Biglari 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 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	Sep. 30, 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		2,066,965
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 75,405	$ 56,523
Investments	22,702	23,750
Receivables	8,363	17,716
Inventories	6,691	7,593
Deferred taxes	13,746	13,263
Other current assets	8,646	7,255
Total current assets	135,553	126,100
Property and equipment	319,492	332,324
Goodwill	40,041	40,022
Other intangible assets	21,363	21,673
Investment partnerships	462,894	471,689
Other assets	14,505	8,534
Total assets	993,848	1,000,342
Current liabilities:
Accounts payable	32,137	34,649
Accrued expenses	76,858	74,429
Current portion of notes payable and other borrowings	7,160	7,789
Total current liabilities	116,155	116,867
Long-term notes payable and other borrowings	284,277	296,062
Deferred taxes	122,158	125,130
Other liabilities	10,379	10,911
Total liabilities	532,969	548,970
Shareholders' equity
Common stock - 2,066,965 and 2,066,691 shares outstanding	1,071	1,071
Additional paid-in capital	391,845	391,853
Retained earnings	444,533	415,982
Accumulated other comprehensive loss	(2,918)	(3,679)
Treasury stock, at cost	(373,652)	(353,855)
Biglari Holdings Inc. shareholders' equity	460,879	451,372
Total liabilities and shareholders' equity	$ 993,848	$ 1,000,342

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, shares outstanding	2,066,965	2,066,691

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Restaurant operations	$ 209,445	$ 208,348	$ 620,449	$ 616,715
Insurance premiums and other	5,841	4,391	17,071	11,762
Media advertising and other	1,446	5,704	6,567	17,750
Total Revenues	216,732	218,443	644,087	646,227
Cost and expenses
Restaurant cost of sales	162,139	160,079	478,677	473,845
Insurance losses and underwriting expenses	4,650	3,097	12,427	8,620
Media cost of sales	3,225	8,476	13,292	27,077
Selling, general and administrative	31,246	31,735	94,394	100,391
Depreciation and amortization	5,875	6,106	17,271	18,876
Total cost and expenses	207,135	209,493	616,061	628,809
Other income (expenses)
Interest and dividends	1	1	1	9
Interest expense	(2,831)	(2,966)	(8,626)	(8,969)
Interest on obligations under leases	(2,411)	(2,237)	(7,441)	(7,122)
Investment partnership gains (losses)	(108,614)	5,302	21,602	22,710
Total other income (loss)	(113,855)	100	5,536	6,628
Earnings (loss) before income taxes	(104,258)	9,050	33,562	24,046
Income tax expense (benefit)	(44,129)	(248)	5,011	4,739
Net earnings (loss)	$ (60,129)	$ 9,298	$ 28,551	$ 19,307
Earnings per share
Basic earnings per common share	$ (49.48)	$ 7.36	$ 23.26	$ 11.66
Diluted earnings per common share	$ (49.48)	$ 7.35	$ 23.23	$ 11.65
Weighted average shares and equivalents
Basic	1,215,296	1,263,320	1,227,624	1,655,532
Diluted	1,215,296	1,265,328	1,228,935	1,657,786

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements Of Comprehensive Income
Net earnings (loss)	$ (60,129)	$ 9,298	$ 28,551	$ 19,307
Other comprehensive income:
Net change in unrealized gains and losses on investments	57	(9)	644	(549)
Applicable income taxes	(20)	4	(239)	201
Reclassification of investment (appreciation) depreciation in net earnings	0	7	306	62
Applicable income taxes	0	(2)	(113)	(21)
Foreign currency translation	42	(1,888)	163	(1,760)
Other comprehensive income (loss), net	79	(1,888)	761	(2,067)
Total comprehensive income	$ (60,050)	$ 7,410	$ 29,312	$ 17,240

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net earnings	$ 28,551	$ 19,307
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization	17,271	18,876
Provision for deferred income taxes	(3,808)	(1,073)
Asset impairments and other non-cash expenses	1,676	446
Loss on disposal of assets	615	1,086
Realized investment (gains) losses	0	62
Investment partnership gains	(21,602)	(22,710)
Distributions from investment partnerships	26,265	15,000
Changes in receivables and inventories	10,255	6,021
Changes in other assets	(2,841)	(502)
Changes in accounts payable and accrued expenses	(426)	(1,932)
Net cash provided by operating activities	55,956	34,581
Investing activities
Additions of property and equipment	(6,795)	(8,416)
Proceeds from property and equipment disposals	1,084	137
Purchases of investments	(46,698)	(111,485)
Redemptions of fixed maturity securities	28,549	12,157
Changes in restricted assets	0	(4)
Net cash used in investing activities	(23,860)	(107,611)
Financing activities
Payments on revolving credit facility	(354)	(149)
Principal payments on long-term debt	(8,727)	(1,650)
Principal payments on direct financing lease obligations	(4,166)	(4,642)
Proceeds from exercise of stock options	2	222
Net cash used in financing activities	(13,245)	(6,219)
Effect of exchange rate changes on cash	31	(3)
Increase (decrease) in cash and cash equivalents	18,882	(79,252)
Cash and cash equivalents at beginning of year	56,523	129,669
Cash and cash equivalents at end of third quarter	$ 75,405	$ 50,417

