Biglari 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
Document And Entity Information
Entity Registrant Name	BIGLARI HOLDINGS INC.
Entity Central Index Key	93,859
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		2,066,864
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 56,581	$ 56,523
Investments	23,340	23,750
Receivables	9,997	17,716
Inventories	7,389	7,593
Deferred taxes	14,555	13,263
Other current assets	8,354	7,255
Total current assets	120,216	126,100
Property and equipment	328,093	332,324
Goodwill	40,049	40,022
Other intangible assets	21,690	21,673
Investment partnerships	546,482	471,689
Other assets	9,770	8,534
Total assets	1,066,300	1,000,342
Current liabilities:
Accounts payable	35,645	34,649
Accrued expenses	74,853	74,429
Current portion of notes payable and other borrowings	7,550	7,789
Total current liabilities	118,048	116,866
Long-term notes payable and other borrowings	292,959	296,062
Deferred taxes	152,613	125,130
Other liabilities	10,999	10,911
Total liabilities	574,619	548,970
Shareholders' equity
Common stock - 2,066,864 and 2,066,691 shares outstanding	1,071	1,071
Additional paid-in capital	391,848	391,853
Retained earnings	467,145	415,982
Accumulated other comprehensive loss	(3,604)	(3,679)
Treasury stock, at cost	(364,779)	(353,855)
Biglari Holdings Inc. shareholders' equity	491,681	451,372
Total liabilities and shareholders' equity	$ 1,066,300	$ 1,000,342

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, shares outstanding	2,066,864	2,066,691

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Restaurant operations	$ 200,295	$ 196,736
Insurance premiums and other	5,499	3,654
Media advertising and other	2,448	5,438
Total Revenues	208,242	205,828
Cost and expenses
Restaurant cost of sales	155,737	154,761
Insurance losses and underwriting expenses	4,158	2,963
Media cost of sales	5,019	9,418
Selling, general and administrative	30,310	32,458
Depreciation and amortization	6,047	6,544
Total cost and expenses	201,271	206,144
Other income (expenses)
Interest and dividends	0	5
Interest expense	(2,922)	(3,006)
Interest on obligations under leases	(2,281)	(2,475)
Investment partnership gains	78,973	22,965
Total other income (expenses)	73,770	17,489
Earnings before income taxes	80,741	17,173
Income tax expense	29,578	7,190
Net earnings	$ 51,163	$ 9,983
Earnings per share
Basic earnings per common share	$ 41.20	$ 5.36
Diluted earnings per common share	$ 41.16	$ 5.36
Weighted average shares and equivalents
Basic	1,241,733	1,861,572
Diluted	1,242,938	1,864,125

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements Of Comprehensive Income
Net earnings	$ 51,163	$ 9,983
Other comprehensive income:
Net change in unrealized gains and losses on investments	(401)	(417)
Applicable income taxes	145	154
Foreign currency translation	331	63
Other comprehensive income (loss), net	75	(200)
Total comprehensive income	$ 51,238	$ 9,783

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net earnings	$ 51,163	$ 9,983
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization	6,047	6,544
Provision for deferred income taxes	26,307	7,673
Asset impairments and other non-cash expenses	415	309
Loss on disposal of assets	265	202
Investment partnership gains	(78,973)	(22,965)
Distributions from investment partnerships	4,750	0
Changes in receivables and inventories	7,923	1,975
Changes in other assets	(2,085)	(2,203)
Changes in accounts payable and accrued expenses	1,443	(1,759)
Net cash provided by (used in) operating activities	17,255	(241)
Investing activities
Additions of property and equipment	(2,859)	(3,487)
Proceeds from property and equipment disposals	854	2
Purchases of investments	(24,472)	(11,494)
Redemptions of fixed maturity securities	12,989	500
Net cash used in investing activities	(13,488)	(14,479)
Financing activities
Payments on revolving credit facility	(96)	(25)
Principal payments on long-term debt	(2,201)	(550)
Principal payments on direct financing lease obligations	(1,461)	(1,585)
Proceeds from exercise of stock options	1	3
Net cash used in financing activities	(3,757)	(2,157)
Effect of exchange rate changes on cash	48	(5)
Increase (decrease) in cash and cash equivalents	58	(16,882)
Cash and cash equivalents at beginning of year	56,523	129,669
Cash and cash equivalents at end of first quarter	$ 56,581	$ 112,787

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at Dec. 31, 2014	$ 1,071	$ 391,877	$ 431,825	$ (783)	$ (98,439)	$ 725,551
Net earnings			9,983			9,983
Other comprehensive income, net				(200)		(200)
Adjustment to treasury stock for holdings in investment partnerships					(4,278)	(4,278)
Exercise of stock options		(1)			4	3
Balance at Mar. 31, 2015	1,071	391,876	441,808	(983)	(102,713)	731,059
Balance at Dec. 31, 2015	1,071	391,853	415,982	(3,679)	(353,855)	451,372
Net earnings			51,163			51,163
Other comprehensive income, net				75		75
Adjustment to treasury stock for holdings in investment partnerships					(10,930)	(10,930)
Exercise of stock options		(5)			6	1
Balance at Mar. 31, 2016	$ 1,071	$ 391,848	$ 467,145	$ (3,604)	$ (364,779)	$ 491,681

Note 1. Summary of Significant

Note 1. Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Note 1. Summary of Significant Accounting Policies	Description of Business The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. (“Biglari Holdings” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary to present fairly the results of the interim periods have been included and consist only of normal recurring adjustments. The results for the interim periods shown are not necessarily indicative of results for the entire fiscal year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Company’s largest operating subsidiaries are involved in the franchising and operating of restaurants. Biglari Holdings is founded and led by Sardar Biglari, Chairman and Chief Executive Officer of Biglari Holdings and its major operating subsidiaries. The Company’s long-term objective is to maximize per-share intrinsic value. All major operating, investment, and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake Inc. (“Steak n Shake”), Western Sizzlin Corporation (“Western”), Maxim Inc. (“Maxim”) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively “First Guard”). Intercompany accounts and transactions have been eliminated in consolidation.

