Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 21, 2022 | Jun. 30, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | $ 173,487,448 | ||
Entity Central Index Key | 0001726173 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive Proxy Statement to be filed for its 2022 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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Indianapolis, Indiana |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 42,349 | $ 24,503 |
Investments | 83,061 | 94,861 |
Receivables | 28,508 | 19,185 |
Inventories | 3,803 | 2,737 |
Other current assets | 7,088 | 6,492 |
Total current assets | 164,809 | 147,778 |
Property and equipment | 349,351 | 316,122 |
Operating lease assets | 42,538 | 42,832 |
Goodwill | 53,547 | 53,596 |
Other intangible assets | 23,463 | 24,065 |
Investment partnerships | 250,399 | 419,550 |
Other assets | 10,700 | 14,025 |
Total assets | 894,807 | 1,017,968 |
Current liabilities: | ||
Accounts payable and accrued expenses | 100,467 | 90,892 |
Loss and loss adjustment expenses | 14,609 | 14,652 |
Unearned premiums | 11,667 | 13,277 |
Current portion of lease obligations | 16,898 | 17,365 |
Current portion of notes payable | 0 | 152,261 |
Total current liabilities | 143,641 | 288,447 |
Lease obligations | 104,479 | 111,645 |
Deferred taxes | 46,533 | 41,346 |
Asset retirement obligations | 10,389 | 10,022 |
Other liabilities | 2,069 | 1,680 |
Total liabilities | 307,111 | 453,140 |
Shareholders’ equity | ||
Common stock | 1,138 | 1,138 |
Additional paid-in capital | 381,788 | 381,788 |
Retained earnings | 608,528 | 573,050 |
Accumulated other comprehensive loss | (1,907) | (1,531) |
Treasury stock, at cost | (401,851) | (389,617) |
Biglari Holdings Inc. shareholders’ equity | 587,696 | 564,828 |
Total liabilities and shareholders’ equity | $ 894,807 | $ 1,017,968 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | ||
Revenues | ||||
Total revenues | $ 366,106 | $ 433,683 | $ 668,838 | |
Cost and expenses | ||||
Restaurant cost of sales | 167,491 | 246,655 | 500,949 | |
Insurance losses and underwriting expenses | 43,094 | 39,221 | 22,269 | |
Oil and gas production costs | 10,470 | 8,700 | 7,259 | |
Licensing and media costs | 2,275 | 2,156 | 3,181 | |
Selling, general and administrative | 76,018 | 76,360 | 100,150 | |
Impairments | 4,635 | 23,646 | 8,186 | |
Depreciation, depletion, and amortization | 30,050 | 32,222 | 29,578 | |
Interest expense on leases | 6,039 | 6,274 | 7,816 | |
Interest expense on note payable | 1,121 | 9,262 | 12,442 | |
Total cost and expenses | 341,193 | 444,496 | 691,830 | |
Other income (expenses) | ||||
Investment gains | 6,401 | 3,644 | 0 | |
Investment partnership gains (losses) | 10,953 | (43,032) | 78,133 | |
Total other income (expenses) | 17,354 | (39,388) | 78,133 | |
Earnings (loss) before income taxes | 42,267 | (50,201) | 55,141 | |
Income tax expense (benefit) | 6,789 | (12,212) | 9,761 | |
Net earnings (loss) | $ 35,478 | $ (37,989) | $ 45,380 | |
Net earnings (loss) per equivalent Class share, diluted (in dollars per share) | $ / shares | $ 111.83 | $ (110.05) | $ 131.64 | |
Restaurant Operations | ||||
Revenues | ||||
Total revenues | $ 271,290 | $ 350,666 | $ 610,220 | |
Insurance Operations | ||||
Revenues | ||||
Total revenues | 58,609 | 52,679 | 30,083 | |
Oil and Gas | ||||
Revenues | ||||
Total revenues | 33,004 | 26,255 | 24,436 | |
Media And Licensing | ||||
Revenues | ||||
Total revenues | $ 3,203 | $ 4,083 | $ 4,099 | |
Common Class A | ||||
Other income (expenses) | ||||
Net earnings (loss) per equivalent Class share, basic (in dollars per share) | $ / shares | [1] | $ 111.83 | $ (110.05) | $ 131.64 |
Common Class B | ||||
Other income (expenses) | ||||
Net earnings (loss) per equivalent Class share, basic (in dollars per share) | $ / shares | 22.37 | (22.01) | 26.33 | |
Net earnings (loss) per equivalent Class share, diluted (in dollars per share) | $ / shares | $ 22.37 | $ (22.01) | $ 26.33 | |
Earnings (loss) per share, equivalent ratio | 0.2 | |||
[1] | * Net earnings per equivalent Class B share outstanding are one-fifth of the equivalent Class A share or $22.37 for 2021, $(22.01) for 2020 and $26.33 for 2019. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 35,478 | $ (37,989) | $ 45,380 |
Other comprehensive income: | |||
Foreign currency translation | (376) | 1,279 | (294) |
Other comprehensive income (loss), net | (376) | 1,279 | (294) |
Total comprehensive income (loss) | $ 35,102 | $ (36,710) | $ 45,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net earnings (loss) | $ 35,478 | $ (37,989) | $ 45,380 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 30,050 | 32,222 | 29,578 |
Provision for deferred income taxes | 5,269 | (12,216) | (38,545) |
Asset impairments and other non-cash expenses | 4,772 | 24,636 | 9,113 |
(Gains) losses on disposal of assets | (25) | (868) | 264 |
Investment (gains) losses | (6,214) | (4,856) | (1,172) |
Investment partnership (gains) losses | (10,953) | 43,032 | (78,133) |
Distributions from investment partnerships | 180,170 | 98,330 | 129,329 |
Changes in receivables and inventories | (9,324) | 7,014 | 3,669 |
Changes in other assets | 136 | 733 | 10,450 |
Changes in accounts payable and accrued expenses | (592) | (32,482) | (16,250) |
Net cash provided by operating activities | 228,767 | 117,556 | 93,683 |
Investing activities | |||
Capital expenditures | (64,549) | (20,702) | (17,679) |
Proceeds from property and equipment disposals | 10,101 | 4,415 | 4,577 |
Acquisition of business, net of cash acquired | 0 | (36,187) | (51,062) |
Distributions from investment partnerships | 0 | 0 | 40,000 |
Purchases of limited partner interests | (12,300) | (70,130) | (40,000) |
Purchases of investments | (110,199) | (299,950) | (154,848) |
Redemptions of fixed maturity securities | 118,422 | 293,067 | 149,030 |
Net cash used in investing activities | (58,525) | (129,487) | (69,982) |
Financing activities | |||
Payments on revolving credit facility | 0 | (500) | 0 |
Proceeds from revolving credit facility | 0 | 500 | 0 |
Principal payments on long-term debt | (149,952) | (23,279) | (2,200) |
Principal payments on direct financing lease obligations | (6,205) | (5,830) | (5,810) |
Net cash used in financing activities | (156,157) | (29,109) | (8,010) |
Effect of exchange rate changes on cash | (64) | 10 | (5) |
Increase (decrease) in cash, cash equivalents and restricted cash | 14,021 | (41,030) | 15,686 |
Cash, cash equivalents and restricted cash at beginning of period | 29,666 | 70,696 | 55,010 |
Cash, cash equivalents and restricted cash at end of period | 43,687 | 29,666 | 70,696 |
Cash and cash equivalents | 42,349 | 24,503 | 67,772 |
Restricted cash included in other long-term assets | 1,338 | 5,163 | 2,924 |
Cash, cash equivalents and restricted cash at end of period | $ 43,687 | $ 29,666 | $ 70,696 |
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 |
Beginning balance at Dec. 31, 2018 | $ 570,455 | $ 1,499 | $ 1,138 | $ 381,904 | $ 564,160 | $ 1,499 | $ (2,516) | $ (374,231) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | 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] | ||||||||
Net earnings (loss) | (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] | ||||||||
Net earnings (loss) | 35,478 | 35,478 | ||||||
Other comprehensive income, net | (376) | (376) | ||||||
Adjustment to treasury stock for holdings in investment partnerships | (12,234) | (12,234) | ||||||
Ending balance at Dec. 31, 2021 | $ 587,696 | $ 1,138 | $ 381,788 | $ 608,528 | $ (1,907) | $ (401,851) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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, licensing and media, 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. Biglari Holdings’ management system combines decentralized operations with centralized finance decision-making. Operating decisions for the various business units are made by their respective managers. All major investment and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. As of December 31, 2021, Mr. Biglari beneficially owns shares of the Company that represent approximately 66.2% of the economic interest and approximately 70.4% 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. COVID-19 and its variants have adversely affected nearly all of our operations, although the effects vary 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 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 and commercial property coverage, as well as homeowners and dwelling fire insurance coverage. The financial results for Southern Pioneer are included from the date of acquisition. Pro-forma financial information of Southern Pioneer 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. 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, 2021 and 2020, 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 that 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 $505 and $6,859 at December 31, 2021 and 2020, 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 are also 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 2021. 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 using either a qualitative or quantitative approach, 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 2021, no impairments were recorded to goodwill and other intangible assets. During 2020, we recorded an impairment to goodwill of $300 and to indefinite life intangible assets of $3,728. No impairment was recorded in 2019. 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, 2021 December 31, 2020 December 31, 2019 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 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. In the tabulation below is the equivalent Class A common stock for earnings per share. There are no dilutive securities outstanding. 2021 2020 2019 Equivalent Class A common stock outstanding 620,592 620,592 620,592 Proportional ownership of Company stock held by investment partnerships 303,341 275,400 275,856 Equivalent Class A common stock for earnings per share 317,251 345,192 344,736 Revenue Recognition Restaurant operations Restaurant operations revenues were disaggregated as follows. 2021 2020 2019 Net sales $ 187,913 $ 306,577 $ 578,164 Franchise partner fees 55,641 22,213 3,829 Franchise royalties and fees 21,736 18,794 23,360 Other 6,000 3,082 4,867 $ 271,290 $ 350,666 $ 610,220 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 years ended 2021, 2020 and 2019, restaurant operations recognized $15,483, $5,675, and $1,084, respectively, in franchise partner fees related to rental income. 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, 2021, 2020 and 2019 restaurant operations recognized $2,033, $1,879 and $1,725, respectively, in revenue related to initial franchise fees. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to franchise fees of $5,199 and $6,928, respectively. Restaurant operations expect to recognize approximately $972 of deferred revenue during 2022. Our advertising arrangements with franchisees are reported in franchise royalties and fees. During the years ended December 31, 2021, 2020 and 2019 restaurant operations recognized $6,829, $5,193 and $7,815, respectively, in revenue related to franchisee advertising fees. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to franchisee advertising fees of $4,151 and $4,391, respectively. Restaurant operations expect to recognize approximately $3,113 of deferred revenue during 2022. 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. For the years ended December 31, 2021, 2020 and 2019 restaurant operations recognized $5,903, $9,201 and $22,869 respectively, of revenue from gift card redemptions. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to unredeemed gift cards of $15,059 and $17,431, respectively. Restaurant operations expect to recognize approximately $8,202 of deferred revenue during 2022. 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. Licensing Revenue and Other Licensing 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. 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 revenue. Restaurant Cost of Sales Cost of sales includes the cost of food, restaurant operating costs, and restaurant occupancy costs. 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 $14,609 and $14,652 are included in accrued expenses in the consolidated balance sheet as of December 31, 2021 and 2020, 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. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments Investments were $83,061 and $94,861 as of December 31, 2021 and 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 result. However, we consider investment gains and losses, whether realized or unrealized, as non-operating. Investment gains in 2021 were $6,401, 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 in 2020 were $3,644. There were no investment gains in 2019. The carrying value of investments net of deferred taxes is presented below. December 31, 2021 2020 Carrying value of investments $ 83,061 $ 94,861 Deferred tax liability related to investments (845) (665) Carrying value of investments net of deferred taxes $ 82,216 $ 94,196 |
Investment Partnerships
Investment Partnerships | 12 Months Ended |
Dec. 31, 2021 | |
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 these shares 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 the carrying value of our partnership interest are presented below. Fair Value Company Common Stock Carrying 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 Investment partnership gains (losses) 51,145 40,192 10,953 Distributions (net of contributions) (167,870) (167,870) Increase in proportionate share of Company stock held 12,234 (12,234) Partnership interest at December 31, 2021 $ 474,201 $ 223,802 $ 250,399 The carrying value of the investment partnerships net of deferred taxes is presented below. December 31, 2021 2020 Carrying value of investment partnerships $ 250,399 $ 419,550 Deferred tax liability related to investment partnerships (44,532) (44,805) Carrying value of investment partnerships net of deferred taxes $ 205,867 $ 374,745 The Company’s proportionate share of Company stock held by investment partnerships at cost was $401,851 and $389,617 at December 31, 2021 and 2020, respectively, and was 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 interest 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. 2021 2020 2019 Gains (losses) from investment partnerships $ 10,953 $ (43,032) $ 78,133 Tax expense (benefit) 2,054 (10,526) 17,360 Contribution to net earnings $ 8,899 $ (32,506) $ 60,773 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. There were no incentive reallocations from Biglari Holdings to Biglari Capital during 2021. 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. There were no incentive reallocations from Biglari Holdings to Biglari Capital during 2019. Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below. Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of December 31, 2021 $ 114,749 $ 564,022 Total liabilities as of December 31, 2021 $ 7,763 $ 130,417 Revenue for the year ended December 31, 2021 $ 20,068 $ 41,486 Earnings for the year ended December 31, 2021 $ 19,994 $ 40,621 Biglari Holdings’ ownership interest 62.7 % 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 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 % Revenue in the financial information of the investment partnerships, summarized above, includes investment income and unrealized gains and losses on investments. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Current Assets | Other Current Assets Other current assets include the following. December 31, 2021 2020 Deferred commissions on gift cards sold by third parties $ 3,221 $ 3,491 Prepaid contractual obligations 3,867 3,001 Other current assets $ 7,088 $ 6,492 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is composed of the following. December 31, 2021 2020 Land $ 144,605 $ 142,601 Buildings 148,605 138,734 Land and leasehold improvements 147,349 141,351 Equipment 224,581 192,735 Oil and gas properties 74,147 75,900 Construction in progress 2,815 1,032 742,102 692,353 Less accumulated depreciation, depletion, and amortization (392,751) (376,231) Property and equipment, net $ 349,351 $ 316,122 Depreciation and amortization expense for property and equipment for 2021, 2020 and 2019 was $22,012, $19,586 and $18,881, respectively. Depletion expense related to oil and gas properties was $7,600, $11,989 and $8,077 during 2021, 2020 and 2019, respectively. Accretion expense of the Company’s asset retirement obligations was $438, $497 and $177 during 2021, 2020 and 2019, respectively. Depletion and accretion expense are included in depreciation and amortization within the consolidated statement of earnings. The Company recorded impairments to restaurant long-lived assets of $4,635, $19,618 and $8,186 during 2021, 2020 and 2019, 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, 2021 is as follows: $44,849 of buildings, $45,548 of land, $26,345 of land and leasehold improvements, and $53,965 of accumulated depreciation. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Beginning balance $ 10,258 $ 10,631 Liabilities settled (72) (870) Accretion expense 438 497 Asset retirement obligation $ 10,624 $ 10,258 As of December 31, 2021 and 2020, $235 and $236, 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, 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. 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, 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 Change in foreign exchange rates during 2021 (49) — (49) Goodwill at December 31, 2021 $ 27,834 $ 25,713 $ 53,547 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. GAAP allows entities testing for impairment the option of performing a qualitative assessment before calculating the fair value of a reporting unit for the goodwill impairment test. We used both qualitative and quantitative assessments in 2021. The valuation methodology and underlying financial information included in our quantitative determination of fair value require significant management judgments. We use both market and income approaches to derive fair value of reporting units utilizing a quantitative assessment. The judgments in these two approaches include, but are not limited to, comparable market multiples, long-term projections of future financial performance, and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results. No impairment was recorded for our reporting units in 2021. The fair value of certain of Steak n Shake’s reporting units declined in 2020, and an impairment to goodwill of $300 was recorded. No impairment was recorded in 2019. 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, 2019 $ 15,876 $ 11,323 $ 27,199 Impairments — (3,728) (3,728) Change in foreign exchange rates during 2020 — 594 594 Balance at December 31, 2020 15,876 8,189 24,065 Change in foreign exchange rates during 2021 — (602) (602) Balance at December 31, 2021 $ 15,876 $ 7,587 $ 23,463 Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights. No impairment was recorded in 2021. During 2020, the Company recorded impairment charges of $3,728 on lease rights related to our international restaurant operations because of the adverse effects of the COVID-19 pandemic. The impairment and fair value were determined using Level 3 inputs and available market data. No amortization expense was recorded in 2021. Amortization expense in 2020 and 2019 was $150 and $549, respectively. The Company’s intangible assets with definite lives fully amortized in 2020. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses include the following. December 31, 2021 2020 Accounts payable $ 36,684 $ 26,537 Gift card and other marketing 19,244 21,822 Insurance accruals 6,428 6,559 Salaries, wages, and vacation 5,905 8,285 Deferred revenue 6,683 9,324 Taxes payable 11,392 10,922 Professional fees 11,731 5,882 Other 2,400 1,561 Accounts payable and accrued expenses $ 100,467 $ 90,892 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following. December 31, 2021 2020 Non qualified deferred compensation $ 1,607 $ 1,368 Other 462 312 Other liabilities $ 2,069 $ 1,680 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes consist of the following. 2021 2020 2019 Current: Federal $ 1,053 $ (472) $ 41,005 State 467 476 7,301 Deferred 5,269 (12,216) (38,545) Income tax expense (benefit) $ 6,789 $ (12,212) $ 9,761 Reconciliation of effective income tax: Tax at U.S. statutory rates $ 8,875 $ (10,542) $ 11,579 State income taxes, net of federal benefit 192 (1,750) 1,573 Federal income tax credits (864) (424) (3,004) Dividends received deduction (468) (233) (955) Valuation allowance (723) 733 441 Foreign tax rate differences (78) 240 116 Other (145) (236) 11 Income tax expense (benefit) $ 6,789 $ (12,212) $ 9,761 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 2021, 2020 and 2019 were $43,886, $(40,989) and $57,877, respectively. Losses before income taxes derived from international operations during 2021, 2020 and 2019 were $1,619, $9,212, and $2,736, respectively. As of December 31, 2021, we had $83 of unrecognized tax benefits, including $4 of interest and penalties, which are included in other long-term liabilities in the consolidated balance sheet. 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. Our continuing practice is to recognize interest expense and penalties related to income tax matters in income tax expense. The unrecognized tax benefits of $83 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 2021, 2020 and 2019 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 2018. We believe we have certain state income tax exposures related to fiscal years 2017 through 2021. 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 $15 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, 2021 2020 Deferred tax assets: Insurance reserves $ 1,464 $ 1,621 Compensation accruals 647 1,439 Gift card accruals 2,350 2,387 Net operating loss credit carryforward 11,018 7,121 Valuation allowance on net operating losses (5,429) (6,152) Fixed assets and depletable assets basis difference 588 8,234 Income tax credit carryforward 813 2,178 Other 2,954 2,516 Total deferred tax assets 14,405 19,344 Deferred tax liabilities: Investment partnerships 44,532 44,805 Investments 845 665 Goodwill and intangibles 15,561 15,220 Total deferred tax liabilities 60,938 60,690 Net deferred tax liability $ (46,533) $ (41,346) Receivables on the balance sheet include income taxes receivable of $344 as of December 31, 2021 and accrued expenses on the balance sheet include income taxes payable $2,436 as of December 31, 2020. Income taxes paid during 2021, 2020 and 2019 were $4,532, $15,402 and $30,375, respectively. Income tax refunds during 2021, 2020 and 2019 were $111, $68 and $1,546, respectively. |
