Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001726173 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Common Class A | ||
Document Information [Line Items] | ||
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 | ||
Document Information [Line Items] | ||
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,795 | $ 24,503 |
Investments | 99,006 | 94,861 |
Receivables | 23,885 | 19,185 |
Inventories | 3,102 | 2,737 |
Other current assets | 6,763 | 6,492 |
Total current assets | 160,551 | 147,778 |
Property and equipment | 352,822 | 316,122 |
Operating lease assets | 44,598 | 42,832 |
Goodwill and other intangible assets | 77,179 | 77,661 |
Investment partnerships | 273,089 | 419,550 |
Other assets | 11,132 | 14,025 |
Total assets | 919,371 | 1,017,968 |
Current liabilities: | ||
Accounts payable and accrued expenses | 100,898 | 90,892 |
Loss and loss adjustment expenses | 13,401 | 14,652 |
Unearned premiums | 11,303 | 13,277 |
Current portion of lease obligations | 17,230 | 17,365 |
Current portion of notes payable | 0 | 152,261 |
Total current liabilities | 142,832 | 288,447 |
Lease obligations | 107,949 | 111,645 |
Deferred taxes | 57,910 | 41,346 |
Asset retirement obligations | 10,314 | 10,022 |
Other liabilities | 1,800 | 1,680 |
Total liabilities | 320,805 | 453,140 |
Shareholders’ equity | ||
Common stock | 1,138 | 1,138 |
Additional paid-in capital | 381,788 | 381,788 |
Retained earnings | 613,351 | 573,050 |
Accumulated other comprehensive loss | (1,909) | (1,531) |
Treasury stock, at cost | (395,802) | (389,617) |
Biglari Holdings Inc. shareholders’ equity | 598,566 | 564,828 |
Total liabilities and shareholders’ equity | $ 919,371 | $ 1,017,968 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenues | |||||
Restaurant operations | $ 59,144 | $ 79,674 | $ 196,424 | $ 272,582 | |
Insurance premiums and other | 14,723 | 14,413 | 43,729 | 38,692 | |
Oil and gas | 7,353 | 6,029 | 24,310 | 19,554 | |
Media and licensing | 863 | 1,719 | 2,695 | 3,209 | |
Total revenues | 82,083 | 101,835 | 267,158 | 334,037 | |
Cost and expenses | |||||
Restaurant cost of sales | 41,694 | 54,062 | 129,297 | 194,737 | |
Insurance losses and underwriting expenses | 10,672 | 11,290 | 31,733 | 28,866 | |
Oil and gas production costs | 2,050 | 2,171 | 6,957 | 6,570 | |
Media and licensing costs | 880 | 548 | 1,749 | 1,491 | |
Selling, general and administrative | 16,889 | 19,902 | 50,848 | 54,974 | |
Impairments | 0 | 3,698 | 559 | 21,817 | |
Depreciation and amortization | 7,682 | 7,275 | 22,239 | 24,284 | |
Interest expense on leases | 1,462 | 1,593 | 4,619 | 4,679 | |
Interest expense on notes payable | 0 | 2,150 | 1,121 | 6,973 | |
Total cost and expenses | 81,329 | 102,689 | 249,122 | 344,391 | |
Other income | |||||
Investment gains | 4,534 | 354 | 6,465 | 1,863 | |
Investment partnership gains (losses) | (20,231) | 27,218 | 27,344 | (89,276) | |
Total other income (expenses) | (15,697) | 27,572 | 33,809 | (87,413) | |
Earnings (loss) before income taxes | (14,943) | 26,718 | 51,845 | (97,767) | |
Income tax expense (benefit) | (4,274) | 5,617 | 11,544 | (23,449) | |
Net earnings (loss) | $ (10,669) | $ 21,101 | $ 40,301 | $ (74,318) | |
Earnings per share | |||||
Revenue from Contract with Customer, Product and Service [Extensible List] | Product and Service [Domain] | ||||
Common Class A | |||||
Earnings per share | |||||
Net earnings (loss) per equivalent Class A share, basic (in dollars per share) | [1] | $ (33.74) | $ 60.07 | $ 125.79 | $ (213.31) |
Net earnings (loss) per equivalent Class A share, diluted (in dollars per share) | (33.74) | 60.07 | 125.79 | (213.31) | |
Common Class B | |||||
Earnings per share | |||||
Net earnings (loss) per equivalent Class A share, basic (in dollars per share) | (6.75) | 12.01 | 25.16 | (42.66) | |
Net earnings (loss) per equivalent Class A share, diluted (in dollars per share) | $ (6.75) | $ 12.01 | $ 25.16 | $ (42.66) | |
[1] | *Net earnings (loss) per equivalent Class B share outstanding are one-fifth of the equivalent Class A share or $(6.75) and $25.16 for the third quarter and first nine months of 2021, respectively, and $12.01 and $(42.66) for the third quarter and first nine months of 2020, respectively. |
CONSOLIDATED STATEMENTS OF EA_2
CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) - Common Class B | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Net earnings (loss) per equivalent Class B share, basic (in dollars per share) | $ 25.16 |
Net earnings (loss) per equivalent Class B share, diluted (in dollars per share) | $ 25.16 |
Net earnings (loss) per equivalent share ratio | 0.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (10,669) | $ 21,101 | $ 40,301 | $ (74,318) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Foreign currency translation | (49) | 344 | (378) | 834 |
Total comprehensive income (loss) | $ (10,718) | $ 21,445 | $ 39,923 | $ (73,484) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net earnings (loss) | $ 40,301 | $ (74,318) |
Adjustments to reconcile net earnings (loss) to operating cash flows: | ||
Depreciation and amortization | 22,239 | 24,284 |
Provision for deferred income taxes | 16,625 | (23,755) |
Asset impairments and other non-cash expenses | 696 | 22,545 |
Gains on disposal of assets | (306) | (1,251) |
Investment gains and investment partnership gains/losses | (34,461) | 87,413 |
Distributions from investment partnerships | 172,420 | 97,330 |
Changes in receivables, inventories and other assets | 3,608 | 10,919 |
Changes in accounts payable and accrued expenses | (9,877) | (36,800) |
Net cash provided by operating activities | 211,245 | 106,367 |
Investing activities | ||
Capital expenditures | (46,486) | (13,297) |
Proceeds from property and equipment disposals | 2,749 | 3,914 |
Acquisition of business, net of cash acquired | 0 | (34,240) |
Purchases of limited partner interests | (4,800) | (69,330) |
Purchases of investments | (81,923) | (240,351) |
Redemptions of fixed maturity securities | 74,678 | 241,223 |
Net cash used in investing activities | (55,782) | (112,081) |
Financing activities | ||
Proceeds from revolving credit facility | 0 | 500 |
Principal payments on long-term debt | (149,952) | (22,729) |
Principal payments on direct financing lease obligations | (4,634) | (4,152) |
Net cash used in financing activities | (154,586) | (26,381) |
Effect of exchange rate changes on cash | (85) | (13) |
Increase (decrease) in cash, cash equivalents and restricted cash | 792 | (32,108) |
Cash, cash equivalents and restricted cash at beginning of year | 29,666 | 70,696 |
Cash, cash equivalents and restricted cash at end of third quarter | 30,458 | 38,588 |
Cash and cash equivalents | 27,795 | 33,164 |
Restricted cash in other long-term assets | 2,663 | 5,424 |
Cash, cash equivalents and restricted cash at end of third quarter | $ 30,458 | $ 38,588 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2019 | $ 616,298 | $ 1,138 | $ 381,788 | $ 611,039 | $ (2,810) | $ (374,857) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (137,885) | (137,885) | ||||
Other comprehensive loss | (312) | (312) | ||||
Adjustment to treasury stock for holdings in investment partnerships | 1,089 | 1,089 | ||||
Ending balance at Mar. 31, 2020 | 479,190 | 1,138 | 381,788 | 473,154 | (3,122) | (373,768) |
Beginning balance at Dec. 31, 2019 | 616,298 | 1,138 | 381,788 | 611,039 | (2,810) | (374,857) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive loss | 834 | |||||
Ending balance at Sep. 30, 2020 | 538,218 | 1,138 | 381,788 | 536,721 | (1,976) | (379,453) |
Beginning balance at Mar. 31, 2020 | 479,190 | 1,138 | 381,788 | 473,154 | (3,122) | (373,768) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 42,466 | 42,466 | ||||