Note 2. New Accounting Standard

Note 2. New Accounting Standards	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Note 2. New Accounting Standards	In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which amends the FASB Accounting Standards Codification. The objective of the update is to improve financial reporting by increasing transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments is permitted for all entities. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent deferred tax asset or liability. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted. The Company does not believe the adoption of ASU 2015-17 will have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company adopted ASU 2015-03 on January 1, 2016. As of December 31, 2015, the Company reclassified $688 and $2,888 from other current assets and other assets, respectively, to current portion of notes payable and other borrowings and long-term notes payable and other borrowings, respectively, to conform to the current year classification. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidations Analysis. The amendments in this update provide guidance under GAAP about limited partnerships, which will be variable interest entities, unless the limited partners have either substantive kick-out rights or participation rights. It also changes the effect that fees paid to a decision maker or service provider have on the consolidation analysis and amends how variable interests held by related parties affect the consolidation conclusion. The amendments in this update are effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company adopted the provisions of ASU 2015-02 on January 1, 2016 and believes the adoption of this update has no material effect on the Company’s financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern. The amendments in this update provide guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this update are effective for the annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effect, if any, on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB voted to defer the effective date of this ASU by one year, which would make the guidance effective for our first quarter fiscal year 2018 financial statements using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients; or (ii) adoption with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures. The Company has not yet selected a transition method nor determined the effect of this guidance on its consolidated financial statements.

Note 3. Earnings Per Share

Note 3. Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings per share
Note 3. Earnings Per Share	Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. The shares of Company stock attributable to our limited partner interest in The Lion Fund, L.P. and The Lion Fund II, L.P. — 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 Lion Fund, L.P. completed a Rule 10b5-1 Trading Plan purchasing 62,000 shares of the Company’s common stock from December 18, 2014 through April 20, 2015. On July 1, 2015, The Lion Fund II, L.P. completed a tender offer purchasing 616,312 shares of the Company’s common stock. The Lion Fund II, L.P. completed a Rule 10b5-1 Trading Plan purchasing 24,000 shares of the Company’s common stock from January 4, 2016 through February 3, 2016. All of the shares purchased in the Rule 10b5-1 Trading Plans and the tender offer remain legally outstanding. As of March 31, 2016, Mr. Biglari’s beneficial ownership of the Company’s outstanding common stock was approximately 50.6%. The following table presents a reconciliation of basic and diluted weighted average common shares. First Quarter 2016 2015 Basic earnings per share: Weighted average common shares 1,241,733 1,861,572 Diluted earnings per share: Weighted average common shares 1,241,733 1,861,572 Dilutive effect of stock awards 1,205 2,553 Weighted average common and incremental shares 1,242,938 1,864,125 Number of share-based awards excluded from the calculation — — The Company’s common stock is $0.50 stated value. The following table presents shares authorized, issued and outstanding. March 31, 2016 December 31, 2015 Common stock authorized 2,500,000 2,500,000 Common stock issued 2,142,202 2,142,202 Treasury stock held by the Company (75,338 ) (75,511 ) Outstanding shares 2,066,864 2,066,691 Proportional ownership of the Company's common stock in investment partnerships (837,645 ) (807,069 ) Net outstanding shares for financial reporting purposes 1,229,219 1,259,622

Note 4. Investments

Note 4. Investments	3 Months Ended
	Mar. 31, 2016
Schedule of Investments [Abstract]
Note 4. Investments	Investments consisted of the following. March 31, 2016 December 31, 2015 Cost $ 24,825 $ 24,842 Gross unrealized gains 20 10 Gross unrealized losses (1,505 ) (1,102 ) Fair value $ 23,340 $ 23,750 Investment gains/losses are recognized when investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have little, if any, impact on total shareholders’ equity because the investments are carried at fair value with any unrealized gains/losses included as a component of accumulated other comprehensive income in shareholders’ equity. We believe that realized investment gains/losses are often meaningless in terms of understanding reported results. Short-term investment gains/losses have caused and may continue to cause volatility in our results.

Note 5. Investment Partnerships

Note 5. Investment Partnerships	3 Months Ended
	Mar. 31, 2016
Note 5. Investment Partnerships
Note 5. Investment Partnerships	The Company reports on the limited partnership interests in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively the “investment partnerships”) under the equity method of accounting. We record our proportional share of equity in the investment partnerships but exclude Company common stock held by said partnerships. The Company’s pro-rata share of its common stock held by the investment partnerships is recorded as treasury stock even though they are legally outstanding. The Company records gains/losses from investment partnerships (inclusive of the investment partnerships’ unrealized gains and losses on their securities) in the consolidated statements of earnings based on our carrying value of these partnerships. The fair value is calculated net of the general partner’s accrued incentive fees. Gains and losses on Company common stock included in the earnings of these partnerships are eliminated because they are recorded as treasury stock. The fair value and adjustment for Company common stock held by the investment partnerships to determine carrying value of our partnership interest is presented below. Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2015 $ 734,668 $ 262,979 $ 471,689 Investment partnership gains 115,894 36,921 78,973 Contributions (net of distributions) to investment partnerships 6,750 6,750 Increase in proportionate share of Company stock held 10,930 (10,930 ) Partnership interest at March 31, 2016 $ 857,312 $ 310,830 $ 546,482 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2014 $ 776,899 $ 78,917 $ 697,982 Investment partnership gains 25,790 2,825 22,965 Increase in proportionate share of Company stock held 4,278 (4,278 ) Partnership interest at March 31, 2015 $ 802,689 $ 86,020 $ 716,669 The fair value of the investment partnerships net of deferred taxes is presented below. March 31, 2016 December 31, 2015 Fair value of investment partnerships $ 857,312 $ 734,668 Deferred tax liability related to investment partnerships (144,092 ) (115,952 ) Fair value of investment partnerships net of deferred taxes $ 713,220 $ 618,716 The Company’s proportionate share of Company stock held by investment partnerships at cost is $343,757 and $332,827 at March 31, 2016 and December 31, 2015, respectively, and is recorded as treasury stock. The carrying value of the partnership interest approximates fair value adjusted by changes in the value of held Company stock. Fair value is according to our proportional ownership interest of the fair value of investments held by the investment partnerships. The fair value measurement is classified as level 3 within the fair value hierarchy. Gains from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below. First Quarter 2016 2015 Investment partnership gains $ 78,973 $ 22,965 Tax expense 28,585 7,853 Contribution to net earnings $ 50,388 $ 15,112 As the general partner of the investment partnerships, Biglari Capital Corp. (“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 over an annual hurdle rate of 6% above the previous high-water mark. Our policy is to accrue an estimated incentive fee throughout the year; however, no fees are reallocated until the end of the calendar year. As of March 31, 2016, the Company’s accrued incentive fee for Biglari Capital was $3,817. As of March 31, 2015, the Company accrued $4,331 in incentive fee for Biglari Capital. During the first quarters of 2016 and 2015, the Company accrued incentive fees for Biglari Capital of $2,921 and $4,331, respectively. Our investments in these partnerships are committed on a rolling 5-year basis. Also, under the current quarter for The Lion Fund II table change the revenue to 130,525 and the earnings to 129,285. 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 March 31, 2016 $ 186,015 $ 975,987 Total liabilities as of March 31, 2016 $ 11,726 $ 173,732 Revenue for the first quarter ending March 31, 2016 $ (1,738 ) $ 130,525 Earnings for the first quarter ending March 31, 2016 $ (1,771 ) $ 129,285 Biglari Holdings’ Ownership Interest 63.4 % 93.5 % Total assets as of December 31, 2015 $ 165,996 $ 819,323 Total liabilities as of December 31, 2015 $ 409 $ 141,274 Revenue for the first quarter ending March 31, 2015 $ 4,787 $ 29,883 Earnings for the first quarter ending March 31, 2015 $ 4,758 $ 29,472 Biglari Holdings’ Ownership Interest 58.7 % 92.7 % Revenue in the above summarized financial information of the investment partnerships includes investment income and unrealized gains and losses on investments. The investments held by the investment partnerships are largely concentrated in the common stock of one investee, Cracker Barrel Old Country Store, Inc.