Notes Payable and Lease Obligat
Notes Payable and Lease Obligation | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Lease Obligation | 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. Western Sizzlin Revolver As of December 31, 2021 and 2020, Western Sizzlin had no debt outstanding under its revolver. Lease Obligations Lease obligations include the following. December 31, 2021 2020 Current portion of lease obligations Finance lease liabilities $ 1,414 $ 1,897 Finance obligations 4,944 4,854 Operating lease liabilities 10,540 10,614 Total current portion of lease obligations $ 16,898 $ 17,365 Long-term lease obligations Finance lease liabilities $ 5,347 $ 7,034 Finance obligations 63,119 68,148 Operating lease liabilities 36,013 36,463 Total long-term lease obligations $ 104,479 $ 111,645 Interest Interest paid on debt and obligations under leases are as follows. 2021 2020 2019 Interest paid on debt $ 994 $ 9,397 $ 11,273 Interest paid on obligations under leases $ 6,039 $ 6,274 $ 7,816 |
Leased Assets and Lease Commitm
Leased Assets and Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leased Assets and Lease Commitments | Leased Assets and Lease Commitments Nature of Leases Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us and leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees. Lease Costs Total lease costs consist of the following. 2021 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 1,576 $ 1,404 $ 1,952 Interest on lease liabilities 521 582 828 Operating lease costs * 1,119 9,995 16,483 Total lease costs $ 3,216 $ 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, 2021 Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,629 $ 1,512 Operating cash flows from finance leases $ 506 $ 632 Operating cash flows from operating leases $ 13,195 $ 13,627 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ — $ 73 Supplemental balance sheet information related to leases is as follows. December 31, 2021 December 31, 2020 Finance leases: Property and equipment, net $ 5,634 $ 6,501 Current portion of notes payable and other borrowings $ 1,414 $ 1,897 Long-term notes payable and other borrowings 5,347 7,034 Total finance lease liabilities $ 6,761 $ 8,931 Weighted-average lease terms and discount rates are as follows. 2021 Weighted-average remaining lease terms: Finance leases 5.06 years Operating leases 5.14 years Weighted-average discount rates: Finance leases 7.0% Operating leases 6.9% Maturities of lease liabilities as of December 31, 2021 are as follows. Year Operating Leases Finance 2022 $ 13,282 $ 1,834 2023 11,230 1,551 2024 9,402 1,534 2025 7,817 1,298 2026 5,166 959 After 2026 8,631 855 Total lease payments 55,528 8,031 Less interest 8,975 1,270 Total lease liabilities $ 46,553 $ 6,761 Rent expense is presented below. 2021 2020 2019 Minimum rent $ 14,926 $ 15,672 $ 17,968 Contingent rent 137 137 1,050 Rent expense $ 15,063 $ 15,809 $ 19,018 Lease Income The components of lease income are as follows. 2021 2020 2019 Operating lease income $ 13,173 $ 5,027 $ 1,376 Variable lease income 3,479 1,738 347 Total lease income $ 16,652 $ 6,765 $ 1,723 The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of December 31, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2022 $ 609 $ 247 2023 421 247 2024 338 247 2025 338 250 2026 19 247 After 2026 — 805 Total future minimum receipts $ 1,725 $ 2,043 |
Leased Assets and Lease Commitments | Leased Assets and Lease Commitments Nature of Leases Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us and leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees. Lease Costs Total lease costs consist of the following. 2021 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 1,576 $ 1,404 $ 1,952 Interest on lease liabilities 521 582 828 Operating lease costs * 1,119 9,995 16,483 Total lease costs $ 3,216 $ 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, 2021 Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,629 $ 1,512 Operating cash flows from finance leases $ 506 $ 632 Operating cash flows from operating leases $ 13,195 $ 13,627 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ — $ 73 Supplemental balance sheet information related to leases is as follows. December 31, 2021 December 31, 2020 Finance leases: Property and equipment, net $ 5,634 $ 6,501 Current portion of notes payable and other borrowings $ 1,414 $ 1,897 Long-term notes payable and other borrowings 5,347 7,034 Total finance lease liabilities $ 6,761 $ 8,931 Weighted-average lease terms and discount rates are as follows. 2021 Weighted-average remaining lease terms: Finance leases 5.06 years Operating leases 5.14 years Weighted-average discount rates: Finance leases 7.0% Operating leases 6.9% Maturities of lease liabilities as of December 31, 2021 are as follows. Year Operating Leases Finance 2022 $ 13,282 $ 1,834 2023 11,230 1,551 2024 9,402 1,534 2025 7,817 1,298 2026 5,166 959 After 2026 8,631 855 Total lease payments 55,528 8,031 Less interest 8,975 1,270 Total lease liabilities $ 46,553 $ 6,761 Rent expense is presented below. 2021 2020 2019 Minimum rent $ 14,926 $ 15,672 $ 17,968 Contingent rent 137 137 1,050 Rent expense $ 15,063 $ 15,809 $ 19,018 Lease Income The components of lease income are as follows. 2021 2020 2019 Operating lease income $ 13,173 $ 5,027 $ 1,376 Variable lease income 3,479 1,738 347 Total lease income $ 16,652 $ 6,765 $ 1,723 The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of December 31, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2022 $ 609 $ 247 2023 421 247 2024 338 247 2025 338 250 2026 19 247 After 2026 — 805 Total future minimum receipts $ 1,725 $ 2,043 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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-year term, effective on October 1, 2017. The fixed fee is $700 per month for the first year with adjustments in years two through five. The monthly fee remained at $700 during 2021. The Company paid Biglari Enterprises $8,400 in service fees during 2021 and 2020. The services agreement does not alter the Company’s hurdle rate connected with the incentive reallocation paid to Biglari Capital Corp. Investments in The Lion Fund, L.P. and The Lion Fund II, L.P. As of December 31, 2021, the Company’s investments in The Lion Fund, L.P. and The Lion Fund II, L.P. had a fair value of $474,201. Contributions to and distributions from The Lion Fund, L.P. and The Lion Fund II, L.P. were as follows. 2021 2020 2019 Contributions of cash $ 12,300 $ 70,130 $ 40,000 Distributions of cash (180,170) (98,330) (169,329) $ (167,870) $ (28,200) $ (129,329) 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 no incentive reallocations in 2021. 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. 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 2021, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended |
Dec. 31, 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 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, 2021 and 2020 the fair values of financial assets were as follows. December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 18,447 $ — $ — $ 18,447 $ 23,885 $ — $ — $ 23,885 Equity securities: Consumer goods 10,775 2,368 — 13,143 7,274 5,652 — 12,926 Insurance 6,513 — — 6,513 261 — — 261 Technology 2,887 — — 2,887 — — — — Bonds: Government 54,584 — — 54,584 39,472 14,043 — 53,515 Corporate 4,512 — — 4,512 — 5,406 — 5,406 Options on equity securities — 2,095 — 2,095 — 2,911 — 2,911 Non-qualified deferred compensation plan investments 1,607 — — 1,607 1,368 — — 1,368 Total assets at fair value $ 99,325 $ 4,463 $ — $ 103,788 $ 72,260 $ 28,012 $ — $ 100,272 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, 2021 | |
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. 2021 2020 2019 Beginning Balance $ (1,531) $ (2,810) $ (2,516) Foreign currency translation (376) 1,279 (294) Ending Balance $ (1,907) $ (1,531) $ (2,810) There were no reclassifications from accumulated other comprehensive income to earnings during 2021, 2020 or 2019. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting Our reportable business segments are organized in a manner that reflects how management views those business activities. Our restaurant operations include Steak n Shake and Western Sizzlin. Our insurance operations include First Guard and Southern Pioneer. The Company also reports segment information for Maxim and Southern Oil. Other business activities not specifically identified with reportable business segments are presented in corporate. We report our earnings from investment partnerships separate from our corporate expenses. We assess and measure segment operating results based on segment earnings as disclosed below. Segment earnings from operations are neither necessarily indicative of cash available to fund cash requirements, nor synonymous with cash flow from operations. The tabular information that follows shows data of our reportable segments reconciled to amounts reflected in the consolidated financial statements. A disaggregation of our consolidated data for each of the three most recent years is presented in the tables which follow. Revenue 2021 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 263,135 $ 344,305 $ 595,004 Western 8,155 6,361 15,216 Total Restaurant Operations 271,290 350,666 610,220 Insurance Operations: Underwriting: First Guard 33,521 30,210 28,746 Southern Pioneer 21,890 19,010 — Investment income and other 3,198 3,459 1,337 Total Insurance Operations 58,609 52,679 30,083 Southern Oil 33,004 26,255 24,436 Maxim 3,203 4,083 4,099 $ 366,106 $ 433,683 $ 668,838 Earnings (Loss) Before Income Taxes 2021 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 13,524 $ (4,587) $ (18,575) Western 931 (765) 1,756 Total Restaurant Operations 14,455 (5,352) (16,819) Insurance Operations: Underwriting: First Guard 10,573 9,379 6,477 Southern Pioneer 1,744 620 — Investment income and other 2,118 2,432 626 Total Insurance Operations 14,435 12,431 7,103 Southern Oil 9,713 2,018 8,032 Maxim 814 1,784 742 Interest expense not allocated to segments (1,121) (9,262) (12,442) Operating Businesses 38,296 1,619 (13,384) Corporate and other (13,383) (12,432) (9,608) Investment gains 6,401 3,644 — Investment partnership gains (losses) 10,953 (43,032) 78,133 $ 42,267 $ (50,201) $ 55,141 Capital Expenditures 2021 2020 2019 Operating Businesses: Restaurant $ 60,296 $ 17,858 $ 10,023 Insurance 1,451 5 43 Southern Oil 996 2,806 7,594 Maxim — — — Operating Businesses 62,743 20,669 17,660 Corporate and other 1,806 33 19 Consolidated results $ 64,549 $ 20,702 $ 17,679 Depreciation, Depletion, and Amortization 2021 2020 2019 Operating Businesses: Restaurant $ 21,484 $ 19,042 $ 21,174 Insurance 176 414 85 Southern Oil 8,073 12,527 8,218 Maxim — — — Operating Businesses 29,733 31,983 29,477 Corporate and other 317 239 101 Consolidated results $ 30,050 $ 32,222 $ 29,578 A disaggregation of our consolidated assets is presented in the table that follows. Identifiable Assets December 31, 2021 2020 Reportable segments: Restaurant Operations: Steak n Shake $ 377,676 $ 341,190 Western 17,239 16,512 Total Restaurant Operations 394,915 357,702 Insurance Operations: First Guard 74,615 64,764 Southern Pioneer 72,321 74,063 Total Insurance Operations 146,936 138,827 Southern Oil 53,359 61,017 Maxim 16,605 16,485 Corporate 32,593 24,387 Investment partnerships 250,399 419,550 Total assets $ 894,807 $ 1,017,968 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow InformationCapital expenditures in accounts payable at December 31, 2021, 2020 and 2019 were $8,733, $2,399 and $339, respectively. In 2021, we had new finance lease obligations of $733 and lease retirements of $1,216. In 2020, we had new finance lease obligations of $3,285 and lease retirements of $4,842. During 2019, we had new finance lease obligations of $5,026 and lease retirements of $940. |
Supplemental Oil and Gas Disclo
Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Extractive Industries [Abstract] | |
Supplemental Oil and Gas Disclosures (Unaudited) | The Company has determined it has significant oil and gas producing activities during the year ended December 31, 2021 in accordance with ASC 932 " Extractive Activities — Oil and Gas ". The Company did not have significant oil and gas producing activities within the meaning of ASC 932 during the years ended December 31, 2020 and 2019. Estimated Quantities of Proved Oil and Natural Gas Reserves The Company classifies recoverable hydrocarbons based on their status at the time of reporting. Within the commercial classification are proved reserves and two categories of unproved reserves: probable and possible. The potentially recoverable categories are also referred to as contingent resources. For reserve estimates to be classified as proved, they must meet all SEC and Company standards. Proved oil and gas reserves are the estimated quantities that geoscience and engineering data demonstrate with reasonable certainty to be economically producible from known reservoirs under existing economic conditions, operating methods, and government regulations. Net proved reserves exclude royalties and interests owned by others and reflect contractual arrangements and royalty obligations in effect at the time of the estimate. Proved reserves are classified as either developed or undeveloped. Proved developed reserves are the quantities expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves are the quantities expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required from recompletion. Due to the inherent uncertainties and the limited nature of reservoir data, estimates of reserves are subject to change as additional information becomes available. We engaged Netherland, Sewell & Associates, Inc. ("NSAI") to prepare our reserve estimates for all of our estimated proved reserves at December 31, 2021. All proved oil and natural gas reserves are located in the United States primarily offshore in the shallow waters of the Gulf of Mexico. The following table sets forth our estimate of the net proved oil and gas reserves for the year ended December 31, 2021. Oil (MBbl) Gas (MMcf) MBOE Total proved reserves at December 31, 2020 2,223 24,917 6,376 Revisions (1) 433 4,235 1,139 Extensions 62 189 94 Production (357) (2,798) (824) Total proved reserves at December 31, 2021 2,361 26,544 6,785 Total proved developed reserves as of December 31, 2021 1,897 18,427 4,968 Total proved undeveloped reserves as of December 31, 2021 464 8,117 1,817 (1) Revisions are primarily related to increasing commodity prices. Bbl — One stock tank barrel, of 42 United States gallons liquid volume. MBbl — Thousand barrels. MMcf — Million cubic feet of natural gas. MBOE — Thousand barrels of oil equivalent. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves The standardized measure of discounted future net cash flows presented in the following table was computed using the 12-month unweighted average of the first-day-of-the-month commodity prices, the costs in effect at December 31, 2021, and a 10 percent discount factor. The Company cautions that actual future net cash flows may vary considerably from these estimates. Although the Company’s estimates of total proved reserves, development costs and production rates were based on the best available information, the development and production of the crude oil and natural gas reserves may not occur in the periods assumed. Actual prices realized, costs incurred and production quantities may vary significantly from those used. Therefore, the estimated future net cash flow computations should not be considered to represent the Company’s estimate of the expected revenues or the current value of proved reserves. The following table sets forth the standardized measure of discounted future net cash flows attributable to proved crude oil and natural gas reserves as of December 31, 2021. (in thousands) December 31, 2021 Future cash inflows $ 247,294 Future production costs (78,207) Future development and abandonment costs (32,673) Future income tax expense (28,904) Future net cash flows 107,510 10% annual discount for estimated timing of cash flows (29,751) Standardized measure of discounted future net cash flows $ 77,759 Changes in Standardized Measure of Discounted Future Net Cash Flows Principle changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves are as follows. (in thousands) 2021 Standardized measure at December 31, 2020 $ 31,330 Net change in prices and production costs 67,058 Net change in future development costs (85) Sales of oil and natural gas, net of production expenses (22,098) Extensions 104 Revisions of previous quantity estimates 17,754 Net change in taxes (14,604) Accretion of discount 3,759 Changes in timing and other (5,459) Standardized measure at December 31, 2021 $ 77,759 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Business Acquisitions | 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 and commercial property coverage, as well as homeowners and dwelling fire insurance coverage. The financial results for Southern Pioneer are included from the date of acquisition. Pro-forma financial information of Southern Pioneer 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. |
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, 2021 and 2020, 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 that 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 $505 and $6,859 at December 31, 2021 and 2020, 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 are also 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 2021. |
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, |
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 using either a qualitative or quantitative approach, 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 2021, no impairments were recorded to goodwill and other intangible assets. During 2020, we recorded an impairment to goodwill of $300 and to indefinite life intangible assets of $3,728. No impairment was recorded in 2019. 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. |
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 Restaurant operations Restaurant operations revenues were disaggregated as follows. 2021 2020 2019 Net sales $ 187,913 $ 306,577 $ 578,164 Franchise partner fees 55,641 22,213 3,829 Franchise royalties and fees 21,736 18,794 23,360 Other 6,000 3,082 4,867 $ 271,290 $ 350,666 $ 610,220 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 years ended 2021, 2020 and 2019, restaurant operations recognized $15,483, $5,675, and $1,084, respectively, in franchise partner fees related to rental income. 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, 2021, 2020 and 2019 restaurant operations recognized $2,033, $1,879 and $1,725, respectively, in revenue related to initial franchise fees. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to franchise fees of $5,199 and $6,928, respectively. Restaurant operations expect to recognize approximately $972 of deferred revenue during 2022. Our advertising arrangements with franchisees are reported in franchise royalties and fees. During the years ended December 31, 2021, 2020 and 2019 restaurant operations recognized $6,829, $5,193 and $7,815, respectively, in revenue related to franchisee advertising fees. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to franchisee advertising fees of $4,151 and $4,391, respectively. Restaurant operations expect to recognize approximately $3,113 of deferred revenue during 2022. 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. For the years ended December 31, 2021, 2020 and 2019 restaurant operations recognized $5,903, $9,201 and $22,869 respectively, of revenue from gift card redemptions. As of December 31, 2021 and 2020, restaurant operations had deferred revenue recorded in accrued expenses related to unredeemed gift cards of $15,059 and $17,431, respectively. Restaurant operations expect to recognize approximately $8,202 of deferred revenue during 2022. 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. Licensing Revenue and Other Licensing 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. 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 revenue. |
Restaurant Cost of Sales | Restaurant Cost of Sales Cost of sales includes the cost of food, restaurant operating costs, and restaurant occupancy costs. 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 $14,609 and $14,652 are included in accrued expenses in the consolidated balance sheet as of December 31, 2021 and 2020, 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. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Common stock | The following table presents shares authorized, issued, and outstanding. December 31, 2021 December 31, 2020 December 31, 2019 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 |
Schedule of Weighted Average Number of Shares | he equivalent Class A common stock for earnings per share. There are no dilutive securities outstanding. 2021 2020 2019 Equivalent Class A common stock outstanding 620,592 620,592 620,592 Proportional ownership of Company stock held by investment partnerships 303,341 275,400 275,856 Equivalent Class A common stock for earnings per share 317,251 345,192 344,736 |
