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<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Description of Business</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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, 2017.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 the Company. 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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018, Mr. Biglari’s beneficial ownership was approximately 56.3% of the Company’s
outstanding Class A common stock and 54.3% of the Company’s outstanding Class B common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Issuance of Dual Class Common
Stock </i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 5, 2018, the Company entered
into an agreement with its predecessor registrant, now known as OBH Inc. (the “Predecessor”), and BH Merger Company,
a wholly owned subsidiary of the Company. Pursuant to the agreement, on April 30, 2018, BH Merger Company merged with and into
the Predecessor, with the Predecessor continuing as the surviving corporation and a wholly owned subsidiary of the Company.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the April 30, 2018 transaction,
the Company has two classes of common stock designated Class A common stock and Class B common stock. A share of Class B common
stock has economic rights equivalent to 1/5<sup>th</sup> of a share of Class A common stock; however, Class B common stock
has no voting rights. Upon completion of the transaction, every ten (10) shares of common stock outstanding on April 30, 2018 converted
into (i) ten (10) shares of Class B common stock and (ii) one (1) share of Class A common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Since May 1, 2018, the shares of the
Company’s Class A common stock have traded on the New York Stock Exchange (“NYSE”) under the ticker symbol
“BH.A,” whereas the Class B common stock trades on the NYSE under the ticker symbol “BH,” which is
the former ticker symbol for the Predecessor’s common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For accounting purposes, the April 30,
2018 transaction will be treated as a merger of entities under common control. Accordingly, the consolidated financial position
and results of operations of the Predecessor will be included in the consolidated financial statements on the same basis as currently
presented, except for earnings per share which is impacted by the issuance of the new common shares. The Company has applied the
“two-class method” of computing earnings per share as prescribed in ASC 260, “Earnings Per Share.” </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Principles of Consolidation</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"></p>
<p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt; color: #222222"><font style="background-color: white">In
January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04</font>,
<i>Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment.</i> ASU 2017-04 provides for the elimination
of Step 2 from the goodwill impairment test. If impairment charges are recognized, the amount recorded will be the amount by which
the carrying amount exceeds the reporting unit’s fair value with certain limitations. The ASU is effective for public companies
for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. The Company has adopted
ASU 2017-04 early and will apply the new guidance in the event of any potential goodwill impairment.</p>
<p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 0pt; color: #222222"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2016, the FASB issued ASU 2016-15,
<i>Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. </i>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 adoption of ASU 2016-15 did not have a material effect on our consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU 2016-13,
<i>Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments</i>. ASU 2016-13 amends guidance
on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For available for sale
debt securities, credit losses should be measured in a manner similar to current GAAP; however ASU 2016-13 will require that credit
losses be presented as an allowance rather than as a write-down. The amendments in this update are effective for financial statements
issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently
evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements and related disclosures.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued ASU
2016-02, <i>Leases</i>. ASU 2016-02 requires a lessee to recognize lease assets and lease liabilities on the balance sheet, along
with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for annual and interim periods beginning after
December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, <i>Leases (Topic 842): Targeted Improvements</i>,
which provides an additional transition method with which to adopt the new leases standard. We are currently evaluating
the effect this amended guidance will have on our consolidated balance sheet and results of operations. We anticipate the ASU will
have a material impact on our balance sheet, but the ASU is non-cash in nature and will not affect our cash position.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued ASU 2014-09,
<i>Revenue from Contracts with Customers (Topic 606)</i>. On January 1, 2018, we adopted FASB accounting standards codification
Topic 606 (“ASC 606”). In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting
policy as described below. ASC 606 was applied using the modified retrospective method, where the cumulative effect of the initial
application is recognized as an adjustment to opening retained earnings at January 1, 2018. Comparative prior periods have not
been adjusted.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the impact
of the adoption of ASC 606 on revenues, operating expenses and net earnings for the third quarter of 2018.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">As Reported</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Adjustments<br />
for the <br />
Adoption of<br />
ASC 606</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Amounts without<br />
Adoption of<br />
ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Statements of Earnings</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Revenues </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Restaurant operations </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Net sales </td>
<td> </td>
<td style="text-align: right"> $        186,368</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $                  -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $        186,368</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Franchise royalties and fees </td>
<td> </td>
<td style="text-align: right">               7,762</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,157</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               5,605</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Other </td>
<td> </td>
<td style="text-align: right">                  911</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                    63</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  848</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Selling, general and administrative</td>
<td> </td>
<td style="text-align: right">             32,311</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,425</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             29,886</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Earnings (loss) before income taxes </td>
<td> </td>
<td style="text-align: right">            (24,902</td>
<td style="text-align: right">) </td>
<td style="text-align: right">                 (205)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (24,697)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Income tax expense (benefit) </td>
<td> </td>
<td style="text-align: right">            (11,199)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                   (51)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (11,148)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Net earnings (loss)</td>
<td> </td>
<td style="text-align: right">            (13,703)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (154)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (13,549)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the impact
of the adoption of ASC 606 on revenues, operating expenses and net earnings for the first nine months of 2018.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">As Reported</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Adjustments<br />
for the <br />
Adoption of<br />
ASC 606</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Amounts without<br />
Adoption of<br />
ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Statements of Earnings</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Revenues </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Restaurant operations </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Net sales</td>
<td> </td>
<td style="text-align: right"> $        563,736</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $                  -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $        563,736</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Franchise royalties and fees </td>
<td> </td>
<td style="text-align: right">             22,637</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               6,859</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             15,778</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Other</td>
<td> </td>
<td style="text-align: right">               3,196</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  357</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,839</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Selling, general and administrative</td>
<td> </td>
<td style="text-align: right">             97,911</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               7,388</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             90,523</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Earnings (loss) before income taxes </td>
<td> </td>
<td style="text-align: right">            (35,942)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (172)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (35,770)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Income tax expense (benefit)</td>
<td> </td>
<td style="text-align: right">            (12,886)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                   (43)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (12,843)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Net earnings (loss) </td>
<td> </td>
<td style="text-align: right">            (23,056)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (129)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (22,927)</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The impact of ASC 606 on the Company’s
balance sheet as of September 30, 2018 was not material. The cumulative change in retained earnings as of January 1, 2018 was $90.
