Texas Roadhouse, Inc. and SubsidiariesNotes to Consolidated Financial Statements(Tabular amounts in thousands, except share and per share data)F-27
There were no transfers among levels within the fair value hierarchy during the year ended December 31, 2019.The following table presents the fair values for our financial assets and liabilities measured on a recurring basis:Fair Value Measurements
Level December 31, 2019 December 25, 2018
Deferred compensation plan—assets ............. 1 $ 44,623 $ 31,632
Deferred compensation plan—liabilities...... .... 1 (44,679) (31,721)The Second Amended and Restated Deferred Compensation Plan of Texas Roadhouse Management Corp., as
amended, (the "Deferred Compensation Plan") is a nonqualified deferred compensation plan which allows highly
compensated employees to defer receipt of a portion of their compensation and contribute such amounts to one or more
investment funds held in a rabbi trust. We report the accounts of the rabbi trust in other assets and the corresponding
liability in other liabilities in our consolidated financial statements. These investments are considered trading securities
and are reported at fair value based on quoted market prices. The realized and unrealized holding gains and losses related
to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense
in the consolidated statements of income and comprehensive income.
The following table presents the fair value of our assets measured on a nonrecurring basis:Fair Value Measurements Total gain (loss)
Fiscal Year Ended
December 31, December 25, December 31, December 25,
Level 2019 2018 2019 2018
Long-lived assets held for use ...................... 1 $ 1,684 $ — $ 1,190 $ —
Operating lease right-of-use assets ................... 3 $ 611 $ — $ (1,144) $ —
Long-lived assets held for use include leasehold improvements for one restaurant that is subject to a forced
relocation. These assets are valued using a Level 1 input, or the contractually negotiated price we will receive. These
assets are included in property and equipment in our consolidated balance sheets. These assets were recorded at their
fair value, resulting in a gain of $1.2 million, which is included in impairment and closure, net in our consolidated
statements of income. For further discussion of impairment charges, see note 16.
Operating lease right-of-use assets include the lease related assets for one underperforming restaurant in which the
carrying value of the right-of-use asset for the associated land and building lease was reduced to fair value. These assets
are valued using a Level 3 input, or the discounted cashflows we expect to receive based on the future operations of this
location. This resulted in a loss of $1.1 million, which is included in impairment and closure, net in our consolidated
statements of income. For further discussion of impairment charges, see note 16.
At December 31, 2019 and December 25, 2018, the fair values of cash and cash equivalents, accounts receivable
and accounts payable approximated their carrying values based on the short-term nature of these instruments.
(16) Impairment and Closure Costs
We recorded impairment and closure costs of ($0.9) million, $0.3 million and $0.7 million for the years ended
December 31, 2019, December 25, 2018 and December 26, 2017.
Impairment and closure costs in 2019 included a gain of $2.6 million related to the forced relocation of one
restaurant. This included a gain of $1.2 million related to the leasehold improvements and a gain of $1.4 million to settle
a favorable operating lease. Also, in 2019, we recorded a charge of $1.1 million related to the impairment of the right-of-
use asset at an underperforming restaurant. The remaining costs of $0.6 million related to costs associated with the
relocation of restaurants.