Other comprehensive loss | 802 | 802 | ||||
Adjustment to treasury stock for holdings in investment partnerships | 92 | 92 | ||||
Ending balance at Jun. 30, 2020 | 522,550 | 1,138 | 381,788 | 515,620 | (2,320) | (373,676) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 21,101 | 21,101 | ||||
Other comprehensive loss | 344 | 344 | ||||
Adjustment to treasury stock for holdings in investment partnerships | (5,777) | (5,777) | ||||
Ending balance at Sep. 30, 2020 | 538,218 | 1,138 | 381,788 | 536,721 | (1,976) | (379,453) |
Beginning balance at Dec. 31, 2020 | 564,828 | 1,138 | 381,788 | 573,050 | (1,531) | (389,617) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 71,707 | 71,707 | ||||
Other comprehensive loss | (444) | (444) | ||||
Adjustment to treasury stock for holdings in investment partnerships | 3,049 | 3,049 | ||||
Ending balance at Mar. 31, 2021 | 639,140 | 1,138 | 381,788 | 644,757 | (1,975) | (386,568) |
Beginning balance at Dec. 31, 2020 | 564,828 | 1,138 | 381,788 | 573,050 | (1,531) | (389,617) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive loss | (378) | |||||
Ending balance at Sep. 30, 2021 | 598,566 | 1,138 | 381,788 | 613,351 | (1,909) | (395,802) |
Beginning balance at Mar. 31, 2021 | 639,140 | 1,138 | 381,788 | 644,757 | (1,975) | (386,568) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (20,737) | (20,737) | ||||
Other comprehensive loss | 115 | 115 | ||||
Adjustment to treasury stock for holdings in investment partnerships | (5,026) | (5,026) | ||||
Ending balance at Jun. 30, 2021 | 613,492 | 1,138 | 381,788 | 624,020 | (1,860) | (391,594) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (10,669) | (10,669) | ||||
Other comprehensive loss | (49) | (49) | ||||
Adjustment to treasury stock for holdings in investment partnerships | (4,208) | (4,208) | ||||
Ending balance at Sep. 30, 2021 | $ 598,566 | $ 1,138 | $ 381,788 | $ 613,351 | $ (1,909) | $ (395,802) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary to present fairly the results of the interim periods have been included and consist only of normal recurring adjustments. The results for the interim periods shown are not necessarily indicative of results for the entire fiscal year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2020. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance, media and licensing, restaurants, and oil and gas. The Company’s largest operating subsidiaries are involved in the franchising and operating of restaurants. Biglari Holdings was founded and is led by Sardar Biglari, Chairman and Chief Executive Officer of the Company. The Company’s long-term objective is to maximize per-share intrinsic value. All major investment and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. As of September 30, 2021, Mr. Biglari beneficially owns shares of the Company that represent approximately 65.0% of the economic interest and 70.3% of the voting interest. Overview of the Impact of COVID-19 The novel coronavirus (“COVID-19”) was declared a pandemic by the World Health Organization in March of 2020. Government and private sector responses to contain its spread began to affect our operating businesses significantly that same month. The COVID-19 pandemic has adversely affected nearly all of our operations, although the effects are varying significantly. The risks and uncertainties resulting from the pandemic may continue to affect our future earnings, cash flows and financial condition. The extent of such effects over the long term cannot be reasonably estimated at this time. Business Acquisition On March 9, 2020, Biglari Holdings acquired the stock of Southern Pioneer Property & Casualty Insurance Company, and its agency, Southern Pioneer Insurance Agency, Inc. (collectively “Southern Pioneer”). Southern Pioneer underwrites garage liability insurance, commercial property, as well as homeowners and dwelling fire insurance. The financial results for Southern Pioneer are included from the date of acquisition. 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 Company. Intercompany accounts and transactions have been eliminated in consolidation. Change in Presentation Gain on debt extinguishment of $0 and $5,713 during the third quarter and first nine months of 2020, respectively, have been reclassified from other income to selling, general and administrative expenses. Loss and loss adjustment expenses and unearned premiums are reflected separately from accrued expenses on the consolidated balance sheet. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareEarnings per share of common stock is based on the weighted average number of shares outstanding during the year. The shares of Company stock attributable to our limited partner interest in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively, the “investment partnerships”) — based on our proportional ownership during this period — are considered treasury stock on the consolidated balance sheet and thereby deemed not to be included in the calculation of weighted average common shares outstanding. However, these shares are legally outstanding. The following table presents shares authorized, issued and outstanding on September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 On an equivalent Class A common stock basis, there were 620,592 shares outstanding as of September 30, 2021 and December 31, 2020. 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 during the third quarters of 2021 and 2020 was 316,236 and 351,288, respectively. The equivalent Class A common stock for the earnings per share calculation during the first nine months of 2021 and 2020 was 320,377 and 348,396, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments were $99,006 and $94,861 as of September 30, 2021 and December 31, 2020, respectively. 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. Realized gains and losses on disposals of investments are determined on a specific identification basis. 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 gains for the third quarter and first nine months of 2021 were $4,534 and $6,465, respectively, which include a $5,047 gain on the sale of real estate. The Company purchased 26 acres of land in Murfreesboro, Tennessee in 2014 for $2,145 and sold it in the third quarter of 2021. Investment gains for the third quarter and first nine months of 2020 were $354 and $1,863, respectively. |
Investment Partnerships
Investment Partnerships | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [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 Corp. (“Biglari Capital”) is the general partner of the investment partnerships and is an entity solely owned by Mr. Biglari. The fair value and adjustment for Company common stock held by the investment partnerships to determine the carrying value of our partnership interest is presented below. Fair Value Company Carrying Value Partnership interest at December 31, 2020 $ 590,926 $ 171,376 $ 419,550 Investment partnership gains (losses) 110,690 83,346 27,344 Distributions (net of contributions) (167,620) (167,620) Increase in proportionate share of Company stock held 6,185 (6,185) Partnership interest at September 30, 2021 $ 533,996 $ 260,907 $ 273,089 Fair Value Company Carrying Value Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (123,524) (34,248) (89,276) Distributions (net of contributions) (28,000) (28,000) Decrease in proportionate share of Company stock held 4,596 (4,596) Partnership interest at September 30, 2020 $ 514,599 $ 130,929 $ 383,670 The carrying value of the investment partnerships net of deferred taxes is presented below. September 30, December 31, 2020 Carrying value of investment partnerships $ 273,089 $ 419,550 Deferred tax liability related to investment partnerships (54,432) (44,805) Carrying value of investment partnerships net of deferred taxes $ 218,657 $ 374,745 The Company’s proportionate share of Company stock held by investment partnerships at cost is $395,802 and $389,617 at September 30, 2021 and December 31, 2020, 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 of our partnership interests is assessed according to our proportional ownership interest of the fair value of investments held by the investment partnerships. Unrealized gains and losses on marketable securities held by the investment partnerships affect our net earnings. Gains/losses from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below. Third Quarter First Nine Months 2021 2020 2021 2020 Gains (losses) on investment partnership $ (20,231) $ 27,218 $ 27,344 $ (89,276) Tax expense (benefit) (4,946) 6,163 6,175 (21,337) Contribution to net earnings $ (15,285) $ 21,055 $ 21,169 $ (67,939) 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 consolidated financial statements. There were no incentive reallocations from Biglari Holdings to Biglari Capital during the first nine months of 2021 and 2020. Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below. Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of September 30, 2021 $ 132,351 $ 583,989 Total liabilities as of September 30, 2021 $ 1,490 $ 101,956 Revenue for the first nine months of 2021 $ 35,639 $ 94,078 Earnings for the first nine months of 2021 $ 35,584 $ 93,548 Biglari Holdings' ownership interest as of September 30, 2021 62.4 % 93.9 % Total assets as of December 31, 2020 $ 112,970 $ 566,663 Total liabilities as of December 31, 2020 $ 189 $ 25,453 Revenue for the first nine months of 2020 $ (18,941) $ (119,644) Earnings for the first nine months of 2020 $ (18,992) $ (120,849) Biglari Holdings' ownership interest as of September 30, 2020 66.2 % 95.3 % Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is composed of the following. September 30, December 31, Land $ 144,774 $ 142,601 Buildings 147,947 138,734 Land and leasehold improvements 148,296 141,351 Equipment 223,815 192,735 Oil and gas properties 73,752 75,900 Construction in progress 2,482 1,032 741,066 692,353 Less accumulated depreciation and amortization (388,244) (376,231) Property and equipment, net $ 352,822 $ 316,122 Depletion expense related to oil and gas properties was $5,875 and $9,249 during the first nine months of 2021 and 2020, respectively, and is included in depreciation and amortization within the consolidated statement of earnings. During the first nine months of 2021, the Company recorded impairment charges of $559 related to closed stores. The Company recorded impairment charges of $18,117 in the first nine months of 2020. 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
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. A reconciliation of the change in the carrying value of goodwill is as follows. Goodwill Goodwill at December 31, 2020 $ 53,596 Change in foreign exchange rates during the first nine months of 2021 (36) Goodwill at September 30, 2021 $ 53,560 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, during 2020 we considered whether goodwill needed to be evaluated for impairment for certain restaurant reporting units. We considered the available facts and made qualitative assessments and judgments for what we believed represented reasonably possible outcomes. No impairment charges for goodwill were recorded in the first nine months of 2021 or 2020. Western Sizzlin has experienced a decline in its franchised units for several years. If Western Sizzlin's franchised units continue to decline, an impairment of its goodwill may be necessary. Other Intangible Assets Intangible assets with indefinite lives are composed of the following. Trade Names Lease Rights Total Balance at December 31, 2020 $ 15,876 $ 8,189 $ 24,065 Change in foreign exchange rates during the first nine months of 2021 — (446) (446) Balance at September 30, 2021 $ 15,876 $ 7,743 $ 23,619 During the first nine months of 2020, the Company recorded impairment charges of $3,700 on lease rights related to our international restaurant operations. |
Restaurant Operations Revenues
Restaurant Operations Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Restaurant Operations Revenues | Restaurant Operations Revenues Restaurant operations revenues were as follows. Third Quarter First Nine Months 2021 2020 2021 2020 Net sales $ 41,916 $ 67,617 $ 146,269 $ 241,832 Franchise partner fees 11,508 6,894 31,744 14,775 Franchise royalties and fees 4,865 4,421 14,594 13,704 Other 855 742 3,817 2,271 $ 59,144 $ 79,674 $ 196,424 $ 272,582 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. We generate most of our revenue from our share of the franchise partners’ profits. An initial franchise fee of ten thousand dollars is recognized when the operator becomes a franchise partner. The Company recognizes franchise partner fees monthly as underlying restaurant sales occur. The Company leases or subleases property and equipment to franchisees under lease arrangements. Both real estate and equipment rental payments are charged to franchisees and are recognized in accordance with ASC 842, "Leases". During the third quarter of 2021 and 2020, restaurant operations recognized $4,277 and $1,606, respectively, in franchise partner fees related to rental fees. During the nine months ended September 30, 2021, and September 30, 2020, restaurant operations recognized $10,910 and $3,617, respectively, in franchise partner fees related to rental fees. 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. Other Revenue Restaurant operations sells gift cards to customers which can be redeemed for retail food sales within our stores. Gift cards are recorded as deferred revenue when issued and are subsequently recorded as net sales upon redemption. Restaurant operations estimates breakage related to gift cards when the likelihood of redemption is remote. This estimate utilizes historical trends based on the vintage of the gift card. Breakage on gift cards is recorded as other revenue in proportion to the rate of gift card redemptions by vintage. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses include the following. September 30, December 31, Accounts payable $ 42,307 $ 26,537 Gift card liability 21,174 21,822 Insurance accruals 6,221 6,559 Salaries, wages and vacation 8,378 8,285 Deferred revenue 7,546 9,324 Taxes payable 4,317 10,922 Professional fees 6,169 5,882 Other 4,786 1,561 Accounts payable and accrued expenses $ 100,898 $ 90,892 |
Notes Payable and Lease Obligat
Notes Payable and Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Lease Obligations | Notes Payable and Lease Obligations 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. Lease obligations include the following. Current portion of lease obligations September 30, December 31, Finance lease liabilities $ 1,536 $ 1,897 Finance obligations 4,948 4,854 Operating lease liabilities 10,746 10,614 Total current portion of lease obligations $ 17,230 $ 17,365 Long-term lease obligations Finance lease liabilities $ 5,627 $ 7,034 Finance obligations 64,315 68,148 Operating leases liabilities 38,007 36,463 Total long-term lease obligations $ 107,949 $ 111,645 |
Notes Payable and Lease Obligations | Notes Payable and Lease Obligations 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. Lease obligations include the following. Current portion of lease obligations September 30, December 31, Finance lease liabilities $ 1,536 $ 1,897 Finance obligations 4,948 4,854 Operating lease liabilities 10,746 10,614 Total current portion of lease obligations $ 17,230 $ 17,365 Long-term lease obligations Finance lease liabilities $ 5,627 $ 7,034 Finance obligations 64,315 68,148 Operating leases liabilities 38,007 36,463 Total long-term lease obligations $ 107,949 $ 111,645 |
