F-8
Texas Roadhouse, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)December 31, December 25, December 26,
2019 2018 2017
Cash flows from operating activities:
Net income including noncontrolling interests ....................................... $ 181,518 $ 164,294 $ 137,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................................. 115,544 101,216 93,499
Deferred income taxes ....................................................... 6,335 12,319 (5,069)
Loss on disposition of assets .................................................. 5,885 6,008 4,961
Impairment and closure costs .................................................. (1,283) 105 600
Contribution from executive officer ............................................. — 1,000 —
Equity income from investments in unconsolidated affiliates .......................... (378) (1,353) (1,488)
Distributions of income received from investments in unconsolidated affiliates ............. 1,837 656 1,424
Provision for doubtful accounts ................................................ (22) (9) 10
Share-based compensation expense ............................................. 35,500 33,983 26,934
Changes in operating working capital:
Receivables ............................................................... (5,774) (15,597) (20,379)
Inventories ............................................................... (1,414) (2,495) (48)
Prepaid expenses ........................................................... (2,049) (3,023) (1,211)
Other assets ............................................................... (12,823) (4,290) (7,401)
Accounts payable .......................................................... 407 8,882 1,601
Deferred revenue—gift cards .................................................. 16,991 35,519 26,678
Accrued wages ............................................................ 5,540 4,481 3,639
Prepaid income taxes and income taxes payable .................................... 5,554 (8,581) 3,448
Accrued taxes and licenses .................................................... 5,802 2,634 2,299
Other accrued liabilities ...................................................... (3,773) 7,569 5,148
Operating lease right-of-use assets and lease liabilities ............................... 5,826 — —
Deferred rent .............................................................. — 5,938 6,038
Other liabilities ............................................................ 15,075 3,612 8,154
Net cash provided by operating activities ........................................ 374,298 352,868 286,373
Cash flows from investing activities:
Capital expenditures—property and equipment ...................................... (214,340) (155,980) (161,628)
Acquisition of franchise restaurants, net of cash acquired .............................. (1,536) (2,165) (16,528)
Proceeds from sale of property and equipment....................................... 1,056 — —
Net cash used in investing activities ........................................... (214,820) (158,145) (178,156)
Cash flows from financing activities:
Debt issuance costs ........................................................... — — (476)
Proceeds from noncontrolling interest contribution ................................... — 2,551 3,457
Distributions to noncontrolling interest holders ...................................... (6,357) (5,746) (5,171)
Acquisition of noncontrolling interest ............................................. (743) (122) —
Proceeds from restricted stock and other deposits, net ................................. 62 418 740
Indirect repurchase of shares for minimum tax withholdings ............................ (12,471) (14,067) (11,639)
Principal payments on long-term debt ............................................. — (50,000) (558)
Proceeds from exercise of stock options ........................................... — — 1,558
Repurchase of shares of common stock ............................................ (139,849) — —
Dividends paid to shareholders .................................................. (102,366) (68,550) (58,154)
Net cash used in financing activities ........................................... (261,724) (135,516) (70,243)
Net (decrease) increase in cash and cash equivalents ............................... (102,246) 59,207 37,974
Cash and cash equivalents—beginning of period ...................................... 210,125 150,918 112,944
Cash and cash equivalents—end of period ........................................... $ 107,879 $ 210,125 $ 150,918
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized ........................................... $ 738 $ 896 $ 1,216
Income taxes paid ............................................................ $ 20,440 $ 20,519 $ 50,201
Capital expenditures included in current liabilities .................................... $ 15,416 $ 7,332 $ 12,156
See accompanying notes to Consolidated Financial Statements.