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			19,307			19,307
Other comprehensive loss, net				(2,067)		(2,067)
Adjustment to treasury stock for holdings in investment partnerships					(255,272)	(255,272)
Exercise of stock options		(24)			246	222
Balance at Sep. 30, 2015	1,071	391,853	451,132	(2,850)	(353,465)	487,741
Balance at Dec. 31, 2015	1,071	391,853	415,982	(3,679)	(353,855)	451,372
Net earnings			28,551			28,551
Other comprehensive loss, net				761		761
Adjustment to treasury stock for holdings in investment partnerships					(19,807)	(19,807)
Exercise of stock options		(8)			10	2
Balance at Sep. 30, 2016	$ 1,071	$ 391,845	$ 444,533	$ (2,918)	$ (373,652)	$ 460,879

Note 1. Summary of Significant

Note 1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Note 2. New Accounting Standards	In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-17, Interests Held through Related Parties That Are under Common Control. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The objective of the update is to reduce diversity in how certain transactions are classified in the statement of cash flows. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidations Analysis In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

Note 3. Earnings Per Share

Note 3. Earnings Per Share	9 Months Ended
	Sep. 30, 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. From December 18, 2014 to September 30, 2016, The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively, the “investment partnerships”) purchased an aggregate of 716,237 shares of the Company’s common stock pursuant to Rule 10b5-1 Trading Plans and a tender offer, of which 37,925 shares were purchased during the first nine months of 2016. All of the shares purchased by the investment partnerships remain legally outstanding. As of September 30, 2016, Mr. Biglari’s beneficial ownership of the Company’s outstanding common stock was approximately 51.3%. The following table presents a reconciliation of basic and diluted weighted average common shares. Third Quarter First Nine Months 2016 2015 2016 2015 Basic earnings per share: Weighted average common shares ...................................................... 1,215,296 1,263,320 1,227,624 1,655,532 Diluted earnings per share: Weighted average common shares ...................................................... 1,215,296 1,263,320 1,227,624 1,655,532 Dilutive effect of stock awards .......................................................... - 2,008 1,311 2,254 Weighted average common and incremental shares ............................ 1,215,296 1,265,328 1,228,935 1,657,786 Number of share-based awards excluded from the calculation of earning per share (shares were anti-dilutive due to the Company's net loss in the third quarter of 2016) ................................................................................ 3,177 - - - The Company’s common stock is $0.50 stated value. The following table presents shares authorized, issued and outstanding. September 30, 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 .......................................................................................... (75,237) (75,511) Outstanding shares ........................................................................................................................ 2,066,965 2,066,691 Proportional ownership of the Company's common stock in investment partnerships................... (861,028) (807,069) Net outstanding shares for financial reporting purposes .............................................................. 1,205,937 1,259,622

Note 4. Investments

Note 4. Investments	9 Months Ended
	Sep. 30, 2016
Schedule of Investments [Abstract]
Note 4. Investments	Investments consisted of the following. September 30, December 31, 2015 Cost ................................................................................................................................................ $ 22,831 $ 24,842 Gross unrealized gains .................................................................................................................... 26 10 Gross unrealized losses .................................................................................................................. (155) (1,102) Fair value ........................................................................................................................................ $ 22,702 $ 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. Investments in equity securities and a related put option of $4,464 are included in other assets and recorded at fair value.

Note 5. Investment Partnerships

Note 5. Investment Partnerships	9 Months Ended
	Sep. 30, 2016
Note 5. Investment Partnerships Details Narrative
Note 5. Investment Partnerships	The Company reports on the limited partnership interests in investment partnerships under the equity method of accounting. We record our proportional share of equity in the investment partnerships but exclude Company common stock held by said partnerships. The Company’s pro-rata share of its common stock held by the investment partnerships is recorded as treasury stock even though they are legally outstanding. The Company records gains/losses from investment partnerships (inclusive of the investment partnerships’ unrealized gains and losses on their securities) in the consolidated statements of earnings based on our carrying value of these partnerships. The fair value is calculated net of the general partner’s accrued incentive fees. Gains and losses on Company common stock included in the earnings of these partnerships are eliminated because they are recorded as treasury stock. 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 ................................................................ 114,088 92,180 21,908 Contributions (net of distributions) to investment partnerships ..... (10,896) (10,896) Increase in proportionate share of Company stock held ................... 19,807 (19,807) Partnership interest at September 30, 2016 ........................................ $ 837,860 $ 374,966 $ 462,894 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2014 ............................................... $ 776,899 $ 78,917 $ 697,982 Investment partnership gains .................................................................... (16,313) (39,023) 22,710 Contributions (net of distributions) to investment partnerships .............. 73,500 73,500 Increase in proportionate share of Company stock held .......................... 255,272 (255,272) Partnership interest at September 30, 2015 .............................................. $ 834,086 $ 295,166 $ 538,920 The fair value of the investment partnerships net of deferred taxes is presented below. September 30, December 31, 2015 Fair value of investment partnerships ...................................................................................... $ 837,860 $ 734,668 Deferred tax liability related to investment partnerships ......................................................... (116,097) (115,952) Fair value of investment partnerships net of deferred taxes ..................................................... $ 721,763 $ 618,716 The Company’s proportionate share of Company stock held by investment partnerships at cost is $352,634 and $332,827 at September 30, 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. Third Quarter First Nine Months 2016 2015 2016 2015 Investment partnership gains (losses) ....................................... $ (108,614) $ 5,302 $ 21,908 $ 22,710 Loss on contribution of securities to investment partnership ... - - (306) - Investment partnership gains (losses) ...................................... (108,614) 5,302 21,602 22,710 Tax expense (benefit) .............................................................. (44,383) (1,688) 2,373 3,163 Contribution to net earnings (loss) ........................................... $ (64,231) $ 6,990 $ 19,229 $ 19,547 Non-cash investments were $1,219 (net of non-cash distributions) for the first nine months of 2016. 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 September 30, 2016 and 2015, the Company accrued incentive fees for Biglari Capital of $191 and $413, respectively. Our investments in these partnerships are committed on a rolling 5-year basis. Mr. Biglari is the sole owner of Biglari Capital. Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below. Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of September 30, 2016 ............................................................................ $ 203,507 $ 917,197 Total liabilities as of September 30, 2016 ...................................................................... $ 710 $ 174,601 Revenue for the first nine months ending September 30, 2016 .................................. $ 23,926 $ 112,715 Earnings for the first nine months ending September 30, 2016 ................................. $ 23,792 $ 108,327 Biglari Holdings’ Ownership Interest ............................................................................ 64.9% 95.2% 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 nine months ending September 30, 2015............................................ $ (14,112) $ (6,634) Earnings for the first nine months ending September 30, 2015 ........................................... $ (14,199) $ (8,389) Biglari Holdings’ Ownership Interest .................................................................................. 60.9% 93.5% 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	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Note 6. Property and Equipment	Property and equipment is composed of the following. September 30, December 31, 2015 Land .......................................................................................................................................... $ 161,578 $ 160,697 Buildings ................................................................................................................................... 156,748 156,909 Land and leasehold improvements ........................................................................................... 164,121 165,042 Equipment ................................................................................................................................ 199,790 199,934 Construction in progress .......................................................................................................... 3,207 3,478 685,444 686,060 Less accumulated depreciation and amortization ..................................................................... (365,952) (353,736) Property and equipment, net ................................................................................................... $ 319,492 $ 332,324

