NASDAQ_TXRH_2019

Texas Roadhouse, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

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

F-15

The adoption of this standard had a significant impact on our consolidated balance sheet. There was no significant
impact to our results of operations or cash flows. This standard did not have a significant impact on our liquidity or on
our compliance with our financial covenants associated with our credit facility.

Financial Instruments

(Accounting Standards Update 2016-13, "ASU 2016-13")

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments, which requires measurement and recognition of expected versus incurred losses
for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 (our 2020
fiscal year), and for interim periods within those years, with early adoption permitted for annual periods beginning after
December 15, 2018. We do not believe this standard will have a significant impact on our consolidated financial
statements.

Goodwill

(Accounting Standards Update 2017-04, "ASU 2017-04")

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the
Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment and is expected to reduce the
cost and complexity of accounting for goodwill. ASU 2017-04 removes Step 2 of the goodwill impairment test, which
requires a hypothetical purchase price allocation. Instead, goodwill impairment will be the amount by which a reporting
unit’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill. ASU 2017-04 is effective
for annual and interim periods for fiscal years beginning after December 15, 2019 (our 2020 fiscal year) and will be
applied on a prospective basis. Early adoption is permitted for interim and annual goodwill impairment tests performed
on testing dates after January 1, 2017. We do not believe this standard will have a significant impact on our consolidated
financial statements.

Fair Value Measurement

(Accounting Standards Update 2018-13, "ASU 2018-13")

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework –
Changes to the Disclosure Requirements for Fair Value Measurement, which changes disclosure requirements for fair
value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 (our 2020 fiscal
year) and for interim periods within those years, with early adoption permitted. We do not believe this standard will
have a significant impact on our consolidated financial statements.

(3) Revenue

The following table disaggregates our revenue by major source (in thousands):

Fiscal Year Ended
December 31,
2019

December 25,

2018

December 26,
2017
Restaurant and other sales ...................................... $ 2,734,177 $ 2,437,115 $ 2,203,017
Franchise royalties... .......................................... 19,445 17,443 16,195
Franchise fees ................................................ 2,541 2,891 319
Total revenue ................................................. $ 2,756,163 $ 2,457,449 $ 2,219,531