Summary of restaurant operations revenues | Restaurant operations revenues were disaggregated as follows. 2021 2020 2019 Net sales $ 187,913 $ 306,577 $ 578,164 Franchise partner fees 55,641 22,213 3,829 Franchise royalties and fees 21,736 18,794 23,360 Other 6,000 3,082 4,867 $ 271,290 $ 350,666 $ 610,220 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investment | The carrying value of investments net of deferred taxes is presented below. December 31, 2021 2020 Carrying value of investments $ 83,061 $ 94,861 Deferred tax liability related to investments (845) (665) Carrying value of investments net of deferred taxes $ 82,216 $ 94,196 |
Investment Partnerships (Tables
Investment Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 the carrying value of our partnership interest are presented below. Fair Value Company Common Stock Carrying 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 Investment partnership gains (losses) 51,145 40,192 10,953 Distributions (net of contributions) (167,870) (167,870) Increase in proportionate share of Company stock held 12,234 (12,234) Partnership interest at December 31, 2021 $ 474,201 $ 223,802 $ 250,399 |
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, 2021 2020 Carrying value of investment partnerships $ 250,399 $ 419,550 Deferred tax liability related to investment partnerships (44,532) (44,805) Carrying value of investment partnerships net of deferred taxes $ 205,867 $ 374,745 |
Gains from investment partnerships | Gains/losses from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below. 2021 2020 2019 Gains (losses) from investment partnerships $ 10,953 $ (43,032) $ 78,133 Tax expense (benefit) 2,054 (10,526) 17,360 Contribution to net earnings $ 8,899 $ (32,506) $ 60,773 |
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, 2021 $ 114,749 $ 564,022 Total liabilities as of December 31, 2021 $ 7,763 $ 130,417 Revenue for the year ended December 31, 2021 $ 20,068 $ 41,486 Earnings for the year ended December 31, 2021 $ 19,994 $ 40,621 Biglari Holdings’ ownership interest 62.7 % 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 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 % |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other current assets include the following. December 31, 2021 2020 Deferred commissions on gift cards sold by third parties $ 3,221 $ 3,491 Prepaid contractual obligations 3,867 3,001 Other current assets $ 7,088 $ 6,492 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment is composed of the following. December 31, 2021 2020 Land $ 144,605 $ 142,601 Buildings 148,605 138,734 Land and leasehold improvements 147,349 141,351 Equipment 224,581 192,735 Oil and gas properties 74,147 75,900 Construction in progress 2,815 1,032 742,102 692,353 Less accumulated depreciation, depletion, and amortization (392,751) (376,231) Property and equipment, net $ 349,351 $ 316,122 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Beginning balance $ 10,258 $ 10,631 Liabilities settled (72) (870) Accretion expense 438 497 Asset retirement obligation $ 10,624 $ 10,258 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 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 Change in foreign exchange rates during 2021 (49) — (49) Goodwill at December 31, 2021 $ 27,834 $ 25,713 $ 53,547 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets with indefinite lives are composed of the following. Trade Names Lease Rights Total Balance at December 31, 2019 $ 15,876 $ 11,323 $ 27,199 Impairments — (3,728) (3,728) Change in foreign exchange rates during 2020 — 594 594 Balance at December 31, 2020 15,876 8,189 24,065 Change in foreign exchange rates during 2021 — (602) (602) Balance at December 31, 2021 $ 15,876 $ 7,587 $ 23,463 |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accounts payable and accrued expenses include the following. December 31, 2021 2020 Accounts payable $ 36,684 $ 26,537 Gift card and other marketing 19,244 21,822 Insurance accruals 6,428 6,559 Salaries, wages, and vacation 5,905 8,285 Deferred revenue 6,683 9,324 Taxes payable 11,392 10,922 Professional fees 11,731 5,882 Other 2,400 1,561 Accounts payable and accrued expenses $ 100,467 $ 90,892 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Assets and Other Liabilities | Other liabilities include the following. December 31, 2021 2020 Non qualified deferred compensation $ 1,607 $ 1,368 Other 462 312 Other liabilities $ 2,069 $ 1,680 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes consist of the following. 2021 2020 2019 Current: Federal $ 1,053 $ (472) $ 41,005 State 467 476 7,301 Deferred 5,269 (12,216) (38,545) Income tax expense (benefit) $ 6,789 $ (12,212) $ 9,761 Reconciliation of effective income tax: Tax at U.S. statutory rates $ 8,875 $ (10,542) $ 11,579 State income taxes, net of federal benefit 192 (1,750) 1,573 Federal income tax credits (864) (424) (3,004) Dividends received deduction (468) (233) (955) Valuation allowance (723) 733 441 Foreign tax rate differences (78) 240 116 Other (145) (236) 11 Income tax expense (benefit) $ 6,789 $ (12,212) $ 9,761 |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities consist of the following. December 31, 2021 2020 Deferred tax assets: Insurance reserves $ 1,464 $ 1,621 Compensation accruals 647 1,439 Gift card accruals 2,350 2,387 Net operating loss credit carryforward 11,018 7,121 Valuation allowance on net operating losses (5,429) (6,152) Fixed assets and depletable assets basis difference 588 8,234 Income tax credit carryforward 813 2,178 Other 2,954 2,516 Total deferred tax assets 14,405 19,344 Deferred tax liabilities: Investment partnerships 44,532 44,805 Investments 845 665 Goodwill and intangibles 15,561 15,220 Total deferred tax liabilities 60,938 60,690 Net deferred tax liability $ (46,533) $ (41,346) |
Notes Payable and Lease Oblig_2
Notes Payable and Lease Obligation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Lease obligations include the following. December 31, 2021 2020 Current portion of lease obligations Finance lease liabilities $ 1,414 $ 1,897 Finance obligations 4,944 4,854 Operating lease liabilities 10,540 10,614 Total current portion of lease obligations $ 16,898 $ 17,365 Long-term lease obligations Finance lease liabilities $ 5,347 $ 7,034 Finance obligations 63,119 68,148 Operating lease liabilities 36,013 36,463 Total long-term lease obligations $ 104,479 $ 111,645 |
Interest on debt obligations | Interest paid on debt and obligations under leases are as follows. 2021 2020 2019 Interest paid on debt $ 994 $ 9,397 $ 11,273 Interest paid on obligations under leases $ 6,039 $ 6,274 $ 7,816 |
Leased Assets and Lease Commi_2
Leased Assets and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease Cost | Total lease costs consist of the following. 2021 2020 2019 Finance lease costs: Amortization of right-of-use assets $ 1,576 $ 1,404 $ 1,952 Interest on lease liabilities 521 582 828 Operating lease costs * 1,119 9,995 16,483 Total lease costs $ 3,216 $ 11,981 $ 19,263 *Includes short-term leases, variable lease costs and sublease income. Rent expense is presented below. 2021 2020 2019 Minimum rent $ 14,926 $ 15,672 $ 17,968 Contingent rent 137 137 1,050 Rent expense $ 15,063 $ 15,809 $ 19,018 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases is as follows. Year Ended December 31, 2021 Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 1,629 $ 1,512 Operating cash flows from finance leases $ 506 $ 632 Operating cash flows from operating leases $ 13,195 $ 13,627 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. December 31, 2021 December 31, 2020 Finance leases: Property and equipment, net $ 5,634 $ 6,501 Current portion of notes payable and other borrowings $ 1,414 $ 1,897 Long-term notes payable and other borrowings 5,347 7,034 Total finance lease liabilities $ 6,761 $ 8,931 |
Schedule of weighted-average lease terms and discount rates | Weighted-average lease terms and discount rates are as follows. 2021 Weighted-average remaining lease terms: Finance leases 5.06 years Operating leases 5.14 years Weighted-average discount rates: Finance leases 7.0% Operating leases 6.9% |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2021 are as follows. Year Operating Leases Finance 2022 $ 13,282 $ 1,834 2023 11,230 1,551 2024 9,402 1,534 2025 7,817 1,298 2026 5,166 959 After 2026 8,631 855 Total lease payments 55,528 8,031 Less interest 8,975 1,270 Total lease liabilities $ 46,553 $ 6,761 |
Finance Lease, Liability, Fiscal Year Maturity | Maturities of lease liabilities as of December 31, 2021 are as follows. Year Operating Leases Finance 2022 $ 13,282 $ 1,834 2023 11,230 1,551 2024 9,402 1,534 2025 7,817 1,298 2026 5,166 959 After 2026 8,631 855 Total lease payments 55,528 8,031 Less interest 8,975 1,270 Total lease liabilities $ 46,553 $ 6,761 |
Operating Lease, Lease Income | The components of lease income are as follows. 2021 2020 2019 Operating lease income $ 13,173 $ 5,027 $ 1,376 Variable lease income 3,479 1,738 347 Total lease income $ 16,652 $ 6,765 $ 1,723 |
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 December 31, 2021. Franchise partner leases and subleases are short-term leases and have been excluded from the table. Operating Leases Year Subleases Owned Properties 2022 $ 609 $ 247 2023 421 247 2024 338 247 2025 338 250 2026 19 247 After 2026 — 805 Total future minimum receipts $ 1,725 $ 2,043 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. 2021 2020 2019 Contributions of cash $ 12,300 $ 70,130 $ 40,000 Distributions of cash (180,170) (98,330) (169,329) $ (167,870) $ (28,200) $ (129,329) |
Fair Value of Financial Assets
Fair Value of Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2021 and 2020 the fair values of financial assets were as follows. December 31, 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 18,447 $ — $ — $ 18,447 $ 23,885 $ — $ — $ 23,885 Equity securities: Consumer goods 10,775 2,368 — 13,143 7,274 5,652 — 12,926 Insurance 6,513 — — 6,513 261 — — 261 Technology 2,887 — — 2,887 — — — — Bonds: Government 54,584 — — 54,584 39,472 14,043 — 53,515 Corporate 4,512 — — 4,512 — 5,406 — 5,406 Options on equity securities — 2,095 — 2,095 — 2,911 — 2,911 Non-qualified deferred compensation plan investments 1,607 — — 1,607 1,368 — — 1,368 Total assets at fair value $ 99,325 $ 4,463 $ — $ 103,788 $ 72,260 $ 28,012 $ — $ 100,272 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. 2021 2020 2019 Beginning Balance $ (1,531) $ (2,810) $ (2,516) Foreign currency translation (376) 1,279 (294) Ending Balance $ (1,907) $ (1,531) $ (2,810) |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 263,135 $ 344,305 $ 595,004 Western 8,155 6,361 15,216 Total Restaurant Operations 271,290 350,666 610,220 Insurance Operations: Underwriting: First Guard 33,521 30,210 28,746 Southern Pioneer 21,890 19,010 — Investment income and other 3,198 3,459 1,337 Total Insurance Operations 58,609 52,679 30,083 Southern Oil 33,004 26,255 24,436 Maxim 3,203 4,083 4,099 $ 366,106 $ 433,683 $ 668,838 |