Note 7. Goodwill and Other Inta

Note 7. Goodwill and Other Intangibles	9 Months Ended
	Sep. 30, 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 nine months 2016........... 19 - 19 Goodwill at September 30, 2016 .................................................................. $ 28,128 $ 11,913 $ 40,041 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 nine months of 2016 or 2015. Other Intangibles Other intangibles are composed of the following. September 30, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement ............................ $ 5,310 $ (3,452) $ 1,858 $ 5,310 $ (3,054) $ 2,256 Other ................................................... 810 (697) 113 810 (667) 143 Total .................................................... 6,120 (4,149) 1,971 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 ........ 3,516 - 3,516 3,398 - 3,398 Total intangible assets ........................ $ 25,512 $ (4,149) $ 21,363 $ 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 nine months of 2016 and 2015 was $428 and $431, respectively. Total annual amortization expense for years 2017 through 2019 will approximate $559 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	9 Months Ended
	Sep. 30, 2016
Note 8. Restaurant Operations Revenues
Note 8. Restaurant Operations Revenues	Restaurant operations revenues were as follows. Third Quarter First Nine Months 2016 2015 2016 2015 Net sales .................................... $ 203,701 $ 203,503 $ 603,850 $ 601,951 Franchise royalties and fees .......... 4,962 4,017 14,096 12,093 Other ....................................... 782 828 2,503 2,671 $ 209,445 $ 208,348 $ 620,449 $ 616,715

Note 9. Borrowings

Note 9. Borrowings	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Note 9. Borrowings	Notes payable and other borrowings include the following. Current portion of notes payable and other borrowings September 30, December 31, 2015 Notes payable .................................................................................................................... $ 2,200 $ 2,200 Unamortized original issue discount ................................................................................... (305) (296) Unamortized debt issuance costs ........................................................................................ (705) (688) Obligations under leases ..................................................................................................... 5,538 5,787 Western revolver .............................................................................................................. 432 786 Total current portion of notes payable and other borrowings ............................................ $ 7,160 $ 7,789 Long-term notes payable and other borrowings Notes payable .................................................................................................................... $ 201,448 $ 210,175 Unamortized original issue discount ................................................................................... (1,172) (1,403) Unamortized debt issuance costs ........................................................................................ (2,356) (2,888) Obligations under leases ..................................................................................................... 86,357 90,178 Total long-term notes payable and other borrowings ......................................................... $ 284,277 $ 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 September 30, 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 September 30, 2016, $203,648 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 September 30, 2016 and December 31, 2015. Western Revolver As of September 30, 2016, Western has $432 due December 13, 2016. Fair Value of Debt The carrying amounts for debt reported in the consolidated balance sheet did not differ materially from their fair values at September 30, 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	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Note 10. Accumulated Other Comprehensive Income	During the first nine months of 2016 and 2015, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows. Nine months ended September 30, 2016 Nine months ended September 30, 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 .. 163 405 568 (1,760) (348) (2,108) Reclassification to (earnings) loss......................... - 193 193 - 41 41 Ending Balance .......................... $ (2,829) $ (89) $ (2,918) $ (2,380) $ (470) $ (2,850) Reclassifications made from accumulated other comprehensive income to the consolidated statement of earnings during the first nine months of 2016 and 2015 were as follows. Reclassifications from Accumulated Other Comprehensive Income 2016 2015 Affected Line Item in the Consolidated Statement of Earnings Investment gain $ - $ (62) Insurance premiums and other (306) - Investment partnership gains (losses) (113) (21) Income tax expense (benefit) $ (193) $ (41) Net of tax During the third quarters of 2016 and 2015, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows. Third Quarter 2016 Third Quarter 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 .................... $ (2,871) $ (126) $ (2,997) $ (492) $ (470) $ (962) Other comprehensive income (loss) before reclassifications .. 42 37 79 (1,888) (5) (1,893) Reclassification to (earnings) loss......................... - - - - 5 5 Ending Balance .......................... $ (2,829) $ (89) $ (2,918) $ (2,380) $ (470) $ (2,850) Reclassifications made from accumulated other comprehensive income to the consolidated statement of earnings during the third quarters of 2016 and 2015 were as follows. Reclassifications from Accumulated Other Comprehensive Income Third Quarter 2016 Third Quarter 2015 Affected Line Item in the Consolidated Statement of Earnings Investment gain $ - $ (7) Insurance premiums and other - - Investment partnership gains (losses) - (2) Income tax expense (benefit) $ - $ (5) Net of tax

