NASDAQ_TXRH_2018

Texas Roadhouse, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Tabular amounts in thousands, except share and per share data)

F-19

(6) Property and Equipment, Net

Property and equipment were as follows:

December 25, December 26,

2018 2017

Land and improvements .................................. $ 127,579 $ 124, 126

Buildings and leasehold improvements ...................... 835,490 757, 293

Furniture, fixtures and equipment .......................... 556,254 500, 954

Construction in progress .................................. 28,975 47,457

Liquor licenses ......................................... 10,829 10,027

1,559,127 1,439,857

Accumulated depreciation and amortization .................. (602,451) (527,710)

$ 956,676 $ 912,147

The amount of interest capitalized in connection with restaurant construction was approximately $0.1 million, $0.4
million and $0.3 million for the years ended December 25, 2018, December 26, 2017 and December 27, 2016,
respectively.

(7) Goodwill and Intangible Assets

The changes in the carrying amount of goodwill and intangible assets are as follows:

Goodwill Intangible Assets

Balance as of December 27, 2016 (1) .......................... $ 116,571 $ 3,622

Additions. ................................................ 4,469 —

Amortization expense ...................................... — (922)

Disposals and other, net ..................................... — —

Impairment ............................................... — —

Balance as of December 26, 2017................ ............. $ 121,040 $ 2,700

Additions. ................................................ 2,180 —

Amortization expense ...................................... — (741)

Disposals and other, net ..................................... — —

Impairment ............................................... — —

Balance as of December 25, 2018................ ............. $ 123,220 $ 1,959

(1) Net of $4.8 million of accumulated goodwill impairment losses.

Intangible assets consist of reacquired franchise rights. The gross carrying amount and accumulated amortization of
the intangible assets at December 25, 2018 were $15.4 million and $13.4 million, respectively. As of December 26,
2017, the gross carrying amount and accumulated amortization of the intangible assets was $15.4 million and
$12.7 million. We amortize reacquired franchise rights on a straight-line basis over the remaining term of the franchise
operating agreements, which varies by restaurant. Amortization expense for the next five years is expected to range
from $0.2 million to $0.7 million. Refer to note 4 for discussion of the acquisitions completed for the years ended