Schedule of earnings (loss) by segment | Earnings (Loss) Before Income Taxes 2021 2020 2019 Operating Businesses: Restaurant Operations: Steak n Shake $ 13,524 $ (4,587) $ (18,575) Western 931 (765) 1,756 Total Restaurant Operations 14,455 (5,352) (16,819) Insurance Operations: Underwriting: First Guard 10,573 9,379 6,477 Southern Pioneer 1,744 620 — Investment income and other 2,118 2,432 626 Total Insurance Operations 14,435 12,431 7,103 Southern Oil 9,713 2,018 8,032 Maxim 814 1,784 742 Interest expense not allocated to segments (1,121) (9,262) (12,442) Operating Businesses 38,296 1,619 (13,384) Corporate and other (13,383) (12,432) (9,608) Investment gains 6,401 3,644 — Investment partnership gains (losses) 10,953 (43,032) 78,133 $ 42,267 $ (50,201) $ 55,141 |
Schedule of consolidated capital expenditure, depreciation and amortization captions | Capital Expenditures 2021 2020 2019 Operating Businesses: Restaurant $ 60,296 $ 17,858 $ 10,023 Insurance 1,451 5 43 Southern Oil 996 2,806 7,594 Maxim — — — Operating Businesses 62,743 20,669 17,660 Corporate and other 1,806 33 19 Consolidated results $ 64,549 $ 20,702 $ 17,679 Depreciation, Depletion, and Amortization 2021 2020 2019 Operating Businesses: Restaurant $ 21,484 $ 19,042 $ 21,174 Insurance 176 414 85 Southern Oil 8,073 12,527 8,218 Maxim — — — Operating Businesses 29,733 31,983 29,477 Corporate and other 317 239 101 Consolidated results $ 30,050 $ 32,222 $ 29,578 |
Reconciliation of Assets from Segment to Consolidated | A disaggregation of our consolidated assets is presented in the table that follows. Identifiable Assets December 31, 2021 2020 Reportable segments: Restaurant Operations: Steak n Shake $ 377,676 $ 341,190 Western 17,239 16,512 Total Restaurant Operations 394,915 357,702 Insurance Operations: First Guard 74,615 64,764 Southern Pioneer 72,321 74,063 Total Insurance Operations 146,936 138,827 Southern Oil 53,359 61,017 Maxim 16,605 16,485 Corporate 32,593 24,387 Investment partnerships 250,399 419,550 Total assets $ 894,807 $ 1,017,968 |
Supplemental Oil and Gas Disc_2
Supplemental Oil and Gas Disclosures (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Extractive Industries [Abstract] | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The following table sets forth our estimate of the net proved oil and gas reserves for the year ended December 31, 2021. Oil (MBbl) Gas (MMcf) MBOE Total proved reserves at December 31, 2020 2,223 24,917 6,376 Revisions (1) 433 4,235 1,139 Extensions 62 189 94 Production (357) (2,798) (824) Total proved reserves at December 31, 2021 2,361 26,544 6,785 Total proved developed reserves as of December 31, 2021 1,897 18,427 4,968 Total proved undeveloped reserves as of December 31, 2021 464 8,117 1,817 (1) Revisions are primarily related to increasing commodity prices. Bbl — One stock tank barrel, of 42 United States gallons liquid volume. MBbl — Thousand barrels. MMcf — Million cubic feet of natural gas. MBOE — Thousand barrels of oil equivalent. |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The following table sets forth the standardized measure of discounted future net cash flows attributable to proved crude oil and natural gas reserves as of December 31, 2021. (in thousands) December 31, 2021 Future cash inflows $ 247,294 Future production costs (78,207) Future development and abandonment costs (32,673) Future income tax expense (28,904) Future net cash flows 107,510 10% annual discount for estimated timing of cash flows (29,751) Standardized measure of discounted future net cash flows $ 77,759 Principle changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves are as follows. (in thousands) 2021 Standardized measure at December 31, 2020 $ 31,330 Net change in prices and production costs 67,058 Net change in future development costs (85) Sales of oil and natural gas, net of production expenses (22,098) Extensions 104 Revisions of previous quantity estimates 17,754 Net change in taxes (14,604) Accretion of discount 3,759 Changes in timing and other (5,459) Standardized measure at December 31, 2021 $ 77,759 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts receivable, allowance for credit loss | $ 505,000 | $ 6,859,000 | |
Capitalized exploratory costs | 0 | ||
Goodwill, impairment loss | 0 | 300,000 | $ 0 |
Impairment of intangible assets, indefinite-lived | 3,728,000 | ||
Insurance loss accrual | $ 14,609,000 | $ 14,652,000 | |
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 | ||
Common Class B | |||
Earnings (loss) per share, equivalent ratio | 0.2 | ||
Mr Biglari | |||
Economic interest | 66.20% | ||
Voting interest | 70.40% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Common Stock (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock authorized (in shares) | 500,000 | ||
Common Class A | |||
Common stock authorized (in shares) | 500,000 | 500,000 | |
Common stock issued (in shares) | 206,864 | 206,864 | 206,864 |
Common stock outstanding (in shares) | 206,864 | 206,864 | 206,864 |
Common Class B | |||
Common stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock issued (in shares) | 2,068,640 | 2,068,640 | 2,068,640 |
Common stock outstanding (in shares) | 2,068,640 | 2,068,640 | 2,068,640 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Class A Common Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Equivalent class A common stock outstanding (in shares) | 620,592 | 620,592 | 620,592 |
Proportional ownership of Company stock held by investment partnerships (in shares) | 303,341 | 275,400 | 275,856 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 317,251 | 345,192 | 344,736 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenues | $ 366,106 | $ 433,683 | $ 668,838 |
Franchise partner fees sales percent | 15.00% | ||
Franchise partner fees, profits, percent | 50.00% | ||
Initial franchise partner fee | $ 10 | ||
Restaurant operations rental fees | 15,483 | 5,675 | 1,084 |
Restaurant Operations | |||
Total revenues | 271,290 | 350,666 | 610,220 |
Franchise | |||
Total revenues | 2,033 | 1,879 | 1,725 |
Revenue, remaining performance obligation, amount | 5,199 | 6,928 | |
Advertising | |||
Total revenues | 6,829 | 5,193 | 7,815 |
Revenue, remaining performance obligation, amount | 4,151 | 4,391 | |
Gift Cards | |||
Total revenues | 5,903 | 9,201 | 22,869 |
Revenue, remaining performance obligation, amount | 15,059 | 17,431 | |
Product | Restaurant Operations | |||
Total revenues | 187,913 | 306,577 | 578,164 |
Royalty | Restaurant Operations | |||
Total revenues | 21,736 | 18,794 | 23,360 |
Other | Restaurant Operations | |||
Total revenues | 6,000 | 3,082 | 4,867 |
Franchisor | Restaurant Operations | |||
Total revenues | 55,641 | $ 22,213 | $ 3,829 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Franchise | |||
Revenue, remaining performance obligation, amount | $ 972 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Advertising | |||
Revenue, remaining performance obligation, amount | $ 3,113 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Gift Cards | |||
Revenue, remaining performance obligation, amount | $ 8,202 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Investments (Details Narrative)
Investments (Details Narrative) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2014USD ($)a | |
Investments [Abstract] | ||||
Investments | $ 83,061 | $ 94,861 | ||
Investment gains | 6,401 | $ 3,644 | $ 0 | |
Gain on sale of real estate | $ 5,047 | |||
Area of land | a | 26 | |||
Payments to acquire land | $ 2,145 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Carrying value of investments | $ 83,061 | $ 94,861 |
Deferred tax liability related to investments | (845) | (665) |
Carrying value of investments net of deferred taxes | $ 82,216 | $ 94,196 |
Investment Partnerships - Fair
Investment Partnerships - Fair Value and Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) In Equity Method Investments [Roll Forward] | |||
Investment partnership gains (losses) | $ 10,953 | $ (43,032) | $ 78,133 |
Fair Value | |||
Increase (Decrease) In Equity Method Investments [Roll Forward] | |||
Fair value of partnership interest, beginning balance | 590,926 | 666,123 | 715,102 |
Investment partnership gains (losses) | 51,145 | (46,997) | 80,350 |
Distributions (net of contributions) | (167,870) | (28,200) | (129,329) |
Increase in proportionate share of Company stock held | |||
Fair value of partnership interest, ending balance | 474,201 | 590,926 | 666,123 |
Company Common Stock | |||
Increase (Decrease) In Equity Method Investments [Roll Forward] | |||
Fair value of partnership interest, beginning balance | 171,376 | 160,581 | 157,622 |
Investment partnership gains (losses) | 40,192 | (3,965) | 2,217 |
Distributions (net of contributions) | |||
Increase in proportionate share of Company stock held | 12,234 | 14,760 | 742 |
Fair value of partnership interest, ending balance | 223,802 | 171,376 | 160,581 |
Carrying Value | |||
Increase (Decrease) In Equity Method Investments [Roll Forward] | |||
Fair value of partnership interest, beginning balance | 419,550 | 505,542 | 557,480 |
Investment partnership gains (losses) | 10,953 | (43,032) | 78,133 |
Distributions (net of contributions) | (167,870) | (28,200) | (129,329) |
Increase in proportionate share of Company stock held | (12,234) | (14,760) | (742) |
Fair value of partnership interest, ending balance | $ 250,399 | $ 419,550 | $ 505,542 |
Investment Partnerships - Carry
Investment Partnerships - Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Carrying value of investment partnerships | $ 250,399 | $ 419,550 |
Deferred tax liability related to investment partnerships | (44,532) | (44,805) |
Carrying value of investment partnerships net of deferred taxes | $ 205,867 | $ 374,745 |
Investment Partnerships - Gains
Investment Partnerships - Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | |||
Gains (losses) from investment partnerships | $ 10,953 | $ (43,032) | $ 78,133 |
Tax expense (benefit) | 2,054 | (10,526) | 17,360 |
Contribution to net earnings | $ 8,899 | $ (32,506) | $ 60,773 |
Investment Partnerships - Summa
Investment Partnerships - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Total assets | $ 894,807 | $ 1,017,968 | |
Total liabilities | 307,111 | 453,140 | |
Total earnings | 35,478 | (37,989) | $ 45,380 |
Lion Fund, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Total assets | 114,749 | 112,970 | 117,135 |
Total liabilities | 7,763 | 189 | 158 |
Total revenues | 20,068 | (4,052) | 10,637 |
Total earnings | $ 19,994 | $ (4,120) | $ 10,567 |
Biglari Holdings’ ownership interest | 62.70% | 66.20% | 66.10% |
Lion Fund II, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Total assets | $ 564,022 | $ 566,663 | $ 758,663 |
Total liabilities | 130,417 | 25,453 | 114,639 |
Total revenues | 41,486 | (48,544) | 85,831 |
Total earnings | $ 40,621 | $ (49,832) | $ 78,604 |
Biglari Holdings’ ownership interest | 93.90% | 95.40% | 92.90% |
Investment Partnerships - Narra