Leased Assets and Lease Commitm
Leased Assets and Lease Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leased Assets and Lease Commitments | Leased Assets and Lease Commitments Nature of Leases The Company operates restaurants that are located on sites owned by us and leased from third parties. In addition, the Company owns sites and leases sites from third parties that are leased and/or subleased to franchisees. Company as Lessee A significant portion of our operating and finance lease portfolio includes restaurant locations. Operating lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term. Total lease cost consists of the following. Third Quarter First Nine Months 2021 2020 2021 2020 Finance lease costs: Amortization of right-of-use assets $ 404 $ 279 $ 1,205 $ 1,087 Interest on lease liabilities 126 136 399 392 Operating lease costs * 240 2,096 1,403 8,321 Total lease costs $ 770 $ 2,511 $ 3,007 $ 9,800 *Includes short-term leases, variable lease costs and sublease income. Supplemental cash flow information related to leases is as follows. First Nine Months 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,226 $ 1,132 Operating cash flows from finance leases $ 384 $ 463 Operating cash flows from operating leases $ 9,806 $ 10,382 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ — $ 73 Supplemental balance sheet information related to leases is as follows. September 30, December 31, Finance leases: Property and equipment, net $ 6,005 $ 6,501 Weighted-average lease terms and discount rates are as follows. September 30, Weighted-average remaining lease terms: Finance leases 5.2 years Operating leases 5.3 years Weighted-average discount rates: Finance leases 7.0 % Operating leases 6.9 % Maturities of lease liabilities as of September 30, 2021 are as follows. Year Operating Finance 2021 $ 4,217 $ 543 2022 12,457 1,816 2023 11,204 1,551 2024 9,244 1,534 2025 7,605 1,298 After 2025 13,699 1,814 Total lease payments 58,426 8,556 Less interest 9,673 1,393 Total lease liabilities $ 48,753 $ 7,163 Company as Lessor The components of lease income are as follows. Third Quarter First Nine Months 2021 2020 2021 2020 Operating lease income $ 3,211 $ 1,428 $ 8,471 $ 3,259 Variable lease income 1,370 449 3,375 1,183 Total lease income $ 4,581 $ 1,877 $ 11,846 $ 4,442 The following table displays the Company's future minimum rental receipts for non-cancelable leases and subleases as of September 30, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2021 $ 190 $ 62 2022 725 247 2023 537 247 2024 454 247 2025 454 250 After 2025 1,916 1,052 Total future minimum receipts $ 4,276 $ 2,105 |
Leased Assets and Lease Commitments | Leased Assets and Lease Commitments Nature of Leases The Company operates restaurants that are located on sites owned by us and leased from third parties. In addition, the Company owns sites and leases sites from third parties that are leased and/or subleased to franchisees. Company as Lessee A significant portion of our operating and finance lease portfolio includes restaurant locations. Operating lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term. Total lease cost consists of the following. Third Quarter First Nine Months 2021 2020 2021 2020 Finance lease costs: Amortization of right-of-use assets $ 404 $ 279 $ 1,205 $ 1,087 Interest on lease liabilities 126 136 399 392 Operating lease costs * 240 2,096 1,403 8,321 Total lease costs $ 770 $ 2,511 $ 3,007 $ 9,800 *Includes short-term leases, variable lease costs and sublease income. Supplemental cash flow information related to leases is as follows. First Nine Months 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,226 $ 1,132 Operating cash flows from finance leases $ 384 $ 463 Operating cash flows from operating leases $ 9,806 $ 10,382 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ — $ 73 Supplemental balance sheet information related to leases is as follows. September 30, December 31, Finance leases: Property and equipment, net $ 6,005 $ 6,501 Weighted-average lease terms and discount rates are as follows. September 30, Weighted-average remaining lease terms: Finance leases 5.2 years Operating leases 5.3 years Weighted-average discount rates: Finance leases 7.0 % Operating leases 6.9 % Maturities of lease liabilities as of September 30, 2021 are as follows. Year Operating Finance 2021 $ 4,217 $ 543 2022 12,457 1,816 2023 11,204 1,551 2024 9,244 1,534 2025 7,605 1,298 After 2025 13,699 1,814 Total lease payments 58,426 8,556 Less interest 9,673 1,393 Total lease liabilities $ 48,753 $ 7,163 Company as Lessor The components of lease income are as follows. Third Quarter First Nine Months 2021 2020 2021 2020 Operating lease income $ 3,211 $ 1,428 $ 8,471 $ 3,259 Variable lease income 1,370 449 3,375 1,183 Total lease income $ 4,581 $ 1,877 $ 11,846 $ 4,442 The following table displays the Company's future minimum rental receipts for non-cancelable leases and subleases as of September 30, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2021 $ 190 $ 62 2022 725 247 2023 537 247 2024 454 247 2025 454 250 After 2025 1,916 1,052 Total future minimum receipts $ 4,276 $ 2,105 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeAccumulated other comprehensive loss increased $49 and decreased $344 during the third quarters of 2021 and 2020, respectively. During the first nine months of 2021, accumulated other comprehensive loss increased by $378 and decreased by $834 during the first nine months of 2020. As of September 30, 2021 and 2020, the balances in accumulated other comprehensive loss were $1,909 and $1,976, respectively. There were no reclassifications from accumulated other comprehensive loss to earnings during the first nine months of 2021 and 2020. All changes in accumulated other comprehensive loss were due to foreign currency translation adjustments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIn determining the quarterly provision for income taxes, the Company used a discrete effective tax rate method based on statutory tax rates for the first nine months of 2021 and 2020. Our periodic effective income tax rate is affected by the relative mix of pre-tax earnings or losses and underlying income tax rates applicable to the various taxing jurisdictions.Income tax benefit for the third quarter of 2021 was $4,274 compared to an income tax expense of $5,617 for the third quarter of 2020. Income tax expense for the first nine months of 2021 was $11,544 compared to a benefit of $23,449 for the first nine months of 2020. The variance in income taxes between 2021 and 2020 is attributable to taxes on income generated by the investment partnerships. Investment partnership pretax gains were $27,344 during the first nine months of 2021 compared to pretax losses of $89,276 during the first nine months of 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe 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. |
Fair Value of Financial Assets
Fair Value of Financial Assets | 9 Months Ended |
Sep. 30, 2021 | |