Note 11. Income Taxes

Note 11. Income Taxes	9 Months Ended
	Sep. 30, 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 for the third quarter of 2016 was a benefit of $44,129 compared to a benefit of $248 for the third quarter of 2015. Income tax expense for the first nine months of 2016 was $5,011 compared to $4,739 for the first nine months of 2015. The variance in income taxes between the third quarters of 2016 and 2015 is primarily attributable to taxes on income and losses from investment partnerships. As of September 30, 2016 and December 31, 2015, we had approximately $366 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	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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: Derivative instruments: As of September 30, 2016 and December 31, 2015, the fair values of financial assets and liabilities were as follows. September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents ............................ $ 153 $ - $ - $ 153 $ 700 $ - $ - $ 700 Equity securities: Insurance ..................................... - - - - 5,046 - - 5,046 Consumer goods .......................... 2,337 - - 2,337 - - - - Bonds.............................................. - 25,307 - 25,307 - 21,304 - 21,304 Options on equity securities........... - 2,127 - 2,127 - - - - Non-qualified deferred compensation plan investments... 2,599 - - 2,599 2,203 - - 2,203 Total assets at fair value ................ $ 5,089 $ 27,434 $ - $ 32,523 $ 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	9 Months Ended
	Sep. 30, 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. Mr. Biglari is the sole owner of Biglari Capital. 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 $191 and $413 in incentive fees for Biglari Capital during the first nine months 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 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. Under the Amended and Restated Incentive Agreement Mr. Biglari would receive a payment of approximately $17,000 if an event occurred entitling him to a severance payment. 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. The Company and its subsidiaries have paid no royalties to Mr. Biglari under the Trademark License Agreement since its execution. The actual amount of royalties paid to Mr. Biglari following the occurrence of a Triggering Event (as defined in the Trademark License Agreement) would depend on the Company’s revenues during the applicable period following the Triggering Event, and, therefore, depends on material assumptions and estimates regarding future operations and revenues. Assuming for purposes of illustration a Triggering Event occurred on December 31, 2015, using revenue from fiscal year 2015 as an estimate of future revenue and calculated according to terms of the Trademark License Agreement as described in the proxy statement, Mr. Biglari would receive approximately $20,500 in royalty payments annually. At a minimum, the royalties would be earned on revenue generated on January 1, 2016 through December 19, 2021. Royalty payments beyond the minimum period would be subject to the licensee's continued use of the licensed trademarks.

Note 15. Business Segment Repor

Note 15. Business Segment Reporting	9 Months Ended
	Sep. 30, 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. Our restaurant operations includes Steak n Shake and Western. As a result of the acquisitions of First Guard and Maxim, 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 expense. Such other business activities are now presented in “other” within total operating businesses. Prior periods have been reclassified to conform to the current presentation. We report our earnings from investment partnerships separate from corporate expense. 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 third quarters and first nine months of 2016 and 2015 were as follows. Third Quarter First Nine Months 2016 2015 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake ............................................................................. $ 206,248 $ 204,837 $ 609,974 $ 606,138 Western ..................................................................................... 3,197 3,511 10,475 10,577 Total Restaurant Operations ......................................................... 209,445 208,348 620,449 616,715 First Guard .................................................................................... 5,841 4,391 17,071 11,762 Maxim .......................................................................................... 1,446 5,704 6,567 17,750 $ 216,732 $ 218,443 $ 644,087 $ 646,227 Earnings (loss) before income taxes by segment for the third quarters and first nine months of 2016 and 2015 were as follows. Third Quarter First Nine Months 2016 2015 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake ........................................................................... $ 10,443 $ 10,826 $ 30,949 $ 30,876 Western ................................................................................... 542 708 1,965 1,806 Total Restaurant Operations ....................................................... 10,985 11,534 32,914 32,682 First Guard ................................................................................... 1,177 1,302 4,602 3,101 Maxim ........................................................................................ (2,810) (4,211) (9,646) (14,270) Other .......................................................................................... 139 108 404 255 Total Operating Businesses ............................................................. 9,491 8,733 28,274 21,768 Corporate and Investments: Corporate .................................................................................... (2,304) (2,019) (7,688) (11,463) Investment partnership gains (losses) .......................................... (108,614) 5,302 21,602 22,710 Total Corporate and Investments ................................................... (110,918) 3,283 13,914 11,247 Interest expense on notes payable and other borrowings ................. (2,831) (2,966) (8,626) (8,969) $ (104,258) $ 9,050 $ 33,562 $ 24,046

Note 1. Summary of Significan23

Note 1. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 2016
Earnings per share
Reconciliation of basic and diluted weighted average common shares	Third Quarter First Nine Months 2016 2015 2016 2015 Basic earnings per share: Weighted average common shares ...................................................... 1,215,296 1,263,320 1,227,624 1,655,532 Diluted earnings per share: Weighted average common shares ...................................................... 1,215,296 1,263,320 1,227,624 1,655,532 Dilutive effect of stock awards .......................................................... - 2,008 1,311 2,254 Weighted average common and incremental shares ............................ 1,215,296 1,265,328 1,228,935 1,657,786 Number of share-based awards excluded from the calculation of earning per share (shares were anti-dilutive due to the Company's net loss in the third quarter of 2016) ................................................................................ 3,177 - - -
Summary of outstanding shares	September 30, 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 .......................................................................................... (75,237) (75,511) Outstanding shares ........................................................................................................................ 2,066,965 2,066,691 Proportional ownership of the Company's common stock in investment partnerships................... (861,028) (807,069) Net outstanding shares for financial reporting purposes .............................................................. 1,205,937 1,259,622