Note 6. Property and Equipment

Note 6. Property and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Note 6. Property and Equipment	Property and equipment is composed of the following. March 31, 2016 December 31, 2015 Land $ 162,113 $ 160,697 Buildings 156,951 156,909 Land and leasehold improvements 164,125 165,042 Equipment 200,314 199,934 Construction in progress 3,411 3,478 686,914 686,060 Less accumulated depreciation and amortization (358,821 ) (353,736 ) Property and equipment, net $ 328,093 $ 332,324

Note 7. Goodwill and Other Inta

Note 7. Goodwill and Other Intangibles	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Note 7. Goodwill and Other Intangibles	Goodwill Goodwill consists of the excess of the purchase price over the fair value of the net assets acquired in connection with business acquisitions. A reconciliation of the change in the carrying value of goodwill is as follows. Restaurants Other Total Goodwill at December 31, 2015 $ 28,109 $ 11,913 $ 40,022 Change in foreign exchange rates during first quarter 2016 27 — 27 Goodwill at March 31, 2016 $ 28,136 $ 11,913 $ 40,049 We are required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The analysis of potential impairment of goodwill requires a two-step approach. The first is the estimation of fair value of each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment occurs when the estimated fair value of goodwill is less than its carrying value. The valuation methodology and underlying financial information included in our determination of fair value require significant management judgments. We use both market and income approaches to derive fair value. The judgments in these two approaches include, but are not limited to, comparable market multiples, long-term projections of future financial performance, and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results. No impairment charges for goodwill were recorded in the first quarter of 2016 or 2015. Other Intangibles Other intangibles are composed of the following. March 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement $ 5,310 $ (3,186 ) $ 2,124 $ 5,310 $ (3,054 ) $ 2,256 Other 810 (676 ) 134 810 (667 ) 143 Total 6,120 (3,862 ) 2,258 6,120 (3,721 ) 2,399 Intangible assets with indefinite lives: Trade names 15,876 — 15,876 15,876 — 15,876 Other assets with indefinite lives 3,556 — 3,556 3,398 — 3,398 Total intangible assets $ 25,552 $ (3,862 ) $ 21,690 $ 25,394 $ (3,721 ) $ 21,673 Intangible assets subject to amortization consist of franchise agreements connected with the purchase of Western as well as rights to favorable leases related to prior acquisitions. These intangible assets are being amortized over their estimated weighted average of useful lives ranging from eight to twelve years. Amortization expense for the first quarters of 2016 and 2015 was $141 and $142, respectively. Total annual amortization expense for years 2017 through 2019 will approximate $560 per year. The Company's intangible assets with definite lives will fully amortize in 2020. Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights.

Note 8. Restaurant Operations R

Note 8. Restaurant Operations Revenues	3 Months Ended
	Mar. 31, 2016
Note 8. Restaurant Operations Revenues
Note 8. Restaurant Operations Revenues	Restaurant operations revenues were as follows. First Quarter 2016 2015 Net sales $ 195,067 $ 192,170 Franchise royalties and fees 4,350 3,656 Other 878 910 $ 200,295 $ 196,736

Note 9. Borrowings

Note 9. Borrowings	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Note 9. Borrowings	Notes payable and other borrowings include the following. Current portion of notes payable and other borrowings March 31, 2016 December 31, 2015 Notes payable $ 2,200 $ 2,200 Unamortized original issue discount (300 ) (296 ) Unamortized debt issuance costs (693 ) (688 ) Obligations under leases 5,653 5,787 Western revolver 690 786 Total current portion of notes payable and other borrowings $ 7,550 $ 7,789 Long-term notes payable and other borrowings Notes payable $ 207,974 $ 210,175 Unamortized original issue discount (1,326 ) (1,403 ) Unamortized debt issuance costs (2,713 ) (2,888 ) Obligations under leases 89,024 90,178 Total long-term notes payable and other borrowings $ 292,959 $ 296,062 ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. As of December 31, 2015, the Company reclassified unamortized debt issuance costs from other assets to notes payable and other borrowings. Steak n Shake Credit Facility On March 19, 2014, Steak n Shake and its subsidiaries entered into a new credit agreement. This credit agreement provides for a senior secured term loan facility in an aggregate principal amount of $220,000 and a senior secured revolving credit facility in an aggregate principal amount of up to $30,000. The term loan is scheduled to mature on March 19, 2021. It amortizes at an annual rate of 1.0% in equal quarterly installments, beginning June 30, 2014, at 0.25% of the original principal amount of the term loan, subject to mandatory prepayments from excess cash flow, asset sales and other events described in the credit agreement. The balance will be due at maturity. The revolver will be available on a revolving basis until March 19, 2019. Steak n Shake has the right to request an incremental term loan facility from participating lenders and/or eligible assignees at any time, up to an aggregate total principal amount not to exceed $70,000 if certain customary conditions within the credit agreement are met. Borrowings bear interest at a rate per annum equal to a base rate or a Eurodollar rate (minimum of 1%) plus an applicable margin. Interest on the term loan is based on a Eurodollar rate plus an applicable margin of 3.75% or on the prime rate plus an applicable margin of 2.75%. Interest on loans under the revolver is based on a Eurodollar rate plus an applicable margin ranging from 2.75% to 4.25% or on the prime rate plus an applicable margin ranging from 1.75% to 3.25%. The applicable margins on revolver loans are contingent on Steak n Shake’s total leverage ratio. The revolver also carries a commitment fee ranging from 0.40% to 0.50% per annum, depending on Steak n Shake’s total leverage ratio, on the unused portion of the revolver. The interest rate on the term loan was 4.75% as of March 31, 2016. The credit agreement includes customary affirmative and negative covenants and events of default, as well as a financial maintenance covenant, solely with respect to the revolver, relating to the maximum total leverage ratio. Steak n Shake’s credit facility contains restrictions on its ability to pay dividends to Biglari Holdings. Both the term loan and the revolver have been secured by first priority security interests in substantially all the assets of Steak n Shake. Biglari Holdings is not a guarantor under the credit facility. As of March 31, 2016, $210,174 was outstanding under the term loan, and no amount was outstanding under the revolver. Steak n Shake had $10,188 in standby letters of credit outstanding as of March 31, 2016 and December 31, 2015. Western Revolver As of March 31, 2016, Western has $690 due June 13, 2016. Interest Rate Swap During fiscal year 2011, Steak n Shake entered into an interest rate swap agreement which matured on February 15, 2016. The notional amount of the interest rate swap was $1,000 with a fair value of $2 on December 31, 2015. Fair Value of Debt The carrying amounts for debt reported in the consolidated balance sheet did not differ materially from their fair values at March 31, 2016 and December 31, 2015. The fair value was determined to be a Level 3 fair value measurement.