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 within Level l 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 September 30, 2021 and December 31, 2020, the fair values of financial assets were as follows. September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 25,575 $ — $ — $ 25,575 $ 23,885 $ — $ — $ 23,885 Equity securities Consumer goods 8,349 2,810 — 11,159 7,274 5,652 — 12,926 Insurance 4,536 — — 4,536 261 — — 261 Bonds Government 52,876 — — 52,876 39,472 14,043 — 53,515 Corporate 6,947 — — 6,947 — 5,406 — 5,406 Options on equity securities — 1,653 — 1,653 — 2,911 — 2,911 Non-qualified deferred compensation plan investments 1,596 — — 1,596 1,368 — — 1,368 Total assets at fair value $ 99,879 $ 4,463 $ — $ 104,342 $ 72,260 $ 28,012 $ — $ 100,272 There were no changes in our valuation techniques used to measure fair values on a recurring basis. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Service Agreement The Company is party to a service agreement with Biglari Enterprises LLC and Biglari Capital Corp. (collectively, the “Biglari Entities”) under which the Biglari Entities provide services to the Company. The service agreement has a five 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. |
Business Segment Reporting
Business Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
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 the third quarters and first nine months of 2021 and 2020 is presented in the tables that follow. Revenue Third Quarter First Nine Months 2021 2020 2021 2020 Operating Businesses: Restaurant Operations: Steak n Shake $ 56,993 $ 78,313 $ 190,517 $ 267,637 Western Sizzlin 2,151 1,361 5,907 4,945 Total Restaurant Operations 59,144 79,674 196,424 272,582 Insurance Operations: First Guard 8,656 7,898 25,250 23,194 Southern Pioneer 6,067 6,515 18,479 15,498 Total Insurance Operations 14,723 14,413 43,729 38,692 Southern Oil 7,353 6,029 24,310 19,554 Maxim 863 1,719 2,695 3,209 $ 82,083 $ 101,835 $ 267,158 $ 334,037 Earnings (Losses) Before Income Taxes Third Quarter First Nine Months 2021 2020 2021 2020 Operating Businesses: Restaurant Operations: Steak n Shake $ (2,959) $ (63) $ 5,733 $ (6,362) Western Sizzlin 247 (396) 707 (937) Total Restaurant Operations (2,712) (459) 6,440 (7,299) Insurance Operations: First Guard 2,934 2,152 8,204 7,193 Southern Pioneer 908 518 3,194 1,458 Total Insurance Operations 3,842 2,670 11,398 8,651 Southern Oil 2,982 592 9,047 1,355 Maxim (56) 1,150 867 1,605 Interest expense not allocated to segments — (2,150) (1,121) (6,973) Total Operating Businesses 4,056 1,803 26,631 (2,661) Corporate and Investments: Corporate and other (3,302) (2,657) (8,595) (7,693) Investment gains 4,534 354 6,465 1,863 Investment partnership gains (losses) (20,231) 27,218 27,344 (89,276) Total Corporate and Investments (18,999) 24,915 25,214 (95,106) $ (14,943) $ 26,718 $ 51,845 $ (97,767) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Business Acquisition | Business AcquisitionOn 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, as well as homeowners and dwelling fire insurance. The financial results for Southern Pioneer are included from the date of acquisition. |
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 Company. Intercompany accounts and transactions have been eliminated in consolidation. |
Changes in Presentation | Change in Presentation Gain on debt extinguishment of $0 and $5,713 during the third quarter and first nine months of 2020, respectively, have been reclassified from other income to selling, general and administrative expenses. Loss and loss adjustment expenses and unearned premiums are reflected separately from accrued expenses on the consolidated balance sheet. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following table presents shares authorized, issued and outstanding on September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Class A Class B Class A Class B Common stock authorized 500,000 10,000,000 500,000 10,000,000 Common stock issued and outstanding 206,864 2,068,640 206,864 2,068,640 |
Investment Partnerships (Tables
Investment Partnerships (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [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 the carrying value of our partnership interest is presented below. Fair Value Company Carrying Value Partnership interest at December 31, 2020 $ 590,926 $ 171,376 $ 419,550 Investment partnership gains (losses) 110,690 83,346 27,344 Distributions (net of contributions) (167,620) (167,620) Increase in proportionate share of Company stock held 6,185 (6,185) Partnership interest at September 30, 2021 $ 533,996 $ 260,907 $ 273,089 Fair Value Company Carrying Value Partnership interest at December 31, 2019 $ 666,123 $ 160,581 $ 505,542 Investment partnership gains (losses) (123,524) (34,248) (89,276) Distributions (net of contributions) (28,000) (28,000) Decrease in proportionate share of Company stock held 4,596 (4,596) Partnership interest at September 30, 2020 $ 514,599 $ 130,929 $ 383,670 |
Carrying value of investment partnerships net of deferred taxes | The carrying value of the investment partnerships net of deferred taxes is presented below. September 30, December 31, 2020 Carrying value of investment partnerships $ 273,089 $ 419,550 Deferred tax liability related to investment partnerships (54,432) (44,805) Carrying value of investment partnerships net of deferred taxes $ 218,657 $ 374,745 |
Schedule of Gains (Losses) from Investment Partnerships | Gains/losses from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below. Third Quarter First Nine Months 2021 2020 2021 2020 Gains (losses) on investment partnership $ (20,231) $ 27,218 $ 27,344 $ (89,276) Tax expense (benefit) (4,946) 6,163 6,175 (21,337) Contribution to net earnings $ (15,285) $ 21,055 $ 21,169 $ (67,939) |
Schedule of Summarized Financial Information | Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below. Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of September 30, 2021 $ 132,351 $ 583,989 Total liabilities as of September 30, 2021 $ 1,490 $ 101,956 Revenue for the first nine months of 2021 $ 35,639 $ 94,078 Earnings for the first nine months of 2021 $ 35,584 $ 93,548 Biglari Holdings' ownership interest as of September 30, 2021 62.4 % 93.9 % Total assets as of December 31, 2020 $ 112,970 $ 566,663 Total liabilities as of December 31, 2020 $ 189 $ 25,453 Revenue for the first nine months of 2020 $ (18,941) $ (119,644) Earnings for the first nine months of 2020 $ (18,992) $ (120,849) Biglari Holdings' ownership interest as of September 30, 2020 66.2 % 95.3 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is composed of the following. September 30, December 31, Land $ 144,774 $ 142,601 Buildings 147,947 138,734 Land and leasehold improvements 148,296 141,351 Equipment 223,815 192,735 Oil and gas properties 73,752 75,900 Construction in progress 2,482 1,032 741,066 692,353 Less accumulated depreciation and amortization (388,244) (376,231) Property and equipment, net $ 352,822 $ 316,122 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A reconciliation of the change in the carrying value of goodwill is as follows. Goodwill Goodwill at December 31, 2020 $ 53,596 Change in foreign exchange rates during the first nine months of 2021 (36) Goodwill at September 30, 2021 $ 53,560 |
Schedule of Finite-Lived Intangible Assets | Intangible assets with indefinite lives are composed of the following. Trade Names Lease Rights Total Balance at December 31, 2020 $ 15,876 $ 8,189 $ 24,065 Change in foreign exchange rates during the first nine months of 2021 — (446) (446) Balance at September 30, 2021 $ 15,876 $ 7,743 $ 23,619 |
Restaurant Operations Revenues
Restaurant Operations Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of restaurant operations revenues | Restaurant operations revenues were as follows. Third Quarter First Nine Months 2021 2020 2021 2020 Net sales $ 41,916 $ 67,617 $ 146,269 $ 241,832 Franchise partner fees 11,508 6,894 31,744 14,775 Franchise royalties and fees 4,865 4,421 14,594 13,704 Other 855 742 3,817 2,271 $ 59,144 $ 79,674 $ 196,424 $ 272,582 |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accounts payable and accrued expenses include the following. September 30, December 31, Accounts payable $ 42,307 $ 26,537 Gift card liability 21,174 21,822 Insurance accruals 6,221 6,559 Salaries, wages and vacation 8,378 8,285 Deferred revenue 7,546 9,324 Taxes payable 4,317 10,922 Professional fees 6,169 5,882 Other 4,786 1,561 Accounts payable and accrued expenses $ 100,898 $ 90,892 |