Note 4. Investments (Tables)

Note 4. Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of Investments [Abstract]
Schedule of fair value of Investments	September 30, December 31, 2015 Cost ................................................................................................................................................ $ 22,831 $ 24,842 Gross unrealized gains .................................................................................................................... 26 10 Gross unrealized losses .................................................................................................................. (155) (1,102) Fair value ........................................................................................................................................ $ 22,702 $ 23,750

Note 5. Investment Partnershi26

Note 5. Investment Partnerships (Tables)	9 Months Ended
	Sep. 30, 2016
Note 5. Investment Partnerships Details Narrative
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 ................................................................ 114,088 92,180 21,908 Contributions (net of distributions) to investment partnerships ..... (10,896) (10,896) Increase in proportionate share of Company stock held ................... 19,807 (19,807) Partnership interest at September 30, 2016 ........................................ $ 837,860 $ 374,966 $ 462,894 Fair Value Company Common Stock Carrying Value Partnership interest at December 31, 2014 ............................................... $ 776,899 $ 78,917 $ 697,982 Investment partnership gains .................................................................... (16,313) (39,023) 22,710 Contributions (net of distributions) to investment partnerships .............. 73,500 73,500 Increase in proportionate share of Company stock held .......................... 255,272 (255,272) Partnership interest at September 30, 2015 .............................................. $ 834,086 $ 295,166 $ 538,920
Fair value of investment partnerships net of deferred taxes	September 30, December 31, 2015 Fair value of investment partnerships ...................................................................................... $ 837,860 $ 734,668 Deferred tax liability related to investment partnerships ......................................................... (116,097) (115,952) Fair value of investment partnerships net of deferred taxes ..................................................... $ 721,763 $ 618,716
Gains from investment partnerships	Third Quarter First Nine Months 2016 2015 2016 2015 Investment partnership gains (losses) ............................................ $ (108,614) $ 5,302 $ 21,908 $ 22,710 Loss on contribution of securities to investment partnership ........ - - (306) - Investment partnership gains (losses) ............................................ (108,614) 5,302 21,602 22,710 Tax expense (benefit) ................................................................... (44,383) (1,688) 2,373 3,163 Contribution to net earnings (loss) ................................................ $ (64,231) $ 6,990 $ 19,229 $ 19,547
Summarized financial information for Equity in Investment Partnerships	Equity in Investment Partnerships Lion Fund Lion Fund II Total assets as of September 30, 2016 ....................................................................... $ 203,507 $ 917,197 Total liabilities as of September 30, 2016 ................................................................ $ 710 $ 174,601 Revenue for the first nine months ending September 30, 2016 ............................ $ 23,926 $ 112,715 Earnings for the first nine months ending September 30, 2016 ........................... $ 23,792 $ 108,327 Biglari Holdings’ Ownership Interest ..................................................................... 64.9% 95.2% 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 nine months ending September 30, 2015....................................... $ (14,112) $ (6,634) Earnings for the first nine months ending September 30, 2015 ...................................... $ (14,199) $ (8,389) Biglari Holdings’ Ownership Interest ............................................................................. 60.9% 93.5%

Note 6. Property and Equipment

Note 6. Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	September 30, December 31, 2015 Land .......................................................................................................................................... $ 161,578 $ 160,697 Buildings ................................................................................................................................... 156,748 156,909 Land and leasehold improvements ........................................................................................... 164,121 165,042 Equipment ................................................................................................................................ 199,790 199,934 Construction in progress .......................................................................................................... 3,207 3,478 685,444 686,060 Less accumulated depreciation and amortization ..................................................................... (365,952) (353,736) Property and equipment, net ................................................................................................... $ 319,492 $ 332,324

Note 7. Goodwill and Other In28

Note 7. Goodwill and Other Intangibles (Tables)	9 Months Ended
	Sep. 30, 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 nine months 2016............. 19 - 19 Goodwill at September 30, 2016 .................................................................... $ 28,128 $ 11,913 $ 40,041
Schedule of Other Intangibles	September 30, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Total Gross carrying amount Accumulated amortization Total Franchise agreement ........................ $ 5,310 $ (3,452) $ 1,858 $ 5,310 $ (3,054) $ 2,256 Other ............................................... 810 (697) 113 810 (667) 143 Total ................................................ 6,120 (4,149) 1,971 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 ..... 3,516 - 3,516 3,398 - 3,398 Total intangible assets .................... $ 25,512 $ (4,149) $ 21,363 $ 25,394 $ (3,721) $ 21,673

Note 8. Restaurant Operations29

Note 8. Restaurant Operations Revenues (Tables)	9 Months Ended
	Sep. 30, 2016
Note 8. Restaurant Operations Revenues
Summary of restaurant operations revenues	Third Quarter First Nine Months 2016 2015 2016 2015 Net sales ............................................................ $ 203,701 $ 203,503 $ 603,850 $ 601,951 Franchise royalties and fees ............................... 4,962 4,017 14,096 12,093 Other ................................................................ 782 828 2,503 2,671 $ 209,445 $ 208,348 $ 620,449 $ 616,715

Note 9. Borrowings (Tables)

