at cost | (389,617) | (374,857) |
Biglari Holdings Inc. shareholders’ equity | 564,828 | 616,298 |
Total liabilities and shareholders’ equity | $ 1,017,968 | $ 1,139,309 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||
Restaurant operations | $ 350,666 | $ 610,220 | $ 775,690 | |
Insurance premiums and other | 52,679 | 30,083 | 27,628 | |
Oil and gas | 26,255 | 24,436 | 0 | |
Media and licensing | 4,083 | 4,099 | 6,576 | |
Total revenues | 433,683 | 668,838 | 809,894 | |
Cost and expenses | ||||
Restaurant cost of sales | 246,655 | 500,949 | 636,456 | |
Insurance losses and underwriting expenses | 39,221 | 22,269 | 20,831 | |
Oil and gas production costs | 8,700 | 7,259 | 0 | |
Media and licensing cost | 2,156 | 3,181 | 4,152 | |
Selling, general and administrative | 76,360 | 100,150 | 127,232 | |
Impairments | 23,646 | 8,186 | 5,677 | |
Depreciation, depletion and amortization | 32,222 | 29,578 | 19,318 | |
Interest expense | 15,536 | 20,258 | 19,884 | |
Total cost and expenses | 444,496 | 691,830 | 833,550 | |
Other income (expenses) | ||||
Investment gains | 3,644 | 0 | 0 | |
Investment partnership gains (losses) | (43,032) | 78,133 | 40,411 | |
Total other income (expenses) | (39,388) | 78,133 | 40,411 | |
Earnings (loss) before income taxes | (50,201) | 55,141 | 16,755 | |
Income tax expense (benefit) | (12,212) | 9,761 | (2,637) | |
Net earnings (loss) | $ (37,989) | $ 45,380 | $ 19,392 | |
Revenue from Contract with Customer, Product and Service [Extensible List] | srt:ProductsAndServicesDomain | |||
Common Class A | ||||
Other income (expenses) | ||||
Net earnings per equivalent Class share, basic and diluted (USD per share) | [1] | $ (110.05) | $ 131.64 | $ 55.71 |
Common Class B | ||||
Other income (expenses) | ||||
Net earnings per equivalent Class share, basic and diluted (USD per share) | $ (22.01) | $ 26.33 | $ 11.44 | |
[1] | * Net earnings per equivalent Class B share outstanding are one-fifth of the equivalent Class A share or ($22.01) for 2020, $26.33 for 2019 and $11.44 for 2018. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ (37,989) | $ 45,380 | $ 19,392 |
Other comprehensive income: | |||
Reclassification to earnings | 0 | 0 | (73) |
Applicable income taxes | 0 | 0 | 15 |
Foreign currency translation | 1,279 | (294) | (1,054) |
Other comprehensive income (loss), net | 1,279 | (294) | (1,112) |
Total comprehensive income (loss) | $ (36,710) | $ 45,086 | $ 18,280 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net earnings (loss) | $ (37,989) | $ 45,380 | $ 19,392 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 32,222 | 29,578 | 19,318 |
Provision for deferred income taxes | (12,216) | (38,545) | (2,153) |
Asset impairments and other non-cash expenses | 24,636 | 9,113 | 6,481 |
(Gains) losses on disposal of assets | (868) | 264 | 993 |
Investment (gains) losses | (4,856) | (1,172) | (559) |
Investment partnership (gains) losses | 43,032 | (78,133) | (40,411) |
Distributions from investment partnerships | 98,330 | 129,329 | 29,660 |
Changes in receivables and inventories | 7,014 | 3,669 | (359) |
Changes in other assets | 733 | 10,450 | 536 |
Changes in accounts payable and accrued expenses | (32,482) | (16,250) | (12,220) |
Net cash provided by operating activities | 117,556 | 93,683 | 20,678 |
Investing activities | |||
Capital expenditures | (20,702) | (17,679) | (15,293) |
Purchases of perpetual lease rights | 0 | 0 | (2,503) |
Proceeds from property and equipment disposals | 4,415 | 4,577 | 2,590 |
Acquisition of business, net of cash acquired | (36,187) | (51,062) | 0 |
Distributions from investment partnerships | 0 | 40,000 | 39,040 |
Purchases of limited partner interests | (70,130) | (40,000) | (39,040) |
Purchases of investments | (299,950) | (154,848) | (58,642) |
Redemptions of fixed maturity securities | 293,067 | 149,030 | 48,558 |
Net cash used in investing activities | (129,487) | (69,982) | (25,290) |
Financing activities | |||
Payments on revolving credit facility | (500) | 0 | (175) |
Proceeds from revolving credit facility | 500 | 0 | 0 |
Principal payments on long-term debt | (23,279) | (2,200) | (2,200) |
Principal payments on direct financing lease obligations | (5,830) | (5,810) | (5,204) |
Proceeds for exercise of stock options | 0 | 0 | 49 |
Net cash used in financing activities | (29,109) | (8,010) | (7,530) |
Effect of exchange rate changes on cash | 10 | (5) | (78) |
Increase (decrease) in cash, cash equivalents and restricted cash | (41,030) | 15,686 | (12,220) |
Cash, cash equivalents and restricted cash at beginning of period | 70,696 | 55,010 | 67,230 |
Cash, cash equivalents and restricted cash at end of period | 29,666 | 70,696 | 55,010 |
Cash, cash equivalents and restricted cash at end of period | $ 29,666 | $ 55,010 | $ 55,010 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards | $ 90 | $ 90 | $ (1,404) | |||||
Beginning balance at Dec. 31, 2017 | $ 571,328 | $ 1,071 | $ 382,014 | $ 565,504 | (1,404) | $ (375,857) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 19,392 | 19,392 | ||||||
Other comprehensive income, net | (1,112) | (1,112) | ||||||
Conversion of common stock | 67 | (67) | (20,826) | 20,826 | ||||
Adjustment to treasury stock for holdings in investment partnerships | (19,292) | (19,292) | ||||||
Exercise of stock options | 49 | (43) | 92 | |||||
Ending balance at Dec. 31, 2018 | 570,455 | 1,138 | 381,904 | 564,160 | (2,516) | (374,231) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards | $ 1,499 | $ 1,499 | (2,516) | |||||
Net earnings | 45,380 | 45,380 | ||||||
Other comprehensive income, net | (294) | (294) | ||||||
Adjustment to treasury stock for holdings in investment partnerships | (742) | (116) | (626) | |||||
Ending balance at Dec. 31, 2019 | 616,298 | 1,138 | 381,788 | 611,039 | (2,810) | (374,857) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards | (2,810) | |||||||
Net earnings | (37,989) | (37,989) | ||||||
Other comprehensive income, net | 1,279 | 1,279 | ||||||
Adjustment to treasury stock for holdings in investment partnerships | (14,760) | (14,760) | ||||||
Ending balance at Dec. 31, 2020 | $ 564,828 | $ 1,138 | $ 381,788 | $ 573,050 | (1,531) | $ (389,617) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards | $ (1,531) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Biglari Holdings Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, including 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 December 31, 2020, Mr. Biglari’s beneficial ownership was approximately 67.2% of the Company’s outstanding Class A common stock and 60.6% of the Company’s outstanding Class B common stock. Overview of the Impact of COVID-19 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 2020. The COVID-19 pandemic has adversely affected our restaurant operations and financial results. Our restaurants were required to close their dining rooms during the first quarter and the majority of our dining rooms remained closed during the remainder of 2020. To mitigate high labor costs associated with table service, Steak n Shake is seeking to reopen dining rooms with a self-service model. The pandemic also caused oil demand to decrease significantly, creating oversupplied markets that have resulted in lower commodity prices and margins. In response, the Company significantly cut production and expenses in its oil and gas business during the second and third quarters of 2020. The risks and uncertainties resulting from the pandemic may continue to affect our future earnings, cash flows and financial condition. Business Acquisitions 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 garage liability insurance, commercial property coverage, as well as homeowners and dwelling fire insurance coverages. The financial results for Southern Pioneer are included from the date of acquisition. 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, First Guard Insurance Company, Maxim Inc., Southern Pioneer, and Southern Oil. 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. Cash, Cash Equivalents and Restricted Cash Cash equivalents primarily consist of U.S. Government securities and money market accounts, all of which have original maturities of three months or less. Cash equivalents are carried at fair value. The statement of cash flows includes restricted cash with cash and cash equivalents. Investments We classify investments in fixed maturity securities at the acquisition date as either available-for-sale or held-to-maturity and re-evaluate the classification at each balance sheet date. Securities classified as held-to-maturity are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. As of December 31, 2020 and 2019, all investments were classified as available-for-sale and carried at fair value with net unrealized gains or losses reported in the statements of earnings. Realized gains and losses on disposals of investments are determined by the specific identification of cost of investments sold. Dividends earned on investments are reported as investment 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 The Company holds a limited interest in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the “investment partnerships”). Biglari Capital Corp. (“Biglari Capital”), an entity solely owned by Mr. Biglari, is the general partner of the investment partnerships. Our interests in the investment partnerships are accounted as equity method investments because of our retained limited partner interests. The Company records investment partnership gains (inclusive of the investment partnerships’ unrealized gains and losses on their securities) as a component of other income based on our proportional ownership interest in the partnerships. The investment partnerships are, for purposes of generally accepted accounting principles (“GAAP”), investment companies under the AICPA Audit and Accounting Guide Investment Companies. Concentration of Equity Price Risk The majority of our investments are conducted through investment partnerships which generally hold common stocks. We also hold marketable securities directly. We concentrate a high percentage of the investments in a small number of equity securities. A significant decline in the general stock market or in the prices of major investments may have a materially adverse effect on our earnings and on consolidated shareholders’ equity. Receivables Our accounts receivable balance consists primarily of franchisee, customer, and other receivables. We carry our accounts receivable at cost less an allowance for doubtful accounts, which is based on a history of past write-offs and collections and current credit conditions. Allowance for doubtful accounts was $6,859 and $4,857 at December 31, 2020 and 2019, respectively. Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market, and consist primarily of restaurant food items and supply inventory. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the assets (10 to 30 years for buildings and land improvements, and 3 to 10 years for equipment). Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the term of the related leases. Interest costs associated with the construction of new restaurants are capitalized. Major improvements are also capitalized while repairs and maintenance are expensed as incurred. We review our long-lived restaurant assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For purposes of this assessment, assets are evaluated at the lowest level for which there are identifiable cash flows which is generally at the individual restaurant level. Assets included in the impairment assessment generally consist of property, equipment and leasehold improvements directly associated with an individual restaurant as well as any related finance or operating lease assets. If the future undiscounted cash flows of an asset are less than the recorded value, an impairment is recorded for the difference between the carrying value and the estimated fair value of the asset. Oil and Gas Properties The successful efforts method is used for crude oil and natural gas exploration and production activities. All costs for development wells, related plant and equipment, proved mineral interests in crude oil and natural gas properties, and related asset retirement obligation assets are capitalized. Costs of exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. All other exploratory wells and costs are expensed. There were no capitalized costs for exploratory activities during 2020. The Company continues to capitalize exploratory well costs after the completion of drilling when (a) the well has found a sufficient quantity of reserves to justify completion as a producing well, and (b) sufficient progress has been made in assessing the reserves and the economic and operating viability of the project. If either condition is not met or if the Company obtains information that raises substantial doubt about the economic or operational viability of the project, the exploratory well would be assumed to be impaired, and its costs, net of any salvage value, would be charged to expense. Asset retirement obligations Asset retirement obligations relate to future costs associated with the plugging and abandonment of oil and gas wells, the removal of equipment and facilities from leased acreage, and the return of such land to its original condition. The Company determines its asset retirement obligation amounts by calculating the present value of the estimated future cash outflows associated with its plug and abandonment obligations. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred, and the cost of such liability increases the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period through charges to depreciation, depletion and amortization expense, and the capitalized cost is depleted on a unit-of-production basis over the proved developed reserves of the related asset. If an asset retirement obligation is settled for an amount other than the recorded amount, a gain or loss is recognized. Goodwill and Other Intangible Assets Goodwill and indefinite life intangible assets are not amortized, but are tested for potential impairment on an annual basis, or more often if events or circumstances change that could cause goodwill or indefinite life intangible assets to become impaired. Other purchased intangible assets are amortized over their estimated useful lives, generally on a straight-line basis. We perform reviews for impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying value. When an impairment is identified, we reduce the carrying value of the asset to its estimated fair value. During 2020, we recorded an impairment to goodwill of $300 and to indefinite life intangible assets of $3,728. No impairments were recorded on goodwill and other intangible assets during 2019 and 2018. Refer to Note 7 for information regarding our goodwill and other intangible assets. Dual Class Common Stock The Company has two classes of common stock, designated Class A common stock and Class B common stock. Each Class A common share is entitled to one vote. Class B common stock possesses economic rights equal to one-fifth (1/5 th ) of such rights of Class A common stock; however, Class B common stock has no voting rights. The following table presents shares authorized, issued and outstanding. December 31, 2020 December 31, 2019 December 31, 2018 Class A Class B Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 206,864 2,068,640 On an equivalent Class A common stock basis, there were 620,592 shares outstanding as of December 31, 2020, 2019, and 2018. 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 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 Company has applied the “two-class method” of computing earnings per share as prescribed in Accounting Standards Codification (“ASC”) 260, “ Earnings Per Share .” The equivalent Class A common stock applied for computing earnings per share excludes the proportional shares of Biglari Holdings’ stock held by the investment partnerships. The equivalent Class A common stock for the earnings per share calculation was 345,192, 344,736 and 348,108 for 2020, 2019 and 2018, respectively. There are no dilutive securities outstanding. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification Topic 606 Revenue From Contracts With Customers (“ASC 606”). In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting policy as described below. ASC 606 was applied using the modified retrospective method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Comparative prior periods have not been adjusted. The impact of ASC 606 on the Company’s balance sheet as of December 31, 2018 was not material. The cumulative change in retained earnings as of January 1, 2018 was $90. Upon adoption of ASC 606, the Company changed its restaurant operations accounting policies for the recognition of franchise fees, recording of advertising arrangements, and recognition of gift card revenue. The adoption of ASC 606 did not have any significant impact on our insurance or media/licensing businesses. Restaurant operations Restaurant operations revenues were disaggregated as follows. 2020 2019 2018 Net sales $ 306,577 $ 578,164 $ 740,922 Franchise partner fees 22,213 3,829 33 Franchise royalties and fees 18,794 23,360 30,965 Other 3,082 4,867 3,770 $ 350,666 $ 610,220 $ 775,690 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 partner fees Franchise partner fees are composed of up to 15% of sales as well as 50% of profits. We are therefore fully affected by the operating results of the business, unlike in a traditional franchising arrangement, where the franchisor obtains a royalty fee based on sales only. Therefore, we generate most of our revenue from our share of the franchise partners' profits. Initial franchise fee of ten thousand dollars is recognized when the operator becomes a franchise partner. Franchise royalties and fees Franchise royalties and fees from Steak n Shake and Western Sizzlin franchisees 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. During the years ended December 31, 2020, 2019 and 2018 restaurant operations recognized $1,879, $1,725 and $3,096, respectively, in revenue related to initial franchise fees. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to franchise fees of $6,928 and $7,976, respectively. Restaurant operations expects to recognize approximately $1,071 in 2021 and the balance in the years 2022 through 2040. Our advertising arrangements with franchisees are reported in franchise royalties and fees. During the years ended December 31, 2020 and 2019, restaurant operations recognized $5,193 and $7,815, respectively, in revenue related to franchisee advertising fees. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to franchisee advertising fees of $4,391 and $3,043, respectively. Restaurant operations expects to recognize approximately$2,196 of deferred revenue during 2021. 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. For the years ended December 31, 2020 and 2019, restaurant operations recognized $9,201 and $22,869, respectively, of revenue from gift card redemptions. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to unredeemed gift cards of $17,431 and $20,730, respectively. The Company expects to recognize approximately $13,392 in 2021 and the balance in the years 2022 through 2023. Insurance premiums and commissions Insurance premiums are earned over the terms of the related policies. Expenses incurred in connection with acquiring new insurance business, including acquisition costs, are charged to operations as incurred. Premiums earned are stated net of amounts ceded to reinsurer. Oil and gas Revenues are derived from the sale of produced oil and natural gas. Revenue is recognized when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfers to the customer. Payment is due within 30 days of delivery. Media advertising and other Magazine subscription and advertising revenues are recognized at the magazine cover date. The unearned portion of magazine subscriptions is deferred until the magazine’s cover date, at which time a proportionate share of the gross subscription price is recognized as revenues. License revenue is recognized when earned. We derive value and revenues from intellectual property assets through a range of licensing and business activities, including licensing and syndication of our trademarks and copyrights in the United States and internationally. Restaurant Cost of Sales Cost of sales includes the cost of food, restaurant operating costs and restaurant rent expense. Cost of sales excludes depreciation and amortization, which is presented as a separate line item on the consolidated statement of earnings. Insurance Losses and Underwriting Expenses Liabilities for estimated unpaid losses and loss adjustment expenses with respect to claims occurring on or before the balance sheet date are established under insurance contracts issued by our insurance subsidiaries. Such estimates include provisions for reported claims or case estimates, provisions for incurred but not reported claims and legal and administrative costs to settle claims. The estimates of unpaid losses and amounts recoverable under reinsurance are established and continually reviewed by using a variety of actuarial, statistical and analytical techniques. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance contracts. Liabilities for insurance losses of $14,652 and $3,211 are included in accrued expenses in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. Oil and Gas Production Costs Oil and gas production costs are composed of lease operating expenses and production taxes. Marketing Expense Advertising costs are charged to expense at the later of the date the expenditure is incurred or the date the promotional item is first communicated. Marketing expense is included in selling, general and administrative expenses in the consolidated statement of earnings. Insurance Reserves We self-insure a significant portion of expected losses under our workers’ compensation, general liability, auto, directors and officers liability, and medical liability insurance programs, and record a reserve for our estimated losses on all unresolved open claims and our estimated incurred but not reported claims at the anticipated cost to us. Insurance reserves are recorded in accrued expenses in the consolidated balance sheet. Savings Plans Several of our subsidiaries also sponsor deferred compensation and defined contribution retirement plans, such as 401(k) or profit sharing plans. Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Some of the plans allow for discretionary contributions as determined by management. Employer contributions expensed with respect to these plans were not material. Foreign Currency Translation The Company has certain subsidiaries located in foreign jurisdictions. For subsidiaries whose functional currency is other than the U.S. dollar, the translation of functional currency statements to U.S. dollar statements uses end-of-period exchange rates for assets and liabilities, weighted average exchange rates for revenue and expenses, and historical rates for equity. The resulting currency translation adjustment is recorded in accumulated other comprehensive income, as a component of equity. Use of Estimates Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from the estimates. New Accounting Standards In 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 . ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, ASU 2016-13 requires that credit losses be presented as an allowance rather than as a write-down. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company adopted ASU 2016-13 effective January 1, 2020. The impact of this standard is not material to the Company's financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases . In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). We adopted ASC 842 “ Leases ” on January 1, 2019. Most significantly, ASC 842 requires a lessee to recognize a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. We applied ASC 840 to all comparative periods which included a cumulative-effect adjustment of $1,499 to retained earnings on January 1, 2019. Adoption of ASC 842 also resulted in an increase to total assets and liabilities due to the recording of operating lease assets of $63,261 and operating lease liabilities of $69,671 as of January 1, 2019 and due to the recording of finance lease assets of $11,638 and finance lease liabilities of $11,784. The difference between the asset and liability amounts primarily relates to previously recorded deferred/prepaid rent. The standard had a material impact on our consolidated balance sheets but did not have a material impact on our consolidated statements of earnings and statements of cash flow. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating 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. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | InvestmentsInvestments were $94,861 and $44,856 as of December 31, 2020 and 2019, respectively. All investments are classified as available-for-sale and recorded at fair value. |
Investment Partnerships
Investment Partnerships | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investment Partnerships | 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 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 carrying value of our partnership interest is presented below. Fair Value Company Common Stock Carrying Partnership interest at December 31, 2017 $ 925,279 $ 359,258 $ 566,021 Investment partnership gains (losses) (180,517) (220,928) 40,411 Distributions (net of contributions) (29,660) (29,660) Increase in proportionate share of Company stock held 19,292 (19,292) Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains (losses) 80,350 2,217 78,133 Distributions (net of contributions) (129,329) (129,329) Increase in proportionate share of Company stock held 742 (742) Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (46,997) (3,965) (43,032) Distributions (net of contributions) (28,200) (28,200) Increase in proportionate share of Company stock held 14,760 (14,760) Partnership interest at December 31, 2020 $ 590,926 $ 171,376 $ 419,550 The carrying value of the investment partnerships net of deferred taxes is presented below. December 31, 2020 2019 Carrying value of investment partnerships $ 419,550 $ 505,542 Deferred tax liability related to investment partnerships (44,805) (56,518) Carrying value of investment partnerships net of deferred taxes $ 374,745 $ 449,024 The Company’s proportionate share of Company stock held by investment partnerships at cost is $389,617 and $374,857 at December 31, 2020 and 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. 2020 2019 2018 Gains (losses) from investment partnerships $ (43,032) $ 78,133 $ 40,411 Tax expense (benefit) (10,526) 17,360 7,171 Contribution to net earnings $ (32,506) $ 60,773 $ 33,240 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 $987 of incentive reallocations from Biglari Holdings to Biglari Capital during 2020, including $253 associated with gains on the Company's common stock. Gains on the Company's common stock and the related incentive reallocations are eliminated in our financial statements. There were no incentive reallocations from Biglari Holdings to Biglari Capital during 2019 and 2018. 