NASDAQ_TXRH_2019

Texas Roadhouse, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

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

F-18

(6) Property and Equipment, Net

Property and equipment were as follows:

December 31, December 25,

2019 2018

Land and improvements .................................. $ 135,708 $ 127,579

Buildings and leasehold improvements ...................... 922,036 835,490

Furniture, fixtures and equipment .......................... 614,920 556,254

Construction in progress .................................. 51,924 28,975

Liquor licenses ......................................... 10,963 10,829

1,735,551 1,559,127

Accumulated depreciation and amortization .................. (678,988) (602,451)

$ 1,056,563 $ 956,676

There was no interest capitalized in connection with restaurant construction for the year ended December 31, 2019.
For the years ended December 25, 2018 and December 26, 2017, the amount of interest capitalized in connection with
restaurant construction was $0.1 million and $0.4 million, 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 26, 2017 (1) ........................ $ 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

Additions ............................................... 1,528 —

Amortization expense ..................................... — (725)

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

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

Balance as of December 31, 2019........... ................ $ 124,748 $ 1,234

(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 31, 2019 were $15.4 million and $14.1 million, respectively. As of December 25,
2018, the gross carrying amount and accumulated amortization of the intangible assets was $15.4 million and
$13.4 million, respectively. 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 $0.1 million to $0.4 million. Refer to note 4 for discussion of the acquisitions completed for the years
ended December 31, 2019 and December 25, 2018.