Upon adoption of ASC 606, the Company changed its restaurant operations accounting policies for the recognition of franchise fees,
recording of advertising arrangements, and recognition of gift card revenue. See additional revenue disclosures in Note 8 Restaurant
Operations Revenues. The adoption of ASC 606 did not have any significant impact on our insurance or media businesses.</p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. (collectively, the “investment partnerships”) —
based on our proportional ownership during this period — are considered treasury stock on the consolidated balance sheet
and thereby deemed not to be included in the calculation of weighted average common shares outstanding. However, these shares
are legally outstanding.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the transaction on April
30, 2018, the Predecessor’s common stock converted into the right to receive shares of Class A common stock and Class B common
stock. The treasury shares outstanding on April 30, 2018, were retired and not converted into Class A and Class B common stock.
The following table presents shares authorized, issued and outstanding on</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">September 30, 2018 and December 31, 2017.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; text-align: center">September 30, 2018</td>
<td> </td>
<td style="text-align: center">December 31,</td></tr>
<tr style="vertical-align: middle">
<td style="width: 58%"> </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Class A</td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Class B</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">2017</td></tr>
<tr style="vertical-align: bottom">
<td>Common stock authorized</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">           500,000</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">      10,000,000</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,500,000</td></tr>
<tr style="vertical-align: middle">
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: middle">
<td>Common stock issued </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right">           206,864</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">        2,068,640</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">        2,142,202</td></tr>
<tr style="vertical-align: middle">
<td>Treasury stock held by the Company</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                     -   </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                     -   </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           (74,589)</td></tr>
<tr style="vertical-align: middle">
<td>Outstanding shares </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">           206,864</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,068,640</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,067,613</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The issuance of dual class common stock
on April 30, 2018 is applied on a retrospective basis for the calculation of earnings per share. Accordingly, earnings per share
for the first nine months of 2018 and 2017 are impacted by the issuance of the new common shares. The Company has applied the “two-class
method” of computing earnings per share as prescribed in ASC 260, “Earnings Per Share.” </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On an equivalent Class A common stock
basis, there were 620,592 shares outstanding as of September 30, 2018 and 620,284 shares outstanding as of December 31, 2017.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For financial reporting purposes, the
proportional ownership of the Company’s common stock owned by the investment partnerships is excluded in the earnings per
share calculation. After giving effect for the investment partnerships’ proportional ownership of common stock, the equivalent
Class A weighted average common shares during the third quarters of 2018 and 2017 were 346,912 and 368,880, respectively. The equivalent
Class A weighted average common shares during the first nine months of 2018 and 2017 were 348,678 and 369,363, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Each Class A common share is entitled
to one vote. Class B common stock possesses economic rights equal to one-fifth (1/5<sup>th</sup>) of such rights of Class A common
stock; however, Class B common stock has no voting rights.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments consisted of the following.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 73%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%"><p style="margin-top: 0; margin-bottom: 0">September 30, </p>
<p style="margin-top: 0; margin-bottom: 0">2018</p></td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%"><p style="margin-top: 0; margin-bottom: 0">December 31, </p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: middle">
<td>Cost</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $          27,700</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $          23,216</td></tr>
<tr style="vertical-align: middle">
<td>Gross unrealized gains</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">                    90</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">                    73</td></tr>
<tr style="vertical-align: middle">
<td>Fair value </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          27,790</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          23,289</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; color: #222222"><font style="background-color: white"> </font>Investments
in equity securities and a related put option of $4,463 are included in other current assets as of September 30, 2018 and in
other assets as of December 31, 2017. An investment in equity securities of $4,100 is included in other assets as of
September 30, 2018. The investments are recorded at fair value. </p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Biglari Capital Corp. (“Biglari
Capital”) is the general partner of the investment partnerships and is an entity solely owned by Mr. Biglari.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value and adjustment for Company
common stock held by the investment partnerships to determine the carrying value of our partnership interest is presented below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 59%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 14%">Fair Value</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Company Common Stock</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">Carrying Value</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at December 31, 2017</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> $            925,279</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $           359,258</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $      566,021</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Investment partnership gains (losses)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">             (152,261)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">            (128,407)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (23,854)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Contributions (net of distributions) to investment partnerships </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">               (26,360)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (26,360)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Increase in proportionate share of Company stock held </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">                19,152</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (19,152)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Partnership interest at September 30, 2018 </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $            746,658</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $           250,003</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      496,655</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Fair Value</td>
<td style="text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Company Common Stock</td>
<td style="text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Carrying Value</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at December 31, 2016</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> $            972,707</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $           395,070</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $      577,637</td></tr>
<tr>
<td style="vertical-align: middle">Investment partnership gains (losses) </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">             (149,171)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">            (117,582)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">          (31,589)</td></tr>
<tr>
<td style="vertical-align: middle">Contributions (net of distributions) to investment partnerships</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">                 (5,688)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">            (5,688)</td></tr>
<tr>
<td style="vertical-align: middle">Increase in proportionate share of Company stock held </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">                  3,176</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">            (3,176)</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at September 30, 2017 </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $            817,848</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $           280,664</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      537,184</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The carrying value of the investment partnerships net of deferred
taxes is presented below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 72%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">September 30, <br />
2018</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">December 31, 2017</td></tr>
<tr style="vertical-align: middle">
<td>Carrying value of investment partnerships</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $         496,655</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $        566,021</td></tr>
<tr style="vertical-align: middle">
<td>Deferred tax liability related to investment partnerships</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">             (84,370)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           (95,309)</td></tr>
<tr style="vertical-align: middle">
<td>Carrying value of investment partnerships net of deferred taxes </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $         412,285</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        470,712</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Company’s proportionate share of
Company stock held by investment partnerships at cost is $374,091 and $354,939 at September 30, 2018 and December 31, 2017, respectively,
and is recorded as treasury stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of the partnership
interest approximates fair value adjusted by the value of held Company stock. Fair value is according to our proportional ownership
interest of the fair value of investments held by the investment partnerships. The fair value measurement is classified as level
3 within the fair value hierarchy.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Gains (losses) from investment partnerships recorded in the
Company’s consolidated statements of earnings are presented below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> Third Quarter </td>
<td style="text-align: right"> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> First Nine Months </td></tr>
<tr>
<td style="vertical-align: bottom; width: 32%; text-align: center"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center"> </td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2018 </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: center; width: 1%"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2017 </td>
<td style="vertical-align: bottom; width: 1%; text-align: center"> </td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2018 </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: center; width: 1%"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2017 </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Gains (losses) on investment partnership</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $      (19,008)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $      (43,859)</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> $      (23,854)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $      (31,589)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Tax expense (benefit) </td>
<td> </td>
<td style="font-weight: bold; text-align: right">           (6,119)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">         (20,733)</td>
<td> </td>
<td style="font-weight: bold; text-align: right">           (8,163)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">         (16,951)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Contribution to net earnings (loss) </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (12,889)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (23,126)</td>
<td> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (15,691)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (14,638)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 31 of each year, the general
partner of the investment partnerships will earn an incentive reallocation fee for the Company’s investments equal to 25%
of the net profits above a hurdle rate of 6% over the previous high-water mark. Our policy is to accrue an estimated incentive
fee throughout the year. The Company did not accrue an incentive fee during the first nine months of 2018 or 2017. Our investments
in these partnerships are committed on a rolling 5-year basis. </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Summarized financial information for The Lion Fund, L.P. and
The Lion Fund II, L.P. is presented below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Equity in Investment Partnerships</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold; width: 63%"> </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Lion Fund</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Lion Fund II</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Total assets as of September 30, 2018 </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             149,516</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             903,889</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Total liabilities as of September 30, 2018</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $                    208</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             200,832</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Revenue for the first nine months of 2018</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             (49,895)</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $           (122,622)</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Earnings (loss) for the first nine months of 2018 </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             (49,944)</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $           (129,691)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Biglari Holdings’ ownership interest as of September 30, 2018 </td>