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 December 31, 2020 $ 112,970 $ 566,663 Total liabilities as of December 31, 2020 $ 189 $ 25,453 Revenue for the year ended December 31, 2020 $ (4,052) $ (48,544) Earnings for the year ended December 31, 2020 $ (4,120) $ (49,832) Biglari Holdings’ ownership interest 66.2 % 95.4 % Total assets as of December 31, 2019 $ 117,135 $ 758,663 Total liabilities as of December 31, 2019 $ 158 $ 114,639 Revenue for the year ended December 31, 2019 $ 10,637 $ 85,831 Earnings for the year ended December 31, 2019 $ 10,567 $ 78,604 Biglari Holdings’ ownership interest 66.1 % 92.9 % Total assets as of December 31, 2018 $ 107,207 $ 901,750 Total liabilities as of December 31, 2018 $ 447 $ 202,770 Revenue for the year ended December 31, 2018 $ (92,093) $ (120,431) Earnings for the year ended December 31, 2018 $ (92,159) $ (130,193) Biglari Holdings’ ownership interest 65.9 % 92.2 % Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Current Assets | Other Current Assets Other current assets include the following. December 31, 2020 2019 Deferred commissions on gift cards sold by third parties $ 3,491 $ 3,379 Prepaid contractual obligations 3,001 3,070 Other current assets $ 6,492 $ 6,449 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is composed of the following. December 31, 2020 2019 Land $ 142,601 $ 150,147 Buildings 138,734 144,243 Land and leasehold improvements 141,351 157,141 Equipment 192,735 196,264 Oil and gas properties 75,900 77,475 Construction in progress 1,032 3,789 692,353 729,059 Less accumulated depreciation and amortization (376,231) (378,432) Property and equipment, net $ 316,122 $ 350,627 Depreciation and amortization expense for property and equipment for 2020, 2019 and 2018 was $19,586, $18,881 and $18,646, respectively. Depletion expense related to oil and gas properties was $11,989 and $8,077 during 2020 and 2019, respectively. Accretion expense of the Company's asset retirement obligations was $497 and $177 during 2020 and 2019, respectively. Depletion and accretion expense are included in depreciation and amortization within the consolidated statement of earnings. The Company recorded an impairment to restaurant long-lived assets of $19,618, $8,186 and $5,677 during 2020, 2019 and 2018, respectively. The fair value of the long-lived assets was determined based on Level 3 inputs using a discounted cash flow model and quoted prices for the properties. The property and equipment cost related to finance obligations as of December 31, 2020 is as follows: $54,531 of buildings, $48,015 of land, $25,682 of land and leasehold improvements, and $54,976 of accumulated depreciation. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations A reconciliation of the ending aggregate carrying amount of asset retirement obligations is as follows. December 31 2020 2019 Beginning balance $ 10,631 $ 10,542 Liabilities settled (870) (88) Accretion expense 497 177 Asset retirement obligation $ 10,258 $ 10,631 As of December 31, 2020 and 2019, $236 and $184, respectively, is classified as current and is included in accounts payable and accrued expenses in the consolidated balance sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 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. No goodwill was recorded with the acquisition of Southern Oil. A reconciliation of the change in the carrying value of goodwill is as follows. Restaurants Insurance Total Goodwill at December 31, 2017 $ 28,168 $ 11,913 $ 40,081 Change in foreign exchange rates during 2018 (29) — (29) Goodwill at December 31, 2018 $ 28,139 $ 11,913 $ 40,052 Change in foreign exchange rates during 2019 (12) — (12) Goodwill at December 31, 2019 $ 28,127 $ 11,913 $ 40,040 Goodwill from acquisition — 13,800 13,800 Impairments to goodwill (300) — (300) Change in foreign exchange rates during 2020 56 — 56 Goodwill at December 31, 2020 $ 27,883 $ 25,713 $ 53,596 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. In response to the adverse effects of the COVID-19 pandemic, we evaluated goodwill for impairment during 2020, specifically related to goodwill for certain restaurant reporting units. Making estimates of the fair value of reporting units at this time is significantly affected by assumptions of the severity, duration, and long-term effects of the pandemic on the reporting units' operations. We considered the available facts and made qualitative assessments and judgments for what we believed represented reasonably possible outcomes. The fair value of certain of Steak n Shake’s reporting units declined, and an impairment to goodwill of $300 was recorded in 2020. In addition, as a result of our impairment assessment, the fair value of the Western Sizzlin reporting unit was within 10% of the carrying value. Further decline in Western Sizzlin's franchise base may result in recording future impairments of goodwill to reflect the depletion in value. 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. There were no impairment charges recorded in 2019 or 2018. Other Intangible Assets Other intangible assets are composed of the following. December 31, 2020 2019 Gross carrying Accumulated Total Gross carrying Accumulated 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 8,189 — 8,189 11,323 — 11,323 Total intangible assets $ 30,185 $ (6,120) $ 24,065 $ 33,319 $ (5,970) $ 27,349 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses include the following. December 31, 2020 2019 Accounts payable $ 26,537 $ 32,626 Gift card liability 21,822 20,745 Loss reserves 14,652 3,211 Unearned premiums 13,277 1,300 Other insurance accruals 6,559 6,559 Salaries, wages, and vacation 8,285 10,667 Deferred revenue 9,324 10,454 Taxes payable 10,922 29,275 Other 7,443 6,242 Accounts payable and accrued expenses $ 118,821 $ 121,079 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following. December 31, 2020 2019 Non qualified deferred compensation $ 1,368 $ 1,716 Other 312 348 Other liabilities $ 1,680 $ 2,064 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes consist of the following. 2020 2019 2018 Current: Federal $ (472) $ 41,005 $ (1,688) State 476 7,301 1,204 Deferred (12,216) (38,545) (2,153) Income tax expense (benefit) $ (12,212) $ 9,761 $ (2,637) Reconciliation of effective income tax: Tax at U.S. statutory rates $ (10,542) $ 11,579 $ 3,519 State income taxes, net of federal benefit (1,750) 1,573 741 Tax rate changes — — (1,342) Federal income tax credits (424) (3,004) (4,587) Dividends received deduction (233) (955) (2,142) Valuation allowance 733 441 658 Foreign tax rate differences 240 116 349 Other (236) 11 167 Income tax expense (benefit) $ (12,212) $ 9,761 $ (2,637) The Company did not have a net tax expense or benefit on income from international operations. Earnings (losses) before income taxes derived from domestic operations during 2020, 2019 and 2018 were $(40,989), $57,877 and $21,700, respectively. Losses before income taxes derived from international operations during 2020, 2019 and 2018 were $9,212, $2,736, and $4,945, respectively. As of December 31, 2020, we had $204 of unrecognized tax benefits, including $59 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. As of December 31, 2019, we had $348 of unrecognized tax benefits, including $62 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. Our continuing practice is to recognize interest expense and penalties related to income tax matters in income tax expense. The unrecognized tax benefits of $204 would impact the effective income tax rate if recognized. Adjustments to the Company’s unrecognized tax benefit for gross increases for the current period tax position, gross decreases for prior period tax positions and the lapse of statute of limitations during 2020, 2019 and 2018 were not significant. We file income tax returns which are periodically audited by various foreign, federal, state, and local jurisdictions. With few exceptions, we are no longer subject to federal, state, and local tax examinations for fiscal years prior to 2017. We believe we have certain state income tax exposures related to fiscal years 2016 through 2020. Because of the expiration of the various state statutes of limitations for these fiscal years, it is possible that the total amount of unrecognized tax benefits will decrease by approximately $190 within 12 months. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. Our deferred tax assets and liabilities consist of the following. December 31, 2020 2019 Deferred tax assets: Insurance reserves $ 1,621 $ 1,304 Compensation accruals 1,439 438 Gift card accruals 2,387 3,280 Net operating loss credit carryforward 7,121 6,017 Valuation allowance on net operating losses (6,152) (5,419) Fixed assets and depletable assets basis difference 8,234 6,300 Income tax credit carryforward 2,178 4,776 Other 2,516 (36) Total deferred tax assets 19,344 16,660 Deferred tax liabilities: Investments 45,470 56,519 Goodwill and intangibles 15,220 14,371 Total deferred tax liabilities 60,690 70,890 Net deferred tax liability $ (41,346) $ (54,230) Accrued expenses on the balance sheet include income taxes payable of $2,436 and $17,767 as of December 31, 2020 and 2019, respectively. Income taxes paid during 2020, 2019 and 2018 were $15,402, $30,375 and $810, respectively. Income tax refunds during 2020, 2019 and 2018 were $68, $1,546 and $8, respectively. |
Notes Payable and Other Borrowi
Notes Payable and Other Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable and Other Borrowings | Notes Payable and Other Borrowings Notes payable and other borrowings include the following. December 31, 2020 2019 Current portion of notes payable and other borrowings Notes payable $ 152,506 $ 2,200 Unamortized original issue discount (87) (348) Unamortized debt issuance costs (158) (634) Finance obligations 4,854 4,252 Finance lease liabilities 1,897 1,633 Total current portion of notes payable and other borrowings $ 159,012 $ 7,103 Long-term notes payable and other borrowings Notes payable $ — $ 179,298 Unamortized original issue discount — (89) Unamortized debt issuance costs — (163) Finance obligations 68,148 74,497 Finance lease liabilities 7,034 9,639 Total long-term notes payable and other borrowings $ 75,182 $ 263,182 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 was scheduled to mature on March 19, 2021. As of December 31, 2020, $152,506 was outstanding. The Company repaid Steak n Shake's outstanding balance in full on February 19, 2021. Western Sizzlin Revolver As of December 31, 2020 and 2019, Western Sizzlin had no debt outstanding under its revolver. Interest Interest paid on debt and obligations under leases are as follows. 2020 2019 2018 Interest paid on debt $ 9,397 $ 11,273 $ 10,655 Interest paid on obligations under leases $ 6,274 $ 7,816 $ 8,207 |
Leased Assets and Lease Commitm
Leased Assets and Lease Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leased Assets and Lease Commitments | Leased Assets and Lease Commitments The Company adopted ASC 842 on January 1, 2019, as discussed in Note 1. 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. 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. 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 1,404 $ 1,952 Interest on lease liabilities 582 828 Operating lease costs * 9,995 16,483 Total lease costs $ 11,981 $ 19,263 *Includes short-term leases, variable lease costs and sublease income. Supplemental cash flow information related to leases is as follows. Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,512 $ 1,610 Operating cash flows from finance leases $ 632 $ 828 Operating cash flows from operating leases $ 13,627 $ 16,863 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. December 31, 2020 December 31, 2019 Finance leases: Property and equipment, net $ 6,501 $ 10,783 Current portion of notes payable and other borrowings $ 1,897 $ 1,633 Long-term notes payable and other borrowings 7,034 9,639 Total finance lease liabilities $ 8,931 $ 11,272 Weighted-average lease terms and discount rates are as follows. 2020 Weighted-average remaining lease terms: Finance leases 5.7 years Operating leases 5.6 years Weighted-average discount rates: Finance leases 7.1% Operating leases 6.9% Maturities of lease liabilities as of December 31, 2020 are as follows. Year Operating Leases Finance 2021 $ 13,521 $ 2,452 2022 10,949 1,864 2023 9,604 1,669 2024 7,678 1,633 2025 5,870 1,292 After 2025 9,447 1,906 Total lease payments 57,069 10,816 Less interest 9,992 1,885 Total lease liabilities $ 47,077 $ 8,931 Rent expense is presented below. 2020 2019 2018 Minimum rent $ 15,672 $ 17,968 $ 20,158 Contingent rent 137 1,050 1,470 Rent expense $ 15,809 $ 19,018 $ 21,628 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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 The Company paid Biglari Enterprises $8,400 in service fees during 2020 and 2019. The services agreement does not alter the hurdle rate connected with the incentive reallocation paid to Biglari Capital Corp. by the Company. Investments in The Lion Fund, L.P. and The Lion Fund II, L.P. As of December 31, 2020, the Company’s investments in The Lion Fund, L.P. and The Lion Fund II, L.P. had a fair value of $590,926. Contributions to and distributions from The Lion Fund, L.P. and The Lion Fund II, L.P. were as follows. 2020 2019 2018 Contributions of cash $ 70,130 $ 40,000 $ 39,040 Distributions of cash (98,330) (169,329) (68,700) $ (28,200) $ (129,329) $ (29,660) As the general partner of the investment partnerships, Biglari Capital on December 31 of each year 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. There were $987 of incentive reallocations from Biglari Holdings to Biglari Capital during 2020, including $253 associated with gains on the Company's common stock. Gains on the Company's common stock and the related incentive reallocations are eliminated in our financial statements. There were no incentive reallocations from Biglari Holdings to Biglari Capital during 2019 and 2018. Incentive Agreement The Incentive Agreement establishes a performance-based annual incentive payment for Mr. Biglari contingent upon the growth in adjusted equity in each year attributable to our operating businesses. In order for Mr. Biglari to receive any incentive, our operating businesses must achieve an annual increase in shareholders’ equity in excess of 6% (the “Hurdle Rate”) above the previous highest level (the “High Water Mark”). Mr. Biglari will receive 25% of any incremental book value created above the High Water Mark plus the Hurdle Rate. In any year in which book value declines, our operating businesses must completely recover their deficit from the previous High Water Mark, along with attaining the Hurdle Rate, before Mr. Biglari becomes eligible to receive any further incentive payment. No incentive fees were earned during 2020, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 alleged 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 alleged claims of breach of fiduciary duty by the members of our Board of Directors. 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 alleged 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. 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. 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 July 26, 2019, the Company agreed to settle both cases for $8,350 and the Court approved the terms of the settlement. The settlement is reflected in selling, general and administrative expenses in the 2019 consolidated statement of earnings. |