Notes Payable and Lease Oblig_2
Notes Payable and Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Lease obligations include the following. Current portion of lease obligations September 30, December 31, Finance lease liabilities $ 1,536 $ 1,897 Finance obligations 4,948 4,854 Operating lease liabilities 10,746 10,614 Total current portion of lease obligations $ 17,230 $ 17,365 Long-term lease obligations Finance lease liabilities $ 5,627 $ 7,034 Finance obligations 64,315 68,148 Operating leases liabilities 38,007 36,463 Total long-term lease obligations $ 107,949 $ 111,645 |
Leased Assets and Lease Commi_2
Leased Assets and Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | Total lease cost consists of the following. Third Quarter First Nine Months 2021 2020 2021 2020 Finance lease costs: Amortization of right-of-use assets $ 404 $ 279 $ 1,205 $ 1,087 Interest on lease liabilities 126 136 399 392 Operating lease costs * 240 2,096 1,403 8,321 Total lease costs $ 770 $ 2,511 $ 3,007 $ 9,800 *Includes short-term leases, variable lease costs and sublease income. |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases is as follows. First Nine Months 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,226 $ 1,132 Operating cash flows from finance leases $ 384 $ 463 Operating cash flows from operating leases $ 9,806 $ 10,382 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ — $ 73 |
Schedule of supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases is as follows. September 30, December 31, Finance leases: Property and equipment, net $ 6,005 $ 6,501 |
Schedule of weighted-average lease terms and discount rates | Weighted-average lease terms and discount rates are as follows. September 30, Weighted-average remaining lease terms: Finance leases 5.2 years Operating leases 5.3 years Weighted-average discount rates: Finance leases 7.0 % Operating leases 6.9 % |
Schedule of Lease Maturities | Maturities of lease liabilities as of September 30, 2021 are as follows. Year Operating Finance 2021 $ 4,217 $ 543 2022 12,457 1,816 2023 11,204 1,551 2024 9,244 1,534 2025 7,605 1,298 After 2025 13,699 1,814 Total lease payments 58,426 8,556 Less interest 9,673 1,393 Total lease liabilities $ 48,753 $ 7,163 |
Operating Lease, Lease Income | The components of lease income are as follows. Third Quarter First Nine Months 2021 2020 2021 2020 Operating lease income $ 3,211 $ 1,428 $ 8,471 $ 3,259 Variable lease income 1,370 449 3,375 1,183 Total lease income $ 4,581 $ 1,877 $ 11,846 $ 4,442 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The following table displays the Company's future minimum rental receipts for non-cancelable leases and subleases as of September 30, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2021 $ 190 $ 62 2022 725 247 2023 537 247 2024 454 247 2025 454 250 After 2025 1,916 1,052 Total future minimum receipts $ 4,276 $ 2,105 |
Fair Value of Financial Assets
Fair Value of Financial Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of September 30, 2021 and December 31, 2020, the fair values of financial assets were as follows. September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 25,575 $ — $ — $ 25,575 $ 23,885 $ — $ — $ 23,885 Equity securities Consumer goods 8,349 2,810 — 11,159 7,274 5,652 — 12,926 Insurance 4,536 — — 4,536 261 — — 261 Bonds Government 52,876 — — 52,876 39,472 14,043 — 53,515 Corporate 6,947 — — 6,947 — 5,406 — 5,406 Options on equity securities — 1,653 — 1,653 — 2,911 — 2,911 Non-qualified deferred compensation plan investments 1,596 — — 1,596 1,368 — — 1,368 Total assets at fair value $ 99,879 $ 4,463 $ — $ 104,342 $ 72,260 $ 28,012 $ — $ 100,272 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A disaggregation of our consolidated data for the third quarters and first nine months of 2021 and 2020 is presented in the tables that follow. Revenue Third Quarter First Nine Months 2021 2020 2021 2020 Operating Businesses: Restaurant Operations: Steak n Shake $ 56,993 $ 78,313 $ 190,517 $ 267,637 Western Sizzlin 2,151 1,361 5,907 4,945 Total Restaurant Operations 59,144 79,674 196,424 272,582 Insurance Operations: First Guard 8,656 7,898 25,250 23,194 Southern Pioneer 6,067 6,515 18,479 15,498 Total Insurance Operations 14,723 14,413 43,729 38,692 Southern Oil 7,353 6,029 24,310 19,554 Maxim 863 1,719 2,695 3,209 $ 82,083 $ 101,835 $ 267,158 $ 334,037 |
Schedule of earnings (losses) before income taxes by segment | Earnings (Losses) Before Income Taxes Third Quarter First Nine Months 2021 2020 2021 2020 Operating Businesses: Restaurant Operations: Steak n Shake $ (2,959) $ (63) $ 5,733 $ (6,362) Western Sizzlin 247 (396) 707 (937) Total Restaurant Operations (2,712) (459) 6,440 (7,299) Insurance Operations: First Guard 2,934 2,152 8,204 7,193 Southern Pioneer 908 518 3,194 1,458 Total Insurance Operations 3,842 2,670 11,398 8,651 Southern Oil 2,982 592 9,047 1,355 Maxim (56) 1,150 867 1,605 Interest expense not allocated to segments — (2,150) (1,121) (6,973) Total Operating Businesses 4,056 1,803 26,631 (2,661) Corporate and Investments: Corporate and other (3,302) (2,657) (8,595) (7,693) Investment gains 4,534 354 6,465 1,863 Investment partnership gains (losses) (20,231) 27,218 27,344 (89,276) Total Corporate and Investments (18,999) 24,915 25,214 (95,106) $ (14,943) $ 26,718 $ 51,845 $ (97,767) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Gain on extinguishment of debt | $ 0 | $ 5,713 |
Mr. Biglari | Common Class A | ||
Biglari Holdings' ownership interest | 65.00% | 65.00% |
Mr. Biglari | Common Class B | ||
Biglari Holdings' ownership interest | 70.30% | 70.30% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 |
Common stock issued and outstanding (in shares) | 2,068,640 | 2,068,640 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||
Equivalent class A common stock outstanding (in shares) | 620,592 | 620,592 | 620,592 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 316,236 | 351,288 | 320,377 | 348,396 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2014USD ($)a | Dec. 31, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Available-for-sale investments | $ 99,006 | $ 99,006 | $ 94,861 | |
Gain on investment | 4,534 | 6,465 | ||
Gain on sale of real estate investment | $ 5,047 | $ 5,047 | ||
Area of land | a | 26 | |||
Payments to acquire land | $ 2,145 |
Investment Partnerships - Fair
Investment Partnerships - Fair Value and Adjustments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value | ||
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Fair value of partnership interest, beginning balance | $ 590,926 | $ 666,123 |
Investment partnership gains (losses) | 110,690 | (123,524) |
Distributions (net of contributions) | 167,620 | 28,000 |
Increase (Decrease) in proportionate share of Company stock held | ||
Fair value of partnership interest, ending balance | 533,996 | 514,599 |
Company Common Stock | ||
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Fair value of partnership interest, beginning balance | 171,376 | 160,581 |
Investment partnership gains (losses) | 83,346 | (34,248) |
Distributions (net of contributions) | ||
Increase (Decrease) in proportionate share of Company stock held | 6,185 | 4,596 |
Fair value of partnership interest, ending balance | 260,907 | 130,929 |
Carry Value | ||
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Fair value of partnership interest, beginning balance | 419,550 | 505,542 |
Investment partnership gains (losses) | 27,344 | (89,276) |