<td style="font-weight: bold; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">65.8%</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">92.2%</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Total assets as of December 31, 2017 </td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             203,560</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $          1,060,737</td></tr>
<tr style="vertical-align: middle">
<td>Total liabilities as of December 31, 2017</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $                    157</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             199,974</td></tr>
<tr style="vertical-align: middle">
<td>Revenue for the first nine months of 2017 </td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (47,656)</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (89,110)</td></tr>
<tr style="vertical-align: middle">
<td>Earnings (loss) for the first nine months of 2017 .</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (47,703)</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $           (127,970)</td></tr>
<tr>
<td style="vertical-align: middle">Biglari Holdings’ ownership interest as of September 30, 2017 </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">63.9%</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right">93.0%</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; color: #222222"><font style="background-color: white">Transactions
with The Lion Fund II, L.P. were as follows</font>.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Third Quarter</td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2018</td>
<td style="width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2017</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2018</td>
<td style="width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Contributions</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $          7,340</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> $                -   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $          7,340</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> $          3,707</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Return of capital</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">         (26,000)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">-   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">(26,000)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">-   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Distributions</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">-   </td>
<td style="text-align: left"> </td>
<td style="text-align: right">           (4,380)</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">         (7,700)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">           (9,395)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (18,660)</td>
<td style="text-align: left"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        (4,380)</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (26,360)</td>
<td style="text-align: left"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        (5,688)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">Property and equipment is composed
of the following.</font></p>
<p style="margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 73%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">September 30,<br />
2018</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">December 31, 2017</td></tr>
<tr style="vertical-align: middle">
<td>Land</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $        150,222</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $        156,506</td></tr>
<tr style="vertical-align: middle">
<td>Buildings </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">146,675</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           152,610</td></tr>
<tr style="vertical-align: middle">
<td>Land and leasehold improvements</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">161,105</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           162,652</td></tr>
<tr style="vertical-align: middle">
<td>Equipment </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">201,471</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           203,145</td></tr>
<tr style="vertical-align: middle">
<td>Construction in progress </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">1,863</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">               1,782</td></tr>
<tr style="vertical-align: middle">
<td> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">           661,336</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           676,695</td></tr>
<tr style="vertical-align: middle">
<td>Less accumulated depreciation and amortization</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">(379,731)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">(380,895)</td></tr>
<tr style="vertical-align: middle">
<td>Property and equipment, net </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        281,605</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        295,800</td></tr>
</table>
<p style="margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Goodwill</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill consists of the excess of the
purchase price over the fair value of the net assets acquired in connection with business acquisitions.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of the change in the
carrying value of goodwill is as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 33%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 5%"> Restaurants </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 6%"> Other </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 5%"> Total </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Goodwill at December 31, 2017 </td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="text-align: right"> $        28,168</td>
<td style="padding-left: 9px; text-align: left"> </td>
<td style="text-align: right"> $          11,913</td>
<td style="padding-left: 9px; text-align: left"> </td>
<td style="text-align: right"> $      40,081</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Change in foreign exchange rates during the first nine months 2018 </td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 (20)</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">                    -   </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">               (20)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Goodwill at September 30, 2018 </td>
<td> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        28,148</td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          11,913</td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      40,061</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. 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 2018
or 2017.<br />
<br />
</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Other Intangible Assets</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other intangible assets are composed
of the following.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross carrying amount</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Accumulated amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Gross carrying amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left">Franchise agreement</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">5,310</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(4,514</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">796</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">5,310</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(4,116</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,194</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">810</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(767</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">43</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">810</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(743</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">67</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td>Total</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,120</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(5,281</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">839</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,859</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,261</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Intangible assets with indefinite lives:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Trade names</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,876</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,876</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,876</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,876</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other assets with indefinite lives</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,427</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,427</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">33,524</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(5,281</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">28,243</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31,423</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,859</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">26,564</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 2018 and 2017 was $422 and $426, respectively. The Company’s intangible
assets with definite lives will fully amortize in 2020. Total annual amortization expense for 2019 is expected to be approximately
$500. Intangible assets with indefinite lives consist of trade names, franchise rights as well as lease rights. During the
first nine months of 2018, the Company purchased lease rights totaling $2,556.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Restaurant operations revenues were as
follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left">Net sales</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">186,368</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">199,980</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">563,736</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">587,532</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Franchise royalties and fees</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,762</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,125</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">22,637</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,030</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">911</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">967</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,196</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,071</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">195,041</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">206,072</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">589,569</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">606,633</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 606-10-50, the
Company disaggregates revenue from contracts with customers. The only Company segment that was affected significantly by ASC 606
was restaurants. The Company’s accounting policies and practices related to restaurant operations revenues consist of the
following under ASC 606.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Net sales</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Net sales were composed of retail sales
of food through Company-owned stores. Company-owned store revenues are recognized when control of the food items are transferred
to our customers at the point of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate
taxing authority and are not reflected in the Company’s consolidated statements of income as revenue.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Franchise royalties and fees</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Franchise royalties and fees are composed
of royalties and fees from Steak n Shake and Western Sizzlin franchisees. Royalty revenues are based on a percentage of franchise
sales and are recognized when the retail food items are purchased by franchise customers. Initial franchise fees received are deferred
when amounts are received and recognized as revenue on a straight-line basis over the term of each respective franchise agreement,
which is typically 20 years. This represents a change in methodology under the adoption of ASC 606 for we have historically recognized
initial franchise fees upon the opening of a franchise restaurant.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended September 30,
2018 and the first nine months of 2018, restaurant operations recognized $632 and $1,719, respectively, in revenue related to initial
franchise fees. As of September 30, 2018 and January 1, 2018, restaurant operations had deferred revenue related to franchise fees
of $10,075 and $10,581, respectively. Restaurant operations expects to recognize approximately $134 of deferred revenue during
the remainder of 2018, approximately $579 in 2019 and the balance in the years 2020 through 2038.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Our advertising arrangements with franchisees
are reported in franchise royalties and fees. This represents a change in methodology under the adoption of ASC 606 as we have
historically reported advertising funds from the franchisees as an offset to marketing expense in our consolidated statement of
earnings.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended September 30,
2018 and the first nine months of 2018, restaurant operations recognized $2,389 and $7,235, respectively, in revenue related to
franchisee advertising fees. As of September 30, 2018 and January 1, 2018, restaurant operations had deferred revenue related to
franchisee advertising fees of $2,511 and $2,064, respectively. Restaurant operations expects to recognize approximately $502 of
deferred revenue during the remainder of 2018 and the balance in 2019.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Gift card revenue</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Restaurant operations sells gift cards
to customers which can be redeemed for retail food sales within our stores. Gift cards are recorded as deferred revenue when issued