Fair Value of Financial Assets
Fair Value of Financial Assets | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets | 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: Cash equivalents primarily consist of money market funds which are classified within Level 1 of the fair value hierarchy. Equity securities: The Company’s investments in equity securities are classified within Levels 1 and 2 of the fair value hierarchy. Bonds: The Company’s investments in bonds consist of both corporate and government debt. Bonds are classified as Level 1 or Level 2 of the fair value hierarchy. Non-qualified deferred compensation plan investments: The assets of the non-qualified plan are set up in a rabbi trust. They represent mutual funds and publicly traded securities, each of which are classified within Level 1 of the fair value hierarchy. Derivative instruments: Options related to equity securities are marked to market each reporting period and are classified within Level 2 of the fair value hierarchy depending on the instrument. As of December 31, 2020 and 2019 the fair values of financial assets were as follows. December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 23,885 $ — $ — $ 23,885 $ 43,095 $ — $ — $ 43,095 Equity securities: Consumer goods 7,274 5,652 — 12,926 — 6,397 — 6,397 Insurance 261 — — 261 25 — — 25 Bonds: Government 39,472 14,043 — 53,515 38,911 — — 38,911 Corporate — 5,406 — 5,406 — — — — Options on equity securities — 2,911 — 2,911 — 2,166 — 2,166 Non-qualified deferred compensation plan investments 1,368 — — 1,368 2,175 — — 2,175 Total assets at fair value $ 72,260 $ 28,012 $ — $ 100,272 $ 84,206 $ 8,563 $ — $ 92,769 There were no changes in our valuation techniques used to measure fair values on a recurring basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, were as follows. 2020 2019 Foreign Investment Accumulated Foreign Investment Accumulated Beginning Balance $ (2,810) $ — $ (2,810) $ (2,516) $ — $ (2,516) Foreign currency translation 1,279 1,279 (294) (294) Ending Balance $ (1,531) $ — $ (1,531) $ (2,810) $ — $ (2,810) 2018 Foreign Currency Investment Accumulated Beginning Balance $ (1,462) $ 58 $ (1,404) Reclassification to (earnings) loss (58) (58) Foreign currency translation (1,054) (1,054) Ending Balance $ (2,516) $ — $ (2,516) There were no reclassifications from accumulated other comprehensive income to earnings during 2020 and 2019. Reclassifications made from accumulated other comprehensive income to the statement of earnings were $58 of income to earnings during 2018. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment ReportingOur 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 each of the three most recent years is presented in the tables which follow. Revenue 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 344,305 $ 595,004 $ 760,565 Western 6,361 15,216 15,125 Total Restaurant Operations 350,666 610,220 775,690 Insurance Operations: First Guard 30,958 30,083 27,628 Southern Pioneer 21,721 — — Total Insurance Operations 52,679 30,083 27,628 Southern Oil 26,255 24,436 — Maxim 4,083 4,099 6,576 $ 433,683 $ 668,838 $ 809,894 Earnings (Loss) Before Income Taxes 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ (4,587) $ (18,575) $ (10,657) Western (765) 1,756 2,046 Total Restaurant Operations (5,352) (16,819) (8,611) Insurance Operations: First Guard 9,632 7,103 6,215 Southern Pioneer 2,799 — — Total Insurance Operations 12,431 7,103 6,215 Southern Oil 2,018 8,032 — Maxim 1,784 742 1,068 Interest expense on notes payable and other borrowings (9,262) (12,442) (11,677) Total Operating Businesses 1,619 (13,384) (13,005) Corporate and investments: Corporate and other (12,432) (9,608) (10,651) Investment gains 3,644 — — Investment partnership gains (losses) (43,032) 78,133 40,411 Total corporate (51,820) 68,525 29,760 $ (50,201) $ 55,141 $ 16,755 Capital Expenditures 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 17,852 $ 9,951 $ 14,982 Western 6 72 61 Total Restaurant Operations 17,858 10,023 15,043 Insurance Operations: First Guard 5 43 236 Southern Pioneer — — — Total Insurance Operations 5 43 236 Southern Oil 2,806 7,594 — Maxim — — — Total Operating Businesses 20,669 17,660 15,279 Corporate and other 33 19 14 Consolidated results $ 20,702 $ 17,679 $ 15,293 Depreciation and Amortization 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 18,811 $ 20,533 $ 18,180 Western 231 641 651 Total Restaurant Operations 19,042 21,174 18,831 Insurance Operations: First Guard 96 85 76 Southern Pioneer 318 — — Total Insurance Operations 414 85 76 Southern Oil: Depletion 11,989 7,900 — Accretion 497 177 — Depreciation 41 141 — Total Southern Oil 12,527 8,218 — Maxim — — 27 Total Operating Businesses 31,983 29,477 18,934 Corporate and other 239 101 384 Consolidated results $ 32,222 $ 29,578 $ 19,318 A disaggregation of our consolidated assets is presented in the table that follows. Identifiable Assets December 31, 2020 2019 Reportable segments: Restaurant Operations: Steak n Shake $ 341,190 $ 385,259 Western 16,512 18,322 Total Restaurant Operations 357,702 403,581 Insurance Operations: First Guard 64,764 58,808 Southern Pioneer 74,063 — Total Insurance Operations 138,827 58,808 Southern Oil 61,017 82,257 Maxim 16,485 16,549 Corporate 24,387 72,572 Investment partnerships 419,550 505,542 Total assets $ 1,017,968 $ 1,139,309 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter For the year ended December 31, 2020 Total revenues $ 135,700 $ 96,502 $ 101,835 $ 99,646 Gross profit 35,890 32,719 33,764 34,578 Costs and expenses 146,019 101,396 102,689 94,392 Earnings (loss) before income taxes (181,715) 57,230 26,718 47,566 Net earnings (loss) (137,885) 42,466 21,101 36,329 Net earnings (loss) per equivalent Class A share $ (400.37) $ 121.51 $ 60.07 $ 108.23 For the year ended December 31, 2019 Total revenues $ 181,859 $ 168,343 $ 160,216 $ 158,420 Gross profit 22,837 30,454 38,467 43,307 Costs and expenses 204,451 174,671 162,296 150,412 Earnings (loss) before income taxes 11,562 27,870 (631) 16,340 Net earnings (loss) 9,818 21,974 (17) 13,605 Net earnings (loss) per equivalent Class A share $ 28.36 $ 63.50 $ (0.05) $ 39.64 We define gross profit as net revenue less restaurant cost of sales, media cost of sales, oil and natural gas production costs and insurance losses and underwriting expenses, which excludes depreciation and amortization. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Capital expenditures in accounts payable at December 31, 2020, 2019 and 2018 were $2,399, $339 and $1,776, respectively. In 2020, we had new finance lease obligations of $3,285 and lease retirements of $4,842. In 2019, we had new finance lease obligations of $5,026 and lease retirements of $940. During 2018, we had new capital lease obligations of $1,000 and lease retirements of $11,557. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Biglari Holdings Inc. 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 December 31, 2020, Mr. Biglari’s beneficial ownership was approximately 67.2% of the Company’s outstanding Class A common stock and 60.6% of the Company’s outstanding Class B common stock. Overview of the Impact of COVID-19 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 2020. The COVID-19 pandemic has adversely affected our restaurant operations and financial results. Our restaurants were required to close their dining rooms during the first quarter and the majority of our dining rooms remained closed during the remainder of 2020. To mitigate high labor costs associated with table service, Steak n Shake is seeking to reopen dining rooms with a self-service model. The pandemic also caused oil demand to decrease significantly, creating oversupplied markets that have resulted in lower commodity prices and margins. In response, the Company significantly cut production and expenses in its oil and gas business during the second and third quarters of 2020. The risks and uncertainties resulting from the pandemic may continue to affect our future earnings, cash flows and financial condition. |
Business Acquisition | Business Acquisitions 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 garage liability insurance, commercial property coverage, as well as homeowners and dwelling fire insurance coverages. The financial results for Southern Pioneer are included from the date of acquisition. 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 | 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, First Guard Insurance Company, Maxim Inc., Southern Pioneer, and Southern Oil. Intercompany accounts and transactions have been eliminated in consolidation. |
Change in Presentation | 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. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents primarily consist of U.S. Government securities and money market accounts, all of which have original maturities of three months or less. Cash equivalents are carried at fair value. The statement of cash flows includes restricted cash with cash and cash equivalents. |
Investments | Investments We classify investments in fixed maturity securities at the acquisition date as either available-for-sale or held-to-maturity and re-evaluate the classification at each balance sheet date. Securities classified as held-to-maturity are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. As of December 31, 2020 and 2019, all investments were classified as available-for-sale and carried at fair value with net unrealized gains or losses reported in the statements of earnings. Realized gains and losses on disposals of investments are determined by the specific identification of cost of investments sold. Dividends earned on investments are reported as investment 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 The Company holds a limited interest in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the “investment partnerships”). Biglari Capital Corp. (“Biglari Capital”), an entity solely owned by Mr. Biglari, is the general partner of the investment partnerships. Our interests in the investment partnerships are accounted as equity method investments because of our retained limited partner interests. The Company records investment partnership gains (inclusive of the investment partnerships’ unrealized gains and losses on their securities) as a component of other income based on our proportional ownership interest in the partnerships. The investment partnerships are, for purposes of generally accepted accounting principles (“GAAP”), investment companies under the AICPA Audit and Accounting Guide Investment Companies. |
Concentration of Equity Price Risk | Concentration of Equity Price Risk The majority of our investments are conducted through investment partnerships which generally hold common stocks. We also hold marketable securities directly. We concentrate a high percentage of the investments in a small number of equity securities. A significant decline in the general stock market or in the prices of major investments may have a materially adverse effect on our earnings and on consolidated shareholders’ equity. |
Receivables | Receivables Our accounts receivable balance consists primarily of franchisee, customer, and other receivables. We carry our accounts receivable at cost less an allowance for doubtful accounts, which is based on a history of past write-offs and collections and current credit conditions. Allowance for doubtful accounts was $6,859 and $4,857 at December 31, 2020 and 2019, respectively. |
Inventories | Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market, and consist primarily of restaurant food items and supply inventory. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the assets (10 to 30 years for buildings and land improvements, and 3 to 10 years for equipment). Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the term of the related leases. Interest costs associated with the construction of new restaurants are capitalized. Major improvements are also capitalized while repairs and maintenance are expensed as incurred. We review our long-lived restaurant assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For purposes of this assessment, assets are evaluated at the lowest level for which there are identifiable cash flows which is generally at the individual restaurant level. Assets included in the impairment assessment generally consist of property, equipment and leasehold improvements directly associated with an individual restaurant as well as any related finance or operating lease assets. If the future undiscounted cash flows of an asset are less than the recorded value, an impairment is recorded for the difference between the carrying value and the estimated fair value of the asset. |