Note 10. Accumulated Other Comp

Note 10. Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Note 10. Accumulated Other Comprehensive Income	During the first quarters of 2016 and 2015, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows. Three months ended March 31, 2016 Three months ended March 31, 2015 Foreign Currency Translation Adjustments Investment Gain (Loss) Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Investment Gain (Loss) Accumulated Other Comprehensive Income (Loss) Beginning Balance $ (2,992 ) $ (687 ) $ (3,679 ) $ (620 ) $ (163 ) $ (783 ) Other comprehensive income (loss) before reclassifications 331 (256 ) 75 63 (263 ) (200 ) Ending Balance $ (2,661 ) $ (943 ) $ (3,604 ) $ (557 ) $ (426 ) $ (983 ) There were no reclassifications made from accumulated other comprehensive income to the consolidated statement of earnings during the first quarters of 2016 and 2015.

Note 11. Income Taxes

Note 11. Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Note 11. Income Taxes	In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which the Company operates. Unusual or infrequently occurring items are separately recognized during the quarter in which they occur. Income tax expense for the first quarter of 2016 was $29,578 compared to $7,190 for the first quarter of 2015. The variance in income tax expense between 2016 and 2015 is primarily attributable to tax expense on income from investment partnerships. The tax expense for investment partnership gains was $28,585 and $7,853 during first quarter 2016 and 2015, respectively. As of March 31, 2016 and December 31, 2015, we had approximately $448 and $413, respectively, of unrecognized tax benefits, which are included in other liabilities in the consolidated balance sheets.

Note 12. Commitments and Contin

Note 12. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Note 12. Commitments and Contingencies	We are involved in various legal proceedings and have certain unresolved claims pending. We believe, based on examination of these matters and experiences to date, that the ultimate liability, if any, in excess of amounts already provided in our consolidated financial statements is not likely to have a material effect on our results of operations, financial position or cash flows. In 2013 two shareholders of the Company filed derivative actions putatively on behalf of the Company against the members of our Board of Directors in the United States District Courts for the Southern District of Indiana and the Western District of Texas. The actions were consolidated in the Southern District of Indiana in 2014. On March 18, 2015, the United States District Court for the Southern District of Indiana granted a motion to dismiss the derivative actions in favor of the Company. In addition, the Court issued judgment on all counts in favor of the Company and its directors. The two shareholders appealed the Southern District of Indiana Court’s March 18, 2015 decision. On February 17, 2016, the United States Court of Appeals for the Seventh Circuit affirmed the decision of the District Court dismissing, in their entirety, all claims made against the Company and its Board of Directors.

Note 13. Fair Value of Financia

Note 13. Fair Value of Financial Assets and Liabilities	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Note 13. Fair Value of Financial Assets and Liabilities	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 and liabilities recorded at fair value in the consolidated balance sheet: Cash equivalents: Equity securities: Bonds: Non-qualified deferred compensation plan investments: Interest rate swaps: As of March 31, 2016 and December 31, 2015, the fair values of financial assets and liabilities were as follows. March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,513 $ — $ — $ 1,513 $ 700 $ — $ — $ 700 Equity securities: Insurance 4,798 — — 4,798 5,046 — — 5,046 Bonds — 21,172 — 21,172 — 21,304 — 21,304 Non-qualified deferred compensation plan investments 2,286 — — 2,286 2,203 — — 2,203 Total assets at fair value $ 8,597 $ 21,172 $ — $ 29,769 $ 7,949 $ 21,304 $ — $ 29,253 Liabilities Interest rate swaps $ — $ — $ — $ — $ — $ 2 $ — $ 2 Total liabilities at fair value $ — $ — $ — $ — $ — $ 2 $ — $ 2 There were no changes in our valuation techniques used to measure fair values on a recurring basis.

