F-6
Texas Roadhouse, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)December 25, December 26, December 27,
2018 2017 2016
Cash flows from operating activities:
Net income including noncontrolling interests ..................................... $ 164,294 $ 137,536 $ 120,573
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ............................................... 101,216 93,499 82,964
Deferred income taxes ..................................................... 12,319 (5,069) 5,994
Loss on disposition of assets ................................................ 6,008 4,961 5,125
Impairment and closure costs ................................................ 105 600 139
Contribution from executive officer ........................................... 1,000 — —
Equity income from investments in unconsolidated affiliates ........................ (1,353) (1,488) (1,111)
Distributions of income received from investments in unconsolidated affiliates ........... 656 1,424 1,901
Provision for doubtful accounts .............................................. (9) 10 27
Share-based compensation expense ........................................... 33,983 26,934 26,067
Changes in operating working capital:
Receivables ............................................................. (15,597) (20,379) (10,733)
Inventories ............................................................. (2,495) (48) (455)
Prepaid expenses ......................................................... (3,023) (1,211) (855)
Other assets ............................................................. (4,290) (7,401) (4,229)
Accounts payable ........................................................ 8,882 1,601 138
Deferred revenue—gift cards ................................................ 35,519 26,678 28,284
Accrued wages .......................................................... 4,481 3,639 (10,194)
Excess tax benefits from share-based compensation ............................... — — (3,291)
Prepaid income taxes and income taxes payable .................................. (8,581) 3,448 2,300
Accrued taxes and licenses .................................................. 2,634 2,299 919
Other accrued liabilities .................................................... 7,569 5,148 3,326
Deferred rent ............................................................ 5,938 6,038 4,610
Other liabilities .......................................................... 3,612 8,154 5,566
Net cash provided by operating activities ...................................... 352,868 286,373 257,065
Cash flows from investing activities:
Capital expenditures—property and equipment .................................... (155,980) (161,628) (164,738)
Acquisition of franchise restaurants, net of cash acquired ............................ (2,165) (16,528) —
Net cash used in investing activities ......................................... (158,145) (178,156) (164,738)
Cash flows from financing activities:
Proceeds from revolving credit facility, net ....................................... — — 25,000
Debt issuance costs ......................................................... — (476) —
Proceeds from noncontrolling interest contribution and other .......................... 2,551 3,457 —
Distributions to noncontrolling interest holders .................................... (5,746) (5,171) (4,479)
Acquisition of noncontrolling interest ........................................... (122) — —
Repurchase of shares of common stock .......................................... — — (4,110)
Excess tax benefits from share-based compensation ................................ — — 3,291
Proceeds from restricted stock and other deposits, net ............................... 418 740 419
Indirect repurchase of shares for minimum tax withholdings .......................... (14,067) (11,639) (9,312)
Principal payments on long-term debt and capital lease obligation ...................... (50,000) (558) (145)
Proceeds from exercise of stock options ......................................... — 1,558 2,673
Dividends paid to shareholders ................................................ (68,550) (58,154) (52,054)
Net cash used in financing activities ......................................... (135,516) (70,243) (38,717)
Net increase in cash and cash equivalents ..................................... 59,207 37,974 53,610
Cash and cash equivalents—beginning of period .................................... 150,918 112,944 59,334
Cash and cash equivalents—end of period ......................................... $ 210,125 $ 150,918 $ 112,944
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized ......................................... $ 896 $ 1,216 $ 1,011
Income taxes paid .......................................................... $ 20,519 $ 50,201 $ 42,890
Capital expenditures included in current liabilities .................................. $ 7,332 $ 12,156 $ 2,781
Obligation under capital lease ................................................. $ — $ — $ 2,000
See accompanying notes to Consolidated Financial Statements.