Investment Partnerships - Narrative (Details) - USD ($) | Oct. 01, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||
Treasury stock, at cost | $ 401,851,000 | $ 389,617,000 | ||
Incentive reallocation fee | $ 0 | 987,000 | $ 0 | |
Incentive reallocation fee, gains from common stock | $ 253,000 | |||
Biglari Entities | ||||
Schedule of Equity Method Investments [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, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Deferred commissions on gift cards sold by third parties | $ 3,221 | $ 3,491 |
Prepaid contractual obligations | 3,867 | 3,001 |
Other current assets | $ 7,088 | $ 6,492 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 144,605 | $ 142,601 |
Buildings | 148,605 | 138,734 |
Land and leasehold improvements | 147,349 | 141,351 |
Equipment | 224,581 | 192,735 |
Oil and gas properties | 74,147 | 75,900 |
Construction in progress | 2,815 | 1,032 |
Total property and equipment | 742,102 | 692,353 |
Less accumulated depreciation, depletion, and amortization | (392,751) | (376,231) |
Property and equipment, net | $ 349,351 | $ 316,122 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, depletion and amortization, nonproduction | $ 22,012 | $ 19,586 | $ 18,881 |
Depletion of oil and gas properties | 7,600 | 11,989 | 8,077 |
Accretion expense | 438 | 497 | 177 |
Impairment of long-lived assets held-for-use | 4,635 | $ 19,618 | $ 8,186 |
Property and equipment, other, accumulated depreciation | 53,965 | ||
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment related costs | 44,849 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment related costs | 45,548 | ||
Land and Land Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment related costs | $ 26,345 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $ 10,258 | $ 10,631 | |
Liabilities settled | (72) | (870) | |
Accretion expense | 438 | 497 | $ 177 |
Asset retirement obligation | $ 10,624 | $ 10,258 | $ 10,631 |
Asset Retirement Obligations -
Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Retirement Obligation [Abstract] | ||
Asset retirement obligation, current | $ 235 | $ 236 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 53,596,000 | $ 40,040,000 | $ 40,052,000 |
Change in foreign exchange rates | (49,000) | 56,000 | (12,000) |
Goodwill from acquisition | 13,800,000 | ||
Impairments to goodwill | 0 | (300,000) | 0 |
Ending balance | 53,547,000 | 53,596,000 | 40,040,000 |
Restaurant Operations | |||
Goodwill [Roll Forward] | |||
Beginning balance | 27,883,000 | 28,127,000 | 28,139,000 |
Change in foreign exchange rates | (49,000) | 56,000 | (12,000) |
Goodwill from acquisition | 0 | ||
Impairments to goodwill | (300,000) | ||
Ending balance | 27,834,000 | 27,883,000 | 28,127,000 |
Insurance Segment | |||
Goodwill [Roll Forward] | |||
Beginning balance | 25,713,000 | 11,913,000 | 11,913,000 |
Change in foreign exchange rates | 0 | 0 | 0 |
Goodwill from acquisition | 13,800,000 | ||
Impairments to goodwill | 0 | ||
Ending balance | $ 25,713,000 | $ 25,713,000 | $ 11,913,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 24,065 | $ 27,199 |
Impairments | (3,728) | |
Change in foreign exchange rates | (602) | 594 |
Ending balance | 23,463 | 24,065 |
Trade Names | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 15,876 | 15,876 |
Impairments | 0 | |
Change in foreign exchange rates | 0 | 0 |
Ending balance | 15,876 | 15,876 |
Lease Rights | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 8,189 | 11,323 |
Impairments | (3,728) | |
Change in foreign exchange rates | (602) | 594 |
Ending balance | $ 7,587 | $ 8,189 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment loss | $ 0 | $ 300,000 | $ 0 |
Amortization of intangible assets | 0 | 150,000 | $ 549,000 |
International Restaurant Operations | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset impairment | $ 0 | $ 3,728,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 36,684 | $ 26,537 |
Gift card and other marketing | 19,244 | 21,822 |
Insurance accruals | 6,428 | 6,559 |
Salaries, wages, and vacation | 5,905 | 8,285 |
Deferred revenue | 6,683 | 9,324 |
Taxes payable | 11,392 | 10,922 |
Professional fees | 11,731 | 5,882 |
Other | 2,400 | 1,561 |
Accounts payable and accrued expenses | $ 100,467 | $ 90,892 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Non qualified deferred compensation | $ 1,607 | $ 1,368 |
Other | 462 | 312 |
Other liabilities | $ 2,069 | $ 1,680 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 1,053 | $ (472) | $ 41,005 |
State | 467 | 476 | 7,301 |
Deferred | 5,269 | (12,216) | (38,545) |
Income tax expense (benefit) | 6,789 | (12,212) | 9,761 |
Reconciliation of effective income tax: | |||
Tax at U.S. statutory rates | 8,875 | (10,542) | 11,579 |
State income taxes, net of federal benefit | 192 | (1,750) | 1,573 |
Federal income tax credits | (864) | (424) | (3,004) |
Dividends received deduction | (468) | (233) | (955) |
Valuation allowance | (723) | 733 | 441 |
Foreign tax rate differences | (78) | 240 | 116 |
Other | (145) | (236) | 11 |
Income tax expense (benefit) | $ 6,789 | $ (12,212) | $ 9,761 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Insurance reserves | $ 1,464 | $ 1,621 |
Compensation accruals | 647 | 1,439 |
Gift card accruals | 2,350 | 2,387 |
Net operating loss credit carryforward | 11,018 | 7,121 |
Valuation allowance on net operating losses | (5,429) | (6,152) |
Fixed assets and depletable assets basis difference | 588 | 8,234 |
Income tax credit carryforward | 813 | 2,178 |
Other | 2,954 | 2,516 |
Total deferred tax assets | 14,405 | 19,344 |
Deferred tax liabilities: | ||
Investment partnerships | 44,532 | 44,805 |
Investments | 845 | 665 |
Goodwill and intangibles | 15,561 | 15,220 |
Total deferred tax liabilities | 60,938 | 60,690 |
Net deferred tax liability | $ (46,533) | $ (41,346) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes, domestic | $ 43,886 | $ (40,989) | $ 57,877 |
Income (loss) from continuing operations before income taxes, foreign | 1,619 | 9,212 | 2,736 |
Unrecognized tax benefits | 83 | 204 | |
Income tax examination, penalties and interest expense | 4 | 59 | |
Decrease in unrecognized tax benefits is reasonably possible | 15 | ||
Income taxes receivable | 344 | ||
Taxes payable | 2,436 | ||
Income taxes paid | 4,532 | 15,402 | 30,375 |
Proceeds from income tax refunds | $ 111 | $ 68 | $ 1,546 |
Notes Payable and Lease Oblig_3
Notes Payable and Lease Obligation - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 19, 2014 |
Steak N Shake Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 152,506,000 | $ 220,000,000 | |
Western Sizzlin Revolver | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 0 | $ 0 |
Notes Payable and Lease Oblig_4
Notes Payable and Lease Obligation - Schedule of Notes Payable and Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Finance lease liabilities | $ 1,414 | $ 1,897 |
Finance obligations | 4,944 | 4,854 |
Operating lease liabilities | 10,540 | 10,614 |
Total current portion of lease obligations | 16,898 | 17,365 |
Finance lease liabilities | 5,347 | 7,034 |
Finance obligations | 63,119 | 68,148 |
Operating lease liabilities | 36,013 | 36,463 |
Total long-term lease obligations | $ 104,479 | $ 111,645 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Lease obligations | Lease obligations |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Lease obligations | Lease obligations |
Notes Payable and Lease Oblig_5
Notes Payable and Lease Obligation - Schedule of Interest Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Interest paid on debt | $ 994 | $ 9,397 | $ 11,273 |
Interest paid on obligations under leases | $ 6,039 | $ 6,274 | $ 7,816 |
Leased Assets and Lease Commi_3
Leased Assets and Lease Commitments - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 1,576 | $ 1,404 | $ 1,952 |
Interest on lease liabilities | 521 | 582 | 828 |
Operating lease costs | 1,119 | 9,995 | 16,483 |
Total lease costs | $ 3,216 | $ 11,981 | $ 19,263 |
Leased Assets and Lease Commi_4
Leased Assets and Lease Commitments - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 1,629 | $ 1,512 |
Operating cash flows from finance leases | 506 | 632 |
Operating cash flows from operating leases | 13,195 | 13,627 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Property and equipment, net | $ 5,634 | $ 6,501 |
Current portion of notes payable and other borrowings | 1,414 | 1,897 |
Long-term notes payable and other borrowings | 5,347 | 7,034 |
Total finance lease liabilities | $ 6,761 | $ 8,931 |
Leased Assets and Lease Commi_6
Leased Assets and Lease Commitments - Weighted-Average Lease Terms and Discounts (Details) | Dec. 31, 2021 |
Weighted-average remaining lease terms: | |
Finance leases | 5 years 21 days |
Operating leases | 5 years 1 month 20 days |
Weighted-average discount rates: | |
Finance leases | 7.00% |
Operating leases | 6.90% |
Leased Assets and Lease Commi_7
Leased Assets and Lease Commitments - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 13,282 | |
2023 | 11,230 | |
2024 | 9,402 | |
2025 | 7,817 | |
2026 | 5,166 | |
After 2026 | 8,631 | |
Total lease payments | 55,528 | |
Less interest | 8,975 | |
Total lease liabilities | 46,553 | |
Finance Leases | ||
2022 | 1,834 | |
2023 | 1,551 | |
2024 | 1,534 | |
2025 | 1,298 | |
2026 | 959 | |
After 2026 | 855 | |
Total lease payments | 8,031 | |
Less interest | 1,270 | |
Total finance lease liabilities | $ 6,761 | $ 8,931 |
Leased Assets and Lease Commi_8
Leased Assets and Lease Commitments - Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Minimum rent | $ 14,926 | $ 15,672 | $ 17,968 |
Contingent rent | 137 | 137 | 1,050 |
Rent expense | $ 15,063 | $ 15,809 | $ 19,018 |
Leased Assets and Lease Commi_9
Leased Assets and Lease Commitments - Lease Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease income | $ 13,173 | $ 5,027 | $ 1,376 |
Variable lease income | 3,479 | 1,738 | 347 |
Total lease income | $ 16,652 | $ 6,765 | $ 1,723 |
Leased Assets and Lease Comm_10
Leased Assets and Lease Commitments - Future Minimum Rental Receipts (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Subleases | |
Operating Leases | |
2022 | $ 609 |
2023 | 421 |
2024 | 338 |
2025 | 338 |
2026 | 19 |
After 2026 | 0 |
Total future minimum receipts | 1,725 |
Owned Properties | |
Operating Leases | |
2022 | 247 |
2023 | 247 |
2024 | 247 |
2025 | 250 |
2026 | 247 |
After 2026 | 805 |
Total future minimum receipts | $ 2,043 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Oct. 01, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||
Contributions of cash | $ 12,300,000 | $ 70,130,000 | $ 40,000,000 | |
Distributions of cash | (180,170,000) | (98,330,000) | (169,329,000) | |
Total contributions and distributions | (167,870,000) | (28,200,000) | (129,329,000) | |
Incentive reallocation fee | 0 | 987,000 | 0 | |
Incentive reallocation fee, gains from common stock | 253,000 | |||
Mr Biglari | ||||
Related Party Transaction [Line Items] | ||||
Incentive fees | 0 | 0 | $ 0 | |
Biglari Entities | ||||
Related Party Transaction [Line Items] | ||||