and are subsequently recorded as net sales upon redemption. Restaurant operations estimates breakage related to gift cards when
the likelihood of redemption is remote. This estimate utilizes historical trends based on the vintage of the gift card. Breakage
on gift cards is recorded as other revenue in proportion to the rate of gift card redemptions by vintage. This represents a change
in the methodology under the adoption of ASC 606 used to estimate breakage as we have historically recognized breakage for the
portion of the gift card balances that remained outstanding following 48 months of issuance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For the quarter ended September 30, 2018
and the first nine months of 2018, restaurant operations recognized $5,747 and $21,405, respectively, of revenue from gift card
redemptions. As of September 30, 2018 and January 1, 2018, restaurant operations had deferred revenue related to unredeemed gift
cards of $15,111 and $20,968, respectively. The Company expects to recognize approximately $3,597 of deferred revenue during the
remainder of 2018, approximately $8,246 in 2019, and the balance in the years 2020 through 2022.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts payable and accrued expenses
include the following.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">September 30, </p>
<p style="margin-top: 0; margin-bottom: 0">2018</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">December 31,</p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; text-align: left">Accounts payable</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">35,597</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">40,616</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Gift card liability</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,112</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,436</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Salaries, wages, and vacation</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10,829</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,875</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Taxes payable</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11,756</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,571</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Workers' compensation and other self-insurance accruals</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10,074</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Deferred revenue</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">14,463</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,522</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,592</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,677</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Accounts payable and accrued expenses</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">107,423</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">128,744</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">Notes payable and other borrowings include the following.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Current portion of notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, <br /> 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">December 31,</p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; text-align: left">Notes payable</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">2,200</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,200</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized original issue discount</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(331</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(321</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Unamortized debt issuance costs</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(603</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(585</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Obligations under leases</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,792</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,279</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Western revolver</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">175</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Total current portion of notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,058</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6,748</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: right"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Long-term notes payable and other borrowings</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Notes payable</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">182,048</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">183,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized original issue discount</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(522</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(772</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Unamortized debt issuance costs</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(951</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,405</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Obligations under leases</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">64,808</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">75,473</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total long-term notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">245,383</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">256,994</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Steak n Shake Credit Facility</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 19, 2014, Steak n Shake and
its subsidiaries entered into a credit agreement which provided for a senior secured term loan facility in an aggregate principal
amount of $220,000 and a senior secured revolving credit facility in an aggregate principal amount of up to $30,000. On October
27, 2017, Steak n Shake determined to end the use of its senior secured revolving credit facility. Steak n Shake has used cash
deposits to satisfy required collateral for casualty insurance previously collateralized by letters of credit issued through the
revolving credit facility. The deposits are recorded in other assets as restricted cash in the consolidated balance sheets.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The interest rate on the term loan was
6.00% as of September 30, 2018.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The credit agreement includes customary
affirmative and negative covenants and events of default. Steak n Shake’s credit facility contains restrictions on its ability
to pay dividends to Biglari Holdings.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The term loan is 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, 2018, $184,248 was outstanding under the term loan.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Western Revolver</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018, no amount was
outstanding under the Western revolver.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first nine months of 2018
and 2017, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30, 2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Accumulated<br /> other<br /> comprehensive income (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left">Beginning Balance  </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(1,462</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">58</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(1,404</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(3,447</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(137</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(3,584</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Other comprehensive income</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(loss) before reclassifications</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Reclassification to</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(earnings) loss</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(58</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(58</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency translation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(783</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(783</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,750</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,750</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Ending Balance</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,697</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,665</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarters of 2018 and
2017, the changes in the balances of each component of accumulated other comprehensive income, net of tax, were as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Third Quarter 2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Accumulated<br /> other<br /> comprehensive income (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left">Beginning Balance  </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(2,107</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(2,107</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(2,259</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(14</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(2,273</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Other comprehensive income</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(loss) before reclassifications</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Reclassification to</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(earnings) loss</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency translation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(138</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(138</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">562</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">562</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Ending Balance</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,697</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,665</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Reclassifications made from accumulated
other comprehensive income to the consolidated statement of earnings during the first nine months of 2018 was $58; there were no
reclassifications from accumulated other comprehensive income to earnings during the third quarters of 2018 and 2017, and first
nine months of 2017.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Income tax benefit for the third quarter
of 2018 was $11,199 compared to $25,226 for the third quarter of 2017. Income tax benefit for the first nine months of 2018
was $12,886 compared to $21,085 for the first nine months of 2017. The Tax Cuts and Jobs Act was signed into law on December 22,
2017. The U.S. corporate federal statutory income tax rate was reduced from 35.0% to 21.0% for tax years beginning in 2018. The
variance in income taxes between 2018 and 2017 is attributable to the reduced corporate tax rate and taxes on income and losses
generated by the investment partnerships.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018 and December
31, 2017, we had approximately $336 and $357, respectively, of unrecognized tax benefits, which are included in other liabilities
in the consolidated balance sheets.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 29, 2018, a shareholder of
the Company filed a purported class action complaint against the Company and the members of our Board of Directors in the Superior
Court of Hamilton County, Indiana. The shareholder generally alleges claims of breach of fiduciary duty by the members of our Board
of Directors and unjust enrichment to Mr. Biglari as a result of the issuance of dual class common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 26, 2018, a shareholder
of the Company filed a purported class action complaint against the Company and the members of our Board of Directors in the Superior
Court of Hamilton County, Indiana. This shareholder generally alleges claims of breach of fiduciary duty by the members of our
Board of Directors. This shareholder sought to enjoin the shareholder vote on April 26, 2018 to approve the issuance of dual class
common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 16, 2018, the shareholders withdrew
their motions to enjoin the shareholder vote on April 26, 2018.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 17, 2018, the shareholders who
filed the January 29, 2018 complaint and the March 26, 2018 complaint filed a new, consolidated complaint against the Company and
the members of our Board of Directors in the Superior Court of Hamilton County, Indiana. The shareholders generally allege claims
of breach of fiduciary duty by the members of our Board of Directors and unjust enrichment to Mr. Biglari arising out of the recent
recapitalization of Biglari Holdings Inc. and the related issuance of dual class common stock. The shareholders seek, for themselves
and on behalf of all other shareholders as a class (other than the individual defendants and those related to or affiliated with
them), to seek a declaration that the defendants breached their duty to the shareholders and the class, and to recover unspecified
damages, pre-judgment and post-judgment interest, and an award of their attorneys’ fees and other costs.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company believes the claims in each
case are without merit and intends to defend these cases vigorously.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The hierarchy for measuring fair value
consists of Levels 1 through 3, which are described below.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Level 1 – Inputs
represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets. </font></td></tr></table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">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.</font></td></tr></table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">·</font></td><td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">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.</font></td></tr></table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following methods and assumptions
were used to determine the fair value of each class of the following assets recorded at fair value in the consolidated balance
sheet:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash equivalents:</i> Cash equivalents
primarily consist of money market funds which are classified within Level 1 of the fair value hierarchy.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Equity securities: </i>The Company’s
investments in equity securities are classified within Level 1 of the fair value hierarchy. </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Bonds:</i> The Company’s investments