Distributions (net of contributions) | 167,620 | 28,000 |
Increase (Decrease) in proportionate share of Company stock held | (6,185) | (4,596) |
Fair value of partnership interest, ending balance | $ 273,089 | $ 383,670 |
Investment Partnerships - Carry
Investment Partnerships - Carrying Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Carrying value of investment partnerships | $ 273,089 | $ 419,550 |
Deferred tax liability related to investment partnerships | (54,432) | (44,805) |
Carrying value of investment partnerships net of deferred taxes | $ 218,657 | $ 374,745 |
Investment Partnerships - Gains
Investment Partnerships - Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Gains (losses) on investment partnership | $ (20,231) | $ 27,218 | $ 27,344 | $ (89,276) |
Tax expense (benefit) | (4,946) | 6,163 | 6,175 | (21,337) |
Contribution to net earnings | $ (15,285) | $ 21,055 | $ 21,169 | $ (67,939) |
Investment Partnerships - Summa
Investment Partnerships - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Total assets | $ 919,371 | $ 919,371 | $ 1,017,968 | ||||||
Total liabilities | 320,805 | 320,805 | 453,140 | ||||||
Total revenues | 82,083 | $ 101,835 | 267,158 | $ 334,037 | |||||
Total earnings | (10,669) | $ (20,737) | $ 71,707 | $ 21,101 | $ 42,466 | $ (137,885) | |||
Lion Fund, L.P. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Total assets | 132,351 | 132,351 | 112,970 | ||||||
Total liabilities | $ 1,490 | 1,490 | 189 | ||||||
Total revenues | 35,639 | (18,941) | |||||||
Total earnings | $ 35,584 | $ (18,992) | |||||||
Biglari Holdings' ownership interest | 62.40% | 66.20% | 62.40% | 66.20% | |||||
Lion Fund II, L.P. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Total assets | $ 583,989 | $ 583,989 | 566,663 | ||||||
Total liabilities | $ 101,956 | 101,956 | $ 25,453 | ||||||
Total revenues | 94,078 | $ (119,644) | |||||||
Total earnings | $ 93,548 | $ (120,849) | |||||||
Biglari Holdings' ownership interest | 93.90% | 95.30% | 93.90% | 95.30% |
Investment Partnerships - Narra
Investment Partnerships - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Proportionate share of Company stock held by investment partnerships at cost | $ 395,802 | $ 389,617 |
Incentive reallocation fee, percentage | 25.00% | |
Hurdle rate, percentage | 6.00% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 144,774 | $ 142,601 |
Buildings | 147,947 | 138,734 |
Land and leasehold improvements | 148,296 | 141,351 |
Equipment | 223,815 | 192,735 |
Oil and gas properties | 73,752 | 75,900 |
Construction in progress | 2,482 | 1,032 |
Total property and equipment | 741,066 | 692,353 |
Less accumulated depreciation and amortization | (388,244) | (376,231) |
Property and equipment, net | $ 352,822 | $ 316,122 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depletion | $ 5,875 | $ 9,249 |
Impairments charges | $ 559 | $ 18,117 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Reconciliation of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at December 31, 2020 | $ 53,596 |
Change in foreign exchange rates during the first nine months of 2021 | (36) |
Goodwill at September 30, 2021 | $ 53,560 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at December 31, 2020 | $ 24,065 |
Changes in foreign exchange rates during the first nine months of 2021 | (446) |
Balance at September 30, 2021 | 23,619 |
Trade Names | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at December 31, 2020 | 15,876 |
Changes in foreign exchange rates during the first nine months of 2021 | 0 |
Balance at September 30, 2021 | 15,876 |
Lease Rights | |
Finite-lived Intangible Assets [Roll Forward] | |
Balance at December 31, 2020 | 8,189 |
Changes in foreign exchange rates during the first nine months of 2021 | (446) |
Balance at September 30, 2021 | $ 7,743 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill [Line Items] | ||
Goodwill and intangible asset impairment | $ 0 | $ 0 |
International Restaurant Operations | ||
Goodwill [Line Items] | ||
Goodwill and intangible asset impairment | $ 3,700,000 |
Restaurant Operations Revenue_2
Restaurant Operations Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Restaurant operations | $ 59,144 | $ 79,674 | $ 196,424 | $ 272,582 |
Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant operations | 41,916 | 67,617 | 146,269 | 241,832 |
Franchise partner fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant operations | 11,508 | 6,894 | 31,744 | 14,775 |
Franchise royalties and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant operations | 4,865 | 4,421 | 14,594 | 13,704 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Restaurant operations | $ 855 | $ 742 | $ 3,817 | $ 2,271 |
Restaurant Operations Revenue_3
Restaurant Operations Revenues - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Franchise partner fees sales percent | 15.00% | |||
Franchise partner fees profits percent | 50.00% | |||
Initial franchise partner fee | $ 10,000 | |||
Rental fees | $ 4,277,000 | $ 1,606,000 | $ 10,910,000 | $ 3,617,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 42,307 | $ 26,537 |
Gift card liability | 21,174 | 21,822 |
Insurance accruals | 6,221 | 6,559 |
Salaries, wages and vacation | 8,378 | 8,285 |
Deferred revenue | 7,546 | 9,324 |
Taxes payable | 4,317 | 10,922 |
Professional fees | 6,169 | 5,882 |
Other | 4,786 | 1,561 |
Accounts payable and accrued expenses | $ 100,898 | $ 90,892 |
Notes Payable and Lease Oblig_3
Notes Payable and Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current portion of lease obligations | ||
Finance lease liabilities | $ 1,536 | $ 1,897 |
Finance obligations | 4,948 | 4,854 |
Operating lease liabilities | 10,746 | 10,614 |
Total current portion of lease obligations | 17,230 | 17,365 |
Long-term lease obligations | ||
Finance lease liabilities | 5,627 | 7,034 |
Finance obligations | 64,315 | 68,148 |
Operating leases liabilities | 38,007 | 36,463 |
Total long-term lease obligations | $ 107,949 | $ 111,645 |
Notes Payable and Lease Oblig_4
Notes Payable and Lease Obligations - Narrative (Details) - Steak n Shake Credit Facility - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 19, 2014 |
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 220,000 | |
Debt instrument fair value | $ 152,506 |
Leased Assets and Lease Commi_3
Leased Assets and Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finance lease costs: | ||||
Amortization of right-of-use assets | $ 404 | $ 279 | $ 1,205 | $ 1,087 |
Interest on lease liabilities | 126 | 136 | 399 | 392 |
Operating lease costs | 240 | 2,096 | 1,403 | 8,321 |
Total lease costs | $ 770 | $ 2,511 | $ 3,007 | $ 9,800 |
Leased Assets and Lease Commi_4
Leased Assets and Lease Commitments - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 1,226 | $ 1,132 |
Operating cash flows from finance leases | 384 | 463 |
Operating cash flows from operating leases | 9,806 | 10,382 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating lease liabilities | $ 0 | $ 73 |
Leased Assets and Lease Commi_5
Leased Assets and Lease Commitments - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Property and equipment, net | $ 6,005 | $ 6,501 |
Leased Assets and Lease Commi_6
Leased Assets and Lease Commitments - Weighted Average Lease Terms and Discount Rates (Details) | Sep. 30, 2021 |
Weighted-average remaining lease terms: | |
Finance leases | 5 years 2 months 12 days |
Operating leases | 5 years 3 months 18 days |
Weighted-average discount rates: | |
Finance leases | 7.00% |
Operating leases | 6.90% |
Leased Assets and Lease Commi_7
Leased Assets and Lease Commitments - Lease Maturity Schedule (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
2021 | $ 4,217 |
2022 | 12,457 |