Term of agreement | 5 years | |||
Period fees payment | 700,000 | |||
Management fee expense | $ 8,400,000 | $ 8,400,000 | ||
Incentive reallocation fee, percentage | 25.00% | |||
Hurdle rate, percent | 6.00% | |||
Lion Fund, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments, fair value disclosure | $ 474,201,000 | |||
Lion Fund II, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments, fair value disclosure | $ 474,201,000 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash equivalents | $ 18,447 | $ 23,885 |
Equity Securities | ||
Options on equity securities | 2,095 | 2,911 |
Non-qualified deferred compensation plan investments | 1,607 | 1,368 |
Total assets at fair value | 103,788 | 100,272 |
Consumer goods | ||
Equity Securities | ||
Equity securities: | 13,143 | 12,926 |
Insurance | ||
Equity Securities | ||
Equity securities: | 6,513 | 261 |
Technology | ||
Equity Securities | ||
Equity securities: | 2,887 | 0 |
US Treasury and Government | ||
Equity Securities | ||
Bonds: | 54,584 | 53,515 |
Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 4,512 | 5,406 |
Level 1 | ||
Assets | ||
Cash equivalents | 18,447 | 23,885 |
Equity Securities | ||
Options on equity securities | 0 | 0 |
Non-qualified deferred compensation plan investments | 1,607 | 1,368 |
Total assets at fair value | 99,325 | 72,260 |
Level 1 | Consumer goods | ||
Equity Securities | ||
Equity securities: | 10,775 | 7,274 |
Level 1 | Insurance | ||
Equity Securities | ||
Equity securities: | 6,513 | 261 |
Level 1 | Technology | ||
Equity Securities | ||
Equity securities: | 2,887 | 0 |
Level 1 | US Treasury and Government | ||
Equity Securities | ||
Bonds: | 54,584 | 39,472 |
Level 1 | Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 4,512 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Equity Securities | ||
Options on equity securities | 2,095 | 2,911 |
Non-qualified deferred compensation plan investments | 0 | 0 |
Total assets at fair value | 4,463 | 28,012 |
Level 2 | Consumer goods | ||
Equity Securities | ||
Equity securities: | 2,368 | 5,652 |
Level 2 | Insurance | ||
Equity Securities | ||
Equity securities: | 0 | 0 |
Level 2 | Technology | ||
Equity Securities | ||
Equity securities: | 0 | 0 |
Level 2 | US Treasury and Government | ||
Equity Securities | ||
Bonds: | 0 | 14,043 |
Level 2 | Corporate Debt Securities | ||
Equity Securities | ||
Bonds: | 0 | 5,406 |
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 | Technology | ||
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) - Accumulated Foreign Currency Adjustment Attributable to Parent - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ (1,531) | $ (2,810) | $ (2,516) |
Foreign currency translation | (376) | 1,279 | (294) |
Ending balance | $ (1,907) | $ (1,531) | $ (2,810) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent | ||
Reclassification to (earnings) loss | $ 0 | $ 0 |
Business Segment Reporting - Di
Business Segment Reporting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 366,106 | $ 433,683 | $ 668,838 |
Restaurant Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 271,290 | 350,666 | 610,220 |
Restaurant Operations | Steak n Shake | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 263,135 | 344,305 | 595,004 |
Restaurant Operations | Western Sizzlin | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 8,155 | 6,361 | 15,216 |
Insurance Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 58,609 | 52,679 | 30,083 |
Insurance Operations | Investment income and other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,198 | 3,459 | 1,337 |
Insurance Operations | First Guard | Underwriting: | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 33,521 | 30,210 | 28,746 |
Insurance Operations | Southern Pioneer | Underwriting: | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 21,890 | 19,010 | 0 |
Southern Oil | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 33,004 | 26,255 | 24,436 |
Maxim | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 3,203 | $ 4,083 | $ 4,099 |
Business Segment Reporting - Ea
Business Segment Reporting - Earnings (Losses) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Investment gains | $ 6,401 | $ 3,644 | $ 0 |
Earnings (Loss) Before Income Taxes | 42,267 | (50,201) | 55,141 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 38,296 | 1,619 | (13,384) |
Interest expense not allocated to segments | (1,121) | (9,262) | (12,442) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Corporate and other | (13,383) | (12,432) | (9,608) |
Investment gains | 6,401 | 3,644 | 0 |
Investment partnership gains (losses) | 10,953 | (43,032) | 78,133 |
Restaurant Operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 14,455 | (5,352) | (16,819) |
Restaurant Operations | Operating Segments | Steak n Shake | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 13,524 | (4,587) | (18,575) |
Restaurant Operations | Operating Segments | Western Sizzlin | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 931 | (765) | 1,756 |
Insurance Operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 14,435 | 12,431 | 7,103 |
Insurance Operations | Operating Segments | Investment income and other | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 2,118 | 2,432 | 626 |
Insurance Operations | Operating Segments | First Guard | Underwriting: | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 10,573 | 9,379 | 6,477 |
Insurance Operations | Operating Segments | Southern Pioneer | Underwriting: | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 1,744 | 620 | 0 |
Southern Oil | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | 9,713 | 2,018 | 8,032 |
Maxim | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Income Taxes | $ 814 | $ 1,784 | $ 742 |
Business Segment Reporting - Ca
Business Segment Reporting - Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 64,549 | $ 20,702 | $ 17,679 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 62,743 | 20,669 | 17,660 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,806 | 33 | 19 |
Restaurant Operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 60,296 | 17,858 | 10,023 |
Insurance Operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,451 | 5 | 43 |
Southern Oil | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 996 | 2,806 | 7,594 |
Maxim | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 0 | $ 0 | $ 0 |
Business Segment Reporting - De
Business Segment Reporting - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | $ 30,050 | $ 32,222 | $ 29,578 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | 29,733 | 31,983 | 29,477 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | 317 | 239 | 101 |
Restaurant | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | 21,484 | 19,042 | 21,174 |
Insurance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | 176 | 414 | 85 |
Southern Oil | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | 8,073 | 12,527 | 8,218 |
Maxim | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion, and Amortization | $ 0 | $ 0 | $ 0 |
Business Segment Reporting - As
Business Segment Reporting - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 894,807 | $ 1,017,968 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 32,593 | 24,387 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 250,399 | 419,550 |
Restaurant Operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 394,915 | 357,702 |
Restaurant Operations | Operating Segments | Steak n Shake | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 377,676 | 341,190 |
Restaurant Operations | Operating Segments | Western Sizzlin | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 17,239 | 16,512 |
Insurance Operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 146,936 | 138,827 |
Insurance Operations | Operating Segments | First Guard | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 74,615 | 64,764 |
Insurance Operations | Operating Segments | Southern Pioneer | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 72,321 | 74,063 |
Southern Oil | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 53,359 | 61,017 |
Maxim | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 16,605 | $ 16,485 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 8,733 | $ 2,399 | $ 339 |
Finance obligations incurred | 733 | 3,285 | |
Finance lease retirements | $ 1,216 | $ 4,842 | |
Lease obligation incurred | 5,026 | ||
Capital lease retirements | $ 940 |
Supplemental Oil and Gas Disc_3
Supplemental Oil and Gas Disclosures (Unaudited) - Estimate of Reserves (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Oil (MBbl) | |
Proved Developed and Undeveloped Reserves [Roll Forward] | |
Total proved reserves at December 31, 2020 | $ 2,223 |
Revisions | 433 |
Extensions | 62 |
Production | (357) |
Total proved reserves at December 31, 2021 | 2,361 |
Total proved developed reserves as of December 31, 2021 | 1,897 |
Total proved undeveloped reserves as of December 31, 2021 | 464 |
Gas (MMcf) | |
Proved Developed and Undeveloped Reserves [Roll Forward] | |
Total proved reserves at December 31, 2020 | 24,917 |
Revisions | 4,235 |
Extensions | 189 |
Production | (2,798) |
Total proved reserves at December 31, 2021 | 26,544 |
Total proved developed reserves as of December 31, 2021 | 18,427 |
Total proved undeveloped reserves as of December 31, 2021 | 8,117 |
MBOE | |
Proved Developed and Undeveloped Reserves [Roll Forward] | |
Total proved reserves at December 31, 2020 | 6,376 |
Revisions | 1,139 |
Extensions | 94 |
Production | (824) |
Total proved reserves at December 31, 2021 | 6,785 |
Total proved developed reserves as of December 31, 2021 | 4,968 |
Total proved undeveloped reserves as of December 31, 2021 | $ 1,817 |
Supplemental Oil and Gas Disc_4
Supplemental Oil and Gas Disclosures (Unaudited) - Estimate of Future Cash Flows (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Extractive Industries [Abstract] | ||
Future cash inflows | $ 247,294 | |
Future production costs | (78,207) | |
Future development and abandonment costs | (32,673) | |
Future income tax expense | (28,904) | |
Future net cash flows | 107,510 | |
10% annual discount for estimated timing of cash flows | (29,751) | |
Standardized measure of discounted future net cash flows | $ 77,759 | $ 31,330 |
Supplemental Oil and Gas Disc_5
Supplemental Oil and Gas Disclosures (Unaudited) - Change in Standardized Measure of Discounted Future Net Cash Flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Change in Standardized Measure of Discounted Future Net Cash Flows | |
Standardized measure at December 31, 2020 | $ 31,330 |
Net change in prices and production costs | 67,058 |
Net change in future development costs | (85) |
Sales of oil and natural gas, net of production expenses | (22,098) |
Extensions | 104 |
Revisions of previous quantity estimates | 17,754 |
Net change in taxes | (14,604) |
Accretion of discount | 3,759 |
Changes in timing and other | (5,459) |
Standardized measure at December 31, 2021 | $ 77,759 |