Note 9. Borrowings (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of notes payable and other borrowings	Current portion of notes payable and other borrowings September 30, December 31, 2015 Notes payable ...................................................................................................... $ 2,200 $ 2,200 Unamortized original issue discount ..................................................................... (305) (296) Unamortized debt issuance costs .......................................................................... (705) (688) Obligations under leases ....................................................................................... 5,538 5,787 Western revolver ................................................................................................ 432 786 Total current portion of notes payable and other borrowings .............................. $ 7,160 $ 7,789 Long-term notes payable and other borrowings Notes payable ..................................................................................................... $ 201,448 $ 210,175 Unamortized original issue discount .................................................................... (1,172) (1,403) Unamortized debt issuance costs ......................................................................... (2,356) (2,888) Obligations under leases ...................................................................................... 86,357 90,178 Total long-term notes payable and other borrowings .......................................... $ 284,277 $ 296,062

Note 10. Accumulated Other Co31

Note 10. Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Component of accumulated other comprehensive income	Nine months ended September 30, 2016 Nine months ended September 30, 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 .. 163 405 568 (1,760) (348) (2,108) Reclassification to (earnings) loss......................... - 193 193 - 41 41 Ending Balance .......................... $ (2,829) $ (89) $ (2,918) $ (2,380) $ (470) $ (2,850) Third Quarter 2016 Third Quarter 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 .................... $ (2,871) $ (126) $ (2,997) $ (492) $ (470) $ (962) Other comprehensive income (loss) before reclassifications .. 42 37 79 (1,888) (5) (1,893) Reclassification to (earnings) loss......................... - - - - 5 5 Ending Balance .......................... $ (2,829) $ (89) $ (2,918) $ (2,380) $ (470) $ (2,850)
Reclassifications from accumulated other comprehensive income (loss)	Reclassifications from Accumulated Other Comprehensive Income 2016 2015 Affected Line Item in the Investment gain $ - $ (62) Insurance premiums and other (306) - Investment partnership gains (losses) (113) (21) Income tax expense (benefit) $ (193) $ (41) Net of tax Reclassifications from Accumulated Other Comprehensive Income Third Quarter 2016 Third Quarter 2015 Affected Line Item in the Investment gain $ - $ (7) Insurance premiums and other - - Investment partnership gains (losses) - (2) Income tax expense (benefit) $ - $ (5) Net of tax

Note 13. Fair Value of Financ32

Note 13. Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assets And Liabilities	September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents ............................ $ 153 $ - $ - $ 153 $ 700 $ - $ - $ 700 Equity securities: Insurance ..................................... - - - - 5,046 - - 5,046 Consumer goods .......................... 2,337 - - 2,337 - - - - Bonds.............................................. - 25,307 - 25,307 - 21,304 - 21,304 Options on equity securities........... - 2,127 - 2,127 - - - - Non-qualified deferred compensation plan investments... 2,599 - - 2,599 2,203 - - 2,203 Total assets at fair value ................ $ 5,089 $ 27,434 $ - $ 32,523 $ 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)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule Of Revenue by Segment	Third Quarter First Nine Months 2016 2015 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake ................................................... $ 206,248 $ 204,837 $ 609,974 $ 606,138 Western ........................................................... 3,197 3,511 10,475 10,577 Total Restaurant Operations ............................... 209,445 208,348 620,449 616,715 First Guard .......................................................... 5,841 4,391 17,071 11,762 Maxim ............................................................... 1,446 5,704 6,567 17,750 $ 216,732 $ 218,443 $ 644,087 $ 646,227
Schedule of earnings (loss) before income taxes by segment	Third Quarter First Nine Months 2016 2015 2016 2015 Operating Businesses: Restaurant Operations: Steak n Shake ..................................................... $ 10,443 $ 10,826 $ 30,949 $ 30,876 Western .............................................................. 542 708 1,965 1,806 Total Restaurant Operations .................................. 10,985 11,534 32,914 32,682 First Guard ............................................................. 1,177 1,302 4,602 3,101 Maxim .................................................................. (2,810) (4,211) (9,646) (14,270) Other .................................................................... 139 108 404 255 Total Operating Businesses ...................................... 9,491 8,733 28,274 21,768 Corporate and Investments: Corporate ............................................................ (2,304) (2,019) (7,688) (11,463) Investment partnership gains (losses) .................. (108,614) 5,302 21,602 22,710 Total Corporate and Investments .......................... (110,918) 3,283 13,914 11,247 Interest expense on notes payable and other borrowings .......... (2,831) (2,966) (8,626) (8,969) $ (104,258) $ 9,050 $ 33,562 $ 24,046

Note 3. Earnings Per Share (Det

Note 3. Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic earnings per share:
Weighted average common shares	1,215,296	1,263,320	1,227,624	1,655,532
Diluted earnings per share:
Weighted average common shares	1,215,296	1,263,320	1,227,624	1,655,532
Dilutive effect of stock awards	0	2,008	1,311	2,254
Weighted average common and incremental shares	1,215,296	1,265,328	1,228,935	1,657,786
Number of share-based awards excluded from the calculation	3,177	0	0	0

Note 3. Earnings Per Share (D35

Note 3. Earnings Per Share (Details 1) - shares	Sep. 30, 2016	Dec. 31, 2015
Note 3. Earnings Per Share Details 1
Common stock authorized	2,500,000	2,500,000
Common stock issued	2,142,202	2,142,202
Treasury stock held by the Company	(75,237)	(75,511)
Outstanding shares	2,066,965	2,066,691
Proportional ownership of the Company's common stock in investment partnerships	(861,028)	(807,069)
Net outstanding shares for financial reporting purposes	1,205,937	1,259,622

Note 4. Investments (Details)

Note 4. Investments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Schedule of Investments [Abstract]
Cost	$ 22,831	$ 24,842
Gross unrealized gains	26	10
Gross unrealized losses	(155)	(1,102)
Fair value	$ 22,702	$ 23,750