in bonds are classified within Level 2 of the fair value hierarchy.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Non-qualified deferred compensation
plan investments: </i>The assets of the non-qualified plan are set up in a rabbi trust. They represent mutual funds and are classified
within Level 1 of the fair value hierarchy.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Derivative instruments:</i> Options
related to equity securities are marked to market each reporting period and are classified within Level 2 of the fair value hierarchy.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018 and December
31, 2017, the fair values of financial assets were as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold"> </td>
<td colspan="15" style="font-weight: bold; text-align: right"> </td><td> </td>
<td colspan="15" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 3</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Total</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Assets</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 28%; text-align: left">Cash equivalents</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">5,592</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">5,592</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">5,785</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">5,785</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Equity securities:</td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Consumer goods</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,351</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,351</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,445</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,445</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Bonds</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">30,420</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">30,420</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,901</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,901</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Options on equity securities</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,212</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,212</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,018</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Non-qualified deferred</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">compensation plan</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">investments</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,901</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,901</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,459</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,459</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total assets at fair value</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">14,844</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,632</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">47,476</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,689</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,919</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">39,608</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no changes in our valuation
techniques used to measure fair values on a recurring basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Services Agreement</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 15, 2017, the Company entered
into a services agreement with Biglari Enterprises LLC and Biglari Capital (collectively, the “Biglari Entities”).
The Biglari Entities are owned by Mr. Biglari. The services agreement replaces the shared services agreement between the Company
and Biglari Capital dated July 1, 2013. The services agreement was executed in connection with a review of the relationships and
transactions between the Company and Biglari Capital. After careful consideration, including an assessment by a public accounting
firm of administrative-related costs incurred by the Company in connection with its investments, the Company’s Governance,
Compensation and Nominating Committee, comprised solely of independent board members, approved the services agreement. Under the
terms of the services agreement, the Company will no longer provide business and administrative related services to Biglari Capital.
Instead, the Biglari Entities will assume the responsibility to provide the services and the Company will pay a fixed fee to the
Biglari Entities.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The services agreement has a five-year
term, effective on October 1, 2017. The fixed fee is $700 per month for the first year with adjustments in years two through five.
The services agreement does not alter the hurdle rate connected with the incentive reallocation paid to Biglari Capital by the
Company.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i></i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Incentive Agreement Amendment</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2013, Biglari Holdings and Mr.
Biglari entered into an amendment to the Incentive Agreement to exclude earnings by the investment partnerships from the calculation
of Mr. Biglari’s incentive bonus. Under the Amended and Restated Incentive Agreement Mr. Biglari would receive a payment
of approximately $13,000 if an event occurred entitling him to a severance payment.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>License Agreement</i></b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 11, 2013, the Company entered
into a Trademark License Agreement (the “License Agreement”) with Mr. Biglari. The License Agreement was unanimously
approved by the Governance, Nominating and Compensation Committee (comprised of independent members of the Company’s Board
of Directors). 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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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>i.e.</i>, to revenues received with respect to the
period prior to the Triggering Event). The royalty would apply to revenues recorded by the Company on an accrual basis under GAAP,
solely with respect to the defined period of time after the Triggering Event equal to the Royalty Period, from a covered Product,
Service or business that (1) has used the Biglari Holdings or Biglari name at any time during the term of the License Agreement,
whether prior to or after a Triggering Event, or (2) the Company has specifically identified, prior to a Triggering Event, will
use the name Biglari or Biglari Holdings.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">“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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Governance, Nominating and Compensation
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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The actual amount of royalties paid to
Mr. Biglari following the occurrence of a Triggering Event (as defined in the 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, 2017,
using revenue from 2017 as an estimate of future revenue and calculated according to terms of the License Agreement, Mr. Biglari
would receive approximately $20,000 in royalty payments annually. At a minimum, the royalties would be earned on revenue generated
from January 1, 2018 through December 21, 2024. Royalty payments beyond the minimum period would be subject to the licensee's continued
use of the licensed marks.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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. The Company also reports segment information for First Guard and Maxim. Other business activities not specifically
identified with reportable business segments are presented in “other” within total operating businesses. We report
our earnings from investment partnerships separate from our corporate expenses. We assess and measure segment operating results
based on segment earnings as disclosed below. Segment earnings from operations are neither necessarily indicative of cash available
to fund cash requirements, nor synonymous with cash flow from operations. The tabular information that follows shows data of our
reportable segments reconciled to amounts reflected in the consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue for the third quarters and first
nine months of 2018 and 2017 were as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Revenue</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; text-align: left">Operating Businesses:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left; padding-left: 18px">Steak n Shake</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">191,240</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">202,001</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">578,111</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">596,026</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 18px">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,801</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,071</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,458</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,607</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Total Restaurant Operations</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">195,041</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">206,072</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">589,569</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">606,633</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">First Guard</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,038</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,285</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">20,330</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,548</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Maxim</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,503</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,877</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,647</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,400</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">203,582</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">214,234</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">614,546</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">630,581</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings (losses) before income taxes
for the third quarters and first nine months of 2018 and 2017 were as follows.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Earnings (Losses) Before Income Taxes</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; text-align: left">Operating Businesses:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left; padding-left: 18px">Steak n Shake</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">(3,172</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(3,283</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">(1,505</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,038</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 18px">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">516</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">479</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,564</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,514</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Total Restaurant Operations</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,656</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,804</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">59</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,552</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">First Guard</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,813</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">834</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,624</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,135</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Maxim</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">111</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(90</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(487</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">171</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">174</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">474</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">515</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Total Operating Businesses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(561</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,751</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,067</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,715</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Corporate and Investments:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Corporate</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,366</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,600</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(8,536</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,285</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Investment partnership gains (losses)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(19,008</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(43,859</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(23,854</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(31,589</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Total Corporate and Investments</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(21,374</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(45,459</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(32,390</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(37,874</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Interest expense on notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,967</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,716</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(8,619</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,321</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(24,902</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(49,926</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(35,942</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(40,480</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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, 2017.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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 the Company. 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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018, Mr. Biglari’s beneficial ownership was approximately 56.3% of the Company’s
outstanding Class A common stock and 54.3% of the Company’s outstanding Class B common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">As Reported</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Adjustments<br />