2023 | 11,204 |
2024 | 9,244 |
2025 | 7,605 |
After 2025 | 13,699 |
Total lease payments | 58,426 |
Less interest | 9,673 |
Total lease liabilities | 48,753 |
Finance Leases | |
2021 | 543 |
2022 | 1,816 |
2023 | 1,551 |
2024 | 1,534 |
2025 | 1,298 |
After 2025 | 1,814 |
Total lease payments | 8,556 |
Less interest | 1,393 |
Total lease liabilities | $ 7,163 |
Leased Assets and Lease Commi_8
Leased Assets and Lease Commitments - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease income | $ 3,211 | $ 1,428 | $ 8,471 | $ 3,259 |
Variable lease income | 1,370 | 449 | 3,375 | 1,183 |
Total lease income | $ 4,581 | $ 1,877 | $ 11,846 | $ 4,442 |
Leased Assets and Lease Commi_9
Leased Assets and Lease Commitments - Future Minimum Rental Receipts (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Subleases | |
Operating Leases | |
2021 | $ 190 |
2022 | 725 |
2023 | 537 |
2024 | 454 |
2025 | 454 |
After 2025 | 1,916 |
Total future minimum receipts | 4,276 |
Owned Properties | |
Operating Leases | |
2021 | 62 |
2022 | 247 |
2023 | 247 |
2024 | 247 |
2025 | 250 |
After 2025 | 1,052 |
Total future minimum receipts | $ 2,105 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss increase/(decrease) | $ 49 | $ (115) | $ 444 | $ (344) | $ (802) | $ 312 | ||||
Biglari Holdings Inc. shareholders' equity | (598,566) | (613,492) | (639,140) | (538,218) | (522,550) | (479,190) | $ (598,566) | $ (538,218) | $ (564,828) | $ (616,298) |
Accumulated Other Comprehensive Income (Loss) | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive loss increase/(decrease) | 49 | (115) | 444 | (344) | (802) | 312 | 378 | (834) | ||
Biglari Holdings Inc. shareholders' equity | $ 1,909 | $ 1,860 | $ 1,975 | $ 1,976 | $ 2,320 | $ 3,122 | $ 1,909 | $ 1,976 | $ 1,531 | $ 2,810 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (4,274) | $ 5,617 | $ 11,544 | $ (23,449) |
Investment partnership pretax gains (losses) | $ 27,344 | $ (89,276) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash equivalents | $ 25,575 | $ 23,885 |
Options on equity securities | 1,653 | 2,911 |
Non-qualified deferred compensation plan investments | 1,596 | 1,368 |
Total assets at fair value | 104,342 | 100,272 |
Consumer Goods Equity Security | ||
Assets | ||
Equity securities | 11,159 | 12,926 |
Insurance Equity Security | ||
Assets | ||
Equity securities | 4,536 | 261 |
US Treasury and Government | ||
Assets | ||
Bonds | 52,876 | 53,515 |
Corporate Debt Securities | ||
Assets | ||
Bonds | 6,947 | 5,406 |
Level 1 | ||
Assets | ||
Cash equivalents | 25,575 | 23,885 |
Options on equity securities | 0 | 0 |
Non-qualified deferred compensation plan investments | 1,596 | 1,368 |
Total assets at fair value | 99,879 | 72,260 |
Level 1 | Consumer Goods Equity Security | ||
Assets | ||
Equity securities | 8,349 | 7,274 |
Level 1 | Insurance Equity Security | ||
Assets | ||
Equity securities | 4,536 | 261 |
Level 1 | US Treasury and Government | ||
Assets | ||
Bonds | 52,876 | 39,472 |
Level 1 | Corporate Debt Securities | ||
Assets | ||
Bonds | 6,947 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Options on equity securities | 1,653 | 2,911 |
Non-qualified deferred compensation plan investments | 0 | 0 |
Total assets at fair value | 4,463 | 28,012 |
Level 2 | Consumer Goods Equity Security | ||
Assets | ||
Equity securities | 2,810 | 5,652 |
Level 2 | Insurance Equity Security | ||
Assets | ||
Equity securities | 0 | 0 |
Level 2 | US Treasury and Government | ||
Assets | ||
Bonds | 0 | 14,043 |
Level 2 | Corporate Debt Securities | ||
Assets | ||
Bonds | 0 | 5,406 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
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 Security | ||
Assets | ||
Equity securities | 0 | 0 |
Level 3 | Insurance Equity Security | ||
Assets | ||
Equity securities | 0 | 0 |
Level 3 | US Treasury and Government | ||
Assets | ||
Bonds | 0 | 0 |
Level 3 | Corporate Debt Securities | ||
Assets | ||
Bonds | $ 0 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Hurdle rate, percentage | 6.00% | |
Incentive reallocation fee, percentage | 25.00% | |
Biglari Entities | ||
Related Party Transaction [Line Items] | ||
Term of agreement | 5 years | |
Hurdle rate, percentage | 6.00% | |
Incentive reallocation fee, percentage | 25.00% | |
Biglari Entities | Services Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee expense | $ 6,300 | $ 6,300 |
Business Segment Reporting - Di
Business Segment Reporting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Restaurant operations | $ 59,144 | $ 79,674 | $ 196,424 | $ 272,582 |
Insurance premiums and other | 14,723 | 14,413 | 43,729 | 38,692 |
Oil and gas | 7,353 | 6,029 | 24,310 | 19,554 |
Media and licensing | 863 | 1,719 | 2,695 | 3,209 |
Total revenues | 82,083 | 101,835 | 267,158 | 334,037 |
Restaurant Operations | ||||
Segment Reporting Information [Line Items] | ||||
Restaurant operations | 59,144 | 79,674 | 196,424 | 272,582 |
Restaurant Operations | Steak n Shake | ||||
Segment Reporting Information [Line Items] | ||||
Restaurant operations | 56,993 | 78,313 | 190,517 | 267,637 |
Restaurant Operations | Western Sizzlin | ||||
Segment Reporting Information [Line Items] | ||||
Restaurant operations | 2,151 | 1,361 | 5,907 | 4,945 |
Insurance Operations | ||||
Segment Reporting Information [Line Items] | ||||
Insurance premiums and other | 14,723 | 14,413 | 43,729 | 38,692 |
Insurance Operations | First Guard | ||||
Segment Reporting Information [Line Items] | ||||
Insurance premiums and other | 8,656 | 7,898 | 25,250 | 23,194 |
Insurance Operations | Southern Pioneer | ||||
Segment Reporting Information [Line Items] | ||||
Insurance premiums and other | 6,067 | 6,515 | 18,479 | 15,498 |
Southern Oil | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas | 7,353 | 6,029 | 24,310 | 19,554 |
Maxim | ||||
Segment Reporting Information [Line Items] | ||||
Media and licensing | $ 863 | $ 1,719 | $ 2,695 | $ 3,209 |
Business Segment Reporting - Ea
Business Segment Reporting - Earnings (Losses) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Investment gains | $ 4,534 | $ 354 | $ 6,465 | $ 1,863 |
Investment partnership gains (losses) | (20,231) | 27,218 | 27,344 | (89,276) |
Earnings (loss) before income taxes | (14,943) | 26,718 | 51,845 | (97,767) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 4,056 | 1,803 | 26,631 | (2,661) |
Interest expense not allocated to segments | 0 | (2,150) | (1,121) | (6,973) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and other | (3,302) | (2,657) | (8,595) | (7,693) |
Investment gains | 4,534 | 354 | 6,465 | 1,863 |
Investment partnership gains (losses) | (20,231) | 27,218 | 27,344 | (89,276) |
Total Corporate and Investments | (18,999) | 24,915 | 25,214 | (95,106) |
Restaurant Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | (2,712) | (459) | 6,440 | (7,299) |
Restaurant Operations | Operating Segments | Steak n Shake | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | (2,959) | (63) | 5,733 | (6,362) |
Restaurant Operations | Operating Segments | Western Sizzlin | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 247 | (396) | 707 | (937) |
Insurance Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 3,842 | 2,670 | 11,398 | 8,651 |
Insurance Operations | Operating Segments | First Guard | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 2,934 | 2,152 | 8,204 | 7,193 |
Insurance Operations | Operating Segments | Southern Pioneer | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 908 | 518 | 3,194 | 1,458 |
Southern Oil | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | 2,982 | 592 | 9,047 | 1,355 |
Maxim | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Losses) Before Income Taxes | $ (56) | $ 1,150 | $ 867 | $ 1,605 |