Note 5. Investment Partnershi37

Note 5. Investment Partnerships (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Partnership interest, beginning			$ 471,689
Investment partnership gains (losses)	$ (108,614)	$ 5,302	21,908	$ 22,710
Partnership interest, ending	462,894		462,894
Fair Value
Partnership interest, beginning			734,668	776,899
Investment partnership gains (losses)			114,088	(16,313)
Contributions (net of distributions) to investment partnerships			(10,896)	73,500
Increase in proportionate share of Company stock held			0	0
Partnership interest, ending	837,860	834,086	837,860	834,086
Company common Stock
Partnership interest, beginning			262,979	78,917
Investment partnership gains (losses)			92,180	(39,023)
Contributions (net of distributions) to investment partnerships			0	0
Increase in proportionate share of Company stock held			19,807	255,272
Partnership interest, ending	374,966	295,166	374,966	295,166
Carrying Value
Partnership interest, beginning			471,689	697,982
Investment partnership gains (losses)			21,908	22,710
Contributions (net of distributions) to investment partnerships			(10,896)	73,500
Increase in proportionate share of Company stock held			(19,807)	(255,272)
Partnership interest, ending	$ 462,894	$ 538,920	$ 462,894	$ 538,920

Note 5. Investment Partnershi38

Note 5. Investment Partnerships (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Note 5. Investment Partnerships Details Narrative
Fair value of investment partnerships	$ 837,860	$ 734,668
Deferred tax liability related to investment partnerships	(116,097)	(115,952)
Fair value of investment partnerships net of deferred taxes	$ 721,763	$ 618,716

Note 5. Investment Partnershi39

Note 5. Investment Partnerships (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Note 5. Investment Partnerships Details 2
Investment partnership gains (loss)	$ (108,614)	$ 5,302	$ 21,908	$ 22,710
Loss on contribution of securities to investment partnership	0	0	(306)	0
Investment partnership gains (loss)	(108,614)	5,302	21,602	22,710
Tax expense (benefit)	(44,383)	(1,688)	2,373	3,163
Contributions to net earnings (loss)	$ (64,231)	$ 6,990	$ 19,229	$ 19,547

Note 5. Investment Partnershi40

Note 5. Investment Partnerships (Details 3) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Lion Fund
Total Assets	$ 203,507		$ 165,996
Total Liabilities	710		409
Revenue for nine months period	23,926	$ (14,112)	0
Earnings for nine months period	$ 23,792	$ (14,199)	0
Biglari Holdings' Ownership Interest	64.90%	60.90%
Lion Fund II
Total Assets	$ 917,197		819,323
Total Liabilities	174,601		141,274
Revenue for nine months period	112,715	$ (6,634)	0
Earnings for nine months period	$ 108,327	$ (8,389)	$ 0
Biglari Holdings' Ownership Interest	95.20%	93.50%

Note 5. Investment Partnershi41

Note 5. Investment Partnerships (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Note 5. Investment Partnerships Details Narrative
Proportionate share of Company stock held by investment partnerships at cost	$ 352,634	$ 332,827
Accrued incentive fee	$ 191		$ 413

Note 6. Property and Equipmen42

Note 6. Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Land	$ 161,578	$ 160,697
Buildings	156,748	156,909
Land and leasehold improvements	164,121	165,042
Equipment	199,790	199,934
Construction in progress	3,207	3,478
Property and equipment, gross	685,444	686,060
Less accumulated depreciation and amortization	(365,952)	(353,736)
Property and equipment, net	$ 319,492	$ 332,324

Note 7. Schedule of Goodwill (D

Note 7. Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Balance at beginning of year	$ 40,022
Change in foreign exchange rates during first nine months 2016	19
Balance at end of period	40,041
Restaurant
Balance at beginning of year	28,109
Change in foreign exchange rates during first nine months 2016	19
Balance at end of period	28,128
Other
Balance at beginning of year	11,913
Change in foreign exchange rates during first nine months 2016	0
Balance at end of period	$ 11,913

Note 7. Goodwill and Other In44

Note 7. Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Gross carrying amount	$ 25,512	$ 25,394
Accumulated amortization	(4,149)	(3,721)
Total intangible assets	21,363	21,673
Finite-Lived Intangible Assets [Member]
Gross carrying amount	6,120	6,120
Accumulated amortization	(4,149)	(3,721)
Total intangible assets	1,971	2,399
Franchise Agreement | Finite-Lived Intangible Assets [Member]
Gross carrying amount	5,310	5,310
Accumulated amortization	(3,452)	(3,054)
Total intangible assets	1,858	2,256
Other | Finite-Lived Intangible Assets [Member]
Gross carrying amount	810	810
Accumulated amortization	(697)	(667)
Total intangible assets	113	143
Other | Indefinite-lived Intangible Assets [Member]
Gross carrying amount	3,516	3,398
Accumulated amortization	0	0
Total intangible assets	3,516	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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 428	$ 431
Total annual amortization expense for years 2017 through 2019	$ 559

Note 8. Restaurant Operations46

Note 8. Restaurant Operations Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Note 8. Restaurant Operations Revenues
Net sales	$ 203,701	$ 203,503	$ 603,850	$ 601,951
Franchise royalties and fees	4,962	4,107	14,096	12,093
Other	782	828	2,503	2,671
Restaurant operations revenue	$ 209,445	$ 208,348	$ 620,449	$ 616,715

Note 9. Borrowings (Details)