for the <br />
Adoption of<br />
ASC 606</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Amounts without<br />
Adoption of<br />
ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Statements of Earnings</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Revenues </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Restaurant operations </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Net sales </td>
<td> </td>
<td style="text-align: right"> $        186,368</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $                  -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $        186,368</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Franchise royalties and fees </td>
<td> </td>
<td style="text-align: right">               7,762</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,157</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               5,605</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Other </td>
<td> </td>
<td style="text-align: right">                  911</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                    63</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  848</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Selling, general and administrative</td>
<td> </td>
<td style="text-align: right">             32,311</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,425</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             29,886</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Earnings (loss) before income taxes </td>
<td> </td>
<td style="text-align: right">            (24,902</td>
<td style="text-align: right">) </td>
<td style="text-align: right">                 (205)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (24,697)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Income tax expense (benefit) </td>
<td> </td>
<td style="text-align: right">            (11,199)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                   (51)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (11,148)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Net earnings (loss)</td>
<td> </td>
<td style="text-align: right">            (13,703)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (154)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (13,549)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">As Reported</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Adjustments<br />
for the <br />
Adoption of<br />
ASC 606</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Amounts without<br />
Adoption of<br />
ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Statements of Earnings</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Revenues </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Restaurant operations </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Net sales</td>
<td> </td>
<td style="text-align: right"> $        563,736</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $                  -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $        563,736</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Franchise royalties and fees </td>
<td> </td>
<td style="text-align: right">             22,637</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               6,859</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             15,778</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 27px; text-align: left">Other</td>
<td> </td>
<td style="text-align: right">               3,196</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  357</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               2,839</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Selling, general and administrative</td>
<td> </td>
<td style="text-align: right">             97,911</td>
<td style="text-align: right"> </td>
<td style="text-align: right">               7,388</td>
<td style="text-align: right"> </td>
<td style="text-align: right">             90,523</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Earnings (loss) before income taxes </td>
<td> </td>
<td style="text-align: right">            (35,942)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (172)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (35,770)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Income tax expense (benefit)</td>
<td> </td>
<td style="text-align: right">            (12,886)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                   (43)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (12,843)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 9px; text-align: left">Net earnings (loss) </td>
<td> </td>
<td style="text-align: right">            (23,056)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 (129)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">            (22,927)</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; text-align: center">September 30, 2018</td>
<td> </td>
<td style="text-align: center">December 31,</td></tr>
<tr style="vertical-align: middle">
<td style="width: 58%"> </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Class A</td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">Class B</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">2017</td></tr>
<tr style="vertical-align: bottom">
<td>Common stock authorized</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">           500,000</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">      10,000,000</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,500,000</td></tr>
<tr style="vertical-align: middle">
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: middle">
<td>Common stock issued </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right">           206,864</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">        2,068,640</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">        2,142,202</td></tr>
<tr style="vertical-align: middle">
<td>Treasury stock held by the Company</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                     -   </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                     -   </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           (74,589)</td></tr>
<tr style="vertical-align: middle">
<td>Outstanding shares </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">           206,864</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,068,640</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">        2,067,613</td></tr>
</table>
<p style="margin: 0pt"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 73%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%"><p style="margin-top: 0; margin-bottom: 0">September 30, </p>
<p style="margin-top: 0; margin-bottom: 0">2018</p></td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%"><p style="margin-top: 0; margin-bottom: 0">December 31, </p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: middle">
<td>Cost</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $          27,700</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $          23,216</td></tr>
<tr style="vertical-align: middle">
<td>Gross unrealized gains</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">                    90</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">                    73</td></tr>
<tr style="vertical-align: middle">
<td>Fair value </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          27,790</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          23,289</td></tr>
</table>
<p style="margin: 0pt"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 59%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 14%">Fair Value</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Company Common Stock</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">Carrying Value</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at December 31, 2017</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> $            925,279</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $           359,258</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $      566,021</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Investment partnership gains (losses)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">             (152,261)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">            (128,407)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (23,854)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Contributions (net of distributions) to investment partnerships </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">               (26,360)</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (26,360)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Increase in proportionate share of Company stock held </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">                19,152</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">          (19,152)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Partnership interest at September 30, 2018 </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $            746,658</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $           250,003</td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      496,655</td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Fair Value</td>
<td style="text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Company Common Stock</td>
<td style="text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">Carrying Value</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at December 31, 2016</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> $            972,707</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $           395,070</td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right"> $      577,637</td></tr>
<tr>
<td style="vertical-align: middle">Investment partnership gains (losses) </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">             (149,171)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">            (117,582)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">          (31,589)</td></tr>
<tr>
<td style="vertical-align: middle">Contributions (net of distributions) to investment partnerships</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">                 (5,688)</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">            (5,688)</td></tr>
<tr>
<td style="vertical-align: middle">Increase in proportionate share of Company stock held </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">                  3,176</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">            (3,176)</td></tr>
<tr>
<td style="vertical-align: middle">Partnership interest at September 30, 2017 </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $            817,848</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $           280,664</td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      537,184</td></tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 72%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">September 30, <br />
2018</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">December 31, 2017</td></tr>
<tr style="vertical-align: middle">
<td>Carrying value of investment partnerships</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $         496,655</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $        566,021</td></tr>
<tr style="vertical-align: middle">
<td>Deferred tax liability related to investment partnerships</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">             (84,370)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           (95,309)</td></tr>
<tr style="vertical-align: middle">
<td>Carrying value of investment partnerships net of deferred taxes </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $         412,285</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        470,712</td></tr>
</table>
<p style="margin: 0pt"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> Third Quarter </td>
<td style="text-align: right"> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> First Nine Months </td></tr>
<tr>
<td style="vertical-align: bottom; width: 32%; text-align: center"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center"> </td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2018 </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: center; width: 1%"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2017 </td>
<td style="vertical-align: bottom; width: 1%; text-align: center"> </td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2018 </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: center; width: 1%"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; width: 6%"> 2017 </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Gains (losses) on investment partnership</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $      (19,008)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $      (43,859)</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> $      (23,854)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $      (31,589)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Tax expense (benefit) </td>
<td> </td>
<td style="font-weight: bold; text-align: right">           (6,119)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">         (20,733)</td>
<td> </td>
<td style="font-weight: bold; text-align: right">           (8,163)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">         (16,951)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Contribution to net earnings (loss) </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (12,889)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (23,126)</td>
<td> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (15,691)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (14,638)</td></tr>
</table>
<p style="margin: 0pt"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Equity in Investment Partnerships</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold; width: 63%"> </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Lion Fund</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 13%">Lion Fund II</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Total assets as of September 30, 2018 </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             149,516</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             903,889</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Total liabilities as of September 30, 2018</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $                    208</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             200,832</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Revenue for the first nine months of 2018</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             (49,895)</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $           (122,622)</td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold">Earnings (loss) for the first nine months of 2018 </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $             (49,944)</td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $           (129,691)</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: middle">Biglari Holdings’ ownership interest as of September 30, 2018 </td>