Oil and Gas Properties | Oil and Gas Properties The successful efforts method is used for crude oil and natural gas exploration and production activities. All costs for development wells, related plant and equipment, proved mineral interests in crude oil and natural gas properties, and related asset retirement obligation assets are capitalized. Costs of exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. All other exploratory wells and costs are expensed. There were no capitalized costs for exploratory activities during 2020. The Company continues to capitalize exploratory well costs after the completion of drilling when (a) the well has found a sufficient quantity of reserves to justify completion as a producing well, and (b) sufficient progress has been made in assessing the reserves and the economic and operating viability of the project. If either condition is not met or if the Company obtains information that raises substantial doubt about the economic or operational viability of the project, the exploratory well would be assumed to be impaired, and its costs, net of any salvage value, would be charged to expense. |
Asset retirement obligations | Asset retirement obligations Asset retirement obligations relate to future costs associated with the plugging and abandonment of oil and gas wells, the removal of equipment and facilities from leased acreage, and the return of such land to its original condition. The Company determines its asset retirement obligation amounts by calculating the present value of the estimated future cash outflows associated with its plug and abandonment obligations. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred, and the cost of such liability increases the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period through charges to depreciation, depletion and amortization expense, and the capitalized cost is depleted on a unit-of-production basis over the proved developed reserves of the related asset. If an asset retirement obligation is settled for an amount other than the recorded amount, a gain or loss is recognized. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and indefinite life intangible assets are not amortized, but are tested for potential impairment on an annual basis, or more often if events or circumstances change that could cause goodwill or indefinite life intangible assets to become impaired. Other purchased intangible assets are amortized over their estimated useful lives, generally on a straight-line basis. We perform reviews for impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying value. When an impairment is identified, we reduce the carrying value of the asset to its estimated fair value. During 2020, we recorded an impairment to goodwill of $300 and to indefinite life intangible assets of $3,728. No impairments were recorded on goodwill and other intangible assets during 2019 and 2018. Refer to Note 7 for information regarding our goodwill and other intangible assets. |
Dual Class Common Stock | Dual Class Common Stock The Company has two classes of common stock, designated Class A common stock and Class B common stock. Each Class A common share is entitled to one vote. Class B common stock possesses economic rights equal to one-fifth (1/5 th ) of such rights of Class A common stock; however, Class B common stock has no voting rights. The following table presents shares authorized, issued and outstanding. December 31, 2020 December 31, 2019 December 31, 2018 Class A Class B Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 206,864 2,068,640 On an equivalent Class A common stock basis, there were 620,592 shares outstanding as of December 31, 2020, 2019, and 2018. |
Earnings Per Share | 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 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 Company has applied the “two-class method” of computing earnings per share as prescribed in Accounting Standards Codification (“ASC”) 260, “ Earnings Per Share |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification Topic 606 Revenue From Contracts With Customers (“ASC 606”). In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting policy as described below. ASC 606 was applied using the modified retrospective method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Comparative prior periods have not been adjusted. The impact of ASC 606 on the Company’s balance sheet as of December 31, 2018 was not material. The cumulative change in retained earnings as of January 1, 2018 was $90. Upon adoption of ASC 606, the Company changed its restaurant operations accounting policies for the recognition of franchise fees, recording of advertising arrangements, and recognition of gift card revenue. The adoption of ASC 606 did not have any significant impact on our insurance or media/licensing businesses. Restaurant operations Restaurant operations revenues were disaggregated as follows. 2020 2019 2018 Net sales $ 306,577 $ 578,164 $ 740,922 Franchise partner fees 22,213 3,829 33 Franchise royalties and fees 18,794 23,360 30,965 Other 3,082 4,867 3,770 $ 350,666 $ 610,220 $ 775,690 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 partner fees Franchise partner fees are composed of up to 15% of sales as well as 50% of profits. We are therefore fully affected by the operating results of the business, unlike in a traditional franchising arrangement, where the franchisor obtains a royalty fee based on sales only. Therefore, we generate most of our revenue from our share of the franchise partners' profits. Initial franchise fee of ten thousand dollars is recognized when the operator becomes a franchise partner. Franchise royalties and fees Franchise royalties and fees from Steak n Shake and Western Sizzlin franchisees 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. During the years ended December 31, 2020, 2019 and 2018 restaurant operations recognized $1,879, $1,725 and $3,096, respectively, in revenue related to initial franchise fees. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to franchise fees of $6,928 and $7,976, respectively. Restaurant operations expects to recognize approximately $1,071 in 2021 and the balance in the years 2022 through 2040. Our advertising arrangements with franchisees are reported in franchise royalties and fees. During the years ended December 31, 2020 and 2019, restaurant operations recognized $5,193 and $7,815, respectively, in revenue related to franchisee advertising fees. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to franchisee advertising fees of $4,391 and $3,043, respectively. Restaurant operations expects to recognize approximately$2,196 of deferred revenue during 2021. 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. For the years ended December 31, 2020 and 2019, restaurant operations recognized $9,201 and $22,869, respectively, of revenue from gift card redemptions. As of December 31, 2020 and 2019, restaurant operations had deferred revenue recorded in accrued expenses related to unredeemed gift cards of $17,431 and $20,730, respectively. The Company expects to recognize approximately $13,392 in 2021 and the balance in the years 2022 through 2023. Insurance premiums and commissions Insurance premiums are earned over the terms of the related policies. Expenses incurred in connection with acquiring new insurance business, including acquisition costs, are charged to operations as incurred. Premiums earned are stated net of amounts ceded to reinsurer. Oil and gas Revenues are derived from the sale of produced oil and natural gas. Revenue is recognized when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfers to the customer. Payment is due within 30 days of delivery. Media advertising and other Magazine subscription and advertising revenues are recognized at the magazine cover date. The unearned portion of magazine subscriptions is deferred until the magazine’s cover date, at which time a proportionate share of the gross subscription price is recognized as revenues. License revenue is recognized when earned. We derive value and revenues from intellectual property assets through a range of licensing and business activities, including licensing and syndication of our trademarks and copyrights in the United States and internationally. |
Restaurant Cost of Sales | Restaurant Cost of Sales Cost of sales includes the cost of food, restaurant operating costs and restaurant rent expense. Cost of sales excludes depreciation and amortization, which is presented as a separate line item on the consolidated statement of earnings. |
Insurance Losses and Underwriting Expenses | Insurance Losses and Underwriting Expenses Liabilities for estimated unpaid losses and loss adjustment expenses with respect to claims occurring on or before the balance sheet date are established under insurance contracts issued by our insurance subsidiaries. Such estimates include provisions for reported claims or case estimates, provisions for incurred but not reported claims and legal and administrative costs to settle claims. The estimates of unpaid losses and amounts recoverable under reinsurance are established and continually reviewed by using a variety of actuarial, statistical and analytical techniques. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance contracts. Liabilities for insurance losses of $14,652 and $3,211 are included in accrued expenses in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. |
Oil and Gas Production Costs | Oil and Gas Production Costs Oil and gas production costs are composed of lease operating expenses and production taxes. |
Marketing Expense | Marketing Expense Advertising costs are charged to expense at the later of the date the expenditure is incurred or the date the promotional item is first communicated. Marketing expense is included in selling, general and administrative expenses in the consolidated statement of earnings. |
Insurance Reserves | Insurance Reserves We self-insure a significant portion of expected losses under our workers’ compensation, general liability, auto, directors and officers liability, and medical liability insurance programs, and record a reserve for our estimated losses on all unresolved open claims and our estimated incurred but not reported claims at the anticipated cost to us. Insurance reserves are recorded in accrued expenses in the consolidated balance sheet. |
Savings Plans | Savings Plans Several of our subsidiaries also sponsor deferred compensation and defined contribution retirement plans, such as 401(k) or profit sharing plans. Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Some of the plans allow for discretionary contributions as determined by management. Employer contributions expensed with respect to these plans were not material. |
Foreign Currency Translation | Foreign Currency Translation The Company has certain subsidiaries located in foreign jurisdictions. For subsidiaries whose functional currency is other than the U.S. dollar, the translation of functional currency statements to U.S. dollar statements uses end-of-period exchange rates for assets and liabilities, weighted average exchange rates for revenue and expenses, and historical rates for equity. The resulting currency translation adjustment is recorded in accumulated other comprehensive income, as a component of equity. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from the estimates. |
New Accounting Standards | 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 . ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, ASU 2016-13 requires that credit losses be presented as an allowance rather than as a write-down. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company adopted ASU 2016-13 effective January 1, 2020. The impact of this standard is not material to the Company's financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases . In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). We adopted ASC 842 “ Leases ” on January 1, 2019. Most significantly, ASC 842 requires a lessee to recognize a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. We applied ASC 840 to all comparative periods which included a cumulative-effect adjustment of $1,499 to retained earnings on January 1, 2019. Adoption of ASC 842 also resulted in an increase to total assets and liabilities due to the recording of operating lease assets of $63,261 and operating lease liabilities of $69,671 as of January 1, 2019 and due to the recording of finance lease assets of $11,638 and finance lease liabilities of $11,784. The difference between the asset and liability amounts primarily relates to previously recorded deferred/prepaid rent. The standard had a material impact on our consolidated balance sheets but did not have a material impact on our consolidated statements of earnings and statements of cash flow. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Common stock | The following table presents shares authorized, issued and outstanding. December 31, 2020 December 31, 2019 December 31, 2018 Class A Class B Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 206,864 2,068,640 |
Summary of restaurant operations revenues | Restaurant operations revenues were disaggregated as follows. 2020 2019 2018 Net sales $ 306,577 $ 578,164 $ 740,922 Franchise partner fees 22,213 3,829 33 Franchise royalties and fees 18,794 23,360 30,965 Other 3,082 4,867 3,770 $ 350,666 $ 610,220 $ 775,690 |
Investment Partnerships (Tables
Investment Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Fair value and carrying value of our partnership interest | The fair value and adjustment for Company common stock held by the investment partnerships to determine carrying value of our partnership interest is presented below. Fair Value Company Common Stock Carrying Partnership interest at December 31, 2017 $ 925,279 $ 359,258 $ 566,021 Investment partnership gains (losses) (180,517) (220,928) 40,411 Distributions (net of contributions) (29,660) (29,660) Increase in proportionate share of Company stock held 19,292 (19,292) Partnership interest at December 31, 2018 $ 715,102 $ 157,622 $ 557,480 Investment partnership gains (losses) 80,350 2,217 78,133 Distributions (net of contributions) (129,329) (129,329) Increase in proportionate share of Company stock held 742 (742) Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (46,997) (3,965) (43,032) Distributions (net of contributions) (28,200) (28,200) Increase in proportionate share of Company stock held 14,760 (14,760) Partnership interest at December 31, 2020 $ 590,926 $ 171,376 $ 419,550 |