Note 14. Related Party Transact

Note 14. Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Note 14. Related Party Transactions	In 2013 Biglari Holdings entered into the following agreements with Mr. Biglari, its Chairman and Chief Executive Officer: (i) a Stock Purchase Agreement for the sale of Biglari Capital to Mr. Biglari (the “Biglari Capital Transaction”); (ii) a Shared Services Agreement with Biglari Capital, and (iii) a First Amendment to the Amended and Restated Incentive Bonus Agreement with Mr. Biglari (the “Incentive Agreement Amendment”). The transactions contemplated thereby were unanimously approved by the independent Governance, Compensation and Nominating Committee of the Board of Directors of the Company (the “Committee”), which retained separate counsel, tax/accounting advisors, an independent compensation consultant, and a financial advisor to assist the Committee in the structuring, evaluation, and negotiation of such transactions. Shared Services Agreement Investments in The Lion Fund, L.P. and The Lion Fund II, L.P. 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 over an annual hurdle rate of 6% above the previous high-water mark. Our policy is to accrue an estimated incentive fee throughout the year; however, no fees are reallocated until the end of the calendar year. The Company accrued $2,921 and $4,331 in incentive fees for Biglari Capital during the first quarters of 2016 and 2015, respectively. Incentive Agreement Amendment Also in connection with the Biglari Capital Transaction, Biglari Holdings and Mr. Biglari entered into the Incentive Agreement Amendment which amends the Amended and Restated Incentive Bonus Agreement with Mr. Biglari to reflect and give effect to the Biglari Capital Transaction, which excludes earnings by the investment partnerships from the calculation of Mr. Biglari’s incentive bonus. License Agreement In 2013 the Company entered into a Trademark License Agreement (the “License Agreement”) with Mr. Biglari. The License Agreement was unanimously approved by the Committee. In addition, the license under the License Agreement is provided on a royalty-free basis in the absence of specified extraordinary events described below. Accordingly, the Company and its subsidiaries have paid no royalties to Mr. Biglari under the License Agreement since its inception. Under the License Agreement, Mr. Biglari granted to the Company an exclusive license to use the Biglari and Biglari Holdings names (the “Licensed Marks”) in association with various products and services (collectively the “Products and Services”). Upon (a) the expiration of twenty years from the date of the License Agreement (subject to extension as provided in the License Agreement), (b) Mr. Biglari’s death, (c) the termination of Mr. Biglari’s employment by the Company for Cause (as defined in the License Agreement), or (d) Mr. Biglari’s resignation from his employment with the Company absent an Involuntary Termination Event (as defined in the License Agreement), the Licensed Marks for the Products and Services will transfer from Mr. Biglari to the Company, without any compensation, if the Company is continuing to use the Licensed Marks in the ordinary course of its business. Otherwise, the rights will revert to Mr. Biglari. If (i) a Change of Control (as defined in the License Agreement) of the Company; (ii) the termination of Mr. Biglari’s employment by the Company without Cause; or (iii) Mr. Biglari’s resignation from his employment with the Company due to an Involuntary Termination Event (each, a “Triggering Event”) were to occur, Mr. Biglari would be entitled to receive a 2.5% royalty on “Revenues” with respect to the “Royalty Period.” The royalty payment to Mr. Biglari would not apply to all revenues received by Biglari Holdings and its subsidiaries nor would it apply retrospectively ( i.e. “Revenues” means all revenues received, on an accrual basis under GAAP, by the Company, its subsidiaries and affiliates from the following: (1) all Products and Services covered by the License Agreement bearing or associated with the names Biglari and Biglari Holdings at any time (whether prior to or after a Triggering Event). This category would include, without limitation, the use of Biglari or Biglari Holdings in the public name of a business providing any covered Product or Service; and (2) all covered Products, Services and businesses that the Company has specifically identified, prior to a Triggering Event, will bear, use or be associated with the name Biglari or Biglari Holdings. The Committee unanimously approved the association of the Biglari name and mark with all of Steak n Shake’s restaurants (including Company operated and franchised locations), products and brands. On May 14, 2013, the Company, Steak n Shake, LLC and Steak n Shake Enterprises, Inc. entered into a Trademark Sublicense Agreement in connection therewith. Accordingly, revenues received by the Company, its subsidiaries and affiliates from Steak n Shake’s restaurants, products and brands would come within the definition of Revenues for purposes of the License Agreement. The “Royalty Period” is a defined period of time, after the Triggering Event, calculated as follows: (i) if, following three months after a Triggering Event, the Company or any of its subsidiaries or affiliates continues to use the Biglari or Biglari Holdings name in connection with any covered product or service, or continues to use Biglari as part of its corporate or public company name, then the “Royalty Period” will equal (a) the period of time during which the Company or any of its subsidiaries or affiliates continues any such use, plus (b) a period of time after the Company, its subsidiaries and affiliates have ceased all uses of the names Biglari and Biglari Holdings equal to the length of the term of the License Agreement prior to the Triggering Event, plus three years. As an example, if a Triggering Event occurs five years after the date of the License Agreement, and the Company ceases all uses of the Biglari and Biglari Holdings names two years after the Triggering Event, the Royalty Period will equal a total of ten years (the sum of two years after the Triggering Event during which the Biglari and Biglari Holdings names are being used, plus a period of time equal to the five years prior to the Triggering Event, plus three years); or (ii) if the Company, its subsidiaries and affiliates cease all uses of the Biglari and Biglari Holdings names within three months after a Triggering Event, then the “Royalty Period” will equal the length of the term of the License Agreement prior to the Triggering Event, plus three years. As an example, if a Triggering Event occurs five years after the date of the License Agreement, and the Company ceases all uses of the Biglari and Biglari Holdings names two months after the Triggering Event, the Royalty Period will equal a total of eight years (the sum of the period of time equal to the five years prior to the Triggering Event, plus three years). Notwithstanding the above methods of determining the Royalty Period, the minimum Royalty Period is five years after a Triggering Event.

Note 15. Business Segment Repor

Note 15. Business Segment Reporting	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Note 15. Business Segment Reporting	Our reportable business segments are organized in a manner that reflects how management views those business activities. Certain businesses have been grouped together for segment reporting based upon operations. Our restaurant operations includes Steak n Shake and Western. As a result of the acquisitions of Maxim and First Guard, the Company reports segment information for these businesses. Prior to the fourth quarter of 2015, other business activities not specifically identified with reportable business segments were presented in corporate. Such other business activities are now presented in other within total operating businesses and prior periods have been reclassified to conform to the current year presentation. We report our earnings from investment partnerships separate from corporate. We assess and measure segment operating results based on segment earnings as disclosed below. Segment earnings from operations are neither necessarily indicative of cash available to fund cash requirements, nor synonymous with cash flow from operations. The tabular information that follows shows data of our reportable segments reconciled to amounts reflected in the consolidated financial statements. Revenue by segment for the first quarters of 2016 and 2015 were as follows. First Quarter 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake $ 196,898 $ 193,453 Western 3,397 3,283 Total Restaurant Operations 200,295 196,736 First Guard 5,499 3,654 Maxim 2,448 5,438 $ 208,242 $ 205,828 Earnings (losses) before income taxes by segment for the first quarters of 2016 and 2015 were as follows. First Quarter 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake $ 8,362 $ 6,235 Western 586 410 Total Restaurant Operations 8,948 6,645 First Guard 1,327 660 Maxim (3,515 ) (5,886 ) Other 125 57 Total Operating Businesses 6,885 1,476 Corporate and Investments: Corporate (2,195 ) (4,262 ) Investment partnership gains 78,973 22,965 Total Corporate and Investments 76,778 18,703 Interest expense on notes payable and other borrowings (2,922 ) (3,006 ) $ 80,741 $ 17,173

Note 1. Summary of Significan23

Note 1. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Description of Business	The accompanying unaudited consolidated financial statements of Biglari Holdings Inc. (“Biglari Holdings” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary to present fairly the results of the interim periods have been included and consist only of normal recurring adjustments. The results for the interim periods shown are not necessarily indicative of results for the entire fiscal year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015. Biglari Holdings is a holding company owning subsidiaries engaged in a number of diverse business activities, including media, property and casualty insurance, and restaurants. The Company’s largest operating subsidiaries are involved in the franchising and operating of restaurants. Biglari Holdings is founded and led by Sardar Biglari, Chairman and Chief Executive Officer of Biglari Holdings and its major operating subsidiaries. The Company’s long-term objective is to maximize per-share intrinsic value. All major operating, investment, and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including Steak n Shake Inc. (“Steak n Shake”), Western Sizzlin Corporation (“Western”), Maxim Inc. (“Maxim”) and First Guard Insurance Company and its agency, 1st Guard Corporation (collectively “First Guard”). Intercompany accounts and transactions have been eliminated in consolidation.