<td style="font-weight: bold; vertical-align: bottom"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">65.8%</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right">92.2%</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Total assets as of December 31, 2017 </td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             203,560</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $          1,060,737</td></tr>
<tr style="vertical-align: middle">
<td>Total liabilities as of December 31, 2017</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $                    157</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             199,974</td></tr>
<tr style="vertical-align: middle">
<td>Revenue for the first nine months of 2017 </td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (47,656)</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (89,110)</td></tr>
<tr style="vertical-align: middle">
<td>Earnings (loss) for the first nine months of 2017 .</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $             (47,703)</td>
<td style="text-align: center"> </td>
<td style="text-align: right"> $           (127,970)</td></tr>
<tr>
<td style="vertical-align: middle">Biglari Holdings’ ownership interest as of September 30, 2017 </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">63.9%</td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: middle; text-align: right">93.0%</td></tr>
</table>
<p style="margin: 0pt"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="width: 73%"> </td>
<td style="text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 12%">September 30,<br />
2018</td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 12%">December 31, 2017</td></tr>
<tr style="vertical-align: middle">
<td>Land</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right"> $        150,222</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $        156,506</td></tr>
<tr style="vertical-align: middle">
<td>Buildings </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">146,675</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           152,610</td></tr>
<tr style="vertical-align: middle">
<td>Land and leasehold improvements</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">161,105</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           162,652</td></tr>
<tr style="vertical-align: middle">
<td>Equipment </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">201,471</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           203,145</td></tr>
<tr style="vertical-align: middle">
<td>Construction in progress </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">1,863</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">               1,782</td></tr>
<tr style="vertical-align: middle">
<td> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">           661,336</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">           676,695</td></tr>
<tr style="vertical-align: middle">
<td>Less accumulated depreciation and amortization</td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">(379,731)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">(380,895)</td></tr>
<tr style="vertical-align: middle">
<td>Property and equipment, net </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        281,605</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        295,800</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 33%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 5%"> Restaurants </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 6%"> Other </td>
<td style="font-weight: bold; text-align: center; width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 5%"> Total </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Goodwill at December 31, 2017 </td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="text-align: right"> $        28,168</td>
<td style="padding-left: 9px; text-align: left"> </td>
<td style="text-align: right"> $          11,913</td>
<td style="padding-left: 9px; text-align: left"> </td>
<td style="text-align: right"> $      40,081</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Change in foreign exchange rates during the first nine months 2018 </td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 (20)</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">                    -   </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">               (20)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Goodwill at September 30, 2018 </td>
<td> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        28,148</td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $          11,913</td>
<td style="padding-left: 9px; font-weight: bold; text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      40,061</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross carrying amount</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Accumulated amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Gross carrying amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left">Franchise agreement</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">5,310</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(4,514</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">796</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">5,310</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(4,116</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">1,194</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">810</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(767</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">43</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">810</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(743</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">67</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td>Total</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,120</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(5,281</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">839</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,859</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,261</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Intangible assets with indefinite lives:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Trade names</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,876</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,876</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,876</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,876</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other assets with indefinite lives</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,427</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,427</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">33,524</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(5,281</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">28,243</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31,423</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,859</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">26,564</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left">Net sales</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">186,368</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">199,980</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">563,736</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">587,532</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Franchise royalties and fees</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,762</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,125</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">22,637</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,030</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">911</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">967</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,196</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,071</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">195,041</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">206,072</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">589,569</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">606,633</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">September 30, </p>
<p style="margin-top: 0; margin-bottom: 0">2018</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">December 31,</p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; text-align: left">Accounts payable</td><td style="width: 5%; font-weight: bold"> </td>
<td style="width: 4%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">35,597</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 6%; text-align: left">$</td><td style="width: 12%; text-align: right">40,616</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Gift card liability</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">15,112</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,436</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Salaries, wages, and vacation</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10,829</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,875</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Taxes payable</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11,756</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,571</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Workers' compensation and other self-insurance accruals</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10,074</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,047</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Deferred revenue</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">14,463</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,522</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,592</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,677</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Accounts payable and accrued expenses</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">107,423</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">128,744</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30, 2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Accumulated<br /> other<br /> comprehensive income (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left">Beginning Balance  </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(1,462</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">58</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(1,404</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(3,447</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(137</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(3,584</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Other comprehensive income</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(loss) before reclassifications</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">169</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Reclassification to</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(earnings) loss</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(58</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(58</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency translation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(783</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(783</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,750</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,750</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Ending Balance</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,697</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,665</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">Third Quarter 2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Foreign currency translation adjustments</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center"><br /><br />Investment gain (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">Accumulated<br /> other<br /> comprehensive income (loss)</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left">Beginning Balance  </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(2,107</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 6%; font-weight: bold; text-align: right">(2,107</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(2,259</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(14</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(2,273</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Other comprehensive income</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(loss) before reclassifications</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">46</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Reclassification to</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">(earnings) loss</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Foreign currency translation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(138</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(138</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">562</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">562</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Ending Balance</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,245</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,697</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,665</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold"> </td>
<td colspan="15" style="font-weight: bold; text-align: right"> </td><td> </td>