Carrying value of investment partnerships net of deferred taxes | The carrying value of the investment partnerships net of deferred taxes is presented below. December 31, 2020 2019 Carrying value of investment partnerships $ 419,550 $ 505,542 Deferred tax liability related to investment partnerships (44,805) (56,518) Carrying value of investment partnerships net of deferred taxes $ 374,745 $ 449,024 |
Gains from investment partnerships | Gains/losses from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below. 2020 2019 2018 Gains (losses) from investment partnerships $ (43,032) $ 78,133 $ 40,411 Tax expense (benefit) (10,526) 17,360 7,171 Contribution to net earnings $ (32,506) $ 60,773 $ 33,240 |
Equity Method Investments | 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 December 31, 2020 $ 112,970 $ 566,663 Total liabilities as of December 31, 2020 $ 189 $ 25,453 Revenue for the year ended December 31, 2020 $ (4,052) $ (48,544) Earnings for the year ended December 31, 2020 $ (4,120) $ (49,832) Biglari Holdings’ ownership interest 66.2 % 95.4 % Total assets as of December 31, 2019 $ 117,135 $ 758,663 Total liabilities as of December 31, 2019 $ 158 $ 114,639 Revenue for the year ended December 31, 2019 $ 10,637 $ 85,831 Earnings for the year ended December 31, 2019 $ 10,567 $ 78,604 Biglari Holdings’ ownership interest 66.1 % 92.9 % Total assets as of December 31, 2018 $ 107,207 $ 901,750 Total liabilities as of December 31, 2018 $ 447 $ 202,770 Revenue for the year ended December 31, 2018 $ (92,093) $ (120,431) Earnings for the year ended December 31, 2018 $ (92,159) $ (130,193) Biglari Holdings’ ownership interest 65.9 % 92.2 % |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other current assets include the following. December 31, 2020 2019 Deferred commissions on gift cards sold by third parties $ 3,491 $ 3,379 Prepaid contractual obligations 3,001 3,070 Other current assets $ 6,492 $ 6,449 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment is composed of the following. December 31, 2020 2019 Land $ 142,601 $ 150,147 Buildings 138,734 144,243 Land and leasehold improvements 141,351 157,141 Equipment 192,735 196,264 Oil and gas properties 75,900 77,475 Construction in progress 1,032 3,789 692,353 729,059 Less accumulated depreciation and amortization (376,231) (378,432) Property and equipment, net $ 316,122 $ 350,627 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligations | A reconciliation of the ending aggregate carrying amount of asset retirement obligations is as follows. December 31 2020 2019 Beginning balance $ 10,631 $ 10,542 Liabilities settled (870) (88) Accretion expense 497 177 Asset retirement obligation $ 10,258 $ 10,631 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A reconciliation of the change in the carrying value of goodwill is as follows. Restaurants Insurance Total Goodwill at December 31, 2017 $ 28,168 $ 11,913 $ 40,081 Change in foreign exchange rates during 2018 (29) — (29) Goodwill at December 31, 2018 $ 28,139 $ 11,913 $ 40,052 Change in foreign exchange rates during 2019 (12) — (12) Goodwill at December 31, 2019 $ 28,127 $ 11,913 $ 40,040 Goodwill from acquisition — 13,800 13,800 Impairments to goodwill (300) — (300) Change in foreign exchange rates during 2020 56 — 56 Goodwill at December 31, 2020 $ 27,883 $ 25,713 $ 53,596 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets are composed of the following. December 31, 2020 2019 Gross carrying Accumulated Total Gross carrying Accumulated 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 8,189 — 8,189 11,323 — 11,323 Total intangible assets $ 30,185 $ (6,120) $ 24,065 $ 33,319 $ (5,970) $ 27,349 |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accounts payable and accrued expenses include the following. December 31, 2020 2019 Accounts payable $ 26,537 $ 32,626 Gift card liability 21,822 20,745 Loss reserves 14,652 3,211 Unearned premiums 13,277 1,300 Other insurance accruals 6,559 6,559 Salaries, wages, and vacation 8,285 10,667 Deferred revenue 9,324 10,454 Taxes payable 10,922 29,275 Other 7,443 6,242 Accounts payable and accrued expenses $ 118,821 $ 121,079 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Assets and Other Liabilities | Other liabilities include the following. December 31, 2020 2019 Non qualified deferred compensation $ 1,368 $ 1,716 Other 312 348 Other liabilities $ 1,680 $ 2,064 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes consist of the following. 2020 2019 2018 Current: Federal $ (472) $ 41,005 $ (1,688) State 476 7,301 1,204 Deferred (12,216) (38,545) (2,153) Income tax expense (benefit) $ (12,212) $ 9,761 $ (2,637) Reconciliation of effective income tax: Tax at U.S. statutory rates $ (10,542) $ 11,579 $ 3,519 State income taxes, net of federal benefit (1,750) 1,573 741 Tax rate changes — — (1,342) Federal income tax credits (424) (3,004) (4,587) Dividends received deduction (233) (955) (2,142) Valuation allowance 733 441 658 Foreign tax rate differences 240 116 349 Other (236) 11 167 Income tax expense (benefit) $ (12,212) $ 9,761 $ (2,637) |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities consist of the following. December 31, 2020 2019 Deferred tax assets: Insurance reserves $ 1,621 $ 1,304 Compensation accruals 1,439 438 Gift card accruals 2,387 3,280 Net operating loss credit carryforward 7,121 6,017 Valuation allowance on net operating losses (6,152) (5,419) Fixed assets and depletable assets basis difference 8,234 6,300 Income tax credit carryforward 2,178 4,776 Other 2,516 (36) Total deferred tax assets 19,344 16,660 Deferred tax liabilities: Investments 45,470 56,519 Goodwill and intangibles 15,220 14,371 Total deferred tax liabilities 60,690 70,890 Net deferred tax liability $ (41,346) $ (54,230) |
Notes Payable and Other Borro_2
Notes Payable and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable and other borrowings include the following. December 31, 2020 2019 Current portion of notes payable and other borrowings Notes payable $ 152,506 $ 2,200 Unamortized original issue discount (87) (348) Unamortized debt issuance costs (158) (634) Finance obligations 4,854 4,252 Finance lease liabilities 1,897 1,633 Total current portion of notes payable and other borrowings $ 159,012 $ 7,103 Long-term notes payable and other borrowings Notes payable $ — $ 179,298 Unamortized original issue discount — (89) Unamortized debt issuance costs — (163) Finance obligations 68,148 74,497 Finance lease liabilities 7,034 9,639 Total long-term notes payable and other borrowings $ 75,182 $ 263,182 |
Interest on debt obligations | Interest paid on debt and obligations under leases are as follows. 2020 2019 2018 Interest paid on debt $ 9,397 $ 11,273 $ 10,655 Interest paid on obligations under leases $ 6,274 $ 7,816 $ 8,207 |
Leased Assets and Lease Commi_2
Leased Assets and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Cost | Total lease cost consists of the following. 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 1,404 $ 1,952 Interest on lease liabilities 582 828 Operating lease costs * 9,995 16,483 Total lease costs $ 11,981 $ 19,263 *Includes short-term leases, variable lease costs and sublease income. Rent expense is presented below. 2020 2019 2018 Minimum rent $ 15,672 $ 17,968 $ 20,158 Contingent rent 137 1,050 1,470 Rent expense $ 15,809 $ 19,018 $ 21,628 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases is as follows. Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,512 $ 1,610 Operating cash flows from finance leases $ 632 $ 828 Operating cash flows from operating leases $ 13,627 $ 16,863 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 | Supplemental balance sheet information related to leases is as follows. December 31, 2020 December 31, 2019 Finance leases: Property and equipment, net $ 6,501 $ 10,783 Current portion of notes payable and other borrowings $ 1,897 $ 1,633 Long-term notes payable and other borrowings 7,034 9,639 Total finance lease liabilities $ 8,931 $ 11,272 |
Schedule of weighted-average lease terms and discount rates | Weighted-average lease terms and discount rates are as follows. 2020 Weighted-average remaining lease terms: Finance leases 5.7 years Operating leases 5.6 years Weighted-average discount rates: Finance leases 7.1% Operating leases 6.9% |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2020 are as follows. Year Operating Leases Finance 2021 $ 13,521 $ 2,452 2022 10,949 1,864 2023 9,604 1,669 2024 7,678 1,633 2025 5,870 1,292 After 2025 9,447 1,906 Total lease payments 57,069 10,816 Less interest 9,992 1,885 Total lease liabilities $ 47,077 $ 8,931 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Contributions to and distributions from the investment partnerships | Contributions to and distributions from The Lion Fund, L.P. and The Lion Fund II, L.P. were as follows. 2020 2019 2018 Contributions of cash $ 70,130 $ 40,000 $ 39,040 Distributions of cash (98,330) (169,329) (68,700) $ (28,200) $ (129,329) $ (29,660) |
Fair Value of Financial Assets
Fair Value of Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2020 and 2019 the fair values of financial assets were as follows. December 31, 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 23,885 $ — $ — $ 23,885 $ 43,095 $ — $ — $ 43,095 Equity securities: Consumer goods 7,274 5,652 — 12,926 — 6,397 — 6,397 Insurance 261 — — 261 25 — — 25 Bonds: Government 39,472 14,043 — 53,515 38,911 — — 38,911 Corporate — 5,406 — 5,406 — — — — Options on equity securities — 2,911 — 2,911 — 2,166 — 2,166 Non-qualified deferred compensation plan investments 1,368 — — 1,368 2,175 — — 2,175 Total assets at fair value $ 72,260 $ 28,012 $ — $ 100,272 $ 84,206 $ 8,563 $ — $ 92,769 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, were as follows. 2020 2019 Foreign Investment Accumulated Foreign Investment Accumulated Beginning Balance $ (2,810) $ — $ (2,810) $ (2,516) $ — $ (2,516) Foreign currency translation 1,279 1,279 (294) (294) Ending Balance $ (1,531) $ — $ (1,531) $ (2,810) $ — $ (2,810) 2018 Foreign Currency Investment Accumulated Beginning Balance $ (1,462) $ 58 $ (1,404) Reclassification to (earnings) loss (58) (58) Foreign currency translation (1,054) (1,054) Ending Balance $ (2,516) $ — $ (2,516) |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A disaggregation of our consolidated data for each of the three most recent years is presented in the tables which follow. Revenue 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 344,305 $ 595,004 $ 760,565 Western 6,361 15,216 15,125 Total Restaurant Operations 350,666 610,220 775,690 Insurance Operations: First Guard 30,958 30,083 27,628 Southern Pioneer 21,721 — — Total Insurance Operations 52,679 30,083 27,628 Southern Oil 26,255 24,436 — Maxim 4,083 4,099 6,576 $ 433,683 $ 668,838 $ 809,894 |
Schedule of earnings (loss) by segment | Earnings (Loss) Before Income Taxes 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ (4,587) $ (18,575) $ (10,657) Western (765) 1,756 2,046 Total Restaurant Operations (5,352) (16,819) (8,611) Insurance Operations: First Guard 9,632 7,103 6,215 Southern Pioneer 2,799 — — Total Insurance Operations 12,431 7,103 6,215 Southern Oil 2,018 8,032 — Maxim 1,784 742 1,068 Interest expense on notes payable and other borrowings (9,262) (12,442) (11,677) Total Operating Businesses 1,619 (13,384) (13,005) Corporate and investments: Corporate and other (12,432) (9,608) (10,651) Investment gains 3,644 — — Investment partnership gains (losses) (43,032) 78,133 40,411 Total corporate (51,820) 68,525 29,760 $ (50,201) $ 55,141 $ 16,755 |
Schedule of consolidated capital expenditure, depreciation and amortization captions | Capital Expenditures 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 17,852 $ 9,951 $ 14,982 Western 6 72 61 Total Restaurant Operations 17,858 10,023 15,043 Insurance Operations: First Guard 5 43 236 Southern Pioneer — — — Total Insurance Operations 5 43 236 Southern Oil 2,806 7,594 — Maxim — — — Total Operating Businesses 20,669 17,660 15,279 Corporate and other 33 19 14 Consolidated results $ 20,702 $ 17,679 $ 15,293 Depreciation and Amortization 2020 2019 2018 Operating Businesses: Restaurant Operations: Steak n Shake $ 18,811 $ 20,533 $ 18,180 Western 231 641 651 Total Restaurant Operations 19,042 21,174 18,831 Insurance Operations: First Guard 96 85 76 Southern Pioneer 318 — — Total Insurance Operations 414 85 76 Southern Oil: Depletion 11,989 7,900 — Accretion 497 177 — Depreciation 41 141 — Total Southern Oil 12,527 8,218 — Maxim — — 27 Total Operating Businesses 31,983 29,477 18,934 Corporate and other 239 101 384 Consolidated results $ 32,222 $ 29,578 $ 19,318 |
Reconciliation of Assets from Segment to Consolidated | A disaggregation of our consolidated assets is presented in the table that follows. Identifiable Assets December 31, 2020 2019 Reportable segments: Restaurant Operations: Steak n Shake $ 341,190 $ 385,259 Western 16,512 18,322 Total Restaurant Operations 357,702 403,581 Insurance Operations: First Guard 64,764 58,808 Southern Pioneer 74,063 — Total Insurance Operations 138,827 58,808 Southern Oil 61,017 82,257 Maxim 16,485 16,549 Corporate 24,387 72,572 Investment partnerships 419,550 505,542 Total assets $ 1,017,968 $ 1,139,309 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter For the year ended December 31, 2020 Total revenues $ 135,700 $ 96,502 $ 101,835 $ 99,646 Gross profit 35,890 32,719 33,764 34,578 Costs and expenses 146,019 101,396 102,689 94,392 Earnings (loss) before income taxes (181,715) 57,230 26,718 47,566 Net earnings (loss) (137,885) 42,466 21,101 36,329 Net earnings (loss) per equivalent Class A share $ (400.37) $ 121.51 $ 60.07 $ 108.23 For the year ended December 31, 2019 Total revenues $ 181,859 $ 168,343 $ 160,216 $ 158,420 Gross profit 22,837 30,454 38,467 43,307 Costs and expenses 204,451 174,671 162,296 150,412 Earnings (loss) before income taxes 11,562 27,870 (631) 16,340 Net earnings (loss) 9,818 21,974 (17) 13,605 Net earnings (loss) per equivalent Class A share $ 28.36 $ 63.50 $ (0.05) $ 39.64 We define gross profit as net revenue less restaurant cost of sales, media cost of sales, oil and natural gas production costs and insurance losses and underwriting expenses, which excludes depreciation and amortization. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common stock authorized (in shares) | 500,000 | ||