Note 3. Earnings Per Share (Tab

Note 3. Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings per share
Reconciliation of basic and diluted weighted average common shares	First Quarter 2016 2015 Basic earnings per share: Weighted average common shares 1,241,733 1,861,572 Diluted earnings per share: Weighted average common shares 1,241,733 1,861,572 Dilutive effect of stock awards 1,205 2,553 Weighted average common and incremental shares 1,242,938 1,864,125 Number of share-based awards excluded from the calculation — —
Summary of outstanding shares	March 31, 2016 December 31, 2015 Common stock authorized 2,500,000 2,500,000 Common stock issued 2,142,202 2,142,202 Treasury stock held by the Company (75,338 ) (75,511 ) Outstanding shares 2,066,864 2,066,691 Proportional ownership of the Company's common stock in investment partnerships (837,645 ) (807,069 ) Net outstanding shares for financial reporting purposes 1,229,219 1,259,622

Note 4. Investments (Tables)

Note 4. Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Investments [Abstract]
Schedule of fair value of Investments	March 31, December 31, Cost $ 24,825 $ 24,842 Gross unrealized gains 20 10 Gross unrealized losses (1,505 ) (1,102 ) Fair value $ 23,340 $ 23,750

Note 5. Investment Partnershi26

Note 5. Investment Partnerships (Tables)	3 Months Ended
	Mar. 31, 2016
Note 5. Investment Partnerships
Fair value and carrying value of our partnership interest	Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2015 $ 734,668 $ 262,979 $ 471,689 Investment partnership gains 115,894 36,921 78,973 Contributions (net of distributions) to investment partnerships 6,750 6,750 Increase in proportionate share of Company stock held 10,930 (10,930 ) Partnership interest at March 31, 2016 $ 857,312 $ 310,830 $ 546,482 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2014 $ 776,899 $ 78,917 $ 697,982 Investment partnership gains 25,790 2,825 22,965 Increase in proportionate share of Company stock held 4,278 (4,278 ) Partnership interest at March 31, 2015 $ 802,689 $ 86,020 $ 716,669
Carrying value of investment partnerships net of deferred taxes	March 31, December 31, Fair value of investment partnerships $ 857,312 $ 734,668 Deferred tax liability related to investment partnerships (144,092 ) (115,952 ) Fair value of investment partnerships net of deferred taxes $ 713,220 $ 618,716
Gains/losses from investment partnerships	First Quarter 2016 2015 Investment partnership gains $ 78,973 $ 22,965 Tax expense 28,585 7,853 Contribution to net earnings $ 50,388 $ 15,112
Summarized financial information for Equity in Investment Partnerships	Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of March 31, 2016 $ 186,015 $ 975,987 Total liabilities as of March 31, 2016 $ 11,726 $ 173,732 Revenue for the first quarter ending March 31, 2016 $ (1,738 ) $ 130,525 Earnings for the first quarter ending March 31, 2016 $ (1,771 ) $ 129,285 Biglari Holdings’ Ownership Interest 63.4 % 93.5 % Total assets as of December 31, 2015 $ 165,996 $ 819,323 Total liabilities as of December 31, 2015 $ 409 $ 141,274 Revenue for the first quarter ending March 31, 2015 $ 4,787 $ 29,883 Earnings for the first quarter ending March 31, 2015 $ 4,758 $ 29,472 Biglari Holdings’ Ownership Interest 58.7 % 92.7 %

Note 6. Property and Equipment

Note 6. Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	March 31, December 31, Land $ 162,113 $ 160,697 Buildings 156,951 156,909 Land and leasehold improvements 164,125 165,042 Equipment 200,314 199,934 Construction in progress 3,411 3,478 686,914 686,060 Less accumulated depreciation and amortization (358,821 ) (353,736 ) Property and equipment, net $ 328,093 $ 332,324

Note 7. Goodwill and Other In28

Note 7. Goodwill and Other Intangibles (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Restaurants Other Total Goodwill at December 31, 2015 $ 28,109 $ 11,913 $ 40,022 Change in foreign exchange rates during first quarter 2016 27 — 27 Goodwill at March 31, 2016 $ 28,136 $ 11,913 $ 40,049
Schedule of Other Intangibles	March 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement $ 5,310 $ (3,186 ) $ 2,124 $ 5,310 $ (3,054 ) $ 2,256 Other 810 (676 ) 134 810 (667 ) 143 Total 6,120 (3,862 ) 2,258 6,120 (3,721 ) 2,399 Intangible assets with indefinite lives: Trade names 15,876 — 15,876 15,876 — 15,876 Other assets with indefinite lives 3,556 — 3,556 3,398 — 3,398 Total intangible assets $ 25,552 $ (3,862 ) $ 21,690 $ 25,394 $ (3,721 ) $ 21,673

Note 8. Restaurant Operations29

Note 8. Restaurant Operations Revenues (Tables)	3 Months Ended
	Mar. 31, 2016
Note 8. Restaurant Operations Revenues
Summary of restaurant operations revenues	First Quarter 2016 2015 Net sales $ 195,067 $ 192,170 Franchise royalties and fees 4,350 3,656 Other 878 910 $ 200,295 $ 196,736

Note 9. Borrowings (Tables)

Note 9. Borrowings (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of notes payable and other borrowings	Current portion of notes payable and other borrowings March 31, 2016 December 31, 2015 Notes payable $ 2,200 $ 2,200 Unamortized original issue discount (300 ) (296 ) Unamortized debt issuance costs (693 ) (688 ) Obligations under leases 5,653 5,787 Western revolver 690 786 Total current portion of notes payable and other borrowings $ 7,550 $ 7,789 Long-term notes payable and other borrowings Notes payable $ 207,974 $ 210,175 Unamortized original issue discount (1,326 ) (1,403 ) Unamortized debt issuance costs (2,713 ) (2,888 ) Obligations under leases 89,024 90,178 Total long-term notes payable and other borrowings $ 292,959 $ 296,062