<td colspan="15" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 1</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Level 3</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">Total</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Assets</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 28%; text-align: left">Cash equivalents</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">5,592</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">—  </td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">5,592</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">5,785</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">5,785</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Equity securities:</td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Consumer goods</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,351</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,351</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,445</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,445</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Bonds</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">30,420</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">30,420</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,901</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,901</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Options on equity securities</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,212</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,212</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,018</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,018</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Non-qualified deferred</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">compensation plan</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">investments</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,901</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,901</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,459</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,459</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total assets at fair value</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">14,844</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,632</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">47,476</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,689</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,919</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">39,608</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Third Quarter</td>
<td> </td>
<td colspan="3" style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%"> </td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2018</td>
<td style="width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2017</td>
<td style="width: 1%"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2018</td>
<td style="width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 9%">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Contributions</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $          7,340</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> $                -   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> $          7,340</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> $          3,707</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Return of capital</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">         (26,000)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">-   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">(26,000)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">-   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Distributions </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">-   </td>
<td style="text-align: left"> </td>
<td style="text-align: right">           (4,380)</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">         (7,700)</td>
<td style="text-align: left"> </td>
<td style="text-align: right">           (9,395)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (18,660)</td>
<td style="text-align: left"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        (4,380)</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $      (26,360)</td>
<td style="text-align: left"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"> $        (5,688)</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Revenue</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; text-align: left">Operating Businesses:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left; padding-left: 18px">Steak n Shake</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">191,240</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">202,001</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">578,111</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">596,026</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 18px">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,801</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,071</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,458</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,607</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Total Restaurant Operations</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">195,041</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">206,072</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">589,569</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">606,633</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">First Guard</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,038</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,285</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">20,330</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,548</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Maxim</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,503</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,877</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,647</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,400</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">203,582</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">214,234</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">614,546</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">630,581</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Earnings (Losses) Before Income Taxes</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Third Quarter</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">First Nine Months</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; text-align: left">Operating Businesses:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left; padding-left: 18px">Steak n Shake</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">(3,172</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(3,283</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">(1,505</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,038</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 18px">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">516</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">479</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,564</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,514</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Total Restaurant Operations</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,656</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,804</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">59</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,552</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px">First Guard</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,813</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">834</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,624</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,135</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Maxim</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">111</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(90</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(487</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">171</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">174</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">474</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">515</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Total Operating Businesses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(561</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,751</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,067</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,715</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Corporate and Investments:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-left: 9px">Corporate</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,366</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,600</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(8,536</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,285</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Investment partnership gains (losses)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(19,008</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(43,859</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(23,854</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(31,589</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Total Corporate and Investments</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(21,374</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(45,459</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(32,390</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(37,874</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Interest expense on notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,967</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,716</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(8,619</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,321</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(24,902</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(49,926</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(35,942</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(40,480</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="margin: 0pt"></p>
563736000
0
563736000
186368000
0
186368000
22637000
16030000
22637000
6859000
15778000
7762000
5125000
7762000
2157000
5605000
3196000
3071000
3196000
357000
2839000
911000
967000
911000
63000
848000
-35942000
-40480000
-1505000
1038000
1564000
1514000
59000
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<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 5, 2018, the Company entered
into an agreement with its predecessor registrant, now known as OBH Inc. (the “Predecessor”), and BH Merger Company,
a wholly owned subsidiary of the Company. Pursuant to the agreement, on April 30, 2018, BH Merger Company merged with and into
the Predecessor, with the Predecessor continuing as the surviving corporation and a wholly owned subsidiary of the Company.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the April 30, 2018 transaction,
the Company has two classes of common stock designated Class A common stock and Class B common stock. A share of Class B common
stock has economic rights equivalent to 1/5<sup>th</sup> of a share of Class A common stock; however, Class B common stock
has no voting rights. Upon completion of the transaction, every ten (10) shares of common stock outstanding on April 30, 2018 converted
into (i) ten (10) shares of Class B common stock and (ii) one (1) share of Class A common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Since May 1, 2018, the shares of the
Company’s Class A common stock have traded on the New York Stock Exchange (“NYSE”) under the ticker symbol
“BH.A,” whereas the Class B common stock trades on the NYSE under the ticker symbol “BH,” which is
the former ticker symbol for the Predecessor’s common stock.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For accounting purposes, the April 30,
2018 transaction will be treated as a merger of entities under common control. Accordingly, the consolidated financial position
and results of operations of the Predecessor will be included in the consolidated financial statements on the same basis as currently
presented, except for earnings per share which is impacted by the issuance of the new common shares. The Company has applied the
“two-class method” of computing earnings per share as prescribed in ASC 260, “Earnings Per Share.” </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Current portion of notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">September 30, </p>
<p style="margin-top: 0; margin-bottom: 0">2018</p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="margin-top: 0; margin-bottom: 0">December 31, </p>
<p style="margin-top: 0; margin-bottom: 0">2017</p></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; text-align: left">Notes payable</td><td style="width: 7%; font-weight: bold"> </td>
<td style="width: 2%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">2,200</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 7%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 12%; text-align: right">2,200</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized original issue discount</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(331</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(321</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Unamortized debt issuance costs</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(603</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(585</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Obligations under leases</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,792</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,279</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Western revolver</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">—  </td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">175</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Total current portion of notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,058</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6,748</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: right"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left">Long-term notes payable and other borrowings</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Notes payable</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">182,048</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">183,698</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Unamortized original issue discount</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(522</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(772</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Unamortized debt issuance costs</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(951</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,405</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Obligations under leases</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">64,808</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">75,473</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Total long-term notes payable and other borrowings</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">245,383</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">256,994</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
* Net earnings (loss) per equivalent Class B share outstanding are one-fifth of the equivalent Class A share or $(7.90) and $(13.22) for the third quarter and first nine months of 2018, respectively, and $(13.39) and $(10.50) for the third quarter and first nine months of 2017, respectively.