Note 9. Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current portion of notes payable and other borrowings
Notes payable	$ 2,200	$ 2,200
Unamortized original issue discount	(305)	(296)
Unamortized debt issue costs	(705)	(688)
Obligations under leases	5,538	5,787
Western revolver	432	786
Total current portion of notes payable and other borrowings	7,160	7,789
Long-term notes payable and other borrowings
Notes payable	201,448	210,175
Unamortized original issue discount	(1,172)	(1,403)
Unamortized debt issue costs	(2,356)	(2,888)
Obligations under leases	86,357	90,178
Total long-term notes payable and other borrowings	$ 284,277	$ 296,062

Note 9. Borrowings (Details Nar

Note 9. Borrowings (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Term Loan
Outstanding debt	$ 203,648
Interest rate	4.75%
Steak n Shake Agreement 2014 [Member]
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Beginning Balance	$ (2,997)	$ (962)	$ (3,679)	$ (783)
Other comprehensive income (loss) before reclassifications	79	(1,893)	568	(2,108)
Reclassification to (earnings) loss	0	5	193	41
Ending Balance	(2,918)	(2,850)	(2,918)	(2,850)
Foreign Currency Translation Adjustments
Beginning Balance	(2,871)	(492)	(2,992)	(620)
Other comprehensive income (loss) before reclassifications	42	(1,888)	163	(1,760)
Reclassification to (earnings) loss	0	0	0	0
Ending Balance	(2,829)	(2,380)	(2,829)	(2,380)
Investment Gain (Loss)
Beginning Balance	(126)	(470)	(687)	(163)
Other comprehensive income (loss) before reclassifications	37	(5)	405	(348)
Reclassification to (earnings) loss	0	5	193	41
Ending Balance	$ (89)	$ (470)	$ (89)	$ (470)

Note 10. Accumulated Other Co50

Note 10. Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassifications from Accumulated Other Comprehensive Income (Loss)	$ (193)	$ (41)	$ 0	$ (5)
Insurance Premiums and other [Member]
Reclassifications from Accumulated Other Comprehensive Income (Loss)	0	(62)	0	(7)
Investment partnership gains (losses)
Reclassifications from Accumulated Other Comprehensive Income (Loss)	(306)	0	0	0
Income Tax Expense (benefit) [Member]
Reclassifications from Accumulated Other Comprehensive Income (Loss)	$ (113)	$ (21)	$ 0	$ (2)

Note 11. Income Taxes (Details

Note 11. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income taxes	$ (44,129)	$ (248)	$ 5,011	$ 4,739
Unrecognized tax benefits	$ 366		$ 366		$ 413

Note 13. Fair Value of Financ52

Note 13. Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash equivalents	$ 153	$ 700
Equity securities: Insurance	0	5,046
Equity securities: Consumer goods	2,337	0
Bonds	25,307	21,304
Options on equity securities	2,127	0
Non-qualified deferred compensation plan investments	2,599	2,203
Total assets at fair value	32,523	29,253
Liabilities
Interest rate swaps	0	2
Total liabilities at fair value	0	2
Level 1
Assets
Cash equivalents	153	700
Equity securities: Insurance	0	5,046
Equity securities: Consumer goods	2,337	0
Bonds	0	0
Options on equity securities	0	0
Non-qualified deferred compensation plan investments	2,599	2,203
Total assets at fair value	5,089	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
Equity securities: Consumer goods	0	0
Bonds	25,307	21,304
Options on equity securities	2,127	0
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	27,434	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
Equity securities: Consumer goods	0	0
Bonds	0	0
Options on equity securities	0	0
Non-qualified deferred compensation plan investments	0	0
Total assets at fair value	0	0
Liabilities
Interest rate swaps	0	0
Total liabilities at fair value	$ 0	$ 0

Note 15. Business Segment Rep53

Note 15. Business Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Steak n Shake
Revenue	$ 206,248	$ 204,837	$ 609,974	$ 606,138
Western
Revenue	3,197	3,511	10,475	10,577
Total Restaurant Operations
Revenue	209,445	208,348	620,449	616,715
First Guard
Revenue	5,841	4,391	17,071	11,762
Maxim
Revenue	1,446	5,704	6,567	17,750
Total Revenue
Revenue	$ 216,732	$ 218,443	$ 644,087	$ 646,227

Note 15. Business Segment Rep54

Note 15. Business Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings before income taxes and noncontrolling interests	$ (104,258)	$ 9,050	$ 33,562	$ 24,046
Restaurant | Steak n Shake
Earnings before income taxes and noncontrolling interests	10,443	10,826	30,949	30,876
Restaurant | Western
Earnings before income taxes and noncontrolling interests	542	708	1,965	1,806
Restaurant | Total Restaurant Operations
Earnings before income taxes and noncontrolling interests	10,985	11,534	32,914	32,682
Operating Business
Earnings before income taxes and noncontrolling interests	9,491	8,733	28,274	21,768
Operating Business | First Guard
Earnings before income taxes and noncontrolling interests	1,177	1,302	4,602	3,101
Operating Business | Maxim
Earnings before income taxes and noncontrolling interests	(2,810)	(4,211)	(9,646)	(14,270)
Operating Business | Other
Earnings before income taxes and noncontrolling interests	139	108	404	255
Corporate | Corporate
Earnings before income taxes and noncontrolling interests	(2,304)	(2,019)	(7,688)	(11,463)
Corporate | Investment Partnership Gains (Losses) [Member]
Earnings before income taxes and noncontrolling interests	(108,614)	5,302	21,602	22,710
Corporate | Total Corporate And Investments [Member]
Earnings before income taxes and noncontrolling interests	(110,918)	3,283	13,914	11,247
Reconciliation Of Segments | Interest Expense [Member]
Earnings before income taxes and noncontrolling interests	$ (2,831)	$ (2,966)	$ (8,626)	$ (8,969)