Common stock issued and outstanding (in shares) | 206,864 | ||
Equivalent class A common stock outstanding | 620,592 | 620,592 | 620,592 |
Antidilutive securities excluded from computation of earnings per share, amount | 345,192 | 344,736 | 348,108 |
Common Class A | |||
Common stock authorized (in shares) | 500,000 | 500,000 | |
Common stock issued and outstanding (in shares) | 206,864 | 206,864 | |
Common Class B | |||
Common stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock issued and outstanding (in shares) | 2,068,640 | 2,068,640 | 2,068,640 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Initial franchise partner fee | $ 10 | |||
Restaurant operations | 350,666 | $ 610,220 | $ 775,690 | |
Franchise | ||||
Restaurant operations | 1,879 | 1,725 | 3,096 | |
Revenue, remaining performance obligation, amount | 6,928 | 7,976 | ||
Advertising | ||||
Restaurant operations | 5,193 | 7,815 | ||
Revenue, remaining performance obligation, amount | 4,391 | 3,043 | ||
Gift Cards | ||||
Restaurant operations | 9,201 | 22,869 | ||
Revenue, remaining performance obligation, amount | 17,431 | 20,730 | ||
Product | ||||
Restaurant operations | 306,577 | 578,164 | 740,922 | |
Royalty | ||||
Restaurant operations | 18,794 | 23,360 | 30,965 | |
Other | ||||
Restaurant operations | 3,082 | 4,867 | 3,770 | |
Franchisor | ||||
Restaurant operations | 22,213 | $ 3,829 | 33 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Franchise | ||||
Revenue, remaining performance obligation, amount | $ 1,071 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Advertising | ||||
Revenue, remaining performance obligation, amount | $ 2,196 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Gift Cards | ||||
Revenue, remaining performance obligation, amount | $ 13,392 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Adoption of accounting standards | $ 1,499 | $ 90 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Accounts receivable, allowance for credit loss | $ 6,859,000 | $ 4,857,000 | |||
Goodwill, impairment loss | 300,000 | 0 | $ 0 | ||
Intangible asset impairment | 3,728,000 | ||||
Insurance loss accrual | 14,652,000 | 3,211,000 | |||
Operating lease assets | 42,832,000 | 59,719,000 | |||
Total lease liabilities | 47,077,000 | ||||
Total finance lease liabilities | $ 8,931,000 | $ 11,272,000 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Adoption of accounting standards | $ 1,499,000 | $ 90,000 | |||
Operating lease assets | $ 63,261,000 | ||||
Total lease liabilities | 69,671,000 | ||||
Finance lease, right-of-use asset, after accumulated amortization | 11,638,000 | ||||
Total finance lease liabilities | $ 11,784,000 | ||||
Building and Building Improvements | Maximum | |||||
Property, plant and equipment, useful life | 30 years | ||||
Building and Building Improvements | Minimum | |||||
Property, plant and equipment, useful life | 10 years | ||||
Equipment | Maximum | |||||
Property, plant and equipment, useful life | 10 years | ||||
Equipment | Minimum | |||||
Property, plant and equipment, useful life | 3 years | ||||
Mr Biglari | Common Class A | |||||
Biglari Holdings’ ownership interest | 67.20% | ||||
Mr Biglari | Common Class B | |||||
Biglari Holdings’ ownership interest | 60.60% |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Investments | $ 94,861 | $ 44,856 |
Investment Partnerships (Detail
Investment Partnerships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment partnership gains (losses) | $ (43,032) | $ 78,133 | $ 40,411 |
Tax expense (benefit) | (10,526) | 17,360 | 7,171 |
Fair Value | |||
Fair value of partnership interest, beginning | 666,123 | 715,102 | 925,279 |
Investment partnership gains (losses) | (46,997) | 80,350 | (180,517) |
Distributions, net of reinvestments | (28,200) | (129,329) | (29,660) |
Increase in proportionate share of Company stock held | |||
Partnership interest, ending | 590,926 | 666,123 | 715,102 |
Company Common Stock | |||
Fair value of partnership interest, beginning | 160,581 | 157,622 | 359,258 |
Investment partnership gains (losses) | (3,965) | 2,217 | (220,928) |
Distributions, net of reinvestments | |||
Increase in proportionate share of Company stock held | 14,760 | 742 | 19,292 |
Partnership interest, ending | 171,376 | 160,581 | 157,622 |
Carrying Value | |||
Fair value of partnership interest, beginning | 505,542 | 557,480 | 566,021 |
Investment partnership gains (losses) | (43,032) | 78,133 | 40,411 |
Distributions, net of reinvestments | (28,200) | (129,329) | (29,660) |
Increase in proportionate share of Company stock held | (14,760) | (742) | (19,292) |
Partnership interest, ending | $ 419,550 | $ 505,542 | $ 557,480 |
Investment Partnerships (Deta_2
Investment Partnerships (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Carrying value of investment partnerships | $ 419,550 | $ 505,542 |
Deferred tax liability related to investment partnerships | (44,805) | (56,518) |
Carrying value of investment partnerships net of deferred taxes | $ 374,745 | $ 449,024 |
Investment Partnerships (Deta_3
Investment Partnerships (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Abstract] | |||
Gains (losses) from investment partnerships | $ (43,032) | $ 78,133 | $ 40,411 |
Tax expense (benefit) | (10,526) | 17,360 | 7,171 |
Contribution to net earnings | $ (32,506) | $ 60,773 | $ 33,240 |
Investment Partnerships (Deta_4
Investment Partnerships (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total assets | $ 1,017,968 | $ 1,139,309 | $ 1,017,968 | $ 1,139,309 | |||||||
Total liabilities | 453,140 | 523,011 | 453,140 | 523,011 | |||||||
Total revenues | 99,646 | $ 101,835 | $ 96,502 | $ 135,700 | 158,420 | $ 160,216 | $ 168,343 | $ 181,859 | 433,683 | 668,838 | $ 809,894 |
Total earnings | (37,989) | 45,380 | 19,392 | ||||||||
Lion Fund, L.P. | |||||||||||
Total assets | 112,970 | 117,135 | 112,970 | 117,135 | 107,207 | ||||||
Total liabilities | $ 189 | $ 158 | 189 | 158 | 447 | ||||||
Total revenues | (4,052) | 10,637 | (92,093) | ||||||||
Total earnings | $ (4,120) | $ 10,567 | $ (92,159) | ||||||||
Biglari Holdings’ ownership interest | 66.20% | 66.10% | 66.20% | 66.10% | 65.90% | ||||||
Lion Fund II, L.P. | |||||||||||
Total assets | $ 566,663 | $ 758,663 | $ 566,663 | $ 758,663 | $ 901,750 | ||||||
Total liabilities | $ 25,453 | $ 114,639 | 25,453 | 114,639 | 202,770 | ||||||
Total revenues | (48,544) | 85,831 | (120,431) | ||||||||
Total earnings | $ (49,832) | $ 78,604 | $ (130,193) | ||||||||
Biglari Holdings’ ownership interest | 95.40% | 92.90% | 95.40% | 92.90% | 92.20% |
Investment Partnerships (Deta_5
Investment Partnerships (Details Narrative) - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Treasury stock, at cost | $ 389,617 | $ 374,857 | |
Incentive reallocation fee | 987 | ||
Incentive reallocation fee, gains From common stock | $ 253 | ||
Biglari Entities | |||
Related Party Transaction [Line Items] | |||
Incentive reallocation fee, percentage | 25.00% | ||
Hurdle rate, percent | 6.00% | ||
Term of agreement | 5 years |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Deferred commissions on gift cards sold by third parties | $ 3,491 | $ 3,379 |
Prepaid contractual obligations | 3,001 | 3,070 |
Other current assets | $ 6,492 | $ 6,449 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 142,601 | $ 150,147 |
Buildings | 138,734 | 144,243 |
Land and leasehold improvements | 141,351 | 157,141 |
Equipment | 192,735 | 196,264 |
Oil and gas properties | 75,900 | 77,475 |
Construction in progress | 1,032 | 3,789 |
Total property and equipment | 692,353 | 729,059 |
Less accumulated depreciation and amortization | (376,231) | (378,432) |
Property and equipment, net | $ 316,122 | $ 350,627 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation, depletion and amortization, nonproduction | $ 19,586 | $ 18,881 | $ 18,646 |
Depletion | 11,989 | 8,077 | |
Accretion expense | 497 | 177 | |
Impairment of long-lived assets held-for-use | 19,618 | $ 8,186 | $ 5,677 |
Property and equipment, other, accumulated depreciation | 54,976 | ||
Building | |||
Property and equipment related costs | 54,531 | ||
Land | |||
Property and equipment related costs | 48,015 | ||
Land and Land Improvements | |||
Property and equipment related costs | $ 25,682 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | ||
Beginning balance | $ 10,631 | $ 10,542 |
Liabilities settled | (870) | (88) |
Accretion expense | 497 | 177 |
Asset retirement obligation | $ 10,258 | $ 10,631 |
Asset Retirement Obligations _2
Asset Retirement Obligations (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Retirement Obligation [Abstract] | ||
Asset retirement obligation, current | $ 236 | $ 184 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 40,040,000 | $ 40,052,000 | $ 40,081,000 |
Change in foreign exchange rates | 56,000 | (12,000) | (29,000) |
Balance at end of year | 53,596,000 | 40,040,000 | 40,052,000 |
Goodwill from acquisition | 13,800,000 | ||
Impairments to goodwill | (300,000) | 0 | 0 |
Restaurant | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | 28,127,000 | 28,139,000 | 28,168,000 |
Change in foreign exchange rates | 56,000 | (12,000) | (29,000) |
Balance at end of year | 27,883,000 | 28,127,000 | 28,139,000 |
Goodwill from acquisition | 0 | ||
Impairments to goodwill | (300,000) | ||
Insurance Segment | |||
Goodwill [Roll Forward] | |||
Balance at beginning of year | 11,913,000 | 11,913,000 | 11,913,000 |
Change in foreign exchange rates | 0 | 0 | 0 |
Balance at end of year | 25,713,000 | $ 11,913,000 | $ 11,913,000 |
Goodwill from acquisition | 13,800,000 | ||
Impairments to goodwill | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-lived intangible assets, gross | $ 6,120 | $ 6,120 |
Finite-lived intangible assets, accumulated amortization | (6,120) | (5,970) |
Finite-lived intangible assets, net | 0 | 150 |
Intangible assets, gross | 30,185 | 33,319 |
Total intangible assets | 24,065 | 27,349 |
Trade Names | ||
Indefinite-lived intangible assets | 15,876 | 15,876 |
Other Assets With Indefinite Lives | ||
Indefinite-lived intangible assets | 8,189 | 11,323 |
Franchise Rights | ||
Finite-lived intangible assets, gross | 5,310 | 5,310 |
Finite-lived intangible assets, accumulated amortization | (5,310) | (5,178) |
Finite-lived intangible assets, net | 0 | 132 |
Other Intangible Assets | ||
Finite-lived intangible assets, gross | 810 | 810 |
Finite-lived intangible assets, accumulated amortization | (810) | (792) |
Finite-lived intangible assets, net | $ 0 | $ 18 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment loss | $ 300,000 | $ 0 | $ 0 |
Intangible asset impairment | 3,728,000 | ||
Amortization of intangible assets | 150,000 | 549,000 | 562,000 |
Purchases of perpetual lease rights | 0 | $ 0 | $ 2,503,000 |
International Restaurant Operations | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset impairment | $ 3,728,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 26,537 | $ 32,626 |
Gift card liability | 21,822 | 20,745 |
Loss reserves | 14,652 | 3,211 |
Unearned premiums | 13,277 | 1,300 |
Other insurance accruals | 6,559 | 6,559 |
Salaries, wages, and vacation | 8,285 | 10,667 |
Deferred revenue | 9,324 | 10,454 |
Taxes payable | 10,922 | 29,275 |
Other | 7,443 | 6,242 |
Accounts payable and accrued expenses | $ 118,821 | $ 121,079 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Non qualified deferred compensation | $ 1,368 | $ 1,716 |
Other | 312 | 348 |
Other liabilities | $ 1,680 | $ 2,064 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ (472) | $ 41,005 | $ (1,688) |
State | 476 | 7,301 | 1,204 |
Deferred | (12,216) | (38,545) | (2,153) |
Income tax expense (benefit) | (12,212) | 9,761 | (2,637) |
Reconciliation of effective income tax: | |||
Tax at U.S. statutory rates | (10,542) | 11,579 | 3,519 |
State income taxes, net of federal benefit | (1,750) | 1,573 | 741 |
Tax rate changes | 0 | 0 | (1,342) |
Federal income tax credits | (424) | (3,004) | (4,587) |
Dividends received deduction | (233) | (955) | (2,142) |
Valuation allowance | 733 | 441 | 658 |
Foreign tax rate differences | 240 | 116 | 349 |
Other | (236) | 11 | 167 |
Income tax expense (benefit) | $ (12,212) | $ 9,761 | $ (2,637) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Insurance reserves | $ 1,621 | $ 1,304 |
Compensation accruals | 1,439 | 438 |
Gift card accruals | 2,387 | 3,280 |
Net operating loss credit carryforward | 7,121 | 6,017 |
Valuation allowance on net operating losses | (6,152) | (5,419) |
Fixed assets and depletable assets basis difference | 8,234 | 6,300 |
Income tax credit carryforward | 2,178 | 4,776 |
Other | 2,516 | (36) |
Total deferred tax assets | 19,344 | 16,660 |
Deferred tax liabilities: | ||
Investments | 45,470 | 56,519 |
Goodwill and intangibles | 15,220 | 14,371 |
Total deferred tax liabilities | 60,690 | 70,890 |
Net deferred tax liability | $ (41,346) | $ (54,230) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes, domestic | $ (40,989) | $ 57,877 | $ 21,700 |
Income (loss) from continuing operations before income taxes, foreign | 9,212 | 2,736 | 4,945 |
Unrecognized tax benefits | 204 | 348 | |
Income tax examination, penalties and interest expense | 59 | 62 | |
Decrease in unrecognized tax benefits is reasonably possible | 190 | ||
Taxes payable | 2,436 | 17,767 | |
Income taxes paid | 15,402 | 30,375 | 810 |
Proceeds from income tax refunds | $ 68 | $ 1,546 | $ 8 |
Notes Payable and Other Borro_3
Notes Payable and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Notes payable | $ 152,506 | $ 2,200 |