Note 10. Accumulated Other Co31

Note 10. Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Component of accumulated other comprehensive income	Three months ended March 31, 2016 Three months ended March 31, 2015 Foreign Currency Translation Adjustments Investment Gain (Loss) Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Investment Gain (Loss) Accumulated Other Comprehensive Income (Loss) Beginning Balance $ (2,992 ) $ (687 ) $ (3,679 ) $ (620 ) $ (163 ) $ (783 ) Other comprehensive income (loss) before reclassifications 331 (256 ) 75 63 (263 ) (200 ) Ending Balance $ (2,661 ) $ (943 ) $ (3,604 ) $ (557 ) $ (426 ) $ (983 )

Note 13. Fair Value of Financ32

Note 13. Fair Value of Financial Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assets And Liabilities	March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,513 $ — $ — $ 1,513 $ 700 $ — $ — $ 700 Equity securities: Insurance 4,798 — — 4,798 5,046 — — 5,046 Bonds — 21,172 — 21,172 — 21,304 — 21,304 Non-qualified deferred compensation plan investments 2,286 — — 2,286 2,203 — — 2,203 Total assets at fair value $ 8,597 $ 21,172 $ — $ 29,769 $ 7,949 $ 21,304 $ — $ 29,253 Liabilities Interest rate swaps $ — $ — $ — $ — $ — $ 2 $ — $ 2 Total liabilities at fair value $ — $ — $ — $ — $ — $ 2 $ — $ 2

Note 15. Business Segment Rep33

Note 15. Business Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule Of Revenue by Segment	First Quarter 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake $ 196,898 $ 193,453 Western 3,397 3,283 Total Restaurant Operations 200,295 196,736 First Guard 5,499 3,654 Maxim 2,448 5,438 $ 208,242 $ 205,828
Schedule of reconciliation of segments earnings to consolidated	First Quarter 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake $ 8,362 $ 6,235 Western 586 410 Total Restaurant Operations 8,948 6,645 First Guard 1,327 660 Maxim (3,515 ) (5,886 ) Other 125 57 Total Operating Businesses 6,885 1,476 Corporate and Investments: Corporate (2,195 ) (4,262 ) Investment partnership gains 78,973 22,965 Total Corporate and Investments 76,778 18,703 Interest expense on notes payable and other borrowings (2,922 ) (3,006 ) $ 80,741 $ 17,173

Note 3. Earnings Per Share (Det

Note 3. Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic earnings per share:
Weighted average common shares	1,241,733	1,861,572
Diluted earnings per share:
Weighted average common shares	1,241,733	1,861,572
Dilutive effect of stock awards	1,205	2,553
Weighted average common and incremental shares	1,242,938	1,864,125
Number of share-based awards excluded from the calculation	0	0

Note 3. Earnings Per Share (D35

Note 3. Earnings Per Share (Details 1) - shares	Mar. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Common stock authorized	2,500,000	2,500,000
Common stock issued	2,142,202	2,142,202
Treasury stock held by the Company	(75,338)	(75,511)
Outstanding shares	2,066,864	2,066,691
Proportional ownership of the Company's common stock in investment partnerships	(837,645)	(807,069)
Net outstanding shares for financial reporting purposes	1,229,219	1,259,622

Note 4. Investments (Details)

Note 4. Investments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule of Investments [Abstract]
Cost	$ 24,825	$ 24,842
Gross unrealized gains	20	10
Gross unrealized losses	(1,505)	(1,102)
Fair value	$ 23,340	$ 23,750

Note 5. Investment Partnershi37

Note 5. Investment Partnerships (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investment partnership gains	$ 78,973	$ 22,965
Fair Value
Partnership interest, beginning	734,668	776,899
Investment partnership gains	115,894	25,790
Contributions (net of distributions) to investment partnerships	6,750
Partnership interest, ending	857,312	802,689
Company common Stock
Partnership interest, beginning	262,979	78,917
Investment partnership gains	36,921	2,825
Increase in proportionate share of Company stock held	10,930	4,278
Partnership interest, ending	310,830	86,020
Carrying Value
Partnership interest, beginning	471,689	697,982
Investment partnership gains	78,973	22,965
Contributions (net of distributions) to investment partnerships	6,750
Increase in proportionate share of Company stock held	(10,930)	(4,278)
Partnership interest, ending	$ 546,482	$ 716,669

Note 5. Investment Partnershi38

Note 5. Investment Partnerships (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Note 5. Investment Partnerships
Fair value of investment partnerships	$ 857,312	$ 734,668
Deferred tax liability related to investment partnerships	(144,092)	(115,952)
Fair value of investment partnerships net of deferred taxes	$ 713,220	$ 618,716

Note 5. Investment Partnershi39

Note 5. Investment Partnerships (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Note 5. Investment Partnerships Details 2
Investment partnership gains	$ 78,973	$ 22,965
Tax expense	28,585	7,853
Contributions to net earnings	$ 50,388	$ 15,112

Note 5. Investment Partnershi40

Note 5. Investment Partnerships (Details 3) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Earnings for three months period	$ 78,973	$ 22,965
Lion Fund
Current and Total Assets	186,015		$ 165,996
Current and Total Liabilities	11,726		409
Revenue for three months period	(1,738)	4,787	0
Earnings for three months period	$ (1,771)	$ 4,758	0
Biglari Holding's Ownership Interest	63.40%	58.70%
Lion Fund II
Current and Total Assets	$ 975,987		819,323
Current and Total Liabilities	173,732		141,274
Revenue for three months period	130,525	$ 29,883	0
Earnings for three months period	$ 129,285	$ 29,472	$ 0
Biglari Holding's Ownership Interest	93.50%	92.70%

Note 5. Investment Partnershi41

Note 5. Investment Partnerships (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Note 5. Investment Partnerships
Proportionate share of Company stock held by investment partnerships at cost	$ 343,757	$ 332,827

Note 6. Property and Equipmen42

Note 6. Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Land	$ 162,113	$ 160,697
Buildings	156,951	156,909
Land and leasehold improvements	164,125	165,042
Equipment	200,314	199,934
Construction in progress	3,411	3,478
Property and equipment, gross	686,914	686,060
Less accumulated depreciation and amortization	(358,821)	(353,736)
Property and equipment, net	$ 328,093	$ 332,324