Unamortized original issue discount | (87) | (348) |
Unamortized debt issuance costs | (158) | (634) |
Finance obligations | 4,854 | 4,252 |
Finance lease liabilities | 1,897 | 1,633 |
Total current portion of notes payable and other borrowings | 159,012 | 7,103 |
Notes payable | 0 | 179,298 |
Unamortized original issue discount | 0 | (89) |
Unamortized debt issuance costs | 0 | (163) |
Finance obligations | 68,148 | 74,497 |
Finance lease liabilities | 7,034 | 9,639 |
Total long-term notes payable and other borrowings | $ 75,182 | $ 263,182 |
Notes Payable and Other Borro_4
Notes Payable and Other Borrowings (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Interest paid on debt | $ 9,397 | $ 11,273 | $ 10,655 |
Interest paid on obligations under leases | $ 6,274 | $ 7,816 | $ 8,207 |
Notes Payable and Other Borro_5
Notes Payable and Other Borrowings (Details Narrative) - Steak N Shake Credit Facility - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 19, 2014 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 220,000 | |
Debt instrument, fair value disclosure | $ 152,506 |
Leased Assets and Lease Commi_3
Leased Assets and Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 1,404 | $ 1,952 |
Interest on lease liabilities | 582 | 828 |
Operating lease costs | 9,995 | 16,483 |
Total lease costs | $ 11,981 | $ 19,263 |
Leased Assets and Lease Commi_4
Leased Assets and Lease Commitments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 1,512 | $ 1,610 |
Operating cash flows from finance leases | 632 | 828 |
Operating cash flows from operating leases | 13,627 | 16,863 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Property and equipment, net | $ 6,501 | $ 10,783 |
Current portion of notes payable and other borrowings | 1,897 | 1,633 |
Long-term notes payable and other borrowings | 7,034 | 9,639 |
Total finance lease liabilities | $ 8,931 | $ 11,272 |
Leased Assets and Lease Commi_6
Leased Assets and Lease Commitments (Details 3) | Dec. 31, 2020 |
Weighted-average remaining lease terms: | |
Finance leases | 5 years 8 months 12 days |
Operating leases | 5 years 7 months 6 days |
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) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 13,521 | |
2022 | 10,949 | |
2023 | 9,604 | |
2024 | 7,678 | |
2025 | 5,870 | |
After 2025 | 9,447 | |
Total lease payments | 57,069 | |
Less interest | 9,992 | |
Total lease liabilities | 47,077 | |
Finance Leases | ||
2021 | 2,452 | |
2022 | 1,864 | |
2023 | 1,669 | |
2024 | 1,633 | |
2025 | 1,292 | |
After 2025 | 1,906 | |
Total lease payments | 10,816 | |
Less interest | 1,885 | |
Total finance lease liabilities | $ 8,931 | $ 11,272 |
Leased Assets and Lease Commi_8
Leased Assets and Lease Commitments (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Minimum rent | $ 15,672 | $ 17,968 | |
Minimum rent | $ 20,158 | ||
Contingent rent | 137 | 1,050 | |
Contingent rent | 1,470 | ||
Rent expense | $ 15,809 | $ 19,018 | |
Rent expense | $ 21,628 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Contributions of cash | $ 70,130 | $ 40,000 | $ 39,040 | |
Distributions of cash | (98,330) | (169,329) | (68,700) | |
Total contributions and distributions | (28,200) | (129,329) | $ (29,660) | |
Incentive reallocation fee | 987 | |||
Incentive reallocation fee, gains From common stock | 253 | |||
Biglari Entities | ||||
Term of agreement | 5 years | |||
Period fees payment | 700 | |||
Management fee expense | $ 8,400 | $ 8,400 | ||
Incentive reallocation fee, percentage | 25.00% | |||
Hurdle rate, percent | 6.00% | |||
Lion Fund, L.P. | ||||
Investments, fair value disclosure | $ 590,926 | |||
Lion Fund II, L.P. | ||||
Investments, fair value disclosure | $ 590,926 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jul. 26, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation settlement, expense | $ 8,350 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash equivalents | $ 23,885 | $ 43,095 |
Equity Securities | ||
Options on equity securities | 2,911 | 2,166 |
Non-qualified deferred compensation plan investments | 1,368 | 2,175 |
Total assets at fair value | 100,272 | 92,769 |
Consumer goods | ||
Equity Securities | ||
Equity securities: | 12,926 | 6,397 |
Insurance | ||
Equity Securities | ||
Equity securities: | 261 | 25 |
US Treasury and Government | ||
Equity Securities | ||
Bonds: | 53,515 | 38,911 |
Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 5,406 | 0 |
Level 1 | ||
Assets | ||
Cash equivalents | 23,885 | 43,095 |
Equity Securities | ||
Options on equity securities | 0 | 0 |
Non-qualified deferred compensation plan investments | 1,368 | 2,175 |
Total assets at fair value | 72,260 | 84,206 |
Level 1 | Consumer goods | ||
Equity Securities | ||
Equity securities: | 7,274 | 0 |
Level 1 | Insurance | ||
Equity Securities | ||
Equity securities: | 261 | 25 |
Level 1 | US Treasury and Government | ||
Equity Securities | ||
Bonds: | 39,472 | 38,911 |
Level 1 | Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Equity Securities | ||
Options on equity securities | 2,911 | 2,166 |
Non-qualified deferred compensation plan investments | 0 | 0 |
Total assets at fair value | 28,012 | 8,563 |
Level 2 | Consumer goods | ||
Equity Securities | ||
Equity securities: | 5,652 | 6,397 |
Level 2 | Insurance | ||
Equity Securities | ||
Equity securities: | 0 | 0 |
Level 2 | US Treasury and Government | ||
Equity Securities | ||
Bonds: | 14,043 | 0 |
Level 2 | Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 5,406 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Equity Securities | ||
Options on equity securities | 0 | 0 |
Non-qualified deferred compensation plan investments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 | Consumer goods | ||
Equity Securities | ||
Equity securities: | 0 | 0 |
Level 3 | Insurance | ||
Equity Securities | ||
Equity securities: | 0 | 0 |
Level 3 | US Treasury and Government | ||
Equity Securities | ||
Bonds: | 0 | 0 |
Level 3 | Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Reclassification to (earnings) loss | $ (58) | ||
Foreign currency translation | $ 1,279 | $ (294) | (1,054) |
Accumulated Foreign Currency Adjustment Attributable to Parent | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (2,810) | (2,516) | (1,462) |
Reclassification to (earnings) loss | |||
Foreign currency translation | 1,279 | (294) | (1,054) |
Ending balance | (1,531) | (2,810) | (2,516) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | 0 | 0 | 58 |
Reclassification to (earnings) loss | (58) | ||
Foreign currency translation | |||
Ending balance | 0 | 0 | 0 |
AOCI Attributable to Parent | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (2,810) | (2,516) | (1,404) |
Reclassification to (earnings) loss | (58) | ||
Ending balance | $ (1,531) | $ (2,810) | $ (2,516) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive income (loss), before reclassifications, net of tax | $ 58 | ||
AOCI Attributable to Parent | |||
Reclassification to (earnings) loss | $ 0 | $ 0 | |
Other comprehensive income (loss), before reclassifications, net of tax | $ 58 |
Business Segment Reporting (Det
Business Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restaurant operations | $ 350,666 | $ 610,220 | $ 775,690 | ||||||||
Insurance operations | 52,679 | 30,083 | 27,628 | ||||||||
Southern Oil | 26,255 | 24,436 | 0 | ||||||||
Maxim | 4,083 | 4,099 | 6,576 | ||||||||
Total revenues | $ 99,646 | $ 101,835 | $ 96,502 | $ 135,700 | $ 158,420 | $ 160,216 | $ 168,343 | $ 181,859 | 433,683 | 668,838 | 809,894 |
Steak n Shake | Operating Segments | |||||||||||
Restaurant operations | 344,305 | 595,004 | 760,565 | ||||||||
Western | Operating Segments | |||||||||||
Restaurant operations | 6,361 | 15,216 | 15,125 | ||||||||
Restaurant | Operating Segments | |||||||||||
Restaurant operations | 350,666 | 610,220 | 775,690 | ||||||||
First Guard | Operating Segments | |||||||||||
Insurance operations | 30,958 | 30,083 | 27,628 | ||||||||
Southern Oil | Operating Segments | |||||||||||
Southern Oil | 26,255 | 24,436 | 0 | ||||||||
Maxim | Operating Segments | |||||||||||
Maxim | 4,083 | 4,099 | 6,576 | ||||||||
Southern Pioneer | Operating Segments | |||||||||||
Insurance operations | 21,721 | 0 | 0 | ||||||||
Insurance Segment | Operating Segments | |||||||||||
Insurance operations | $ 52,679 | $ 30,083 | $ 27,628 |
Business Segment Reporting (D_2
Business Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings (Loss) Before Income Taxes | $ 47,566 | $ 26,718 | $ 57,230 | $ (181,715) | $ 16,340 | $ (631) | $ 27,870 | $ 11,562 | $ (50,201) | $ 55,141 | $ 16,755 |
Interest expense | (15,536) | (20,258) | (19,884) | ||||||||
Borrowings | |||||||||||
Interest expense | (9,262) | (12,442) | (11,677) | ||||||||
Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | 1,619 | (13,384) | (13,005) | ||||||||
Steak n Shake | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | (4,587) | (18,575) | (10,657) | ||||||||
Western | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | (765) | 1,756 | 2,046 | ||||||||
Restaurant | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | (5,352) | (16,819) | (8,611) | ||||||||
First Guard | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | 9,632 | 7,103 | 6,215 | ||||||||
Southern Oil | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | 2,018 | 8,032 | 0 | ||||||||
Maxim | Operating Segments | |||||||||||
Earnings (Loss) Before Income Taxes | 1,784 | 742 | 1,068 | ||||||||
Corporate and Other | Corporate Segment | |||||||||||
Earnings (Loss) Before Income Taxes | (12,432) | (9,608) | (10,651) | ||||||||
Investment partnerships gains | Corporate Segment | |||||||||||
Earnings (Loss) Before Income Taxes | (43,032) | 78,133 | 40,411 | ||||||||
Total Corporate | Corporate Segment | |||||||||||
Earnings (Loss) Before Income Taxes | (51,820) | 68,525 | 29,760 | ||||||||
Southern Pioneer | |||||||||||
Earnings (Loss) Before Income Taxes | 2,799 | 0 | 0 | ||||||||
Insurance Segment | |||||||||||
Earnings (Loss) Before Income Taxes | 12,431 | 7,103 | 6,215 | ||||||||
Investment Gains | Corporate Segment | |||||||||||
Earnings (Loss) Before Income Taxes | $ 3,644 | $ 0 | $ 0 |
Business Segment Reporting (D_3
Business Segment Reporting (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capital Expenditures | $ 20,702 | $ 17,679 | $ 15,293 |
Depreciation, depletion and amortization | 32,222 | 29,578 | 19,318 |
Depletion | 11,989 | 8,077 | |
Operating Segments | |||
Capital Expenditures | 20,669 | 17,660 | 15,279 |
Depreciation, depletion and amortization | 31,983 | 29,477 | 18,934 |
Steak n Shake | Operating Segments | |||
Capital Expenditures | 17,852 | 9,951 | 14,982 |
Depreciation, depletion and amortization | 18,811 | 20,533 | 18,180 |
Western | Operating Segments | |||
Capital Expenditures | 6 | 72 | 61 |
Depreciation, depletion and amortization | 231 | 641 | 651 |
Restaurant | Operating Segments | |||
Capital Expenditures | 17,858 | 10,023 | 15,043 |
Depreciation, depletion and amortization | 19,042 | 21,174 | 18,831 |
First Guard | Operating Segments | |||
Capital Expenditures | 5 | 43 | 236 |
Depreciation, depletion and amortization | 96 | 85 | 76 |
Southern Oil | Operating Segments | |||
Capital Expenditures | 2,806 | 7,594 | 0 |
Depreciation, depletion and amortization | 12,527 | 8,218 | 0 |
Depletion | 11,989 | 7,900 | 0 |
Accretion | 497 | 177 | 0 |
Depreciation | 41 | 141 | 0 |
Maxim | Operating Segments | |||
Capital Expenditures | 0 | 0 | 0 |
Depreciation, depletion and amortization | 0 | 0 | 27 |
Corporate and Other | Corporate Segment | |||
Capital Expenditures | 33 | 19 | 14 |
Depreciation, depletion and amortization | 239 | 101 | 384 |
Southern Pioneer | Operating Segments | |||
Capital Expenditures | 0 | 0 | 0 |
Depreciation, depletion and amortization | 318 | 0 | 0 |
Insurance Segment | Operating Segments | |||
Capital Expenditures | 5 | 43 | 236 |
Depreciation, depletion and amortization | $ 414 | $ 85 | $ 76 |
Business Segment Reporting (D_4
Business Segment Reporting (Details 3) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Identifiable Assets | $ 1,017,968 | $ 1,139,309 |
Corporate | ||
Identifiable Assets | 24,387 | 72,572 |
Steak n Shake | ||
Identifiable Assets | 341,190 | 385,259 |
Western | ||
Identifiable Assets | 16,512 | 18,322 |
Restaurant | ||
Identifiable Assets | 357,702 | 403,581 |
First Guard | ||
Identifiable Assets | 64,764 | 58,808 |
Southern Oil | ||
Identifiable Assets | 61,017 | 82,257 |
Maxim | ||
Identifiable Assets | 16,485 | 16,549 |
Investment Partnerships | ||
Identifiable Assets | 419,550 | 505,542 |
Southern Pioneer | ||
Identifiable Assets | 74,063 | 0 |
Insurance Segment | ||
Identifiable Assets | $ 138,827 | $ 58,808 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 99,646 | $ 101,835 | $ 96,502 | $ 135,700 | $ 158,420 | $ 160,216 | $ 168,343 | $ 181,859 | $ 433,683 | $ 668,838 | $ 809,894 |
Gross profit | 34,578 | 33,764 | 32,719 | 35,890 | 43,307 | 38,467 | 30,454 | 22,837 | |||
Costs and expenses | 94,392 | 102,689 | 101,396 | 146,019 | 150,412 | 162,296 | 174,671 | 204,451 | 444,496 | 691,830 | 833,550 |
Earnings (loss) before income taxes | 47,566 | 26,718 | 57,230 | (181,715) | 16,340 | (631) | 27,870 | 11,562 | (50,201) | 55,141 | 16,755 |
Net earnings (loss) | $ 36,329 | $ 21,101 | $ 42,466 | $ (137,885) | $ 13,605 | $ (17) | $ 21,974 | $ 9,818 | $ (37,989) | $ 45,380 | $ 19,392 |
Net earnings (loss) per equivalent Class A share | $ 108.23 | $ 60.07 | $ 121.51 | $ (400.37) | $ 39.64 | $ (0.05) | $ 63.50 | $ 28.36 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 2,399 | $ 339 | $ 1,776 |
Finance obligations incurred | 3,285 | 5,026 | |
Finance lease retirements | $ 4,842 | $ 940 | |
Lease obligation incurred | 1,000 | ||
Capital lease retirements | $ 11,557 |
Uncategorized Items - bh-202012
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,924,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 6,453,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 5,163,000 |