Note 7. Schedule of Goodwill (D

Note 7. Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Balance at beginning of year	$ 40,022
Change in foreign exchange rates during three months	27
Balance at end of period	40,049
Restaurant
Balance at beginning of year	28,109
Change in foreign exchange rates during three months	27
Balance at end of period	28,136
Other
Balance at beginning of year	11,913
Change in foreign exchange rates during three months	0
Balance at end of period	$ 11,913

Note 7. Goodwill and Other In44

Note 7. Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Gross carrying amount	$ 25,552	$ 25,394
Accumulated amortization	(3,862)	(3,721)
Total intangible assets	21,690	21,673
Finite-Lived Intangible Assets [Member]
Gross carrying amount	6,120	6,120
Accumulated amortization	(3,862)	(3,721)
Total intangible assets	2,258	2,399
Franchise Agreement | Finite-Lived Intangible Assets [Member]
Gross carrying amount	5,310	5,310
Accumulated amortization	(3,186)	(3,054)
Total intangible assets	2,124	2,256
Other | Finite-Lived Intangible Assets [Member]
Gross carrying amount	810	810
Accumulated amortization	(676)	(667)
Total intangible assets	134	143
Other | Indefinite-lived Intangible Assets [Member]
Gross carrying amount	3,556	3,398
Accumulated amortization	0	0
Total intangible assets	3,556	3,398
Trade names [Member] | Indefinite-lived Intangible Assets [Member]
Gross carrying amount	15,876	15,876
Accumulated amortization	0	0
Total intangible assets	$ 15,876	$ 15,876

Note 7. Goodwill and Other In45

Note 7. Goodwill and Other Intangibles (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 141	$ 142
Total annual amortization expense for years 2017 through 2019	$ 560

Note 8. Restaurant Operations46

Note 8. Restaurant Operations Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Note 8. Restaurant Operations Revenues
Net sales	$ 195,067	$ 192,170
Franchise royalties and fees	4,350	3,656
Other	878	910
Restaurant operations revenue	$ 200,295	$ 196,736

Note 9. Borrowings (Details)

Note 9. Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Notes payable	$ 2,200	$ 2,200
Unamortized original issue discount	(300)	(296)
Unamortized debt issue costs	(693)	(688)
Obligations under leases	5,653	5,787
Western revolver	690	786
Total current portion of notes payable and other borrowings	7,550	7,789
Notes payable	207,974	210,175
Unamortized original issue discount	(1,326)	(1,403)
Unamortized debt issue costs	(2,713)	(2,888)
Obligations under leases	89,024	90,178
Total long-term notes payable and other borrowings	$ 292,959	$ 296,062

Note 9. Borrowings (Details Nar

Note 9. Borrowings (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Term Loan
Interest rate	4.75%
Steak n Shake Agreement 2014 [Member]
Outstanding debt	$ 210,174
Notional amount of the interest rate swap		$ 1,000
Standby letters of credit	$ 10,188	$ 10,188

Note 10. Accumulated Other Co49

Note 10. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Beginning Balance	$ (3,679)	$ (783)
Other comprehensive income (loss) before reclassifications	75	(200)
Ending Balance	(3,604)	(983)
Foreign Currency Translation Adjustments
Beginning Balance	(2,992)	(620)
Other comprehensive income (loss) before reclassifications	331	63
Ending Balance	(2,661)	(557)
Investment Gain (Loss)
Beginning Balance	(687)	(163)
Other comprehensive income (loss) before reclassifications	(256)	(263)
Ending Balance	$ (943)	$ (426)

Note 11. Income Taxes (Details

Note 11. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income taxes	$ 29,578	$ 7,190
Tax expense related to investment partnership gains	28,585	$ 7,853
Unrecognized tax benefits	$ 448		$ 413

Note 13. Fair Value of Financ51

Note 13. Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash equivalents	$ 1,513	$ 700
Equity securities: Insurance	4,798	5,046
Bonds	21,172	21,304
Non-qualified deferred compensation plan investments	2,286	2,203
Total assets at fair value	29,769	29,253
Liabilities
Interest rate swaps	0	2
Total liabilities at fair value	0	2
Level 1
Assets
Cash equivalents	1,513	700
Equity securities: Insurance	4,798	5,046
Bonds	0	0
Non-qualified deferred compensation plan investments	2,286	2,203
Total assets at fair value	8,597	7,949
Liabilities
Interest rate swaps	0	0
Total liabilities at fair value	0	0
Level 2
Assets
Cash equivalents	0	0
Equity securities: Insurance	0	0
Bonds	21,172	21,304
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	21,172	21,304
Liabilities
Interest rate swaps	0	2
Total liabilities at fair value	0	2
Level 3
Assets
Cash equivalents	0	0
Equity securities: Insurance	0	0
Bonds	0	0
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	0	0
Liabilities
Interest rate swaps	0	0
Total liabilities at fair value	$ 0	$ 0

Note 15. Business Segment Rep52

Note 15. Business Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Steak n Shake
Revenue	$ 196,898	$ 193,453
Western
Revenue	3,397	3,283
Total Restaurant Operations
Revenue	200,295	196,736
First Guard
Revenue	5,499	3,654
Maxim
Revenue	2,448	5,438
Total Revenue
Revenue	$ 208,242	$ 205,828

Note 15. Business Segment Rep53

Note 15. Business Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings before income taxes and noncontrolling interests	$ 80,741	$ 17,173
Restaurant | Steak n Shake
Earnings before income taxes and noncontrolling interests	8,362	6,235
Restaurant | Western
Earnings before income taxes and noncontrolling interests	586	410
Restaurant | Total Restaurant Operations
Earnings before income taxes and noncontrolling interests	8,948	6,645
Operating Business
Earnings before income taxes and noncontrolling interests	6,885	1,476
Operating Business | First Guard
Earnings before income taxes and noncontrolling interests	1,327	660
Operating Business | Maxim
Earnings before income taxes and noncontrolling interests	(3,515)	(5,886)
Operating Business | Other
Earnings before income taxes and noncontrolling interests	125	57
Corporate | Corporate
Earnings before income taxes and noncontrolling interests	(2,195)	(4,262)
Corporate | Investment Partnership Gains [Member]
Earnings before income taxes and noncontrolling interests	78,973	22,965
Corporate | Total Corporate And Investments [Member]
Earnings before income taxes and noncontrolling interests	76,778	18,703
Reconciliation Of Segments | Interest Expense [Member]
Earnings before income taxes and noncontrolling interests	$ (2,922)	$ (3,006)